Shares in insurance buy-and-build BPS provider Quindell Portfolio jumped another 8% following a buoyant year end update, pointing to FY12 revenue of c£165m, and adjusted EBITDA (before exceptional costs) of c£47m. This will give Quindell an adjusted EBITDA margin of 28% for the twelve months to 31 December, and almost meteoric revenue growth, from just £12.5m last time, the 33 month period to December 2011 (see here).
Adjusted earnings per share of 1.29p are ahead of expectations. Meanwhile the cash position is expected to be £47m compared to market expectations of £41.5m. Hot Views readers will recall Quindell has raised equity four times in the past year (see here and work back).
Quindell’s shares have benefitted significantly from all of the M&A and investor speculation during 2012. They are now up 111% over the year. 2013 however will be the ‘year of reckoning’ for Quindell as the regulatory changes it has built its business strategy around come into being (see here). We will then see whether all of the expectation is justified. The good news is that Quindell now intends to take a breather from M&A and focus on organic growth – and we hope integrating the various businesses together. We are meeting CE Rob Terry next week and will be sure to update TechMarketView subscribers after that.