FREEAGENT, the fintech business set to be acquired by Royal Bank of Scotland for £53m, has said revenue for its full year will be £9.8 million, up 22.5% on last year, writes Kevin Scott.
The Glasgow business, which makes software and mobile applications to help small businesses with their accounts, also said that annualised committed monthly recurring revenue was £10.1m, in line with expectations.
Last month Royal Bank announced a move to acquire the group, believing it would enhance its offer to business banking customers.
This came after FreeAgent and Royal Bank struck an agreement in early 2017 which saw FreeAgent selected to supply an integrated banking-accounting system for RBS customers.
The group floated on the Alternative Investment Market (AIM) in November 2016. Last year, FreeAgent made a pre-tax loss of £3m on revenue of £8m, which had grown 41%.
Ed Molyneux, chief executive, said: “Overall progress has been strong, particularly in our banking channel, despite headwinds in the practice channel.”
RBS is paying 120p per share for FreeAgent, which had been trading at 64.5p ahead of the bid. Mr Molyneux said shareholder approval for the deal would be sought before the end of April.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here