Bought in today... have missed out on the impressive gains so far but solid progress is being made here and a good story developing so it looks good for more gains in the near future (imho)....

Quindell Portfolio, the brand extension company, says trading has continued positively in the period under review, building on the strong performance delivered by the Group in the first half.

The company expects to be significantly ahead of market expectations for the 15 month period ending 31 December 2011.

The Group announced back in October that it had won contracts with six established brands and one exciting new digital brand within the insurance, telecoms and utilities sectors, including for the first time, solar energy; and that revenues for 2011 were expected to be ahead of market expectations.

Since then, the Group has won further major contracts with established brands within the telecoms, utilities, on-line education and insurance sectors for both its technology enabled business process outsourcing division and software solutions division.

In aggregate, these contract wins could contribute over £6 million of annualised revenues. In addition, the Group has acquired two further businesses, Maine Finance and, most recently, Mobile Doctors Group Plc.

Margin performance has also been strong and, for 2011, margins are expected to be between 35 and 40 per cent. within its technology enabled business process outsourcing operations

Quindell FY pretax profit soars to £107m
StockMarketWire.com
Quindell booked a FY pretax profit of £107m, considerably above the prior year's profit of £36.36m. Revenue was £380.1m, from £163.0m. A progressive dividend policy was adopted with the maiden payment of 0.1p a share announced today.

Group FD Laurence Moorse said 2013 was another year of significant progress for Quindell, having completed the majority of its acquisitions in 2012 creating a market leading technology enabled outsourcing platform for the servicing of claims for the UK insurance industry.

"It has been a year for delivery of new customer wins and organic growth with only 11% of revenue coming from acquired businesses in the year," he said in a statement.

At the same time, Quindell's Solutions Division has exceeded all market expectations, and has been developing its market leading position in Connected Car solutions (telematics) providing a platform for significant growth in this emerging global market. Already, almost as much Solutions revenue is derived from North America as is achieved in Europe.

The Group's financial strength, and the opportunities that it has to capitalise on its market position leads us to increase our longer term Adjusted EBITDA margin guidance by five percentage points for the second time in six months to 30%+ as the strength of our business model is demonstrated."

Canaccord Genuity Buy 36.38 38.75 87.00 87.00 Reiterates

Canaccord note

A 0.1p Divi great increases this should be flying. Is someone purposely holding this back or is it something they are not telling us? Stupid I call it.

As Harry alluded to earlier, the 2013 Cash flow and Debtors section contains some less than positive numbers?

from Insurance Times:


Outsourcer working on a UK deal involving 2 million telematics devices

The debate about whether telematics will break into the mainstream motor insurance market is “long over” according to Quindell founder and executive chairman Rob Terry.

Some commentators expect telematics insurance, which monitors driver performance in a bid to charge more accurate premiums, to be largely confined to the young driver market.

But Terry, speaking to Insurance Times following the release of Quindell’s 2013 results yesterday, insisted that anyone not expecting telematics to have mass-market appeal was “living in the past.”

He said: “We are shipping over 500 devices a day with some of our clients and that is not in the young driver market. That debate should be long over.”

He added: “The biggest deal we are working on in telematics in the UK, which may or may not come to fruition, would see us rolling out over the next 18 months to two years over 2 million telematics devices. That is again not focused on young driver.”

The company plans to launch an Ingenie product for drivers over 25 in the third quarter this year. Terry said: “It won’t be a slow process. It will partner with a major brand that already has access to several million drivers.” He declined to name the company.

Quindell is also pushing telematics into areas beyond motor. Terry said the company is currently handling 1,200 claims a week using video-based home telematics with “one of the largest direct insurers in the UK”.

Quindell offers telematics through its technology solutions division. It also owns 49% of telematics broker Ingenie and has an option to buy the whole company, which is plans to exercise by the end of this year’s first half.

Quindell’s technology solutions unit grew revenue by 168% to £80.4m (2012: £30.1m) in 2013, which Terry said was partly driven by the UK telematics business.





-------------------------------------------------------------------------
seen elsewhere:


Alphabeta4
1 Apr'14 - 07:32 - 11317 of 11323 0 0


Morning all. Good Robbie Burns seminar yesterday, no qpp trades but confirmed 5300 per point long on a spread bet account and what looked like 25k out of a 1.25m ISA. Has a personal target of 55-60p.
As always DYOR!
Regards, Alphabeta



-------------------------------------------------------

from The Times this morning:


'Move forward with caution'

There has been scepticism on these pages about Quindell — and with good reason. Essentially a technology company that specialises in handling motor and household claims for insurers, it has expanded rapidly, acquiring more than 20 companies in the two and a half years since it came to market.

Many of these deals have been funded by new share issues which have helped to push the market value of Quindell, still quoted on AIM, to more than £2.25 billion.

The worry for shareholders with long memories is that Rob Terry, its founder and chief executive, has done this before. He turned The Innovation Group, which also claimed to have revolutionary technology, into a business with revenues of £1 billion a year, only to watch it crash and burn at the tail end of the dot-com bubble.

Quindell has not helped itself, claiming to have put deals on hold last year, only to embark again on a takeover, albeit tiny. This mixed messaging came hard on the heels of a confusing derivative transaction, the laboured handling of which won the company no friends.

In terms of the pure numbers, though, Quindell is impressive. Yesterday, it reported pre-tax profits of £107 million for the year to the end of December — a 202 per cent leap on the previous year — and a 133 per cent surge in revenues to £380.1 million. The company, which carries out some form of work for eight of the top ten insurance players, said that it was on course to move its listing to the main market in June, when it should become a constituent of the FTSE 250.

On top of that, it declared a maiden dividend which, while modest at just 0.1p, should set the tone for considerably higher progressive payouts in the future.

Mr Terry has a vested interest in this taking place as he holds 11 per cent of the company’s shares and invested his own cash at start-up. The foot has sharply come off the pedal on acquisitions and the emphasis is firmly on organic growth. Indeed, Mr Terry says that just £40 million or so of last year’s revenues were acquisition-related and that Quindell’s business has become extremely cash generative.

Operating cash is expected to reach £200 million next year and Quindell raised its guidance on forecast new business to £2 billion a year in three years’ time.

The shares have more than doubled since last January, though they were off 2½p at 36¼p yesterday on profit taking. If you believe that Mr Terry won’t repeat his mistakes, then take a closer look.

Also from elsewhere :- Quindell’s Terry: Debate about telematics mass-market appeal is ‘long over’

That is the article he posted above skinny. Bit of a disappointment these of late .

Out of this one. Too many ?? and longer time frames.

I think it's holding up quite nicely and will continue to hold, my buy at 33p still in profit.,.

Quindell a driving force

Shares in insurance outsourcing player Quindell (QPP) have more than trebled in the past year as an impressive run rate of contract wins have won over an initially sceptical market. Founder and executive chairman Rob Terry said that 2013 was the year that Quindell had to provide proof of the organic growth potential and high quality revenues that were promised at the time of its Aim float some three years ago.

The proof was in the pudding with adjusted cash profit more than doubling to £138m and adjusted EPS jumping 75 per cent to 2.54p last year. Broker Cenkos said the result was ahead of forecast and upgraded its 2014 adjusted EPS estimate by 8 per cent to 3.85p. That implies a hefty rate of earnings growth this year and the broker expects similarly strong growth the following year with 5.4p of earnings pencilled in for 2015. The broker also raised its fair value for the shares to 86p from 80p.

The services division, which is involved in more than a quarter of all UK auto insurance claims, secured new contracts representing around £450m of additional annual revenue last year. The solutions division, which is a market leader in insurance claims technology, had an equally busy year expanding into North America and further developing its ‘black box’ telematics offering. Quindell has high hopes for its black box technology, which feeds driving information back to the insurer and so allows good drivers to benefit from lower premiums.

With wind in its sails, Quindell is now preparing to move to a full listing before the FTSE indices review in June at which time the company expects to join either the FTSE 250 or potentially even the FTSE 100 if its market capitalisation is large enough. Nothing if not ambitious, Quindell says it is also considering a North American listing once the UK full listing beds down.

Take your choice:

Quindell
36¾p-2
Questor says SELL

QUINDELL has more than doubled revenue and profit in the past year by offering to cut costs in the motor insurance industry. Questor is concerned that kind of rapid expansion brings risks.

The motor insurance outsourcing company has acquired legal services, car hire, car repair, technology and health care businesses during the past two years. The idea is that by combining all these services in one place, Quindell can operate them more efficiently and hand back savings of up to 20pc to the motor insurance industry.

The insurance industry has been hit by soaring personal injury claims that have destroyed profitability, so any cost savings are welcome. Quindell has experienced strong demand for its services. Revenue more than doubled to £380m, pre-tax profit more than tripled to £107m, and earnings per share jumped from 1p to 1.98p during the year ended December 2013.

The gap between profit growth and earnings per share growth is the first warning sign. The reason earnings per share has increased 98pc compared with pre-tax profits up 202pc is that Quindell is funding expansion by issuing shares. The company had about 2bn shares in issue at the start of 2012, 3.6bn in early 2013, and about 6.2bn shares in issue today
nvestors don’t get diluted when shares are issued as long as the acquisitions deliver quality earnings growth. The problem is the quality of those earnings often only becomes apparent many years down the line.

Quindell is a very cash-hungry business and that is the second warning that is making Questor uneasy. The company reported operating cash flow of £10m during 2013, on revenue of £380m, and debtors during the year increased to £327.8m from £177m a year earlier. The reason for the cash strain is that Quindell has to pay upfront for car crash cases and then it takes about six months to resolve the case and receive payment. In the year ahead, legal cases are forecast to make up about 60pc of group revenue.

The company has made progress on reducing its debtor balances. Quindell collected £270m in cash during 2013 and reduced the amount of time it takes to collect the money. That said, there is still a gap of about five months between upfront payment and it collecting cash.

The company argues that it is simply investing in growth. Questor thinks it looks like the company is doubling down and going all out for growth. This may prove wise but it is risky for shareholders.

Speaking in late 2012, Rob Terry, executive chairman, said: “No more fundraising [is] required in 2013 to hit the 3p earnings-per-share targets.” Admittedly, he said that more than a year ago. However, since he spoke Quindell has changed its company name and came back to the market in November last year to raise £200m, net of expenses.

The third warning flag is missed targets. Quindell is some £80m short of previous analyst targets for revenue of £460m for 2013, and the company has also missed Mr Terry’s own 3p earnings-per-share target. Adjusted earnings per share came in at 2.54p for 2013. Then there was the announcement only last October that the company would be moving to a main stock market listing in March alongside yesterday’s full-year results. Mr Terry now says the company will be moving to the main market in early June.

Quindell is a huge favourite with retail investors. The shares are now highly liquid with about 60m of them changing hands every day. The shares have more than doubled from 18p in the year to date and now trade on 11 times forecast earnings per share. Since Questor last said buy (12¼p, August 20) the shares have tripled in value.

In Quindell’s stock market results statement, the words “proof” and “validated” are mentioned on no fewer than six and four occasions respectively with regards to the strategy and results. Questor isn’t so easily convinced and the warning signs are that the risks have risen markedly. There could be stunning growth ahead for the high-risk investor, but Questor cautions against betting too much on this high octane horse. Sell.

Two messages posted elsewhere this morning:

---------------------------------------------
posted on II b/b by DON VAN VLIE...

11:04

NO RE-RUN OF LAST YEAR'S MELTDOWN My nagging fear with the new auditors was that they would unearth some real ‘nasties’ in the latest results. Thank God none were found. Yes, I’m fully aware of the Operational Cashflow and Receivables figures, but what I cannot appreciate is what is so difficult to understand about these figures? They seem to alarm some, but for the life of me I don’t know why? Given the company’s well documented business model (read the Teach-ins on Quindell’s website if you don’t already know) and the exponential growth that it is enjoying I would not have expected anything else. The generation of hard cash for those companies operating in the insurance sector is THE lagging indicator (and the 4.7 months or so cited by QPP is better than the industry norm) and it will remain so whilst the company continues to enjoy meteoric growth. Every new contract win will effectively postpone healthier cashflow figures (as money is re-invested up front in the newly won business) and will continue to rack up the Receivables. To my mind this is good! It means the company is continuing to grow. If anything these figures are THE most important indicators that the company is going places at supersonic speed. Eventually these indicators will inevitably play catch up, as new insurance contract wins will begin to slow down (as by then QPP will have practically sown up the entire UK car insurance market), only to be superseded by new telematics related business (which will not suffer from the same lag) and probably new household insurance business. The inexplicable concerns that some have with these figures (it tells me that they really do not understand the company and how it works – which to me is a crime, if you are invested in it. After all why invest in something you do not understand?) are naturally being exploited by the bears /shorters to satisfy their own agendas. Last year saw a 57% fall in the SP in the space of 4 trading days, following the publication of the results. This year we have seen a fall of 13% at the time of writing (Day 3), which to my mind is not at all bad for what is typically a 'knee jerk' AIM market. Sure the SP may drop further, but I simply don’t see a meltdown on a par with last year. 2013’s fall was largely induced by panicking PIs when Bunter, Tiny Tom, Paul Clott et al started their collective scaremongering. They’re at it again, but this time they are having to contend with a raft of IIs as well – and they are not so easily spooked. Plus the fact a lot of Pi's are now wise to them.Be assured normal service will soon be resumed. In the meantime I’m off to do some gardening. Have a good day y’all!

-----------------------------------------------

anda follow up post by a very respected and knowledgeable poster

Fruit n Veg...

11:52

Re: NO RE-RUN OF LAST YEAR'S MELTDOWN I would just add my own brief note of caution. The propaganda being peddled by these 'usual suspects' is part of their familiar tactic to shift the debate away from the company's overall business model and its immediate prospects to a small sub-section of the accounts which is alleged to be causing concern. Debate then rages on BBs and elsewhere over this one issue and some investors consequently see the volume of posts and conclude it is a real worry. This tactic was deployed in May last year with some success. On that occasion, it was a 'derivative' which they picked up on. This time, it is cash flow. Anyone smell the stench of Paul Scott & co here? Accountants and the like will argue till the cows come home about the ramifications of items relating to cash resources but the truth is only to be found with those QPP executives whose job it is to manage these resources on a day to day basis. Only they know what risks if any the company is taking. They are seasoned insurance specialists and should be able to advise RT in relation to liquidity as it impacts insurance-related companies. The auditors will also have warned the management of any dangers to liquidity posed by excessively rapid growth. Management will for their part want to pursue debtors as vigorously as possible. They have stated that they are doing that. The debtor days have remained stable, we are told, and the trend is down, Canaccord points out.Meanwhile the pace of growth will moderate as the business matures. The ‘collaboration model’ will in addition ease the company’s exposure to bad debts. Finally, the company is sufficiently diversified to be able to cope with isolated, debt-related hazards, I believe. Moreover, people should not forget that QPP has been a going, income-earning concern almost from day one. It is not a conventional start-up seeking customers and with the high exposure to cash crises that such firms sometimes face until customers come knocking. It is a group of successful and profitable companies all acquired after extensive due diligence by Quindell. The idea that the whole group is exposed to a cash crunch is madness.This is a company with a massive and growing pipeline about to enter the main list and found fully qualified to do so by KPMG. And yet these BB numbskulls, one-line johnnies with no investment in the shares in many cases, are arguing about cash flow. May I make a suggestion? Let them all take a minibus down to Fareham and tell the management how to run the business. I am sure they will receive a warm welcome.I invested here many moons ago. Cawkwell, Winnifrith et al have never had any skin in this game and are not interested in how it works. Ignore these chancers and invest your own money where you think it is best employed.Scare stories and diversionary tactics are only good as cheap entry opportunities and should never be taken on any other level. If, having read responsible research, you are still swayed from an investment case such as QPP, then you must sell and seek safer pastures. Spare yourself the self-doubt and sleepless nights. Even worse, if you are swayed by a scurrilous blogger with links to one of the City’s most notorious parasites and wealth destroyers, then you must examine your fitness to be invested here at all.I have to say, though, that this is a business about whose whose prospects I am increasingly reassured.

Thanks MT.

Must admit i went as far as hovering finger over sell 1/2 button this morning but declined and doing a wait and see....... fingers crossed.,.

From a double bagger to a half bagger, must remember not to be greedy .

Previously 'locked in' shareholders from acquisitions made 18 months ago are now able to sell, with a host of acquisitions since then with similar lock in periods, as the lock in's reach maturity, this army of shareholders (most in from around 17p) could be a drag on the sp.
2517

I still hold and the above issues raised by Questor could be issues with any company so don't phase me.

Only issue I do have is with debtor days , it's a crap measure of anything , easily manipulated , days going down not neccessarily a positive , blah blah blah and is not normally highlighted in results etc.

Reading between the lines , these don't move to a full listing in June they are going to get smashed , I'll be the first one out.

Otherwise I'm sat chilled and well in profit.

Good luck all.

Significant Contract Extension with Swinton

Quindell Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their related sectors is pleased to announce an extension of a material contract with Swinton, one of the UK's largest insurance brokers.

Swinton has agreed to extend its relationship with Quindell to 31 March 2015. This extension follows a first year where a significantly improved customer journey was achieved compared to industry norms and to that experienced from previous partners. This contract is material to Quindell's revenues and one of the largest signed to date.

Swinton is one of the UK's largest insurance brokers with over 1.2 million auto policy holders and the contract will see Quindell service all aspects of the claims process.

That should help underpin the share price before main market move when 250 trackers need to buy

Buy in Shares mag today