13th Mar 2014 11:22
LONDON (Alliance News) - Quindell PLC Thursday said first-quarter trading is ahead of plan, with new business growth exceeding targets thanks to new contracts for its services division.
"Trading in the year to date has been ahead of plan for all key performance indicators, being profitability, cash generation and earnings, before tax, interest, depreciation and amortisation margin," Quindell said in a statement.
Having previously reported that total additional new business confirmed since the start of 2014 had exceeded the GBP350 million mark, the software, consultancy and outsourcing company primarily for the insurance industry said it has now surpassed its full GBP450 million target.
The GBP450 million target has been secured ahead of its 2013 results, to be published on March 31, after an additional GBP130 million of new annual run rate revenue has been contracted beyond what was previously announced, with margins ahead of guidance.
The new contracts are expected to reach full run rate during the first half of the current financial year.
Founder and Executive Chairman Rob Terry said growth has been achieved while being selective about the type of new business contracted in order to ensure "the best quality of work, margin potential and cash performance for the group, whilst maintaining our focus on driving down the cost of claims, protecting consumer rights and ensuring the best possible customer experience."
"The mix of business that has now been contracted and that can be generated through our own direct and indirect consumer channels ensures that the group shall have no reliance on any single segment of the market, type of work or referral partner to deliver on its longer term growth potential," Terry said in a statement.
"The performance in the first-quarter to date validates this strategy for growth with current performance trends demonstrating the potential for the board increasing its longer term margin guidance as we proceed through the first half of this year," Terry added.
Meanwhile, Quindell said its possible move from AIM to London main market and its audit by KPMG are progressing to plan.
The company said it will give further guidance on first-quarter trading when it reports its annual results.
Quindell said it will also outline the significant progress being made in relation to its collaboration models which further improve the operating cash flow and deliver significant benefits for the industry by driving down the cost of claims.
Quindell shares were Thursday quoted at 37.75 pence, up 2.0%.
By Samuel Agini; [email protected]; @samuelagini
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