Revenues soar at Freeagent but expansion moves widen loses

Edinburgh-based cloud accounting software specialist Freeagent has revealed a 41 per cent jump in revenues in its full year results for the year ended 31 March.

The last 12 months have included the firm’s stock market flotation but also a widening of losses, the result show.

Revenues for the year to the end of March rose to £8 million, up from £5.7m the previous year.

However, pre-tax losses more than doubled to £3m at fintech firm, which was set up in 2007 and develops accounting software aimed at the UK’S five million “micro-businesses”.

This compared with £1.3m a year ago.

FreeAgent attributed the loses to “planned investments in customer acquisition”.

That investment saw the number of Freeagent’s accounting practice clients swell to more than 33,000, against 16,705 last time, while its direct client base rose by 11 per cent to 17,500.

Meanwhile, the business has seen its headcount grow to 125, compared with 93 in March 2016, and has taken on extra space at its Fountainbridge head office to accommodate further growth.

“Demand for Freeagent is robust and the environment for micro-businesses in the UK remains attractive,” the company said, adding that it expects “further positive progress to be made in 2018”.

Chief executive and cofounder Ed Molyneux, a former RAF fighter pilot, said: “2017 was a very good year for FreeAgent. The successful IPO and continued progress against our strategy have delivered financial metrics that are in line with or exceeding market expectations. Demand for FreeAgent is robust and the environment for micro-businesses in the UK remains attractive. The Group continues to deliver against its stated strategy and the Board expects further positive progress to be made in 2018.”