Listed alternative business structure (ABS) Quindell has generated £180m of revenue from legal services at the half-year according to its interim statement to the London Stock Exchange.
The firm reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) from legal services of £101m.
Quindell’s legal income now accounts for 50.4 per cent of its total revenue. It announced a global half-year revenue of £357.3m, a 119 per cent increase on the £163.3m the firm reported this time last year.
The firm’s EBITDA rose 139.1 per cent from £75.1m at the 2013 half year to £179.6m.
In a separate announcement to the market yesterday (21 August) Quindell announced that former chief executive of Redbus and Addleshaw Goddard qualifier Stefan Borson has been appointed group chief legal and communications officer.
Despite the rising figures, Quindell’s share price fell 12 per cent when the results were announced yesterday due to uncertainty over its cash position.
The firm reported a group-wide cash balance of £85m at the half year, compared to £35.2m at the same point last year. Meanwhile, bank borrowings and other trade finance were £60.3m.
The report said that the legal services business had around 110,000 cases of work in progress (WIP) at 30 June 2014. On the basis of that WIP it stated it was on target for collections of about £500,000 per business day by the end of the current quarter.
That figure is projected to rise to £750,000 in quarter three and £1m by the end of the financial year.
In his statement chairman Robert Terry said: “Our operational teams have provided confirmation to the board of their confidence in once again collecting cash to the value of circa 80 per cent of the trade related receivables held as at June 2014.
“This confirmation provides comfort to the board, along with having turned cash positive in July 2014, so the board can once again confirm its expectation of being at least breakeven for the third quarter of 2014 and achieving a significant operating cash inflow for Q4.”
Quindell was granted an ABS licence in December 2012, having acquired Liverpool-based personal injury firm Silverbeck Rymer in January (24 January 2012).
In October 2012 it went on to purchase Hampshire-based Pinto Potts, followed by claims management company Accident Advice Helpline and law firm the Compensation Lawyers in December 2012 (3 December 2012).