WTG.L Regulatory News (WTG)

8 December 2014

Quindell Plc

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

Trading update

Quindell Plc (AIM: QPP.L), a market leading global provider of professional services and digital solutions, provides an update on its current trading.

The Directors believe that the recent changes to the Board mark a natural point at which to take stock of the Group's position. As set out below, PwC is being engaged to conduct an independent review.

The Board is satisfied with the overall trading performance of the Group throughout a period in which a number of distractions have been encountered, and thanks its staff, customers, referral partners and suppliers for their support during this challenging period.

Trading Update

The Group's business remains robust in both of its divisions: Professional Services and Digital Solutions. In particular, case numbers across its broad base of cases in the Professional Services division remain in line with management's expectations. There continues to be positive feedback and support from customers and clients regarding the quality of service and products provided by the Group.

Cash flow from operations in the Professional Services division continues to grow as the cases within Legal Services progress through to settlement, and cash receipts in this area are greater than in comparison to previous quarters. The growth in cash receipts in the final quarter of the year has not been as significant as previously anticipated. The Board remains comfortable with the Group's overall cash position; cash generation remains a key focus of the Group and initiatives to improve the working capital profile of the Group continue to be pursued.

The Board believes, taking into account the Group's cash reserves and continued access to its three credit facilities, that the Group's resources are sufficient to deliver on management's current plans.

Independent Review

Further to the recent board changes, the Group's ongoing development and the announcement on 13 October 2014 in relation to its internal business review on Noise Induced Hearing Loss, and in conjunction and consultation with the Company's bankers, advisers and auditors, PwC is being engaged to carry out an independent review. This will review, inter alia, the Group's main accounting policies and expectations as to cash generation into 2015. Initial work on this review has commenced and the Board will update shareholders on its results and provide future guidance in due course.

David Currie, interim non-Executive Chairman, said: "The appointment of PwC to conduct an independent review is the natural next step to give additional support to the Board's confidence in the business and will also assist the Company in assessing its future strategy and outlook. The search for a permanent Chairman and new board members is ongoing and we will update shareholders as appropriate."

Robert Fielding, Group Chief Executive, commented:

"The Group's business remains robust and we believe we have sufficient resources to deliver on management's plans. I would like to take this opportunity to thank all of the Group's staff for their hard work and professionalism and for the notable support of customers and suppliers over the past few weeks. I believe that we have a strong business, with great people and we look forward to the future with optimism."

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