Britain is one particular of the fastest expanding markets after Italy for telematics companies linked to motoring and insurance coverage. Quindell has been one of the pioneers, and right after taking the RAC deal into account, analysts at Cenkos think, prolonged phrase, the group will be really worth £15bn.
The heady valuations of the 2 Quindell and CCS are based mostly on meeting optimistic development targets and initially relying on the product sales potential of RAC breakdown crews. They will have the task of persuading motorists it will be worthwhile putting in a black box when they attend breakdowns or handle services repairs.
CCS will roll out its services in July, with the aim of putting in 50,000 boxes a month this year and doubling the amount up coming year.
Cenkos expects CCS to make a profit of £58m ahead of interest, tax and depreciation subsequent yr and rapidly create up earnings from its extended-term target of 15m subscribers.
Rob Terry, founder and executive chairman, said the Quindell model would “revolutionise the insurance coverage industry” and lower the cost of claims.
In a trading update on Monday, Aim-listed Quindell said telematics development was exceeding all market expectations.