Quindell Portfolio Announces 25 Million Pound Contract Win
LONDON -- The shares of Quindell Portfolio gained 0.2 pence to 9 pence during early London trading this morning, after the company announced a "significant" contract with a major U.K. insurance broker.
The firm said it had agreed an initial outsourcing deal to 31 March 2014 that would generate "run rate" revenues of more than 25 million pounds per annum. Services beyond March 2014 will be subject to a further contract.
Quindell said today that the unnamed insurance broker will use its software to handle injury claims, medical reporting, and car-hire administration.
Quindell also claimed that the mystery broker is "more than confident in benefiting from a significant improvement in customer service."
Today's contract announcement is the seventh Quindell has announced via a stock-exchange statement since the start of April.
Robert Thomas, chief executive of Quindell's services division, said today: "We are still seeing substantial traction in the market ... as a number of leading industry figures are finding appropriate solutions to meet their requirements, and as a result, we continue to sign significant new business, increasing revenues in the second half in the region of 100 million pounds per annum."
This morning's contract announcement comes less than a month after the company published its 2012 results and refuted accounting allegations made by "active shorters."
Those results showed acquisitions helping underlying profits surge 680% to 49 million pounds, while the allegations concerned the size and structure of the group's debtor ledger.
The market's mixed feelings toward Quindell currently leave the shares trading at less than seven times trailing earnings.
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