Quindell Portfolio - Further positive developments

Quindell Portfolio Further positive developments Quindell Portfolio, the leading supplier of software, consulting and outsourcing services within the insurance and telecoms sectors, has announced, among other things, a positive trading update. This highlighted that the group has received verbal agreements on five contracts with top-tier insurers, which are of a similar scale to the previously announced £120m contract, and smaller wins worth £30m pa. As such, CEO Rob Terry stated that the board is now confident that recent developments will provide "sufficient validation of our position in the market to allow the Board target of 2p EPS in 2013 to be met". Other announcements include a new partnership with NTT DATA to provide integrated management transformation services to the telecoms industry, and an equity placing that raised £26.5m at 13p per share. In light of these announcements we have upgraded our forecasts for 2012 and 2013. Our stance remains buy at 15.125p with an upgraded 28p target price. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2010A 2011A 2012E 2013E Revenue (£m) 0.2 13.7 154.3 291.8 EBITDA1 (£m) (0.1) 6.7 36.9 80.7 PBT1 (£m) (0.1) 6.3 35.9 79.7 EPS1(p) (0.09) 0.73 1.07 1.91 Dividend (p) 0.0 0.0 0.0 0.1 Source: GECR and company Notes:1 Adjusted for exceptional costs and amortisation of intangibles Buy Target price 28p Key data Share Price 15.125p 52 week high/low 15.250p / 1.875p Primary exchange AIM EPIC QPP Shares in issue 3,154.88m Market Cap £477.17m Sector Software & IT Services Valuation Historic P/E 20.7 2013 Forward P/E 7.9 Historic P/FCF 31.1 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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