Quindell Portfolio the AIM-listed company which received its alternative
business structure (ABS) licences last month, has reported strong 2012 results,
ahead of market expectations.
In October Quindell Legal Services Limited acquired Pinto
Potts Solicitors ("Pinto Potts") for an initial £1.5 million of cash
plus 87,500,000 Quindell shares, with another £1.5 million in cash
consideration being payable in the second half of 2013. This was rapidly followed by the acquisition
of The Compensation Lawyers ("TCL") in December, for a payment of £30,000
in cash and the issue today of 2,200,000 Quindell shares.
It seems that the acquisition strategy is proving to be a success. Quindell,
which also offers outsourcing services in the insurance and telecoms sectors,
expects revenue to be approximately £165m, with adjusted EBITDA of approximately
£47m (including the figures of the acquired law firms for the period during
which they were in partnership with Quindell prior to the issuance of the ABS licence). Furthermore, Quindell is achieving an EBITDA margin
of 28% - a figure that many firms would like to emulate.
Rob Terry, Chairman and Group Chief Executive
said:
“ Quindell Legal Services is now the UK's
largest, claimant focused, personal injury law firm (based on forecast run rate
volumes) having secured long-term relationships with some of the UK's most
respected motor related brands during 2012. These long-term relationships are
part of Quindell's wider claims outsourcing arrangements covering vehicle
repair, hire, recovery, broader legal services, medical reporting and multi
disciplinary rehabilitation services all helping to lower the total cost of
claims for the insurance industry whilst protecting the quality of customer
journey and the rights of the consumer.”
At the end of the day, the success of listed companies will
be determined by their share price.
Qunidell’s shares are currently trading at around 14.75 – a very
considerable improvement on the 52 week low of 4.70 which was seen last
summer. This will doubtless make the
former Pinto Potts and TCL owners very glad that they took such a significant
element of their sale consideration in Quindell stock.
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