WTG.L Regulatory News (WTG)

Embargoed for release 7.01 am 15 October 2012

Quindell Portfolio Plc

("Quindell" or the "Group")

Q3 Trading Statement and Advisory Board Appointment

Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their Related Sectors, is pleased to report that turnover for the nine months ended 30 September 2012 is circa £95.7 million, with Adjusted EBITDA (1) of circa £29 million.

Highlights

·; The Group has had an exceptionally strong third quarter of 2012, continuing the positive developments achieved in the first half of 2012, setting a record for profit, cash and EPS

·; Results for the nine month period to 30 September 2012 are significantly above market expectations with adjusted EPS (2) of circa 0.86 pence

·; Operating cash flow to EBITDA ratio in region of 65%, remaining ahead of market expectations, and cash at the end of the period of circa £18.5 million (30 June 2012: £21.4 million), after circa £7 million of acquisition costs

·; The software and consultancy Solutions Division

o Division delivered circa £16.4 million (circa 17%) of revenue year to date

o Finished Q3 2012 with new record level license pipelines

o Agreed multiple new contracts in key markets and geographies

o Technology recognised as market leading by industry bodies and publications

·; The technology enabled outsourcing Services Division 

o Signing new contracts at a record rate to due regulatory change

o Major new contract valued at circa £120 million over next three years underway and volumes growing

o Silverbeck Rymer agreement contributing to P&L from 1st July 2012

o Significant new volume of business from initial agreements and pilots during Q3

o Verbal agreements reached on more 'major contracts' with final terms under negotiation

·; Corporate

o Headroom in working capital to support growth plan for 2p EPS

o Progress on debt reorganisation to support growth above plan

o Strategy and Integration Advisory Board strengthened with appointment of Steve Broughton, Alternate Chairman of Tesco Underwriting Limited and Non-Executive Director of Ageas UK

·; The Board is extremely confident that expectations should be exceeded for the full year and at the upper end of guidance for 2013

Notes:

1. Adjusted EBITDA is Profit before interest, tax, depreciation, amortisation and exceptional costs relating to acquisitions and their integration

2. Adjusted EPS is Profit after tax, excluding exceptional costs and amortisation, divided by the weighted average number of shares in issue

Q3 2012 Trading Statement

The first nine months of 2012 have continued to be a period of significant progress for the Group.

During Q3 the Group's softwareand consulting Solutions Division has continued to build a strong pipeline of opportunities for the full range of its software offerings. Building on the pipeline generated during the first half, the Division has agreed multiple new contracts, and extensions to existing client contracts, across our key markets and geographies. This includes the signing of a major new contract in South Africa, in conjunction with its recent acquisition Quintica, with a leading multi-national telecoms group, for Quindell's Challenger OSS technology.

Third Quarter revenues including initial licence fees, other success or milestone based fees and other software and consulting revenues in combination exceeded £5.4 million, resulting in the Software and Consulting business delivering circa £16.4 million (circa 17%) revenue year to date. These new contracts, together with our new business pipelines help to further underpin market expectations for this division for the full year 2012 and beyond.

In May 2012 we announced that we had won a contract worth circa £120 million over a three year period that uses a combination of one or more of our insurance outsourcing service offerings. This is now well underway and has contributed to our strong performance in the third quarter. In addition our legal services, accident management and credit hire outsourcing businesses have continued to sign significant new business, increasing run rate volumes that will further strengthen their performance going forward. The pipeline of contracts has strengthened further with a number of new pilot projects progressing successfully and active contract discussions underway with a number of top tier insurers. We are at verbal stages with a number of major contracts with final terms under negotiation, at a similar scale or larger than the previous £120 million contract announced.

Following the completion of the agreement with Silverbeck Rymer on 27th June 2012, our revenues and profits have benefitted considerably from 1st July 2012, however the acquisition and full integration into our balance sheet is awaiting ABS approval from the Solicitors Regulation Authority.

Overall, the Group benefited from a combination of organic growth, growth from the newly acquired businesses, cross selling across the Group's subsidiaries and further integration savings. Year to date, Adjusted EBITDA1 is circa £29 million, an EBITDA margin of approximately 30%.

The Group has continued to generate good levels of cash from its operations during the three months to 30 September 2012, with an operating cash flow to EBITDA conversion ratio in the region of 65% and with the Group's cash balance at the end of the period being approximately £18.5 million (30 June 2012: £21.4 million) together with drawn down working capital facilities relating to acquisitions of circa £31 million, which have ample headroom for the potential growth to 2p EPS.

We have continued working with our existing and other major banks on potential debt reorganisation both as part of our integration process and due to the size of the overall market opportunity currently presenting itself to us to support growth above plan. Even in the current economic environment, we have seen plenty of appetite from current and alternative banking providers to give this level of support.

The Board is extremely confident that expectations should be exceeded for the full year and at the upper end of guidance for 2013.

Advisory Board Appointment

We are pleased to announce that Quindell has appointed Stephen Broughton (Steve) to its Strategy and Integration Advisory Board. Steve has over 30 years experience within the insurance industry and is Alternate Chairman of Tesco Underwriting Limited and a Non-Executive Director of Ageas UK. Steve is also Chairman of ingenie, the leading telematics digital brand for young drivers.

Steve was formerly Managing Director of Royal & Sun Alliance Insurance UK (RSA) where he served as the Chairman of the Board of Polaris UK Ltd and was previously RSA's representative Director on the Board of the Motor Insurers Bureau (MIB). Steve was also appointed by RSA as Chairman of Swinton Insurance Ltd. Steve's expertise will supplement the skills of the other leading insurance industry experts who are members of Quindell's Strategy and Integration Advisory Board.

Rob Terry, Chairman and Group Chief Executive of Quindell, said: "As we continue to approach April next year and the banning of referral fees with respect to Personal Injury, our combined offerings are generating a great deal of interest in the insurance market, which continues to surpass even our own expectations.

The team and I are looking forward with confidence to the remainder of 2012 and the opportunity of continuing to help our existing and prospective clients maintain or improve historic income levels whilst operating in a manner which is both ethical and drives down the cost of claims for the industry as a whole.

As a result, the Board is extremely confident of exceeding market expectations for the full year and beyond and believe the Group's ability to do so is clearly demonstrated by the 0.4 pence EPS achieved in Q3.

In addition to the financial results we have achieved in the last quarter, we judge our success through the recruitment and retention of core technology and industry talent as the knowledge of our people in combination with that of our Advisory Board allows us to deliver unique and compelling solutions to the industry. We plan to launch our Company share option scheme in the final quarter of the year and in combination with other various targets, the exercise of options will be tied to achieving 2p EPS in 2013.

Finally, I am delighted to welcome Steve Broughton to our Advisory Board. Steve has been invaluable in helping create Quindell's vision and philosophy and I am sure his skills, contacts and influence in the marketplace will continue to prove invaluable as an advisory board member in the future."

Steve Broughton, Alternate Chairman of Tesco Underwriting, commented: "Having contributed to Quindell's Advisory Board for the previous two meetings and working alongside the Quindell team over many years, it is clear that Quindell's proposition for the market is unique and market leading in technology, consultancy and outsourcing. I look forward to working more closely with the team over the next year as the Company goes through an exciting phase of growth and continues to demonstrate that services can be provided profitably but also cost effectively and ethically for the benefit of the industry as a whole."

For further information:

Notes to Editors:

About Quindell Portfolio Plc

Quindell Portfolio Plc is a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing in its key markets being Insurance, Telecommunications and their Related Sectors.

Quindell joined the market through Mission Capital Plc, now renamed Quindell Portfolio Plc. The Company was readmitted to the market on 17 May 2011 following the acquisition of Quindell Limited prior to the immediate acquisition of Quindell's technology and outsourcing partners. In December 2011, Mobile Doctors Group Plc was acquired increasing 2012 run-rate revenue to over £50 million. On the 1 April 2012, Ai Claims Solutions Plc became a subsidiary of Quindell, increasing run rate revenue to over £150 million.

Our Industry Sectors

In today's digital world the line between traditional industry sectors continues to blur, however the focus on tight service management is common to them all. We believe that excellent customer service, tight cost control and integrated supply chain management is not the prerogative of any single industry sector and with our solutions in multiple industry sectors savings of over 20% against industry norms are being delivered to the bottom line.

Our Solutions

The pressures on an organisation can come simultaneously from multiple directions including the need to add customers, increase wallet share, reduce costs and improve customer satisfaction. At Quindell we have the People, the Processes and the Supply Chains, underpinned by our sophisticated Champion and Challenger Business Process Management Technology Platform and Industry Solutions to help our customers tackle these efficiently and effectively.

With a clear understanding that having the best products and services on offer is not always enough and that getting your customers to use or adopt them is key, effective conversion lies at the core of our unique Champion and Challenger tools and techniques. Using these solutions Quindell has helped its customers achieve sales and service conversion rates ranging from 75% to 90%, way above industry norms. But life does not stand still, and complacency can kill any business, so the embedded Champion and Challenger continual improvement focus of our Learning Solutions is at the heart of all we offer. Using our industry insight and expertise, Quindell takes the holistic view of our client's challenges.

For example, when considering the Insurance industry today where 50% of the cost of an auto claim is associated with Personal Injury, including legal services, medical reporting and rehabilitation, it is clear that an organisation will not be able to achieve the levels of savings and customer satisfaction desired without addressing the injury to the driver as well as the repair of the vehicle. This is why at Quindell we have designed our insurance solutions and supply chains to address the full end to end cycle, with the ability and expertise to treat an injured party as well as repairing their vehicle. This makes Quindell a truly unique and ethically based proposition for the insurance industry today.

Our Customers

Quindell Portfolio's companies have worked with over 2000 brands from Small to Medium Enterprises and Blue-chip organisations around the globe. Today we count a number of the world's top Insurance and Telecommunications blue chip companies within our client base, as well as hundreds of customer centric organisations working in both the distribution and supply of their services.

Our award winning Business Transformational, Software, Consulting and Outsourcing Solutions are recognised as delivering significant savings and additional sales to our customers every year.

For further information, please visit www.quindell.com