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

Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Three Sharia-compliant growth companies
Share tips

Three Sharia-compliant growth companies

Professional investor Scott Klimo of the Saturna Al-Kawthar Global Focused Equity ETF tips three Sharia-compliant stocks.
30 Jun 2022
Why the cost of living crisis could be a boon for this cheap retailer
Retail stocks

Why the cost of living crisis could be a boon for this cheap retailer

Like many retailers, B&M is facing the dual headwinds of lower sales and higher costs as inflation bites. But its business model has proved hugely suc…
29 Jun 2022

Most Popular

Prepare your portfolio for recession
Investment strategy

Prepare your portfolio for recession

A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, sa…
27 Jun 2022
Market crash: have we hit bottom or is there worse to come?
Stockmarkets

Market crash: have we hit bottom or is there worse to come?

For a little while, markets looked like they were about to embark on a full-on crash. And that could still happen, says Dominic Frisby. Today, he look…
27 Jun 2022
What the end of the 1970s bear market can teach today’s investors
Stockmarkets

What the end of the 1970s bear market can teach today’s investors

The 1970s saw the worst bear market Britain has ever seen, with stocks tumbling 70%. Things have changed a lot since then, says Max King. But there ar…
28 Jun 2022