Embattled claims processing firm Quindell dealt yet another blow after key City cheerleader quits

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Embattled claims processing firm Quindell was dealt yet another blow yesterday after a key City cheerleader quit.

Cenkos, the firm’s house broker, confirmed the analyst who covered Quindell had resigned.

Shares slid another 20 per cent, taking the stock 11p down to 43p – the lowest level in three years.

Blow: Cenkos, the firm’s house broker, confirmed the analyst who covered Quindell had resigned

Andy Bryant, who previously advised clients to ‘buy’ Quindell stock and had a target share price of 120p, walked out yesterday morning.

Earlier this month he was publicly humiliated after defending a controversial fundraising scheme used by three directors.

In a widely-circulated note, he insisting the deal was only a ‘loan facility’ to allow the bosses to buy more shares.

The following trading day Quindell was forced to admit the three bosses actually offloaded their shares in order to raise the money.

Bryant is moving to a rival firm, though has refused publicly to declare his reason for leaving Cenkos.

His departure comes only days after Quindell’s founder Rob Terry, and the two others who took part in the share scheme, were ousted.

Cenkos, which is searching for an analyst to replace Bryant, confirmed he had ‘resigned of his own volition’. Coverage by analysts is vital for any company that wants to be taken seriously on the stock market.

But only three broking houses cover Quindell.

Both Canaccord and Daniel Stewart last night said they still covered the company, though neither has issued any research since October 21 when the share price was 160.75p – almost four times the current level.

The London Stock Exchange has begun investigating whether Quindell breached listing rules by refusing to disclose that Canaccord had quit as broker for a month.

Quindell says the company had not been contacted yet and the LSE refused to comment.