QPP flush with cash after equity placing

published 14 November 2012

Quindell Portfolio, which provides software for the insurance and telecoms industry, said a successful equity placing and additional loan facility meant it had around £80m of working capital to play with.

The news pushed shares up 6.3% in morning trading after the company said it would use the proceeds to fund working capital requirements for "significant organic growth" that would come from ongoing and future contracts.

This would support its growth beyond the board's two pence earnings per share target for 2013, Quindell said.

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Around £20m has been raised through the placing today of almost 154m new shares at a price of 13p per share with a "major new institutional investor".

This comes on top of a £26.5m placing announced earlier in November.

The company has also received credit committee approval for an initial £13m of additional banking facilities from Royal Bank of Scotland, subject to final documentation.

Rob Terry, Chairman and Group Chief Executive, said the firm was seeing unprecedented opportunities for organic growth in what he called "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," he said.