Quindell's full year raises more questions

Quindell Portfolio’s FY12 results show that it really has got the wind in its sails (see Is Quindell the fastest growing SITS provider?). But interestingly, the insurance BPS provider's shares have actually fallen c21% since the start of 2013, and fell c9% on the news.

There are many questions still to be answered.

For instance, is Quindell benefitting from a fundamental shift, or rather short term change in the insurance market driven by LASPO in April (Legal Aid, Sentencing and Prevention of Offenders Act)?; is it establishing long-term recurring revenue on contracts, or much shorter, outcomes driven revolving contracts that are much higher risk?; and how does Quindell recognise the revenue it actually keeps versus revenue that gets passed through to subcontractors?

Subscribers to TechMarketView's research streams can read the analysis in UKHotViewsExtra here.

Posted by John O'Brien at '15:30' - Tagged: bps   insurance