Freeagent (FREE:AIM) 117.5p

Gain to date: 1.3%

Original entry point: Buy at 116p, 16 February 2017

Considering first half results had been signed-off before FreeAgent’s (FREE:AIM) November 2016 IPO, the second half is the company’s first real test as a public company, and it has impressed.

Both earnings before interest, tax, depreciation and amortisation (EBITDA) losses and cash will be ‘comfortably better than current market expectations’ that were down for a loss of £0.9m and a balance of £3.1m respectively.

Even revenue of £8m, said to be ‘in line’ with estimates, look better to us versus the sole £7.6m forecast of N+1 Singer.

What stands out is that costs have been kept in check despite the temptation to ramp spending after raising £8m. That is different to many other AIM IPOs in recent years.

With £8.6m of contracted revenue in the bag for this year (to 31 March 2018), N+1 Singer’s £10.3m estimate looks well within reach. The trajectory for both company and share price looks very positive.

An encouraging start for this exciting growth company. Still a buy. (SF)

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