LONDON -- Quindell Portfolio (WTG) -- the AIM-listed provider of software, consultancy, and technology outsourcing expertise in the insurance, telecommunications, and related sectors -- was up more than 5% so far this morning on news that it has won a three-year contract to provide Honda with a range of accident management services for the car manufacturer's U.K. customers.
Quindell says that it expects to build group revenues to a "significant level" over the three-year term of the contract.
Commenting on the news, David Sandhu, group chief operating officer of Quindell, said:
This contract with Honda is one of a number of new clients that we have won so far in the current quarter, due to our continued focus on an ethical approach for the industry. These clients in combination represent additional tens of millions per annum in outsourcing revenues for the Group, with a combination of a number of major vehicle manufacturers, accident management companies, major insurers and brokers, which all underpin our confidence in continued growth in 2013 and beyond.
The Honda contract news comes just a week after Quindell announced that it had agreed to a five-year deal to supply its "ICE Challenger" administration software to a top 10 U.K. motor insurer. That news took Quindell's share price close to 10 pence, but it fell back over the next few days, and even with today's rise, it stands at under 9 pence, which is 36% lower than it was a month ago.
If earnings forecasts for 2013 are to be believed, Quindell is now on a price-to-earnings (P/E) ratio of just more than 4. That is, on the face of it, incredibly low, and theoretically indicates a bargain. But, of course, only you can decide whether Quindell really is seriously undervalued and therefore a potential buy.
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