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The share price of AIM-listed and Main Market-bound Quindell (LSE:QPP) gained 1.35% to close at 37.62 pence today, regaining some of the ground that it had lost since nearly breaking the 44.00 mark on April 7th for the second time this year. The release of Quindell’s Q1 Trading Statement was an obvious factor on the day.
QPP is trading 180% higher than 15 April 2013.
More Good News
As our recent articles have indicated, just about all the news at Quindell is good news. Today provided even more as the company reported record first quarter sales revenue of £162.9 million. But that number is more than just a record. It is almost as much sales revenue as the company pulled in during the entire first half of FY2013 (£167.3 million).
As if that were not good enough, check out these numbers:
- Operating cash flow was approximately £7.0 million over previous guidance.
- Adjusted EBIDTA was £65.9 million, just a “tad” above the first half 2013 figure of £54.0 million.
- The increase in share price versus last year “slightly” outpaced the FTSE 100 growth rate of 4.3% over the same period and the 13.23% growth of the FTSE 250 of which Quindell hopes to become a constituent in the not too distant future.
The company cited its Compass Law and Collaboration Models as major contributors to its continuing success.
Compass Law is Quindell’s “specialist debt recovery team.” Quindell says that the team has stimulated cash flow generation “beyond prior expectations” and that it “expects further significant reductions in trade debtor days during the remainder of 2014.”
The Collaboration Model enables Quindell and insurers to work together, “providing a fundamental change to the cash profile of a significant part of the Group’s Services Division as insurer debt is settled within one month of presentation of an agreed invoice.”
Founder and Executive Chairman, Rob Terry, commented that “The Board is pleased to announce our 12th successive quarter meeting or exceeding market expectations in all key performance indicators. The Board is confident that the upper end of market expectations should be achieved for the full year for 2014 and that current expectations for cash generation shall be exceeded in 2014. It is now clear that in due course, the opportunity to deliver a multibillion pound business generating significant profits with associated positive cash flows is within our grasp, subject to leveraging the significant market lead available to Quindell.”
Moving Forward
As continuing proof that Quindell is committed to utilizing the incredible power of the internet to operate more efficiently, effectively and profitably, the company also announced an agreement in principle for two “significant contracts” for implementation of Digital Video and Crowdsourcing Solutions that will enhance the claims process and decrease the potential for identification fraud.
I can hardly wait to see what the future holds.
