Quindell has been forced to release yet another trading update as its share price has suffered further fluctuation following reports that its deal with the RAC to install telematics devices in cars has hit difficulties.
The Financial Times has reported that the deal between the two companies was in jeopardy following concerns about Quindell’s financial position.
Back in April, Quindell said that the arrangement with RAC would lead to the creation of a new company, Connected Car Solutions, which would distribute Quindell and the RAC’s combined connected car capabilities. 51% of the new company is owned by Quindell, with RAC owning the remaining 49%. Both companies said they would pay £15 million towards the new business.
Connected Car Solutions was due to start selling its telematics deals from July this year, targeting up to 10 million subscribers and $2.2bn per annum in revenues. Himex and ingenie were also lined up to work with Connected Car Solutions on its black box technology.
However, the joint venture has not as yet, become operational.
According to the FT, a Quindell spokesman said that the firm “continues to have a positive relationship” with the RAC and that it would provide an update on the roll out “when appropriate”.
In its latest trading report, the claims company said that it had met all its key performance indicators in July and that services margins remained particularly strong and ahead of plan.