The founder of troubled outsourcing group Quindell has relinquished part of his role following a turbulent few months that have seen the company's shares hammered by short sellers.
Quindell, which began life as a country and golf club, handles outsourced insurance claims for car insurers and also makes black boxes for vehicles to help insurers monitor how customers drive. Rob Terry will become non-executive chairman of the AIM-listed group but be replaced as chief executive by Robert Fielding, currently head of its services division.
The company has been under pressure since April when a US company called Gotham City Research, which admits on its website that it might take bets against the shares it writes about, issued a note with a host of damning claims about its finances, causing it to lose about £900m from its value. The company denied the claims.
Shares in the AIM-listed group rose 7 per cent in early trading but closed down 0.75p at 17p after it announced the overhaul of its board and claimed that the value of new contacts was likely to be worth more than £250m this year.