WTG.L Regulatory News (WTG)

Quindell Portfolio Plc

("Quindell" or the "Group")

Trading Update

·; Preliminary results expected to be significantly ahead of market expectations

·; Anticipated pilot run rate revenues doubled since 3 December 2012 update

·; SRA approval of application for license to operate as an ABS

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 trading has continued positively in the current quarter, building on the strong performance delivered by the Group in the first three quarters of the year, both organically and through acquisitions. Furthermore, the Group is delighted to confirm that it has now received approval from the Solicitors Regulation Authority ("SRA") in relation to Quindell Legal Services Limited's application for a licence to operate as an Alternative Business Structure ("ABS") for legal services.

Trading update

The Board expects that EPS for the fourth quarter will be significantly ahead of market expectations at a level that is no lower than what was achieved in its third quarter notwithstanding the increased number of shares in issue. This is a result of both increasing volumes being transacted by the Group's Services Division, as pilots have continued to be converted into contracts, and new sales made by its Solutions Division. Since its announcement on 3 December 2012, the Group has entered into additional long term agreements and our pilot volumes, both in regard to current run rates and anticipated volumes, have more than doubled. Accordingly, the Board expects results to be significantly ahead of market expectations for the year ending 31 December 2012.

In addition to those announced on 3 December2012, the Group's Services Division has converted significant additional outsourcing/partnership business during the last seven days and we fully expect this trend to continue all the way to April 2013. The other pilots, representing a further £100 million per annum, are progressing positively, with current run-rate revenues being processed of circa £40 million per annum.

Margin performance has continued to be maintained at or above historic run-rate levels and the Group has continued to generate strong levels of cash from its operations, with headroom in working capital including banking facilities sufficient to support the Group's organic growth plan up to 3p EPS.

SRA Approval

The Group is delighted to confirm that it has now received approval from the SRA in relation to Quindell Legal Services Limited's application for a licence to operate as an ABS for legal services. This approval, which has no application specific conditions, is effective from 21 December 2012.

Quindell has welcomed the Government's recent proposal for a new fast-track fixed fees structure for all road traffic accident ("RTA") portal claims. The RTA portal provides a swift, streamlined exchange of all claim information and documentation, including medical records, enabling key decisions to be communicated quickly, reducing duplication and ultimately helping to reduce operational costs, allowing the insurer to agree settlement more promptly.

According to the consultation paper issued by Justice Minister Helen Grant, it is proposed that the fixed fees for personal injury cases up to £10,000 submitted through the portal will fall from £1,200 to £500. When the upper limit of the RTA portal is extended to £25,000, claims between £10,000 and £25,000 will have fixed fees of £800 and when the RTA portal is opened up to employers and public liability claims, fixed fees will be £900 for cases up to £10,000 and £1,600 for cases up to £25,000.

The Law Society has described the proposed costs as "woefully inadequate" with a spokesman saying: "the likely result will be that many solicitors will not be able to afford to carry on doing this type of work".

In contrast, Quindell has put in place significant expansion plans over the next twelve months to drive the business forward via organic growth, creating over 300 new positions within Quindell Legal Services. Even in light of the most recent government announcement to enter a period of consultation regarding whiplash injuries and raising the small-claims track threshold from £1,000 up to £5,000, the Board believes that Quindell is uniquely placed to operate post this suggested regulatory change, even at its extremes, and will continue to be able to operate a profitable business model during this period of significant industry consolidation.

Rob Terry, Chairman and Chief Executive of Quindell said: "With the changes to legislation within the UK insurance industry now fast approaching, our solutions and services based proposition of maintaining income and competitive advantage for our insurance clients and reducing costs for the overall insurance market is proving to be highly attractive.

"Quindell welcomes any proposals that protect consumer rights and champion industry change. Above all else, the market needs clarity. Our combined model and diversified offering means we can still operate profitably within the scope of the new proposals whilst supporting lowering the cost of claims for 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