EBITDA margins of Quindell are 44%. This compares very favourably with its competitors:
• Slater & Gordon 24.6%
• New Law 24%
• Shine Lawyers 29.6%
Reasons Quindell have better margins being:
1. Economies of scale due to the size of Quindell.
2. Quindell owns it’s own technology solutions outsourcing platform.
3. One stop shop approach to insurance processing cycle.
All of the above enhances the overall margins of the Quindell Group and will eventually be reflected in the share price.
The sum of the parts valuation in the table above (source Cannacord Genuity) highlights why 3 brokers have Given Quindell a buy rating.
Brokers targets range from £3.62p to £10.05p.