Quindell Portfolio - Significant funds secured for organic growth

Quindell Portfolio Significant funds secured for organic growth Quindell Portfolio, the leading supplier of software, consulting and outsourcing services within the insurance and telecoms sectors, has announced continued industry recognition and further, significant funding arrangements to support organic growth beyond its 2013 2p EPS target. On 14th November Quindell announced the completion of an equity placing and the receipt of approval for an initial £13m banking facility with Royal Bank of Scotland. The group now has combined free capital of c.£80m to fund working capital requirements of implementing its significant confirmed or verbally confirmed contracts. We have upgraded our 2013E revenues to £297.1m from £291.8m, as we believe the new capital secured will greatly assist contract implementation. Despite this, the dilutive effects of the equity placing means 2013 Adj. EPS remains flat at 1.9p, however, if more concrete contract agreements are announced, there could be potential for us to explore the possibility of 2013 EPS exceeding 2p. We maintain our stance of buy at 15.25p, and our 28p target price. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2010A 2011A 2012E 2013E Revenue (£m) 0.2 13.7 154.3 297.1 EBITDA1 (£m) (0.1) 6.7 36.9 83.0 PBT1 (£m) (0.1) 6.3 35.9 82.1 EPS1(p) (0.09) 0.73 1.06 1.90 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 15.25p 52 week high/low 16.00p / 2.50p Primary exchange AIM EPIC QPP Shares in issue 3,308.72m Market Cap £504.58m Sector Software & IT Services Valuation Historic P/E 20.9 2013 Forward P/E 8.0 Historic P/FCF 31.4 NAV £107.4m TNAV £35.95m Important: All disclaimer information can be found on the last page of the document

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