ABS Quindell posts 900% increase in turnover and profit

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7 May 2013

Terry: actively seeking out value-enhancing acquisitions

The massive acquisition programme of alternative business structure Quindell Portfolio plc – including three law firms – resulted in a 900% increase in turnover and profit in 2012, the company’s preliminary annual results have shown.

The AIM-listed outsourcing company – which has its sights set on joining the main list of the London Stock Exchange – reported revenue up 904% from £14m to £138m, with gross sales soaring 1,154% to £172m. Legal services accounted for £34.4m of this.

Profits before tax increased by 915% to £41m, and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) by 681% to £52m. The EBITDA margin was the only figure that fell in 2012, at 38% of revenue and 30% of gross sales (both 49% in 2011).

Best known for its personal injury claims outsourcing service – which has recently won the RAC as a client, as well as a “leading broker, the largest direct insurer and a major accident manager”, whose names have been withheld – Quindell also serves the telecoms market and provides software and consulting. It has recently entered the property claims market as well as North America.

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Quindell said the growth was continuing, with the first quarter of 2013 delivering over £25m adjusted EBITDA, up 10% on the fourth quarter of 2012. Among its recent acquisitions was leading costs firm Compass Costs.

Rob Terry, chairman and group chief executive of Quindell, said: “This is the second year that the group has delivered strong results, exceeding market expectations in every key performance indicator. Just as importantly, we have delivered on our high-level strategy to focus on earning-enhancing acquisitions which have been identified and prepared for integration over a significant period within our two core markets, insurance and telecoms.

“This strategy provided a platform to deliver disruptive business transformation solutions that improve efficiency and effectiveness in our core markets, whilst driving down costs. At the same time, it enables us to develop combined propositions that are compelling for the marketplace to achieve significant organic growth in this period of major technology and regulatory change.”

Mr Terry said he plans to continue on the same path, “looking to grow organically with new clients, to add more services to existing ones and actively seeking out value-enhancing acquisitions that are focused on our target market”.

He added: “The board is confident that we are very well positioned for continued growth in 2013, expects to rapidly progress our move towards a full listing. It is the board’s current intention to pay a maiden dividend to shareholders in early 2014 in respect of the group’s performance for year ended December 2013.”

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