Leap in sales helps Quindell group’s revenue to more than double

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Quindell, an IT outsourcing and consultancy company, said third-quarter revenue more than doubled, boosted by a jump in sales at both its services and solutions businesses and raised its core profit margin forecast for the full year.

Quindell’s volatile stock, which is listed on the Alternate Investment Market (AIM), rose as much as 7.6 per cent at 166p yesterday.

Revenue rose 115 per cent to about £198m for the quarter ended September 30, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 141 per cent.

Quindell said it expects EBITDA margin to be between 40 per cent and 45 per cent, up from its previous range of 35 per cent to 45 per cent.

“The board is confident that the upper end of market expectations can be achieved for the full year for 2014 on revenues of between £750m to £800m,” chairman Robert Terry said.

Quindell’s customers include British American Tobacco, ING Group, Aviva Insurance, Peugeot, Royal Mail and Old Mutual.

Revenue from services rose 124 per cent to about £177m, while Quindell’s solutions business saw a 20 per cent rise in sales. The company added that a number of “core business relationships” were expected to expand in the fourth quarter.

Quindell said last month that it would buy UK road assistance firm RAC out from their join venture to install tracking devices in vehicles. Reports in August over the health of the agreement had caused a 17 per cent fall in Quindell’s shares.

Quindell said it continued to consider and pursue all available options, including share buybacks, US stock listing, disposal or demerger of assets or divisions.