Good morning,
Those of you who were trawling the FCA website yesterday evening, would hopefully have noticed the fall in the Roble short of just over 0.5 percent (incidentally, the FCA spreadsheet is the fastest short tracker available - not the website: www.shorttracker.com).
Also, people who were awake this week would have noticed a decent amount of director buys in the company, but in my opinion it's the culmination of all of the above and the information we received this morning from Quindell as per their telematic solutions that seems to be making everything just a bit more rosy for the company than it has been of late.
New Information:
- Quindell have announced a new contract with a major, top three, insurer.
- This is a five year contact.
- The major insurer will have committed to a goal of gathering at least 125,000 customers over the five year period.
Analysis:
- The fact that Aviva Canada is a top three insurer in Canada combined with the them featuring within the investor-teach in in mid January as the lead underwriter for Ingenie Canada, makes me suspect that this is the company in question.
- With Quindell expecting it's average revenue per month to be between $8-9 per customer with strong margins, a goal completion for the major insurer could generate $12-13 million of recurring annual revenues.
- In the event of a 20% take up from the total of the major insurer's customers, this could provide Quindell with as much as $58-65 million in revenues recurring annually.
Sources:
http://www.investegate.co.uk/quindell-plc/rns/major-insurer-5-year-contract-win/201410210700198206U/
http://dcms.canaccordgenuity.com/ResearchNotes/8bb2432340694f95a43ad7f8875bc6b0.pdf
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