WTG.L Regulatory News (WTG)

Embargoed for release 7.00 am 14 July 2014

Quindell Plc

("Quindell", the "Company" or the "Group")

Pre-Close Statement and Trading Update

Quindell Plc (AIM: QPP.L), a leading provider of software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their related sectors is pleased to provide a pre-close statement and trading update for the six months ended 30 June 2014.

Highlights

· Revenue of circa £355 million up 117% (H1 2013: £163.3 m) due primarily to strong organic and synergistic growth; businesses acquired in the last 12 months represented less than 10% of revenue

o Solutions revenue of circa £62 million up 176% (H1 2013: £22.5 m)

o Services revenue of circa £293 million up 108% (H1 2013: £140.8 m) driven by major organic contract wins announced during H2 2013 and H1 2014

· Adjusted EBITDA1,2 of circa £155 million up 187% (H1 2013: £54.0 m) due to H1 2014 mix having an increased proportion of Solutions revenue and growth of Legal Services revenue

· Adjusted EBITDA1,2 margin of circa 43% up over 10 percentage points (H1 2013: 32.3%)

· Adjusted Profit Before Tax1,3 of circa £154 million up 193% (H1 2013: £52.5 m)

· Adjusted EPS1,4 of circa 30 pence up 82% (H1 2013: 16.5 pence)

· Basic EPS, EBITDA and Profit Before Tax are all expected to be ahead of their respective adjusted numbers

Cash Flow and Debtor Management

· Adjusted operating cash flow5 for the half year ahead of expectations and guidance with circa £51 million outflow compared to original guidance of £60 million outflow during planned significant growth in H1

· Cash generation increasing with over £220 million of cash collected in H1 2014 - circa 67% of the value of total trade related receivables (including accrued income) as at December 2013

o Cash generation represents circa £1.8 million of cash received per business day

o Legal Services on track collecting circa £0.5 million per business day by the end of the period, targeted to rise to £0.75 million and £1 million by Q3 and Q4 respectively underpinning H2 cash guidance

o Legal Services cash collection targets viable due to circa 110,000 cases in progress as at 30 June 2014

· Collaboration model success in Hire and Repair continues to drive improvements in trade debtors with aging reducing to 4.6 months (H1 2013: 4.8 months) - year end target to be approaching circa 4 months

· Cash at 30 June 2014 also ahead of plan at circa £84 million; Bank borrowings and other trade finance was circa £60 million

Integration of Group's Telematics Businesses

· Himex and ingenie acquisitions completed with Group ownership now at 99.9% and 100% respectively

· Both acquisitions anticipated to be earnings enhancing in 2015 and beyond

Outlook

· The Board is confident of meeting all its key performance indicators for full year market expectations (cash conversion, adjusted EBITDA and adjusted EPS) on full year revenue guidance of £800-900 million

o Quindell's success in driving down the cost of insurance claims and maintaining or improving its cash margin reduces turnover without claims volume reduction whilst increasing EBITDA margin %

o The Board continues to be selective, turning away business to control growth and optimising cash flow £800 - £900 million of revenue provides the opportunity to exceed prior cash guidance in H2 2014

· All of the above results in the Board's future EBITDA margin guidance increasing to 35 to 40%

· The Board guides, given anticipated scenarios for H2, breakeven or better Adjusted operating cash flow in Q3 and a significant Adjusted operating cash inflow in Q4 and confirms that with the cash resources available there is no need to raise further funds to support market expectations in 2014 and beyond

· The strategic priority for the Group is to continue to focus on integration, delivery of strategy and cash generation whilst strengthening management and enhancing corporate governance as appropriate for the scale of the business, therefore the Board has budgeted to constrain growth as detailed above

Notes

1. Comparative amounts have been restated to reflect recent 15:1 share consolidation and items in the 2013 Financial Results, note 2A, Notes to the Consolidated Financial Statements

2. Adjusted EBITDA is Profit before interest, tax, depreciation, amortisation, share based payments, gain on re-measurement of acquisitions/investments and exceptional costs

3. Adjusted Profit before tax is Profit before tax, amortization, share based payments, gain on re-measurement of acquisitions/investments and exceptional costs

4. Adjusted EPS is Profit after tax, excluding exceptional costs, share based payments, gain on re-measurement of acquisitions/investments and amortisation, divided by the weighted average number of shares in issue

5. Adjusted operating cash flow is cash generated by the operation before exceptional costs, tax and interest

Trading Update

The Group is pleased to report the continued growth of the business during the first six months of the current financial year as highlighted above, with multiple new contract wins being achieved, with particularly strong growth in Legal Services and the continued roll out and development of the Group's Telematics business.

The Group has had another strong half year, with gross sales of circa £362 million, up 116% on the prior period (H1 2013: £167.3 m). Revenue growth was similarly positive at circa £355 million up 117% (H1 2013: £163.3 m). The growth in gross sales and revenue was due primarily to strong organic and synergistic growth, with businesses that had been acquired in the last 12 months representing less than 10% of revenue.

Basic EPS, EBITDA and Profit Before Tax as highlighted above are expected to be ahead of their respective adjusted numbers as a result of Adjusted key performance indicators excluding statutory gains on the stepped acquisitions/investments completed in H1 2014.

Integration of the Group's Telematics Businesses and other corporate activity

In February, the Group announced that it had increased its investment in Himex Limited (to circa 85%) and ingenie Limited (to circa 49%). The Group is pleased to be able to confirm today that its ownership of these two businesses has now been increased to 99.9% and 100% respectively.

The Group has increased its investment in the Himex group by circa 15% through the issue of 2,676,479 new Quindell shares, all of which will be subject to ongoing orderly market restrictions and with 25% subject to one year lock-in and a further 25% locked in for two years.

As previously announced, Quindell was granted a formal option from shareholders of ingenie, who in combination with Quindell represented 100% of the shares in ingenie (the "ingenie Option"). Under the terms of the ingenie Option, which could have been exercised up to 31 January 2015, the Company has today issued 12,632,557 shares to achieve 100% ownership. The Group previously announced major growth opportunities for Quindell and ingenie to consider in partnership with leading insurance related brands. All shares issued in relation to the ingenie Option will be subject to ongoing orderly market restrictions, with 25% subject to one year lock-in and a further 25% locked in for two years.

Together, these transactions ensure that the Group can fully benefit and leverage the unique market lead it has been establishing in the UK, Canada and the US. It also helps maximise the potential from the significant traction that the Group is seeing in continental Europe. Recent industry validation of the success of ingenie in particular has also been demonstrated with ingenie having won the Prince Michael Road Safety Award for 2013 and the Insurance Start Up Award at the British Insurance Awards this month.

Both the Himex investment and ingenie acquisition have been completed at favourable valuations compared with current and historic share performance due to belief in the underlying value of Quindell by the independent shareholders in these businesses. Both are also anticipated to be earnings enhancing in 2015 and beyond.

At the end of June 2014, the put and call option that was in place enabling the Group to acquire the remaining 51% of PT Healthcare Solutions Corp ("PT Health") in return for the issue of circa 9.47 million new shares (post consolidation) was exercised. The contractual process of concluding this Canadian acquisition, which due to the options in place the Group has consolidated in its results since September 2013, has now commenced and is expected to be completed in the latter part of the second half of 2014.

The Company also today announces the issue of 1,904,761 new ordinary shares, being approximately one-third of the deferred equity consideration payable to the sellers and issuable over a three year period, in respect of the acquisition of iter8 Inc., which was concluded and announced on 18 April 2013.

Application has been made for 17,213,797 new shares to be admitted to trading on AIM, with Admission of the shares expected to occur on 21 July 2014. Following Admission, Quindell will have 436,345,424 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 436,345,424 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Quindell's interim results for the six months to 30 June 2014 will be announced on 21 August 2014.

For further information:

For further information, please visit www.quindell.com