17 May 2011 08:00
For release on RNS 0800 on Tuesday 17 May 2011
Mission Capital PLC
Trading Update and Acquisition of Utility Watch.
Mission Capital PLC ("Mission Capital" or "the Company") is pleased to provide the first trading update following the acquisition of the whole of the issued share capital of Quindell Limited, a reselling and sales outsourcing company with expertise in technology, telecoms, utilities, leisure and retail, which the Directors believe has significant potential for growth.
Quindell's Trading Update and Financial Highlights for the Quarter Ended 31 March 2011
·; REVENUE increased 55.6% to £1.4m (Q1 2010: £0.9m)
·; EBITDA (underlying excluding non-recurring costs)
- EBITDA increased 100% to £0.6m (Q1 2010: £0.3m)
- EBITDA margin % increased to 42.9% (Q1 2010: 33.3%)
·; NET ASSETS increased 26.1% to £5.8m (30 December 2010: £4.6m)
·; CURRENT ASSETS increased 64.3% to £2.3m (30 December 2010: £1.4m)
·; REDUCED BORROWINGS all obligations except under finance leases settled
·; CASH increased 400% to £0.5m (30 December 2010: £0.1m)
For the year ending 30 December 2010, Quindell generated revenue of £4.15 million with EBITDA of £1.8 million.
The Company is also pleased to announce that The Marketing Company ("TMC"), from which the Company receives the beneficial interests of TMC's sales contracts as set out in the Company's Admission Document dated 28 April 2011, has acquired Utility Switch Limited (trading as Utility Watch) for £600,000 settled by existing Mission Capital shares held by TMC in treasury, at a 6% premium to today's expected admission price. The majority of these shares have the same lock-in period as the Quindell Directors. For the year ended 31 December 2009, Utility Watch produced revenue of £290,282 with EBITDA of £41,481. Following completion of the acquisition, TMC (Southern) Limited will hold a beneficial interest in 72,313,006 ordinary shares of 1p each ("Ordinary Shares") in the capital of the Company representing 5.4 per cent. of the Company's total issued share capital.
This acquisition provides Mission Capital's board with further confidence that TMC should achieve the upper end of the £1.2 million profit before tax earn out target referred to in the Admission Document. As previously disclosed TMC typically signs, on behalf of its gas and electric clients, over £1,000,000 worth of business per week, generating commissions for TMC of approximately £70,000 per week.
For further information
Mission Capital
Rob Terry 01329 830501
Daniel Stewart 020 7776 6550
Oliver Rigby
Press Queries
Hudson Sandler
Charlie Jack 020 7796 4133
Notes to Editors
About Quindell and Mission Capital PLC
Quindell was founded in 2000 and develops, provides and utilises its own multi-channel e-business based Enterprise Resource Planning and Business Process Management solutions and related services to facilitate efficient and effective management of customer acquisition and servicing within finance, insurance, telecoms, utilities and other related industries. Quindell also develops and operates a leisure business model utilising its Enterprise Resource Planning solutions as a reference environment for its own technology and cross selling solutions, to be resold to third parties leisure businesses or via franchise models. Quindell provides consultancy on, and fully utilises within its own operations, online strategies, permission based marketing, membership models and cross selling to maximise revenue per customer.
For further information, please visit www.quindell.com
About The Marketing Company
On 1 April 2011 Quindell acquired a beneficial interest in sales contracts operated by TMC (Southern) Limited trading as The Marketing Company ("TMC"). The most significant part of TMC's historic revenues relate to the sales of gas and electric contracts to primarily consumer households. TMC was a consultancy client of Quindell throughout 2010. TMC typically signs, on behalf of its gas and electric clients, over one million pounds worth of business per week, generating commissions for TMC of approximately £70,000 per week. Consideration for this acquisition is 2,000,000 Quindell Shares and up to 140,000,000 Ordinary Shares based on a profit target of £1.2 million being achieved within a continuous twelve month period prior to 30 September 2012.
For further information, please visit www.tmcltd.net