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October 21, 2013 4:45 pm
Quindell Portfolio, an insurance claims processor, has confirmed it is seeking a full listing on the London Stock Exchange next March, with a potential dual listing in Canada.
The Aim-traded group announced adjusted earnings before interest, tax, depreciation and amortisation of £34.5m in its third-quarter trading statement, published on Monday, compared with £54m in the first half of this year.
Quindell offers services for handling motor insurance claims including providing an IT platform for insurers, as well as medical and legal services. Its customers include automotive services company RAC.
In September, it announced the acquisition of 25.3 per cent of Nationwide Accident Repair Services, the largest dedicated provider of accident repair services in the UK. Quindell said this would “broaden our overall proposition in insurance outsourcing”. In the same month, the group confirmed a 26 per cent investment in PT Health, which has more than 100 physiotherapy and rehabilitation clinics across Canada.
Quindell’s shares tumbled in May amid revelations that it was using an equity swap contract as part of a financing deal to fund the acquisition of Accident Advice Helpline, one of Britain’s biggest no-win, no-fee accident compensation specialists.
The contract allowed the company to finance the acquisition by placing £17m of new shares with an unnamed institution. The investor was offered protection against a fall in its share price, while the company stood to benefit from a gain.
The group subsequently exited the contract at a loss of up to £6m.
In its trading statement, the company said it was now active “in some form” in more than one in five of all claims handled by UK insurers.
Its operating cash flow for the quarter was £3.6m compared with £2.6m in the first half of 2013. The group’s statement said much of the collection was now being undertaken by its own specialist debt recovery team. The statement said cash collection across the business “remains according to and in some cases, ahead of plan”.
The group plans a full listing next March, when it announces its results to the end of December 2013, and has appointed KPMG as its auditor, as well as two new independent non-executive directors.
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