Quindell Portfolio - Rapid growth, but barely scratched the surface

Quindell Portfolio Plc Rapid growth, but barely scratched the surface Quindell Portfolio is a leading provider of software, consulting and outsourcing services to a broad portfolio of clients, primarily in the insurance and telecommunications sectors. Significant Growth – Since our overview note, Quindell has announced three further acquisitions and a major contract win. Strong Interims – On 4th September 2012 the group announced strong interim results, which highlighted considerable revenue and adjusted EBITDA growth, among other developments. Future Opportunities – As we stressed in our overview note, Quindell has over £500 million of contracts currently under discussion. Upgraded Forecasts – In light of recent announcements, we have upgraded our revenue forecast for 2013 to £252 million from £247 million, and upgraded our 2012 and 2013 Adjusted EPS forecasts to 1.04p and 1.79p from 0.98p and 1.57p, respectively. We recommend the shares as buy at 10.25p with an upgraded 25p target price. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2010A 2011A 2012E 2013E Revenue (£m) 0.2 13.7 154.3 252.2 EBITDA1 (£m) (0.1) 6.7 35.4 64.3 PBT1 (£m) (0.1) 6.3 34.1 62.8 EPS1(p) (0.09) 0.73 1.04 1.79 Dividend (p) 0.0 0.0 0.0 0.0 Source: GECR and company Notes:1 Adjusted for exceptional costs and amortisation of intangibles Buy Target price 25p Key data Share Price 10.25p 52 week high/low 10.63p / 1.88p Primary exchange AIM EPIC QPP Shares in issue 2,765m Market Cap £283.43m Sector Software & IT Services Valuation Historic P/E 14.0 2013 Forward P/E 5.7 Historic P/FCF 21.1 NAV £107.4m TNAV £35.95m Affiliations: None. Important: All disclaimer information can be found on the last page of the document

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