FreeAgent well on track for full-year targets
Freeagent Holdings
120.00p
16:09 01/06/18
Cloud-based accounting software-as-a-service provider FreeAgent Holdings updated the market on its trading for the six months to 30 September on Tuesday, in advance of its half-year results announcement scheduled for 5 December.
FTSE AIM All-Share
753.55
14:30 25/04/24
The AIM-traded company said that for the period it expected to report revenue of £4.6m and an adjusted EBITDA loss of £0.4m, which would fall “broadly in line” with the board’s expectations, and with the expected out-turn for the year as a whole.
Period end net cash was said to be approximately £3.4m, which FreeAgent said was “comfortably ahead” of internal forecasts, and its gross profit margin remained strong at 80%.
Revenues for the year as a whole were set to include a higher contribution from consultancy fees as the group's strategic partnership with the Royal Bank of Scotland Group continued to trigger “substantial” reimbursed development spend for FreeAgent.
“FreeAgent is pleased to report continued strong revenue growth with an evolving channel mix,” said CEO Ed Molyneux.
“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.”