FreeAgent reports strong revenue growth
Ed Molyneux: pleased with progress
Accounting software company FreeAgent said it is trading in line with expectations and has strong revenue growth.
In a trading update for the six months ended 30 September its said it expects to report revenue of £4.6m and an adjusted EBITDA loss (£0.4m).
The Edinburgh-based company said net cash was approximately £3.4m, comfortably ahead of internal forecasts; and gross profit margin remained strong at 80%.
Revenues for the year as a whole will include a higher contribution from consultancy fees as the Group’s strategic partnership with the Royal Bank of Scotland Group continues to trigger substantial reimbursed development spend for FreeAgent.
Ed Molyneux, Group CEO, said: “FreeAgent is pleased to report continued strong revenue growth with an evolving channel mix.
“We enjoyed continued growth in our direct channel and progress in our relationship with the Royal Bank of Scotland Group – which has strengthened further – whilst practice sales growth was tempered following changes to IR35 ‘off-payroll’ legislation affecting public sector contractors.
“With RBS, revenue from integration activities has stepped up, and as the period ended we started to see the first signs of our combined investment in this channel translating into accelerating licence growth.”