Shares in Quindell Portfolio (LSE: QPP) were little changed in early trade this morning, as the software and consulting services company released its pre-close trading statement.
This is despite management announcing that it expects to meet the upper end of market expectations for adjusted pre-tax profit and earnings per share, anticipating £128.8m and 2.4p respectively.
Additionally, Quindell finished the year with the strongest balance sheet in the group’s history, a year-end cash balance of around £200m, which was also ahead of market expectations.
That balance will “underpin continued significant organic growth during 2014”, with founder and executive chairman Rob Terry commenting:
“Q4 has seen the Group deliver record revenue and profitability within its Services Division, with revenues exceeding £100 million in a quarter for the first time as well as a record performance by its Solutions Division in terms of revenue, profitability and cash generation.
“This level of performance in Q4 2013 along with business already contracted to begin in Q1 2014 and our record level pipelines, underpins the Board’s confidence in its ability to meet and, subject to completion of ongoing contractual negotiations in Q1 2014, even exceed, market expectations for 2014.”
The last six months have seen Quindell’s share price escalate, and it’s currently 60% ahead of where it was 12 months ago — and a massive 120% ahead of its depressed share price in May.
