WTG.L Regulatory News (WTG)

12 January 2012

Quindell Portfolio Plc

("Quindell" or the "Group")

Pre-Close Statement and Trading Update

Quindell Portfolio Plc (AIM: QPP.L), the brand extension company and a leading practice provider of consultancy, software and outsourcing in its key markets, is pleased to report that, subject to audit, turnover for the period ended 31 December 2011 is expected to be approximately £12.5m, with adjusted EBITDA (1) of £5.7m; all of which was achieved in just 33 weeks, following the acquisition of Quindell Limited in May 2011. Trading at the start of the new financial year has continued positively, building on the strong performance delivered by the Group during 2011.

Highlights

·; Results for the period to 31 December 2011 to be at the upper end of market expectations with adjusted EPS (2) of 0.5 pence

·; Operating cash flow at good levels during the period, with cash at the end of the year of circa £3.5 million compared to previous market expectations of £1.3 million

·; The Group has had a strong start to the new financial year, continuing the positive developments achieved in 2011

o In the Software and Consultancy division, key milestones have been met with major UK blue chip telecoms and utilities clients and billing has now commenced on two new major North American accounts

o Quindell has been selected as preferred partner with a significant buying group for consumer utility services

o Agreement has been reached with a top tier personal injury law firm to significantly increase the volume of cases that it will provide to the Group

Notes:

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

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

It should be noted that all income and profit was generated in just 33 weeks of trading, as prior to the acquisition of Quindell Limited in May 2011 the Group was a non trading AIM cash shell.

2011 Pre-Close Statement

2011 was period of significant progress for the Group. Following its admission to AIM in May, the Group acquired two major businesses and secured 13 major new contracts. This combination of acquisitive and organic growth helped increase Group revenues for the period to £12.5m, with further growth to come in 2012 as the Group benefits from a full year of trading in each case. In particular, the new contracts are expected to produce annualised revenues of over £6m and Mobile Doctors Group plc, which was acquired only in the last month of the reporting period, historically had revenues of £27m per annum. Therefore full year 2012 run rate revenues are expected to be a significant multiple of those reported for 2011.

The Software and Consultancy division and the Technology enabled Business Process Outsourcing division each contributed approximately half of the Group's overall revenues. Within each division, sales to the Telecoms, utilities, retail and e-commerce sectors and Finance, insurance, health and legal services sectors were approximately two-thirds and one-third of sales respectively, with revenues from the Government and public sectors not material during the period but growing significantly.

Margins increased over 2010 as the Group benefited from a combination of cross selling between the Group's subsidiaries and integration savings. The result was an increase in adjusted EBITDA1 to £5.7m, an EBITDA margin of approximately 45%.

As previously indicated, the Group continued to generate good levels of cash from its operations during the final stages of 2011, with the Group's cash balance at the end of the year being approximately £3.5 million compared to previous market expectations of £1.3m.

Trading update

The Group has had a strong start to the new financial year. Within its Software and Consultancy division, the Group has passed certain key milestones with its major UK blue chip telecoms and utilities clients and billing has now commenced on two new major North American accounts.

Within its Technology enabled Business Process Outsourcing division, Quindell has been selected as preferred partner with a significant buying group for consumer utility services and, since the last trading update on 13 December 2011, has signed an agreement with a significant provider of business services to the private and public sectors, principally hospitals and hospices, for the provision of telecoms and utility services.

Following the successful completion of its acquisition of Mobile Doctors Group plc in December 2011, agreement has now been reached with a top tier personal injury law firm that will significantly increase the volume of cases which it will provide to Mobile Doctors now that it is part of the Group. Quindell has also recently been working with this legal brand to enable it to obtain work from new, multiple consumer and business sources.

Post the acquisition of Mobile Doctors we anticipate future revenues from the Telecoms, utilities, retail and e-commerce sectors and the Finance, insurance, health and legal services sectors to be closer to a half and half mix. As many of the organisations in the field of government and the public sector are also looking at ways to address the same issues as those faced by other major commercial brands of generating cost savings and improving efficiency and effectiveness, we anticipate growing this part of our business during 2012.

Crucial to the Group's future success is its ability to continue to attract market leading talent to its business away from competitive organisations. Recent successes in this area position the Group well for signing major new accounts with clients in both the motor and property insurance outsourcing sector during the first half of 2012.

Together, the contract wins and milestone progress combine to underpin the Board's confidence that the Group will continue to experience strong organic growth; confidence that has recently been demonstrated with all of the directors of Quindell buying the Company's shares in the market. In addition, the Group is continuing to actively pursue its acquisition strategy with a particular focus on companies in the insurance and legal service sectors.

The Group will also shortly be announcing appointments to its newly formed Strategy and Integration Advisory Board, which will include leading individuals from each of the sectors within which the Group operates.

Rob Terry, Chairman and Chief Executive of Quindell said:

"Thanks to a great team effort, we have concluded 2011 successfully and have already had a fantastic start to 2012 with real progress across a number of key areas. The team and I are looking forward with confidence to 2012 and the opportunity of helping our existing and prospective clients."

For further information:

Notes to Editors:

About Quindell Portfolio Plc

Quindell, the Brand Extension Company, helps its clients, investments and partners to utilise their brands, enabling them to achieve greater sales, extend the brand into new product offerings and take advantage of alternative routes to market including white labelling, franchising and using broker and agency channels.

Quindell also provides clients with its cloud based technology to deliver the necessary framework to support the online, office and field based sales and service expectations of both its clients and their customers in an efficient and cost effective manner.

In addition to extending the customer wallet share of its clients' brands, Quindell's solutions are focused on generating improvements in efficiency and effectiveness for all of its clients, and savings of over 20% against industry norms are targeted. 

The Group's consultancy arm drives the business transformation of its clients, and is supported by its leading edge technology, technology enabled outsourcing, membership schemes, social media and e-commerce with out of the box implementations.

The Group's technology enabled outsourcing operation covers a broad range of sales and service industry solutions and its longest established brand Mobile Doctors is already recognised as a market leader providing independent and objective medical evidence via a national panel of medical experts and therapists. Mobile Doctors has a network of approximately 2,500 medical experts covering the UK and currently provides approximately 67,000 (circa 11%) of all UK reports each year in relation to insurance related personal injury claims, a key area of cost for every major insurer.

The Group currently works with more than 2,000 companies from SMEs to national and international brands around the globe, and its solutions are applied in the following sectors and their related supply chains: 

·; Telecommunications, Utilities, Retail and E-commerce

·; Finance, Insurance, Health and Legal Services

·; Government and public sector

Quindell Portfolio joined the market through Mission Capital plc. The Group was readmitted to the market on 17 May 2011 following the Company's acquisition of the whole of the issued share capital of Quindell Limited. On 18 July 2011, the Company was renamed Quindell Portfolio Plc.

For further information, please visit www.quindell.com