Freeagent H1 sales up and losses reduce

Accounting software specialist Freeagent has narrowed its first-half losses on the back of factors such as growing its customer base, while revenue jumped by nearly a third.

The company, based in Edinburgh’s Fountainbridge and targeted at UK microbusinesses, posted a net loss of £1 million for the six months to 30 September, “reflecting planned growth in further customer acquisition and support costs and increased investment in product development”. It also compared to a £1.3m loss 12 months previously while revenue leapt by 28 per cent to £4.6m,

Chief executive Ed Molyneux said: “The first half has seen Freeagent report continued strong revenue growth with an evolving channel mix.”

The firm, which in November 2016 floated on London’s Alternative Investment Market, added that its accounting practice clients grew to 37,600 from about 30,000 and direct clients to 18,247 from 16,724.

Molyneux added: “Growth has continued in both our direct sales and practice sale channels and, whilst the rate of growth in our practice sales has been tempered by changes to IR35 ‘off-payroll’ legislation, which has affected public sector contractors, the underlying market drivers remain intact as accounting professionals transition towards digital accounting to cater for all their business requirements.”

He also flagged “considerable” progress made in developing the fintech firm’s strategic partnership with Royal Bank of Scotland. Molyneux added: “We look forward to reporting further progress with the rollout in the second half.” 0 CEO Ed Molyneux flags ‘strong’ growth in revenue