Quindell Portfolio (LON:QPP) has announced a new partnering agreement, acquisitions, an equity placing and some new contracts.
It has announced a partnering agreement and acquisition of Abstract Legal Holding (ALH) which is the owner of Accident Advice Helpline (AAH) which provides access to justice for victims of non-fault accidents under a no-win, no-fee agreement. Quindell has already been working with AAH and believes that it will be able to ensure that claims submitted directly by the consumer are channelled through its managed and ethical process, thus lowering the cost of claims to the industry as a whole. Quindell has paid a £19.75m deposit for the acquisition which is expected to complete in April next year and has satisfied this by issuing 28,571,429 new shares and the payment of £14.97m cash. The balance of the consideration will be satisfied with the issue of 268 m shares which will be subject to a lock-in agreement. In return the vendors have warranted a business plan through to November 2014. In the year to May 2012 ALH recorded revenues of about £20m.
In a separate agreement Quindell has entered a partnering agreement with The Compensation Lawyers (TCL) in order to provide a joint outsourcing offering to the UK insurance claims market. It is also acquiring TCL, to be satisfied through the payment of £30,000 cash and the issue of 2.2m shares, subject again to a lock-in agreement.
Quindell also announces that it has today raised £17m through the placing of 97m new shares at 17.5p.
Quindell also announced that it has converted a number of its outsourcing/partnership pilots into contracts which once implemented during 2013 will represent run-rate revenues of about £80m per annum and run for between 3 and 5 years. Other pilots representing a further £100m per annum are progressing positively and have the potential, with the contracts already announced to result in combined revenues doubling by the end of 2014 and resultant total revenues of £1.5bn over five years.
Rob Terry has been very busy growing Quindell Portfolio and has so far been rewarded by a strong share price and the support of institutional investors who have been happy to fund the acquisitions through subscribing for new shares. I am always quite nervous of companies growing principally through acquisition due to the risks…
About the Author
Johnrosier
I manage my subscription website www.JohnsInvestmentChronicle.com in which I show my portfolio and all transactions. I blog within an hour of trading, with an explanation, and send an alert email to all my subscribers. I do not pretend to have all the answers but I hope my portfolio, and the trades, provides food for thought as well as helping those who are new to managing their own portfolios.I think what I do is unique. There are plenty of tipsters out there who will remind you of the good ones and quietly forget the duffers; I do not have that luxury as the portfolio is there for all to see. I have to confront my mistakes and deal with them. A tipster also does not show how a tip fits into the context of an overall portfolio. My portfolio of up to 30 holdings has different holding sizes based on my conviction behind the stock and its risk. I set up www.JohnsInvestmentChronicle.com in January 2012. Prior to that :In September 1984, I left university with a degree in Zoology and started work in the City of London. Over the next twenty five years most of my time was spent managing UK equity portfolios with Fleming Investment Management and Henderson Global Investors, for company and local authority pension schemes as well as the reserve fund for a well known charity. During 2009 I left full time employment and decided to take time out to consider the next stage of my career. In the meantime I have been putting my years of experience to good use investing the family savings. I have thoroughly enjoyed the freedom of investing from home and despite some tricky periods during 2011 it has been a rewarding experience. more »
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