Quindell Portfolio - Prelims ahead of our expectations

Quindell Portfolio Prelims ahead of our expectations Quindell Portfolio, the leading supplier of software, consulting and outsourcing services within the insurance and telecoms sectors, has announced preliminary results for 2012 that beat our expectations with adjusted EBITDA of £52.2m and adjusted EPS of 1.40p. We believe the group's growth prospects remain very strong, while the shares remain materially undervalued, trading on a trailing P/E of 6.1x and a 2013 and 2014 forward P/E of 3.4x and 2.8x. Our stance is buy with a 40p target price. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2011A 2012A 2013E 2014E Revenue (£m) 13.7 137.6 440.2 618.4 EBITDA1 (£m) 6.7 52.2 127.8 170.7 PBT1 (£m) 6.3 49.2 125.3 168.2 EPS1(p) 0.73 1.40 2.47 3.07 Dividend (p) 0.0 0.0 0.04 0.08 Source: GECR and company Notes:1 Adjusted for exceptional costs and amortisation of intangibles Buy Target price 40p Key data Share Price 8.50p 52 week high/low 17.500p / 5.125p Primary exchange AIM EPIC QPP Shares in issue 4,066.85m Market Cap £345.68m Sector Software & IT Services Valuation 2013 Forward P/E 3.4 2014 Forward P/E 2.8 NAV £253.7m TNAV £111.1m Important: All disclaimer information can be found on the last page of the document

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