Quindell Portfolio Plc acquires Business Advisory Service Limited |
| October 12, 2011 | October 2011 Bond Updates |
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Business Advisory Service Limited one of the UK's leading business price comparison companies which offers competitive business electricity, business gas, telecoms, and insurance for businesses in the UK. (1888PressRelease) West Sussex, RH19 1HA - Business Advisory Service Limited (http://www.businessadvisoryservice.co.uk), one of the UK's leading business price comparison companies which offers competitive business electricity, business gas, telecoms, and insurance for businesses in the UK is being acquired by Quindell Portfolio Plc (http://www.quindell.com). The acquisition is part of Quindell's strategy of increasing its customer base to exploit cross-selling opportunities for the benefit of its clients. The transaction will be settled by issuing 270,000,000 Quindell Portfolio Shares ("New Ordinary Shares") valued at 3p per share, based on the average mid market price prior to completion date, and £100,000 in cash. This share price represents a 21% premium to the admission price of the Company on May 17, 2011. In 2009, BAS produced revenue of £0.85m with an underlying profit, excluding one-off payments, of over £0.3m or 36%. This revenue is within the Company's target of 35% to 40% EBITDA conversion in all key areas of the business. Management accounts showed in 2010 that there was substantial growth above these historic levels. Because of this growth trend, the Vendors have predicted the after tax profit for BAS to be no less than £1m for the 12 month period following completion. The Directors believe that this £1m profit warranty will be achieved due to estimated signed contracts in future periods and associated cash payments of over £2.7m, but in the case it is not the Company will receive compensation from vendors in the form of cash or shares on pro rata basis. Other highlight of the Acquisition include that BAS has signed a number of major affinity group contracts for Insurance, Utilities and Telecom. BAS also has a South African associate that operates sales operations and back office administration functions at a lower cost infrastructure, which will now be leveraged by the Company. BAS also made an investment in its Customer Relationship Management, which will allow quick response to leads from online businesses all over the world. The Directors are confident that the integration for this Acquisition will be quick and easy. The company has already been working in partnership with the Acquisition over the last year; the Vendors of BASL and members of the Company's management team have also had a 10-year long business relationship. This Acquisition provides the Directors with confidence that the Company's growth potential will continue over the second half of this year and into the future. Application has been made for the New Ordinary Shares to be admitted to trading on AIM. Admission is of the New Ordinary Shares is expected to occur on 24 June 2011. Following Admission the Company will have 1,621,602,603 Ordinary Shares in issue. About Business Advisory Service Ltd Business Advisory Service Ltd (BAS) has built up a wealth of energy negotiating and contracting experience in the National Electricity and Natural Gas Markets. BAS believes in trust, professionalism and a humanistic approach; impartiality while dealing with suppliers is fundamental to obtain the most suitable contract for you. BAS's Energy Consultancy is a "Free to use" service with no obligation to agree into any contracts presented. BAS's fees are paid by the suppliers. With over 15,000 products available BAS offers much more choice than any supplier could offer you directly and for larger users and groups their products are tailored to suit the needs of your individual business and are committed to securing the most competitive energy contract available on the market for your business. Every customer has one point of contact at BAS who will assist you with all your enquiries and negotiations. Backed up by a highly experienced team of professionals BAS is dedicated to ensuring that your customer journey is a positive experience. BAS's complete contract management service is especially useful for businesses looking to consolidate contract end dates and serving notice to the right suppliers at the right time. For more information visit http://www.businessadvisoryservice.co.uk/ About Quindell Portfolio Plc Quindell, the business transformation consultancy and technology enabled group, which exploits and enables industry change was founded in 2000. The Group develops, provides and utilizes its own multi-channel e-business based Enterprise Resource Planning and Business Process Management solutions and related services to facilitate efficient and effective management of customer acquisition and servicing within finance, insurance, telecoms, utilities and other related industries. Quindell provides consultancy on, and fully utilizes its technology within its own Business Process Outsourcing operations, online strategies, permission based marketing, membership models and cross selling to maximize revenue per customer. For more information visit http://www.quindell.com/ |
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