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Quindell (LSE:QPP), the #1 insurance technology business in Europe, watched its share price decline this morning despite an impressive report for the year ending 31 December 2013. The report also reaffirmed the company’s continuing strategy to become listed on the Main Market.
Founder and Executive Chairman, Rob Terry, indicated that “2013 was a year to provide proof” that the company’s strategic plan was on track, just as planned. He reminded shareholders that, “Our strategy, set at the time of our listing on AIM in May 2011, needed to be proven to the market, to our industry and to all other stakeholders during 2013.” And prove it they did, surpassing all KPIs for profitability, cash flow, and EBITDA, ahead of market expectations.
- Pretax profit increased from £35.4 million to £107.0 million (202%).
- Cash on hand increased from £48.1 million to £199.6 million.
- EBITDA was up from £52.2 million to £137.7 million (164%).
These KPIs were surpassed on the strength of a 133% increase in revenue from £163.0 million to £380.1 million. The report also touted the fact that it has delivered “significant organic growth,” exceeding market expectations for 12 successive quarters. Only 11% of Quindell’s growth has been a result of acquisitions, according to Laurence Moorse, Group Finance Director. Based on the company’s financial strength and “the opportunities that it has to capitalize on its market position,” Quindell has bumped it EBITDA margin guidance by five additional points.
Having proven that it has “the right stuff,” Quindell is now set to list on the Main Market. The company’s plans include submitting their prospectus within the next two weeks (mid-April), followed by admission sometime prior to the point when the FTSE indices are reviewed in early June. The company hopes to be included in the FTSE 250 and, possibly, the FTSE 100, hence the strategic importance of the timing.
Terry proudly proclaimed that he was “pleased to be able to present today to shareholders, employees and other stakeholders a very positive picture of our strategy being reality, and being able to confirm that as a group, we have established the scale and substance from which we will be able to grow further on a global basis and create additional significant value for all stakeholders.”
Quindell describes itself best as a “Strategic Digital Technology and Outsourcing Partner, re-engineering industries to drive down costs using Ethical practices and Collaborative models.” (I wonder if they have ever considered working with the banking sector.)
Quindell’s share price opened today at 38.00, slightly lower than Friday’s close at 38.75, dropping to 35.22 by 8:17 am. The stock has recovered to 36.75 (down 2.00 on the day) as at 3:00 pm GMT.
The Quindell board sees 2014 as the threshold of massive growth potential, projecting that it can grow to 10 million subscribers, all of which will generate recurring revenues in years to come.
