21 October 2013Print This Post

Quindell: we have a hand in one in every four PI claims dealt with by insurers

Terry: upper end of market expectations should be achieved this year

Alternative business structure (ABS) Quindell Portfolio plc has a role in 20-25% of all personal injury claims handled by insurers, it said today.

Issuing a trading update, AIM-listed Quindell predicted also that it will become a £1bn business as it prepares for entry to the main list next year.

The company’s share price, which five months ago had sunk to 6p, has recovered strongly since, and at 16.5p is now near its peak.

The group’s third quarter has been a record one in terms of revenue (with gross sales of £98m), as well as profitability and earnings per share.

The statement said Quindell “is now actively involved in some form in between 1 in 5 and 1 in 4 claims handled by UK insurers” as a result of new business wins and organic growth, which culminated in the recent announcement of a contract with Direct Line worth at least £50m a year.

Quindell highlighted the success of its collaboration model – which enables the company and insurers to work together and to benefit in the reduction of car hire durations, and the offering of initiatives such as cash alternatives to car hire in certain cases – and said it is investigating an equivalent for the prepayment of legal costs.

The statement explained: “The significant interest that had been expressed by some major insurers is being followed up with the expectation that this will result in the acceleration of payments with no significant loss of profitability, changing an industry model for all future legal services revenues for up to 50% of insurers by the end of the first half of financial year 2014.”

Rob Terry, the founder and executive chairman of Quindell, said the volume of work meant “the upper end of market expectations should be achieved for the full year for 2013 and that the group's run rate performance in Q4, together with the recently announced contract wins, will clearly demonstrate that 2014 market expectations should also be significantly exceeded.

“It is now clear that in due course, the opportunity to deliver a £1bn-plus business generating significant profits (long term guidance of margins of 25%+) with associated positive cash flows is within our grasp, subject to leveraging the significant market lead available to Quindell.”

Quindell is targeting a full stock market listing, and potential Canadian dual listing, for March 2014.

By Neil Rose