Trading Update and Acquisition

RNS Release Embargoed until 7.00 am 19 April 2012

Quindell Portfolio Plc

("Quindell" or the "Group")

Trading Update and Acquisition

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 announce that first quarter trading has been in line with market expectations and that its pipeline for insurance business process outsourcing deals has now reached a record level where the Group is in discussions with multiple insurance players regarding outsourcing arrangements that in each case could deliver multiple tens of millions of pounds of revenues per annum. Total pipelines in this area are capable of organically more than doubling in 2013 the Group's current run rate revenues including those of the recently acquired businesses.

The Group's current focus on mergers and acquisitions remains primarily on completing its vision for the insurance supply chain with the aim of improving service levels within the industry, improving levels of consumer satisfaction and driving down the cost of claims. The Group is currently in discussions with the remaining few material acquisition targets, based on issuing shares at a level of 10 pence per share or above, on a locked-in basis, and with warranted future profitability.

Further to this strategy, Quindell is pleased to announce that it has reached an agreement whereby it will be partnering with Overland Health in the area of early intervention rehabilitation. In addition, Quindell has reached agreement for the acquisition of the companies comprising Overland Health as well as for the acquisition of a rehabilitation centre, trading as LBhealthcare.

Overland Health is a full-service, integrated rehabilitation supplier to the insurance industry, employers and occupational health providers. Overland Health was established in 2009 with a completely new vision for serving the rehabilitation market offering clients a unique multi-disciplinary rehabilitation service through the use of its cloud-based technology, evidence-based assessment and management tools, and outcome focused programmes. Its rehabilitation offering includes physiotherapy, psychological counselling and injury case management including specialist medical treatments. With Overland Health becoming part of the Group, it provides the platform for Quindell to acquire selected rehabilitation and treatment centres, thereby extending Quindell's reach deeper into the insurance supply chain,enabling Quindell to drive though service synergies, change the way in which the industry operates, lower the cost of claims and improve service for clients.

In line with previous statements made by the Group, the Board of Quindell believes that confrontation often exists between the interested parties at the point rehabilitation services are initially being proposed and that this needs to be resolved. One of the best ways to address this is to have these services, where possible, agreed by both defendant and claimant at the earliest possible opportunity. The Group has trialled this new industry model in combination with Overland Health over the last few months. The result has been good progress being made with significant interest being shown in the model and a number of initial contract wins. As a consequence, the Group's medico legal reporting subsidiary, Mobile Doctors, will now be transitioning a significant proportion of its rehabilitation work to this pre-authorised model. In 2010, the last full year for which Mobile Doctors Group Plc published financial statements, revenues from rehabilitation services totalled £6.3 million. This new model provides the opportunity for significant margin improvement and earlier cash collection within this area.

Quindell has agreed the commercial terms that will enable it to acquire the companies comprising Overland Health (the "Overland Acquisition"), with completion of this acquisition targeted within the next few weeks. The terms of the Overland Acquisition, which gives Quindell exclusivity to the end of December 2012, values Overland Health at £14 million and will be satisfied by the issue of 140,000,000 Quindell shares, issued at a price of 10 pence per share, representing a premium of approximately50.9% on yesterday's closing price. This valuation has been calculated on a multiple of 6.5 times Overland Health's targeted profit after tax of £2.16 million for the twelve month period ending 31 December 2013 (the "Target Profit"). The shares are subject to lock in of between 12 and 36 months from the date of issue. In the event that Overland Health misses its Target Profit, the Group will receive compensation from the vendors in the form of cash equal to 6.5x the shortfall.

In line with the above, Quindell has also agreed the commercial terms that will enable it to acquire a 49% shareholding (the "LB Acquisition") in the Hampshire based rehabilitation centre, Ferneham Health Limited, trading as LBhealthcare, and is in the process of agreeing 'call' and 'put' options over the remaining 51%, with completion of this acquisition also targeted within the next few weeks. The consideration for the LB Acquisition is circa £261,000 to be satisfied by the issue of 2,613,333 Quindell shares, issued at a price of 10 pence per share, representing a premium of approximately50.9% on yesterday's closing price. The Quindell shares are subject to lock in of between 12 and 36 months from the date of issue. In the event that LBhealthcare misses its warranted profit of £50,000 for the 12 month period commencing from the date of acquisition, the Group will receive compensation from the vendors in the form of cash equal to 8x the shortfall. 

Rob Terry, Chairman and Chief Executive of Quindell said: "As a result of working with Overland Health over the past months, it is clear that we share a passion for introducing change to the insurance industry. The skills, expertise and networks that David and his team have built both complement and strengthen Quindell's proposition to its insurance industry clients. We believe that this acquisition will further enhance Quindell's unique offering to the insurance industry and further strengthens our confidence in converting our strong pipeline of contracts. Recent progress also demonstrates that both our acquired and organic growth opportunities for the Group are being confirmed as being as significant as the Board had previously targeted."

Commenting on the potential acquisition, David Ravech, Chief Executive of Overland Health said: "It is refreshing and encouraging to see an organisation such as Quindell approaching the Personal Injury marketplace in such an innovative way, with a focus on delivering a quality service and the highest clinical standards to the patients whilst managing down costs for the insurance industry. The synergies between our two organisations are clear and the opportunity to bring them together at this point is extremely exciting. I am very much looking forward to being part of the Quindell team and am confident that being part of the Quindell Group will enable Overland Health to grow."

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Notes to Editors:

About Quindell Portfolio Plc

Quindell, the Brand Extension Company, helps its clients and partners to utilise their brands enabling them to achieve greater sales, provide better service and extend the brand into new product offerings and alternative routes to market.

The Group works with over 2,000 brands from SMEs to blue-chips around the globe, with solutions applying to the following Sectors & related Supply Chains:

·; Telecoms, Utilities, Retail & E-commerce

·; Finance, Insurance, Health & Legal

·; Government & Public Sector

Quindell Portfolio joined the market through Mission Capital Plc. The Group was readmitted to the market on 17 May 2011 following the acquisition of Quindell Limited. On 18 July 2011, the Company was renamed Quindell Portfolio Plc. In December 2011, Mobile Doctors Group Plc was acquired increasing run-rate revenue to over £50 million and staff levels to over 600 including our off-shore capability. In April 2012 Ai Claims Solutions Plc became a subsidiary of the Group, increasing run rate revenue to over £150 million and staff levels to circa 1,000.

Our Solutions

In addition to extending our clients' brands, Quindell's solutions are focused on generating improvements in efficiency and effectiveness in sales and service transactions with savings of over 20% against industry norms achieved.

Our Consultancy drives the business transformation for our clients, and is supported by leading edge technology, outsourcing, membership schemes and social media via repeatable solutions.

Our Software provides cloud based industry solutions to deliver the necessary framework to meet online, office and field based sales and service expectations of our clients and their customers.

Our "Sales" Technology Enabled Outsourcing leverages our own Business & Home Advisory Service brands to provide a White Labelled proposition for partners to extend into alternative offerings. Weknow that many insurance brokers and other brands do not have the resources or capability to fully cross-sell the full range of insurance and other lifestyle event related products to their clients.We work with these brands to sell their own add-ons or give them access to ours including add on offerings withinTelecoms, Utilities, Finance, Insurance, Health and Legal Services.We are constantly researching new products coming in to the market and enjoy excellent relations with insurers and underwriters as well as telecoms, utilities and other service providers; testing these offerings through our own Business and Home Advisory Service brands.

Our "Service" Technology Enabled Outsourcing covers a broad range of solutions and in insurance, is already recognised as a market leader. Within insurance, the Group's strategy is to work with the sector to provide ethical end to end claims management solutions, which provide market leading customer service with an ethos to control claims cost inflation. The Group manages motor claims from the initial incident through to final resolution for a number of the UK's leading insurance companies, brokers, fleet companies and automotive businesses. The Group provides circa 200,000 core services to insurance policy holders each year including accident management services, cost containment, claims recovery, vehicle repair, personal injury claims management, medico-legal reporting, rehabilitation and replacement vehicles where the Group has access to 300,000 vehicles through its rental partners.

For further information, please visit www.quindell.com