Quindell Portfolio Plc

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

Pre-Close Statement and Trading Update


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 announce that, subject to audit, revenue for the year ended 31 December 2012, including those of the legal services businesses for the period during which they were in partnership with Quindell, is expected to be approximately £165 million, with adjusted EBITDA (note 1) of approximately £47 million. Trading at the start of the new financial year has continued positively with pipelines and pilot revenues at record levels, building on the strong performance delivered by the Group during 2012.

Highlights

· Results for the year ended 31 December 2012 to be ahead of the upper end of market expectations with adjusted EPS (note 2) of 1.29 pence (Q4: 0.43 pence)

· Margin performance has continued to be maintained at or above historic run-rate levels as the Group has continued to drive through efficiencies, integration savings and economies of scale. The result was an increase in adjusted EBITDA (note 1) to circa £47 million, an EBITDA margin of approximately 28%

· Operating cash flow is also ahead of market expectations with cash at the end of the year of circa £47 million compared to market expectations of £41.5 million

· The Group has again had a strong start to the new financial year, continuing the positive developments achieved in 2012, with our pipeline progressing to pilots and then full contracts at a more rapid pace than during any prior period

· Two significant technology solution contracts have reached key delivery and financial milestones since the start of the new year

Notes:

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

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

2012 Pre-Close Statement

2012 was a period of significant progress for the Group in terms of delivering on its acquisitive growth objectives for the year and for starting to achieve its ambitions for organic expansion, with a number of significant agreements now in place which will form the basis of continued significant organic growth during 2013.

At the same time as achieving this growth, the Group continued to generate good levels of cash from its operations, including during the final stages of 2012, with cash and net funds at the end of the year of circa £47 million and £15 million respectively compared to market expectations of £41.5 million and £9.5 million respectively. As previously stated, the Group has headroom in working capital including banking facilities sufficient to support the Group's organic growth plan up to 3p EPS in 2013.

Trading update

The Group has had a strong start to the new financial year with our pipeline progressing to pilots and then full contracts at a more rapid pace than during any prior period. Sales cycles continue to be accelerated as a result of the impending changes to legislation within the UK industry, which take effect from 1 April 2013, and this is driving demand for our insurance claims and policy solutions as well as outsourced services. Two significant technology solution contracts have reached key delivery and financial milestones since the start of the new year.

The Group continues to be approached by prospective acquisition targets, however our focus at this point remains on delivering on the existing organic opportunities, with any material acquisitions only being considered where they are significantly earnings enhancing and any resultant equity issue is at a significant premium to current share price.

Rob Terry, Chairman and Group Chief Executive of Quindell said: "During 2012 Quindell has demonstrated the value of its unique offering for the UK insurance market. We look forward to continuing this throughout 2013 with the confidence that through continuing to deliver we will capitalise on this opportunity to help our existing and prospective clients and generate significant benefits for our shareholders."



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