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Record profits at Quindell Portfolio

Quindell Portfolio has delivered record third-quarter profits. With earnings growth on track and solid cash generation, we're staying on board for the ride
October 17, 2012

Shares in Quindell Portfolio (QPP) have raced away, rising 81 per cent since our tip (7p, 19 July 2012). Third-quarter revenues hit a record £50m, giving EPS of 0.4p, up from 0.28p in the second quarter and 0.18p in the first quarter. Quindell, which provides IT expertise for the telecoms and insurance industries, is doing especially good business in the insurance industry where its offer to save 20 per cent on claims-handling processes is proving too good to miss.

IC TIP: Buy at 13p

It also says that translating 65 per cent of the so-called Ebitda (ie, gross cash profits) into cash is ahead of City expectations. That leaves cash balances at £18.5m, down £3m from June after £7m of acquisition costs. The group has also agreed to acquire Pinto Potts Solicitors, a firm specialising in personal injury claims, for £3m.