Insurance outsourcer reports 193% profit increase for H1

Quindell has acquired the remaining 51% of telematics motor broker Ingenie.

The insurance outsourcer already owned 49% of Ingenie, and revealed in February that it had an option to buy the remainder of the firm, which it planned to exercise this summer.

Quindell has issued 12.6 million new shares to pay for the Ingenie stake.

The company has also taken its 85% stake in telematics company Himex to 99.9% by issuing 2.7 million new shares.

It said it expected both acquisitions to start enhancing earnings from 2015.

Quindell said: “Together, these transactions ensure that the group can fully benefit and leverage the unique market lead it has been establishing in the UK, Canada and the US.

“It also helps maximise the potential from the significant traction that the group is seeing in continental Europe.”

Profit and revenue boost

Quindell announced the stake purchases as part of a trading update for the first half of 2014, which showed big jumps in profit and revenue.

The company said its adjusted profit before tax was £154m, up 193% on the £52.5m it reported in the same period last year.

Revenue increased 117% to £355m (H1 2013: £163.3m), which Quindell said was mainly caused by organic and synergistic growth.

Acquisitions completed over the past year represented only 10% of revenue, the company said.

Adjusted earnings before interest, tax, depreciation and amortisation increased 187% to £155m (H1 2013: £54m).

Quindell will release its full first-half results on 21 August.