The stock-exchange listed company that has acquired a clutch of personal injury firms over the past year today posted a nine-fold rise in profits.
Quindell Portfolio, which runs ‘end-to-end’ processes in several business sectors reported pre-tax profits of £41.2m on a turnover of £171.9m in the year ending 31 December 2012 – its second year of trading. Legal services contributed £34.4m in sales.
Both profit and turnover rose significantly over the previous year following a spate of acquisitions which Rob Terry, chief executive, admitted ‘has caused nervousness with some investors’.
However Terry said the company was on its way to a full stock-market listing next year. ‘We plan to continue on the same path, looking to grow organically with new clients, to add more services to existing ones and actively seeking out value‐enhancing acquisitions that are focused on our target market.’
Analyst John O’Brien, of analysts TechMarketView, said the company’s second year had been ‘a roaring success from a financial metrics standpoint’. However he said that investors would want to see more details of pass-through revenue and how much is being retained by Quindell.
Quindell’s legal acquisitions last year included Abstract Legal Holdings, the parent company of Accident Advice Helpline, personal injury firms The Compensation Lawyers, Silverbeck Rymer and Pinto Potts. Quindell shares were trading at 12.38p, down from 13.25 at market opening.
Meanwhile Slater & Gordon, the world’s first publicly listed law firm, revealed plans to raise 63.9 million Australian dollars (£42m) in capital to 'accelerate growth plans in the United Kingdom'. It said it plans to acquire three law firms in the UK - Simpson Millar, Goodmans Law, and the personal injury practice of Taylor Vinters.
Matt Meyer, chief executive of Taylor Vinters, said that the sale is subject to due diligence and binding acquisition agreements, ‘but both Taylor Vinters and Slater & Gordon are committed to making this happen’.
Taylor Vinters said the sale of the practice would enable it to focus on its ‘core strategic objective’ of operating internationally in the areas of technology, investment and boutique private client services.
Slater & Gordon entered the UK market last year by acquiring Russell Jones & Walker, which is now trading as Slater & Gordon.