Quindell Portfolio scores five-year contract win with RAC

Quindell Portfolio, which provides software, consultancy and technology enabled outsourcing, has announced a 'significant' contract win with the RAC as part of a trading update.

Quindell Portfolio, which provides software, consultancy and technology enabled outsourcing, has announced a 'significant' contract win with the RAC as part of a trading update.

The five-year contract, which has the potential to be the largest contract that the group has entered into to date, is for a combination of Quindell's services and will see the RAC using Quindell's end-to-end proposition of a complete supply chain offering for Personal Injury claims, Medical Reporting, Multi Disciplined Rehabilitation, as well as Auto Accident Repair.

The contract follows a successful pilot programme.

The company said the RAC has agreed to a payment profile for their financial benefit that ensures that the agreement remains cash positive on the majority of transactions for Quindell.

Rob Terry, Chairman and Group Chief Executive of Quindell, said: "We are delighted to announce this significant new contract with such a distinguished and respected brand as RAC.

"This agreement once again validates Quindell's significant market leading model, which we believe will revolutionise the insurance industry, through a combination of innovative technology and integrated supply chain stamping down the cost of claims whilst above all improving the customer experience for the brands who choose to partner with Quindell."

As part of the agreement, the RAC will be granted warrants over 250m shares in the capital of Quindell exercisable at £0.13 per share (which equates to a value of £32.5m), or the average trading price in the 30 days prior to the move to full LSE listing if lower.

Meanwhile, the group said it has enjoyed a strong start to the financial year and has continued to be successful in converting 100% of its pilots to full relationships.

"The conversion of each of these pilots, together with other outsourcing wins that the group has gained, now provide the group with visibility of the outsourcing volumes required to meet the market's current full year revenue expectations for 2013," Quindell said.

It added that sale cycles have been accelerated as a result of changes within the UK insurance sector that came into force on April 1st, and further due to recent contract wins which have been achieved without going through a pilot stage.

The share price rose 12.77% to 13.25p by 09:00.

NR

Recommended

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021