2 Sep 2013 07:00
2nd September 2013
Quindell Portfolio Plc("Quindell", the "Company" or the "Group")
Issue of Shares for Quindell Property Services
Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their Related Sectors, is pleased to announce that further to the announcement on 3rd May 2013, and following successful operation of Quindell Property Services ("QPS") to date, the issue of some of the announced further consideration shares has been agreed.
Quindell Property Services
The services provided by QPS enable Quindell to accelerate the development of new products and propositions in the property claims sector, with the opportunity to build on QPS's capabilities using Quindell's existing insurance and affiliate clients, help clients to create further differentiation in product offering, improve customer retention and drive down the cost of property claims by up to 30%. Initial client engagements with major insurance brands have fully validated that these targets to drive down the cost of property claims are achievable in all key areas.
The consideration for the acquisition, which was announced on 3rd May 2013, comprised an immediate issue of 65,978,572 new shares and provided for up to 190,000,000 further consideration shares to be issued related to performance during 2013 to 2015 inclusive.
The terms of the acquisition were satisfied by the issue of 65,978,572 Quindell shares representing approximately 1.6% of the Group's issued share capital on the 3 of May, and are to be satisfied with further issues of up to 21,111,111 shares issued contingent on the business achieving £2m of profit for 2013. Subject to the property business achieving a minimum of £10 million profit before tax and operating cash flow in each of two respective warranted profit years to 30 September 2015 a further 84,444,444 and 84,444,445 shares are also contingently issuable. The acquisition is therefore expected to be significantly earnings enhancing as from 2014.
Having reviewed the performance to date of Quindell Property Services the Group is delighted to announce that it has concluded that an issue of 18,000,000 Quindell shares is due today with additional shares due to be issued in early 2014. These Quindell shares will be subject to lock-in arrangements ranging from 12 to 36 months.
Rob Terry, Founder and Executive Chairman of Quindell said: "Having been involved in the development of our combined property claims strategy for over five years, we are pleased to be able to now validate our long term investment strategy and to be able to start capitalising on this solution for the industry with confidence in the ability for the property business, subject to roll out with existing clients and current prospects, to meet its warranted profit targets in 2014 and beyond".
Application has been made for 18,000,000 shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 9 September 2013. Following Admission, Quindell will have 4,155,568,768 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 4,155,568,768ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.
For further information:
Quindell Portfolio PlcRob Terry, Founder and Executive Chairman
Laurence Moorse, Group Finance Director
Ian Farrelly, Group General Counsel & Company Secretary Head of Investor Relations | Tel: 01489 864201 terryr@quindell.com Tel: 01489 864205 moorsel@quindell.com Tel: 01489 864217 farrellyi@quindell.com |
Cenkos Securities plcJoint Broker and Nominated AdvisorStephen Keys / Adrian Hargrave (Corporate Finance)
CanaccordGenuity Limited Joint Broker and Financial Advisor Simon Bridges Bruce Garrow |
Tel: 020 7397 8900
Tel: 020 7523 8350
|
Media EnquiriesRedleaf Polhill Limited Rebecca Sanders-Hewett Jenny Bahr |
Tel: 020 7382 4730 quindell@redleafpr.com |
Notes to Editors:
About Quindell Portfolio Plc
Quindell Portfolio Plc is a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing in its key markets being Insurance, Telecommunications and their Related Sectors. Quindell enters the second half of 2013 with a run rate of gross sales of more than £350 million and with approaching £50 million of EBITDA earned in the first half of 2013. Our award winning Business Transformational, Software, Consulting and Outsourcing Solutions are recognised as delivering significant savings and additional sales to our customers every year.
For further information, please visit www.quindell.com