FreeAgent reports revenue leap as RBS sale looms

FreeAgent, the Edinburgh-based accounting software vendor which last month was revealed as the subject of a £53 million Royal Bank of Scotland acquisition, has reported full year results showing revenue up 22.5 per cent on last year to hit £9.8 million.

Last year, FreeAgent, which floated on the Alternative Investment Market (AIM) in November 2016 made a pre-tax loss of £3m on revenue of £8m, which had grown 41 per cent.

The business makes software and mobile applications to help small businesses with their accounts.

It said that annualised committed monthly recurring revenue was £10.1m, in line with expectations.

ED Molyneux, the former fighter pilot who founded and now runs Freeagent as CEO, is in line for a £4.3 million payday on the deal to sell the firm to RBS.

His business now has more than 60,000 customers currently using its book-keeping system to manage and maintain their business accounts, track time, log expenses, create and send invoices, forecast their tax bills and file their Self Assessment and VAT returns directly to HMRC.