Quindell Portfolio PLC (LON: QPP) issues further clarification about its balance sheet.
The shares of Quindell Portfolio (LSE: QPP) advanced 0.9p, or 15%, to 6.9p during early London trade this morning after the company once again responded to press speculation about the health of its accounts.
Quindell, which manages claims on behalf of insurers, said it enjoyed "a strong balance sheet, good debtor controls and continues to trade profitably with significant traction in the insurance industry".
The AIM-quoted firm referred to "active shorters" calling into question an equity swap and said it knew of "no valid reason" for the group's recent share-price decline.
Since the start of the month, Quindell's shares have slumped from almost 14p to as low as 6p.
This morning, Quindell revealed the equity swap in question represented £13.3m of the wider group's £202.3 million debtor position as at the end of 2012.
The company also stated that all the shares relating to the equity swap had been issued and included in the earnings per share calculation for last year's results.
Those results, issued last week, showed sales surging from £14m to £138m and adjusted profits soaring from £6m to £49m.
The figures also showed underlying earnings climbing 92% to 1.4p per share, which supports a P/E rating of less than 5 at the current share price.
Of course, whether that lowly multiple, today's rebuttal to the 'active shorters' as well as the wider prospects of the insurance sector all combine to make Quindell a 'buy' is something only you can decide.
For what it is worth, Quindell's directors have pledged to buy the shares as soon as stock-market rules allow them to do so.
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> Maynard does not own any share mentioned in this article.