Freeagent Holdings Regulatory News (FREE)

10th October 2017

FreeAgent Holdings plc

("FreeAgent", the "Company" or the "Group")

Interim period-end trading update

FreeAgent Holdings plc, a provider of cloud-based Software-as-a-Service ("SaaS") accounting software solutions and mobile applications designed specifically for UK micro-businesses, today provides the following trading update for the six months ended 30th September 2017, in advance of its half-year results announcement scheduled for 5th December 2017.

For the six months ended 30th September 2017, the Board expects to report revenue (£4.6m) and adjusted EBITDA loss (£0.4m), broadly in line with our expectations and with the expected out-turn for the year as a whole. Period end 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, commented:

"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."

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