Edinburgh, Scotland based cloud accounting platform FreeAgent has announced its plans for an initial public offering on the London Stock Exchange's AIM market. FreeAgent provides cloud-based accounting software for "micro-businesses," a term it defines as companies with fewer than 10 employees. There have been seven tech IPOs in the U.K. in the last 12 months.
"Investors are always needing solid, well-run businesses," FreeAgent Chief Executive Officer Ed Molyneux said in an interview. "Whatever the market conditions, we think there is a market out there to sell our shares." FreeAgent, founded in 2007, sells its services through a subscription model and said it currently has about 52,000 customers. It said monthly subscriber revenue, as of the end of September, put it on track for sales of 7.7 million pounds annually, up from 6.8 million pounds at the end of its financial year in March. But despite what it said was a gross profit margin of 80 percent, the company lost 1.3 million pounds in 2016, according to documents filed with British business registry Companies House.