Maiden interim figures

Customer growth drives revenue at FreeAgent

Ed Molyneux: we are confident we can do this (contributed)
Ed Molyneux: we are confident we can do this (contributed)

Software company FreeAgent, which floated last month, unveiled maiden interim results showing a rise in revenue following investment in customer growth.

For the half year to the end of September the Edinburgh company saw its client list rise to 27,137 from 12,611 in the same period in 2015.

Revenue increased by 36% to £3.6 m (H1 2015: £2.6m), while  gross profit was up 38% to £3m (H1 2015: £2.2m).  There was a net loss of £1.3 million. 

The company raised £8 million in a placing of shares and admission to AIM in November.

Its balance sheet has been strengthened, with repayment of debt leaving £5m of net cash immediately after the IPO.

Andy Roberts has been appointed non-executive chairman and Nigel Halkes appointed non-executive director.

Ed Molyneux, chief executive, said: On 16 November 2016, FreeAgent was admitted to the AIM market of the London Stock Exchange. This is a significant milestone for us, and an achievement which the Board believes will be transformational for the Group’s future growth and prospects. 

“The repayment of the loan facility with the placing proceeds and the new investment from the IPO has significantly strengthened our balance sheet and provides us with the opportunity to further invest in customer acquisition activities and product development to enhance our product offering.

“As a newly-listed public company, we are especially pleased to report strong performance in our first set of interim results.

“The 36% growth in revenue maintains our FY15 and FY16 growth rates, and at the same time we have also improved gross margins. The second half has started positively and we are confident we will report further significant progress within our full-year results, consistent with market expectations.”

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