14th Jul 2014 07:55
LONDON (Alliance News) - Quindell PLC Monday expressed confidence in meeting full-year market expectations for its key performance indicators, with full-year revenue guidance of GBP800 million to GBP900 million.
The key performance indicators include cash conversion, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), and adjusted earnings per share.
The software, consultancy and technology company said it had seen revenue of around GBP335 million for the half year to end-June, more than double the GBP163.3 million recorded in the previous year.
It said that businesses acquired during the past year made up less than 10% of its revenue.
Pretax profit, stripping out amortisation, share payments, exceptional costs and a gain on the re-measurement of acquisitions and amortisation was GBP154 million in the recent half year, up from GBP52.5 million a year before. The previous year's results have been restated to take into account a recent share consolidation, it said.
Cash generation increased, as it collected over GBP220 million in cash in the first half. Quindell had cash of GBP84 million as at June 30, it said.
The company raised its future EBITDA margin guidance to 40% from 35%, citing its success in driving down the cost of insurance claims and maintaining or improving its cash margins, as well as its selective choice of business to control growth and optimise cash flow.
It guided break even or better adjusted operating cash flow for its third quarter, and a significant adjusted operating cash inflow for the fourth quarter. The company said that, with its available cash resources, it will not need to raise further funds to support its market expectations in 2014 and beyond.
Quindell also confirmed Monday that it had increased its ownership in Himex Ltd and ingenie Ltd to 99.9% and 100% respectively. Previously it had a 85% interest in Himex and a 49% interest in ingenie.
The company said it had made both acquisitions at favourable valuations compared to current and historic share performance. It expects this to add to earnings in 2015 and beyond.
Quindell said it will announce its full half-year results August 21.
Shares in Quindell were trading up 13% at 204.81 pence Monday morning, the third biggest gainer on AIM.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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