Outsourcer also secures £13m additional funding from RBS


Insurance and telecoms outsourcer Quindell Portfolio has raised £20m by issuing more than 153.8 million ordinary shares to “a major new institutional investor”.

The shares were priced at 13p each. The company plans to use the proceeds, along with other funding, to pursue “unprecedented opportunities for organic growth” in the UK insurance industry.

The £20m comes on top of the £26.5m the company raised from its share placement on 2 November.

Quindell has also secured £13m of additional bank funding from the Royal Bank of Scotland, subject to final documentation.

This adds to £32m in drawn-down bank loans and a further £20m in undrawn funds.

Taking into account proceeds from the two share issues, the new £13m funding and existing undrawn loan facilities, Quindell now has around £80m of working capital. The company says this capital can support its growth beyond the 2p per share profit target for 2013.

Quindell chief executive Rob Terry said: “I am delighted that this major new institutional investor has demonstrated their significant support for Quindell through the placing.”

He added: “The group is continuing to see unprecedented opportunities for organic growth in what is a unique time in the UK insurance industry’s evolution. Having this additional working capital will enable us to capitalise on this opportunity to obtain significant market share and further enhance our positioning in the market.”