FreeAgent to list on AIM to raise £8m

Ed Molyneux
Ed Molyneux

Edinburgh based FreeAgent, the cloud accounting software specialist is to join the London Stock Exchange through a listing on the Alternative Investment Market (AIM).

Insiders have reported that the company is looking to raise £8m which would lead to a market capitalisation of between £31m to £35m.

FreeAgent is an established provider of cloud-based Software-as-a-Service accounting software solutions and mobile applications designed specifically for UK micro-businesses (defined as sole traders and companies with fewer than 10 employees) and their accountants.

Micro-businesses account for 95% of the UK’s 5.5 million businesses, representing 32% of total private sector employment and 18% of total private sector turnover.

The Company is seeking admission to AIM to raise funds to accelerate product development with a focus on the digital tax agenda, to scale-up customer acquisition with a particular emphasis on large accountancy practice customers and to repay existing debt.

The Company has appointed Andy Roberts as Non-Executive Chairman. Andy led The Innovation Group plc from 2009 until its sale to Carlyle Group in 2016 for £500 million.

Ed Molyneux, Chief Executive Officer of FreeAgent Holdings, commented:

“With 5 million micro-businesses in the UK, FreeAgent is well positioned to transition micro-businesses away from relying on spreadsheets to manage their finances to taking a more automated and digital approach to their accounting. Developed specifically for micro-business, FreeAgent provides these businesses with a dedicated SaaS solution that has the depth of functionality to cater for all of their business finance requirements, from time slips to tax returns and quality after-sales support.

FreeAgent’s software already helps 52,000 business owners, providing the Group with excellent revenue visibility. FreeAgent’s differientated product puts businesses in charge of their finances, allowing them to see the big picture and automatically generating their tax returns.

We believe that the proposed Placing and Admission to AIM will provide the springboard necessary to help us accelerate our growth and to attract more customers through both our direct and accountancy practice channels, introducing the benefits of FreeAgent to thousands of other businesses.”