Editing Freetrade

Investing in investments is one of the best ways to grow your money<ref>There is substantial evidence to suggest that investing is one of the best ways to grow your money over time. Here are a few key points:

1) Historical Returns: Over the long term, the stock market has provided substantial returns. For example, the S&P 500, an index of the 500 largest companies in the United States, has delivered an average annual return of approximately 10% since its inception in 1926. While past performance is not a guarantee of future returns, this long-term trend suggests that investing in a diversified portfolio of stocks can yield significant returns over time.

2) Compounding Interest: Investing allows your money to work for you through the power of compound interest. When you invest, you not only earn a return on your initial investment, but also on any returns that investment generates. Over time, this can lead to exponential growth in your wealth.

3) Inflation Hedging: Investing can help protect your money from inflation. While the value of cash can be eroded by inflation over time, investments like stocks and real estate typically increase in value at a rate that outpaces inflation.

4) Wealth Creation: Numerous studies have shown that the wealthiest individuals and families often have substantial portions of their wealth invested. For example, a report from the Federal Reserve found that the top 10% of U.S. households by wealth held an average of nearly 90% of their wealth in investments as of 2019.

5) Retirement Savings: Investing is a key component of planning for retirement. Most retirement savings strategies, like 401(k) plans and individual retirement accounts (IRAs), involve investing in a mix of stocks, bonds, and other assets.

While investing can offer substantial benefits, it's also important to note that all investments carry risk. The value of investments can go down as well as up, and it's possible to lose money. Therefore, it's important to thoroughly research any investment, diversify your portfolio, and consider seeking advice from a financial professional if you're unsure about where to start.

In addition, while investing can be a powerful tool for wealth creation, it's not the only strategy. Other important aspects of personal finance, such as maintaining a budget, managing debt, and building an emergency fund, also play critical roles in financial health.</ref>, and Freetrade is a company that's on a mission to get everyone investing.<ref name=":8" /> 

The main offering of the company is an app that enables people in the United Kingdom to buy and sell from around 6,000 investments without paying any trading commissions.<ref>https://freetrade.io/compare-plans</ref> Currently, there doesn't seem to be an obvious material uniqueness of the offering relative to peers, such as Trading 212.<ref>Freetrade and Trading 212 are similar in that they both offer commission free trading. Trading 212 is better than Freetrade in terms of the number of investments offered (12,000 vs. 6,000), FX fees (0.15% vs. 0.39%) and platform usage fee [Zero vs. £5.99 per month to access the 6,000 investments (note, to access 1,500 investments only, there is no fee)].</ref> 

Assuming that Freetrade increases its share of the global brokerage market by 1000x to 1% (from less than 0.0010%<ref>The annual global brokerage market right now (2023) is estimated at $1.30 trillion, and Freetrade generated around £12.68 million ($15.93 million) in revenue in its most recent full-year results</ref>) and other assumptions, the expected return of an investment in the company over the next five years is 202%, which equates to an annual return of 25%. In other words, an £1,000 investment in the company is expected to return £3,016 in five years time. 

The degree of risk associated with an investment in Freetrade is 'extremely high', with the shares having an adjusted beta that is 41x above the market (41 vs. 1).<ref>Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. We note that the amount of available data observations for Freetrade is less than what's typically used in the five years of monthly data beta calculation (i.e. 3 observations vs. 60 observations), and accordingly, calculating the beta of such a company has been considered by many to be abnormal; however, for the benefit of simplifying investment comparisons and decision making, we believe that a single standardised risk measure is useful, and that the most appropriate measure is beta.

The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'extremely high' risk, it must have a beta value of 3 or more. Further information about the beta ratings can be found in the appendix section of this report.</ref>{{Infobox company
| name = Freetrade Limited
| logo = Freetradelogo.jpg
| logo_size = 60px
| image = Freetrade cover.png
| image_size = 250px
| image_caption = Freetrade app
| type = Private company
| industry = {{Unbulleted list
|Financial services
|Investment and brokerage services
}}
| founded = {{Start date and age|2015|09|25}} in London, United Kingdom.
| founders = {{Unbulleted list | Adam Dodds | Davide Fioranelli | Andre Mohamed}}
| hq_location = 10 Devonshire Square
| hq_location_city = London
| hq_location_country = United Kingdom
| num_locations = 
| num_locations_year = 
| revenue = {{increase}} {{GBP|12.68 million}}
| revenue_year = 2021
| operating_income = {{decrease}} {{GBP|(18.23) million}}
| income_year = 2021
| net_income = {{decrease}} {{GBP|(17.11) million}}
| net_income_year = 2021
| assets = {{increase}} {{GBP|29.33 million}}
| assets_year = 2021
| equity = {{increase}} {{GBP|29.33 million}}
| equity_year = 2021
| num_employees = 201
| num_employees_year = 2021
| website = https://freetrade.io/
|key_people=Adam Dodds}}

==Operations==

=== How did the idea of the company come about? ===
The idea for Freetrade Limited came about when the company's founder and CEO, Adam Dodds, relocated from Canada to the UK. He had been an investor since his teenage years and was working as a Manager at KPMG. Upon arriving in the UK, Dodds was surprised by the quality of investment platforms available, particularly in terms of their cost and usability. This experience appears to have been instrumental in his decision to create Freetrade, which aimed to offer a superior investment platform in these respects. <ref name=":8">https://freetrade.io/about</ref>

=== What's the mission of the company? ===
The mission of the company is to get everyone investing.

=== What are the main offerings of the company? ===
The main offering of the company is an app, also called Freetrade, that enables users to buy and sell investments without paying any trading commissions.

Other key features of the offering are listed in the table below:
{| class="wikitable sortable"
|+
!Offering feature
!Comment(s)
|-
|General investment account (GIA)
|A General Investment Account (GIA), sometimes also referred to as a Dealing Account or an Investment Account, is a type of investment account that provides you with a way to buy, hold, and sell a variety of different investments, such as shares, bonds, funds, and more.
|-
|Stocks and shares ISA
|A Stocks and Shares Individual Savings Account (ISA) is a type of tax-efficient investment account available in the UK. 
The key benefit of a Stocks and Shares ISA is its tax efficiency. Any income you receive from your investments, such as dividends, and any capital gains you make when you sell your investments, are free from UK tax. This can make them a more efficient way to invest, compared to a General Investment Account (GIA).
|-
|Self-invested personal pension (SIPP)
|A Self-Invested Personal Pension (SIPP) is a type of pension in the UK that gives you more control over your pension investments compared to conventional personal pensions.
|-
|Commission-free trades
|Commission-free trading refers to the ability to purchase and sell stocks, ETFs, options, and other securities without being charged a brokerage commission. Currently, the number of investments offered on the Freetrade platform is 6,000 investments.
|-
|US fractional shares
|Fractional shares are portions of a full share of stock. 
|-
|Automated order types
|Automated order types refer to a variety of instructions that investors can use when placing trades in the financial markets. These instructions are designed to automate certain aspects of the trading process, and they can help investors manage risk, lock in profits, and execute trades at desired price levels without having to constantly monitor the market.
|-
|Interest on uninvested cash
|"Interest on uninvested cash" refers to the interest that Freetrade pays to you on the cash balance that is sitting in your account but has not been invested in any security, much like interest paid on a traditional savings account balance. Currently, the highest interest offered is 3% on a maximum £4k uninvested cash.
|-
|Priority customer service
|
|-
|'Advanced' stock fundamentals
|
|-
|Web application access
|Web application access refers to the ability to access and use a software application through a web browser on a device connected to the internet (rather than a mobile app).
|-
|FX conversion
|Freetrade offers FX conversion, for the trading of shares in a currency other than in the user's local currency.
|}

=== What is the price of the offering? ===
The offering is offered in three pricing plans: basic, standard and plus. The key differences between the pricing plans are illustrated in the table below.

{| class="wikitable"
|+Freetrade pricing plans
!
!Basic
!Standard
!Plus
|-
|Annual price when paid upfront (£)
| style="background: green; color: white;" |£0.00/year
| style="background: orange; color: white;" |£59.88/year
| style="background: red; color: white;" |£119.88/year
|-
|Annual price when not paid upfront (£)
| style="background: green; color: white;" |£0.00/year
| style="background: orange; color: white;" |£71.88/year
| style="background: red; color: white;" |£143.88/year
|-
|Monthly price (£)
|style="background: green; color: white;" |£0.00/month
|style="background: orange; color: white;" |£5.99/month
|style="background: red; color: white;" |£11.99/month
|-
! colspan="4" |Accounts
|-
|General investment account (GIA)
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
|Stocks and shares ISA
| style="background: red; color: white;" |No
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
|Self-invested personal pension (SIPP)
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
! colspan="4" |Benefits
|-
|Commission-free trades
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
|US fractional shares
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
|Range of stocks
| style="background: red; color: white;" |1,500
| style="background: green; color: white;" |6,000
| style="background: green; color: white;" |6,000
|-
|Automated order types
| style="background: red; color: white;" |No
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
|1% interest on a maximum £2k uninvested cash
| style="background: red; color: white;" |No
| style="background: green; color: white;" |Yes
| style="background: red; color: white;" |No
|-
|3% interest on a maximum £4k uninvested cash
| style="background: red; color: white;" |No
| style="background: red; color: white;" |No
| style="background: green; color: white;" |Yes
|-
|Customer service
| style="background: red; color: white;" |Basic
| style="background: red; color: white;" |Basic
| style="background: green; color: white;" |Priority
|-
|Advanced stock fundamentals
| style="background: red; color: white;" |No
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
|Freetrade Web beta
| style="background: red; color: white;" |No
| style="background: red; color: white;" |No
| style="background: green; color: white;" |Yes
|-
|FX fee
| style="background: red; color: white;" |0.99%
| style="background: red; color: white;" |0.59%
| style="background: green; color: white;" |0.39%
|}
For a clearer comparison of Freetrade's services and key features with its competitors, the following table lists the cost for accessing individual features. For instance, the monthly fee for trading commission-free from a pool of 6,000 investments is £5.99.
{| class="wikitable sortable"
|+
!Offering feature
!Price (£/month)
!Price (£/year)
|-
|General investment account (GIA)
|style="background: green; color: white;" |£0.00
|style="background: green; color: white;" |£0.00
|-
|0.99% fX fee
|style="background: green; color: white;" |£0.00
|style="background: green; color: white;" |£0.00
|-
|Self-invested personal pension (SIPP)
|style="background: green; color: white;" |£0.00
|style="background: green; color: white;" |£0.00
|-
|Commission-free trades
|style="background: green; color: white;" |£0.00
|style="background: green; color: white;" |£0.00
|-
|US fractional shares
|style="background: green; color: white;" |£0.00
|style="background: green; color: white;" |£0.00
|-
|1,500 stocks
|style="background: green; color: white;" |£0.00
|style="background: green; color: white;" |£0.00
|-
|6,000 stocks
|style="background: orange; color: white;" |£5.99
|style="background: orange; color: white;" |£59.88
|-
|Stocks and shares ISA
|style="background: orange; color: white;" |£5.99
|style="background: orange; color: white;" |£59.88
|-
|Automated order types
|style="background: orange; color: white;" |£5.99
|style="background: orange; color: white;" |£59.88
|-
|1% interest on a maximum £2k uninvested cash
|style="background: orange; color: white;" |£5.99
|style="background: orange; color: white;" |£59.88
|-
|Advanced stock fundamentals
|style="background: orange; color: white;" |£5.99
|style="background: orange; color: white;" |£59.88
|-
|0.59% fX fee
|style="background: orange; color: white;" |£5.99
|style="background: orange; color: white;" |£59.88
|-
|3% interest on a maximum £4k uninvested cash
|style="background: red; color: white;" |£11.99
|style="background: red; color: white;" |£119.88
|-
|Priority customer service
|style="background: red; color: white;" |£11.99
|style="background: red; color: white;" |£119.88
|-
|Freetrade Web beta
|style="background: red; color: white;" |£11.99
|style="background: red; color: white;" |£119.88
|-
|0.39% fX fee
|style="background: red; color: white;" |£11.99
|style="background: red; color: white;" |£119.88
|}

=== From which place(s) are the offerings able to be purchased? ===
The main places that the offerings are able to be purchased is in the United Kingdom and Sweden through the company's app, which can be downloaded from the Apple App Store and Google Play Store. Assuming that everyone in the UK and Sweden is able to access the Freetrade platform, the number of people that are able to access the platform is estimated at 77.75 million, or around 1% of the global population.

=== From which place(s) are the offerings promoted? ===
The main way that Freetrade promotes the offerings is through word of mouth, via its referral scheme.

=== What's the current strategy of the company? ===
The company's main strategy is to make its offerings available in other geographical regions, such as Sweden and the rest of the EU. At the same time, Freetrade plans to release new features, thereby improving the user experience of the offerings.

=== Team ===

The company is led by the person who believes in the mission of the company the most: the creator of the company mission (i.e. Adam Dodds). Combined, the members of the management team brings together talent from tech titans, financial service giants, and top-tier consulting firms.

'''Adam Dodds, Founder & CEO'''

[[File:Adam_Dodds.jpg|200x200px|border]]

The instigator of this whole Freetrade thing. ACA and CFA qualified. Ex-KPMG, experience auditing global banks and brokerages; advising on financial services, fintech M&A.

'''Viktor Nebehaj, CMO & Co-founder'''

[[File:Viktor Nebehaj.jpg|200x200px|border]]

Drives the company's customer growth across the whole marketing stack. Used to scale Google's core search business in Europe. Grew start-ups across EU & Asia.

'''Paul Brooking, CFO'''

[[File:Paul Brooking.jpg|200x200px|border]]

Paul is a former deputy CFO at Revolut, ex Paysafe, almost 20 years at IG and PwC.

'''Dan Tedman, VP Risk & Compliance'''

[[File:Dan Tedman.jpg|200x200px|border]]

Joined the regulator in 2010. 5+ years working at the FSA and Bank of England then moved to Alvarez and Marsal as a regulatory consultant.

'''Amy Gilman, Associate Director of People'''

[[File:Amy Gilman.jpg|200x200px|border]]

Amy is a former Director of Learning and Development at La Fosse Associates. Amy is in charge of all things people and culture at Freetrade.

'''Timothy Drew, Director of Engineering, Australia'''

[[File:Timothy Drew.jpg|200x200px|border]]

Tim is the original architect of the company's proprietary brokerage system, the Freetrade Cloud Platform. He's now based in Australia at the company's Brisbane engineering office.

== Market ==
The company is expected to make most of its money via brokerage-related services, such as foreign exchange transactions.

=== Total Addressable Market ===
Here, the total addressable market (TAM) is defined as the global brokerage market, and based on a number of assumptions, it is estimated that the size of the market as of today (6th May 2023), in terms of revenue, is $1.3 trillion.<ref>https://www.researchandmarkets.com/reports/5141120/securities-brokerages-and-stock-exchanges</ref>

=== Serviceable Available Market ===
Here, the serviceable available market (SAM) is defined as the global equity brokerage market, and based on a number of assumptions, it is estimated that the size of the market as of today (6th May 2023), in terms of revenue, is $334 billion.

=== Serviceable Obtainable Market ===
Here, the serviceable obtainable market (SOM) is defined as the UK equity brokerage market, and based on a number of assumptions, it is estimated that the size of the market as of today (6th May 2023), in terms of revenue, is $33 billion.

== Competition ==

A key way to determine a product's closest competitors is by looking at other offerings that are targeting the same or similar target audience (i.e. Active Investors) and aiming to provide the same core benefit (i.e. more money), and then ranking the offerings in terms of the total amount of time spent using and/or money spent purchasing the offerings relative to other similar offerings. With that said, according to Stockhub users, the closest competitor of the Freetrade offering is Trading 212. 

Freetrade and Trading 212 are similar in that they both offer commission free trading. Trading 212 is better than Freetrade in terms of the number of investments offered (12,000 vs. 6,000), FX fees (0.15% vs. 0.39%) and platform usage fee [Zero vs. £5.99 per month to access the 6,000 investments (note, to access 1,500 investments only, there is no fee)]. Currently, there doesn't seem to be an obvious material uniqueness of the Freetrade platform. A detailed comparison between Freetrade and some of its main competitors are shown in the table below. 

{| class="wikitable"
|+
!
!Freetrade Basic
!Freetrade Standard
!Freetrade Plus
!Trading 212
!Hargreaves Lansdown
!Robinhood
!Kroo Bank
|-
|Commission free trades
| style="background: orange; color: white;" |Yes
| style="background: orange; color: white;" |Yes
| style="background: orange; color: white;" |Yes
| style="background: orange; color: white;" |Yes
| style="background: red; color: white;" |No
| style="background: orange; color: white;" |Yes
| style="background: red; color: white;" |No
|-
|Platform fee
| style="background: orange; color: white;" |Free
|style="background: red; color: white;" |£5.99/month
|style="background: red; color: white;" |£11.99/month
|style="background: orange; color: white;" |Free
|
|
|
|-
|Number of investments offered
| style="background: orange; color: white;" |1,500
| style="background: orange; color: white;" |6,000<ref name=":4" />
| style="background: orange; color: white;" |6,000<ref name=":4">https://freetrade.io/stock-list#stock-list-table</ref>
| style="background: green; color: white;" |12,000<ref>https://www.trading212.com/</ref><ref>https://play.google.com/store/apps/details?id=com.avuscapital.trading212</ref>
|
|
| style="background: red; color: white;" |Zero
|-
|FX fees
| style="background: red; color: white;" |0.99%
| style="background: orange; color: white;" |0.59%
| style="background: orange; color: white;" |0.39%
| style="background: green; color: white;" |0.15%<ref name=":3">https://www.trading212.com/terms/invest</ref>
|
|
|
|-
|Custody fee
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free<ref name=":3" />
|
|
|
|-
|Account closure fee
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free<ref name=":3" />
|
|
|
|-
|Statements fee
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free
| style="background: orange; color: white;" |Free<ref name=":3" />
|
|
|
|-
|GBP interest rate
| style="background: red; color: white;" |0%
| style="background: orange; color: white;" |1%<ref>On a maximum £2k uninvested cash.</ref>
| style="background: orange; color: white;" |3%<ref>On a maximum £4k uninvested cash.</ref>
| style="background: orange; color: white;" |1.65%<ref name=":3" />
|
|
| style="background: green; color: white;" |3.60%<ref>https://www.kroo.com/</ref>
|-
|EUR interest rate
| style="background: red; color: white;" |0%
| style="background: red; color: white;" |0%
| style="background: red; color: white;" |0%
| style="background: green; color: white;" |1.25%<ref name=":3" />
|
|
|
|-
|USD interest rate
| style="background: red; color: white;" |0%
| style="background: red; color: white;" |0%
| style="background: red; color: white;" |0%
| style="background: green; color: white;" |1.9%<ref name=":3" />
|
|
|
|-
|General investment account (GIA)
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|
|
|-
|Stocks and shares ISA
|style="background: red; color: white;" |No
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|
|
|-
|Self-invested personal pension (SIPP)
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|style="background: orange; color: white;" |Yes
|style="background: red; color: white;" |No
|style="background: orange; color: white;" |Yes
|
|
|-
|CFDs
|style="background: red; color: white;" |No
|style="background: red; color: white;" |No
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes
|style="background: red; color: white;" |No
|
|
|-
|Google review<ref>Note: Reviews aren't verified by Google, but Google checks for and removes fake content when it's identified.</ref>
|style="background: orange; color: white;" |3.4 out of 5 (225 reviews)
|style="background: orange; color: white;" |3.4 out of 5 (225 reviews)
|style="background: orange; color: white;" |3.4 out of 5 (225 reviews)
|style="background: red; color: white;" |3.1 out of 5 (384 reviews)
|style="background: green; color: white;" |3.7 out of 5 (228 reviews)
|
|
|}

== Financials ==
The company was incorporated on 28th September 2015. <ref>https://find-and-update.company-information.service.gov.uk/company/09797821</ref>

=== Revenue ===
Revenue is recognised in the consolidated statement of comprehensive income on the following basis:

==== Transaction revenue ====
The group does not charge a commission on stockbroking transactions entered into on behalf of customers but does provide a foreign exchange service to enable customers to purchase instruments listed on exchanges in the United States and Europe. Revenue consisting of a predetermined flat fee is recognised on the execution date of the transaction. This is the date on which services are provided to customers and the group becomes entitled to the revenue. There is no variable consideration in relation to transactional revenue.

Transaction revenue for the financial year ended 30th September 2021 was £9,408,000 (2020: £1,323,000), which represented 74% (2020: 80%) of total revenue.

==== Recurring revenue ====
Revenue consisting of account subscription fees, are charged monthly in advance. All obligations to the customer are satisfied across the period in which the service is provided. Recognition of recurring revenue is on an accruals basis over the period in which the service is provided. The consideration due is based on a fixed fee and there is no variable income in which judgement or estimation is involved.

Recurring revenue for the financial year ended 30th September 2021 was £3,274,000 (2020: £338,000), which represented 26% (2020: 20%) of total revenue.

=== Operating expenses ===
Freetree, in an effort to boost its platform's user adoption, has implemented an incentive scheme: they are providing free shares - valued up to £100 - to both those who bring in new users through successful referrals, as well as to the new users themselves.<ref>https://freetrade.io/legal/summer-freeshare-offer</ref> These complimentary shares have a weighted average value of £23.35. This means that the cost Freetrade incurs for acquiring each new user under this program is £46.70. The table below presents the average probability distribution of these free shares.
{| class="wikitable"
|+Free share probability
!Minimum free share value (£)
!Maximum free share value (£)
!Mean free share value (£)
!Probability of being rewarded these shares (%)
!Probability weighted mean value (£)
|-
|10.00
|25.00
|17.50
|80%
|14.00
|-
|25.01
|50.00
|37.51
|15%
|5.63
|-
|50.01
|75.00
|62.51
|3%
|1.88
|-
|75.01
|100.00
|87.51
|2%
|1.75
|-
| colspan="4" |'''Weighted mean value:'''
|'''23.25'''
|}
{{Freetrade's revenue}}

{| class="wikitable"
|+
!Year
!1
!2
!3
!4
!5
!6
!7
!8
!9
!10
!11
!12
!13
!14
!15
!16
!17
!18
!19
!20
!21
!22
!23
!24
!25
!26
!27
!28
!29
!30
!31
!32
!33
!34
!35
!36
!37
!38
!39
!40
!41
!42
!43
!44
!45
!46
!47
!48
!49
!50
|-
!Year end date
!30/09/2016
!30/09/2017
!30/09/2018
!30/09/2019
!30/09/2020
!30/09/2021
!30/09/2022
!30/09/2023
!30/09/2024
!30/09/2025
!30/09/2026
!30/09/2027
!30/09/2028
!30/09/2029
!30/09/2030
!30/09/2031
!30/09/2032
!30/09/2033
!30/09/2034
!30/09/2035
!30/09/2036
!30/09/2037
!30/09/2038
!30/09/2039
!30/09/2040
!30/09/2041
!30/09/2042
!30/09/2043
!30/09/2044
!30/09/2045
!30/09/2046
!30/09/2047
!30/09/2048
!30/09/2049
!30/09/2050
!30/09/2051
!30/09/2052
!30/09/2053
!30/09/2054
!30/09/2055
!30/09/2056
!30/09/2057
!30/09/2058
!30/09/2059
!30/09/2060
!30/09/2061
!30/09/2062
!30/09/2063
!30/09/2064
!30/09/2065
|-
!
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
|-
! colspan="51" |Profit and loss
|-
|Revenue (£'000)
|0
|0
|0
|86
|1,660
|12,682
|15,700
|36,877
|73,489
|140,709
|258,852
|457,517
|776,948
|1,267,665
|1,987,217
|2,993,053
|4,331,235
|6,021,953
|8,044,353
|10,324,598
|12,731,612
|15,084,185
|17,170,720
|18,779,473
|19,733,609
|19,923,143
|19,325,797
|18,011,305
|16,128,025
|13,875,396
|11,469,324
|9,108,744
|6,950,361
|5,095,473
|3,589,135
|2,428,977
|1,579,374
|986,677
|592,234
|341,539
|189,241
|100,744
|51,529
|25,323
|11,956
|5,424
|2,364
|990
|398
|154
|-
|Cost of sales
|0
|0
|0
|N/A
|style="color: red;" |(440)
|style="color: red;" |(1,639)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Gross profit
|0
|0
|0
|N/A
|1,220
|11,043
|13,672
|32,112
|63,994
|122,530
|225,408
|398,406
|676,566
|1,103,882
|1,987,217
|2,993,053
|4,331,235
|6,021,953
|8,044,353
|10,324,598
|12,731,612
|15,084,185
|17,170,720
|18,779,473
|19,733,609
|19,923,143
|19,325,797
|18,011,305
|16,128,025
|13,875,396
|7,325,458
|5,817,755
|4,439,196
|3,254,478
|2,292,381
|1,551,387
|1,008,746
|630,191
|378,260
|218,141
|120,868
|64,345
|32,911
|16,174
|7,636
|3,464
|1,510
|632
|254
|98
|-
|Other operating expenses
|N/A
|style="color: red;" |(525)
|style="color: red;" |(1,301)
|style="color: red;" |(3,970)
|style="color: red;" |(10,737)
|style="color: red;" |(29,274)
|24,979
|58,671
|116,921
|223,869
|411,833
|727,910
|1,236,124
|2,016,855
|816,945
|1,230,444
|1,780,571
|2,475,625
|3,307,034
|4,244,442
|7,022,757
|8,320,436
|9,471,369
|10,358,757
|10,885,059
|10,989,606
|10,660,110
|9,935,036
|8,896,218
|7,653,669
|20,001,355
|15,884,739
|12,120,735
|8,885,995
|6,259,093
|4,235,892
|2,754,271
|1,720,666
|1,032,797
|595,609
|330,017
|175,687
|89,861
|44,160
|20,851
|9,459
|4,123
|1,726
|695
|269
|-
|Operating loss
|N/A
|style="color: red;" |(525)
|style="color: red;" |(1,301)
|style="color: red;" |(3,884)
|style="color: red;" |(9,517)
|style="color: red;" |(18,231)
| -11,307
| -26,559
| -52,927
| -101,339
| -186,425
| -329,504
| -559,558
| -912,972
|1,170,272
|1,762,609
|2,550,665
|3,546,328
|4,737,320
|6,080,156
|5,708,855
|6,763,748
|7,699,351
|8,420,716
|8,848,550
|8,933,537
|8,665,687
|8,076,269
|7,231,806
|6,221,728
| -12,675,897
| -10,066,984
| -7,681,539
| -5,631,516
| -3,966,712
| -2,684,505
| -1,745,525
| -1,090,476
| -654,537
| -377,468
| -209,149
| -111,342
| -56,949
| -27,986
| -13,214
| -5,994
| -2,613
| -1,094
| -440
| -170
|-
|Finance costs
|
|
|
|
|0
|style="color: red;" |(16)
|9
|22
|44
|84
|155
|275
|466
|761
|8,148
|12,272
|17,758
|24,690
|32,982
|42,331
|39,468
|46,761
|53,229
|58,216
|61,174
|61,762
|59,910
|55,835
|49,997
|43,014
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|-
|Loss before tax (£'000)
|N/A
|style="color: red;" |(525)
|style="color: red;" |(1,165)
|style="color: red;" |(3,470)
|style="color: red;" |(9,517)
|style="color: red;" |(18,247)
| -11,317
| -26,581
| -52,971
| -101,423
| -186,580
| -329,778
| -560,024
| -913,733
|1,162,125
|1,750,338
|2,532,906
|3,521,638
|4,704,338
|6,037,825
|5,669,387
|6,716,987
|7,646,122
|8,362,499
|8,787,376
|8,871,776
|8,605,777
|8,020,434
|7,181,809
|6,178,714
| -12,675,897
| -10,066,984
| -7,681,539
| -5,631,516
| -3,966,712
| -2,684,505
| -1,745,525
| -1,090,476
| -654,537
| -377,468
| -209,149
| -111,342
| -56,949
| -27,986
| -13,214
| -5,994
| -2,613
| -1,094
| -440
| -170
|-
|Tax on loss on ordinary activities
|N/A
|21
|164
|414
|557
|1,136
|347
|816
|1,626
|3,114
|5,728
|10,124
|17,193
|28,052
|176,992
|266,576
|385,762
|536,345
|716,471
|919,561
|1,128,775
|1,337,352
|1,522,343
|1,664,974
|1,749,567
|1,766,371
|1,713,410
|1,596,868
|1,429,898
|1,230,182
|245,912
|195,299
|149,022
|109,251
|76,954
|52,079
|33,863
|21,155
|12,698
|7,323
|4,057
|2,160
|1,105
|543
|256
|116
|51
|21
|9
|3
|-
|Loss for the year
|N/A
|style="color: red;" |(504)
|style="color: red;" |(1,165)
|style="color: red;" |(3,470)
|style="color: red;" |(8,960)
|style="color: red;" |(17,111)
| -11,664
| -27,397
| -54,597
| -104,537
| -192,308
| -339,902
| -577,217
| -941,784
|985,133
|1,483,761
|2,147,145
|2,985,293
|3,987,867
|5,118,264
|4,540,612
|5,379,635
|6,123,779
|6,697,526
|7,037,810
|7,105,405
|6,892,367
|6,423,566
|5,751,911
|4,948,532
| -12,921,810
| -10,262,283
| -7,830,561
| -5,740,768
| -4,043,666
| -2,736,584
| -1,779,388
| -1,111,631
| -667,235
| -384,791
| -213,206
| -113,502
| -58,054
| -28,529
| -13,470
| -6,111
| -2,663
| -1,115
| -449
| -173
|-
|Other comprehensive income
|N/A
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|0
|-
|Total comprehensive expense for the year
|N/A
|style="color: red;" |(504)
|style="color: red;" |(1,165)
|style="color: red;" |(3,470)
|style="color: red;" |(8,960)
|style="color: red;" |(17,111)
| -11,664
| -27,397
| -54,597
| -104,537
| -192,308
| -339,902
| -577,217
| -941,784
|985,133
|1,483,761
|2,147,145
|2,985,293
|3,987,867
|5,118,264
|4,540,612
|5,379,635
|6,123,779
|6,697,526
|7,037,810
|7,105,405
|6,892,367
|6,423,566
|5,751,911
|4,948,532
| -12,921,810
| -10,262,283
| -7,830,561
| -5,740,768
| -4,043,666
| -2,736,584
| -1,779,388
| -1,111,631
| -667,235
| -384,791
| -213,206
| -113,502
| -58,054
| -28,529
| -13,470
| -6,111
| -2,663
| -1,115
| -449
| -173
|-
! colspan="11" |Balance sheet
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
|-
| colspan="11" |'''Assets'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Non-current assets'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Property, plant and equipment
|3
|9
|39
|76
|94
|5,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Intangible assets
|0
|3
|93
|828
|1,905
|2,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Trade and other receievables
|0
|13
|0
|0
|0
|731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total non-current assets
|3
|25
|132
|904
|1,999
|8,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Current assets'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Trade and other receiveables
|4
|2
|186
|847
|2,761
|7,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Corporation tax receivables
|0
|0
|0
|0
|557
|1,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash and cash equivalents
|112
|727
|2,684
|3,355
|6,730
|22,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total current assets
|116
|729
|2,870
|4,202
|10,048
|31,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Liabilitites'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Current liabilities'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Trade and other payables
|18
|84
|208
|297
|1,461
|5,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Lease liabilities
|0
|0
|0
|0
|0
|2,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total current liabilities
|18
|84
|208
|297
|1,461
|7,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net current assets
|98
|645
|2,662
|3,905
|8,587
|24,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Non-current liabilities'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Lease liabilities
|0
|0
|0
|0
|0
|3,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total non-current liabilities
|0
|0
|0
|0
|0
|3,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net assets
|101
|670
|2,794
|4,809
|10,586
|29,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Equity'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Share capital
|0
|0
|0
|0
|0
|0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Share premium
|252
|1,324
|4,610
|10,086
|22,801
|57,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Other reserves
|0
|0
|3
|12
|2,034
|2,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Retained earnings
|style="color: red;" |(151)
|style="color: red;" |(654)
|style="color: red;" |(1,819)
|style="color: red;" |(5,289)
|style="color: red;" |(14,249)
|style="color: red;" |(31,360)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total equity
|101
|670
|2,794
|4,809
|10,586
|29,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
! colspan="11" |Cash flow statement
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
|-
| colspan="11" |'''Operating activities'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Loss before tax
|N/A
|N/A
|N/A
|N/A
|style="color: red;" |(9,517)
|style="color: red;" |(18,247)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Adjustments for:'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Depreciation of property, plant and equipment
|N/A
|N/A
|N/A
|N/A
|84
|331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Amortisation of intangible assets
|N/A
|N/A
|N/A
|N/A
|592
|1,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Share-based payment expenses
|N/A
|N/A
|N/A
|N/A
|2,022
|818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Finance costs
|N/A
|N/A
|N/A
|N/A
|style="color: red;" |0
|style="color: red;" |16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Operating cash flows before movements in working capital
|N/A
|N/A
|N/A
|N/A
|(6,819)
|(15,939)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Increase in trade and other receivables
|N/A
|N/A
|N/A
|N/A
| style="color: red;" |(2,325)
| style="color: red;" |(5,829)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Increase in trade and other payables
|N/A
|N/A
|N/A
|N/A
|1,164
|3,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash used in operations
|N/A
|style="color: red;" |(455)
|style="color: red;" |(1,257)
|style="color: red;" |(3,909)
|style="color: red;" |(7,980)
|style="color: red;" |(17,848)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Income taxes received
|N/A
|21
|72
|95
|411
|672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net cash flows from operating activities
|N/A
|style="color: red;" |(434)
|style="color: red;" |(1,185)
|style="color: red;" |(3,814)
|style="color: red;" |(7,569)
|style="color: red;" |(17,176)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Investing activities'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Purchase of property, plant and equipment
|N/A
|style="color: red;" |(8)
|style="color: red;" |(43)
|style="color: red;" |(93)
|style="color: red;" |(102)
|style="color: red;" |(326)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Purchase and development of intangible assets
|N/A
|style="color: red;" |(3)
|style="color: red;" |(90)
|style="color: red;" |(898)
|style="color: red;" |(1,669)
|style="color: red;" |(1,592)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net cash flows from investing activities
|N/A
|style="color: red;" |(11)
|style="color: red;" |(133)
|style="color: red;" |(991)
|style="color: red;" |(1,771)
|style="color: red;" |(1,918)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
| colspan="11" |'''Financing activities'''
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Proceeds on issues of shares
|N/A
|1,072
|3,286
|5,476
|12,715
|35,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Investment in subsidiary
|N/A
|style="color: red;" |(12)
|style="color: red;" |(11)
|0
|0
|0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net cash flows from financing activities
|N/A
|1,060
|3,275
|5,476
|12,715
|35,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net increase in cash and cash equivalents
|N/A
|615
|1,957
|671
|3,375
|15,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash and cash equivalents at beginning of the year
|N/A
|112
|727
|2,684
|3,355
|6,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash and cash equivalents at end of year
|N/A
|727
|2,684
|3,355
|6,730
|22,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
! colspan="11" |Other
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
|-
|Number of registered users
|
|
|
|
|248,848
|886,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Assets under management<ref>Assets under management is the total value of securities and cash balances administered and managed by Freetrade on behalf of its users.</ref> (£'million)
|
|
|
|
|249.1
|897.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Trading volumes<ref>Trading volumes are the total value of executed orders placed by Freetrade users.</ref> (£'billion)
|
|
|
|
|0.8
|3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Employees (excluding directors)
|
|
|
|
|80<ref name=":2">https://find-and-update.company-information.service.gov.uk/company/09797821/filing-history</ref>
|201<ref name=":2" />
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
! colspan="11" |Ratios
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
|-
|Cost of goods sold as a proportion of revenue (%)
|N/A
|N/A
|N/A
|N/A
|26.51%
|12.92%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Operating expenses as a proportion of revenue (%)
|N/A
|N/A
|N/A
| 4616.28%
| 646.81%
| 230.83%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Tax rate (%)
|N/A
| style="color: red;" |(4.00)%
| style="color: red;" |(14.08)%
| style="color: red;" |(11.93)%
| style="color: red;" |(5.85)%
| style="color: red;" |(6.23)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Depreciation and amortisation rate (%)
|N/A
|N/A
|N/A
|N/A
|38.17%
|76.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|N/A
|N/A
|N/A
|1152.33%
|106.69%
|15.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|N/A
|N/A
|N/A
|1445.35%
|282.05%
|121.88%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net borrowing as a proportion of revenue (%)
|N/A
|N/A
|N/A
|N/A
|N/A
|43.49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Interest expense as a proportion of revenue (%)
|N/A
|N/A
|N/A
|N/A
|0%
|0.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|}

==== What are the assumptions used to estimate the financial forecasts?====

{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
| colspan="3" | <div style="text-align: center;">'''Revenue'''</div>
|-
|What's the estimated current size of the total addressable market?
|$1,300,000,000
|Here, the total addressable market (TAM) is defined as the global brokerage market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (6th May 2023), in terms of revenue, is $1.3 trillion.
|-
|What is the estimated company lifespan?
|50 years
|Currently, Freetrade employs around 201, making the company a small organisation (less than 10,000 employees). That said, given the company's mission, we expect the company to grow to a large organisation, and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>
|-
|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company?
|3%
|Research shows that the growth rate of the global automotive market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product<ref>http://www.robertpicard.net/files/econgrowthandadvertising.pdf</ref>, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>.
|-
|What's the estimated company peak market share?
|1%
|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Freetrade is around 1%, and, therefore, suggests using the share amount here. As of 30th September 2021, Freetrade's current share of the market is estimated at around 0.0010%.
|-
|Which distribution function do you want to use to estimate company revenue?
|Gaussian 
|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function  (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so the Stockhub users suggest using that function here.
|-
|What's the estimated standard deviation of company revenue?
| 6 years
|Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Freetrade's current revenue amount (i.e. £12.68 million) and Freetrade's estimated lifespan (i.e. 50 years) and Freetrade's estimated current stage of its lifecycle (i.e. introduction stage), the Stockhub users suggest using 6 years (i.e. 68% of all sales happen within 6 years either side of the mean year), so that's what's used here.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stages</div>'''
|-
|How many main stages of growth is the company expected to go through?
| 4 stages
|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref>

In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. The Stockhub users estimate that with Freetrade's operating cash flows negative (-), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the first stage of growth (i.e. the 'introduction' stage), and, therefore, it has a total of four main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.
|-
|What proportion of the company lifecycle is represented by growth stage 1?
|30% 
|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>
|-
|What proportion of the company lifecycle is represented by growth stage 2?
|10% 
|Research suggests 10%.<ref name=":6" />
|-
| What proportion of the company lifecycle is represented by growth stage 3?
|20% 
| Research suggests 20%.<ref name=":6" />
|-
|What proportion of the company lifecycle is represented by growth stage 4?
|40%
|Research suggests 40%.<ref name=":6" />
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>'''
|-
|Cost of goods sold as a proportion of revenue (%)
|12.92%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Operating expenses as a proportion of revenue (%)
|159.10%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%)
|(3.07)%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%)
|56.26%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|8.59%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|50.93%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|21.75%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|0.06%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
|-
|Cost of goods sold as a proportion of revenue (%) 
|0.00%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. 
|-
|Operating expenses as a proportion of revenue (%)
|41.11%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%) 
|15.23%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%) 
|79.52%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%) 
|1.13%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|52.01% 
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|0.27%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|0.41%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
|-
|Cost of goods sold as a proportion of revenue (%) 
|0.00%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. 
|-
|Operating expenses as a proportion of revenue (%)
|55.16%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%) 
|19.91%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%) 
|18.93%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%) 
|2.21%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|(1.46)% 
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|(1.10)%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|0.31%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
|-
|Cost of goods sold as a proportion of revenue (%) 
|36.13%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. 
|-
|Operating expenses as a proportion of revenue (%)
|174.39%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%) 
|(1.94)%
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%) 
|47.29%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
| 6.25%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
| 2.13% 
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|0%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|0%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|}

== Risks ==
As with any investment, investing in Freetrade carries a level of risk. Overall, based on the Freetrade's adjusted beta (i.e. 41)<ref>Research shows that an investment has two main types of risks: 1) non-systematic and 2) systematic. Systematic risk is the risk related to the overall market, and non-systematic risk is the risk that's specific to an individual investment. Evidence shows that taking on non-systematic risk is inefficient, and it's, therefore, best to eliminate it; and in most cases, elimination is fairy easy to do [by holding a diversified portfolio of investments (i.e. around 15 investments)]. Accordingly, when assessing the riskiness of an investment, it’s best to look at the systematic risk only (i.e. ignore the non-systematic risk). A key measure of systematic risk is beta, and a main way to determine the riskiness of an investment is to compare the beta of the investment with the beta of the market, which is 1. For example, Supply@ME Capital's adjusted beta (5 years, monthly data) is 4.61, and is, accordingly, 561% above the market beta (of 1); assuming that a 'high' level of riskiness is 50% or more above the market beta, then the riskiness of investing in Supply@ME Captial is considered to be 'high' (561%>50%). For estimating an asset's beta, in terms of time period, and frequency of observations, the most common choice is five years of monthly data, yielding 60 observations. One study of U.S. stocks found support for five years of monthly data over alternatives. An argument can be made that the 2 years, weekly data can be especially appropriate in fast growing markets. The beta value in a future period has been found to be on average closer to the mean value of 1.0, the beta of an average-systematic-risk security, than to the value of the raw beta. Because valuation is forward looking, it is logical to adjust the raw beta so it more accurately predicts a future beta.</ref>, the degree of risk associated with an investment in Freetrade is 'extremely high'.

Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. We note that the amount of available data observations for Freetrade is less than what's typically used in the five years of monthly data beta calculation (i.e. four observations vs. 60 observations), and accordingly, calculating the beta of such a company has been considered by many to be abnormal; however, for the benefit of simplifying investment comparisons and decision making, we believe that a single standardised risk measure is useful, and that the most appropriate measure is beta.

The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'extremely high' risk, it must have a beta value of 3 or more. Further information about the beta ratings can be found in the appendix section of this report.

=== Early-stage investment ===
Freetrade is at one of the earliest stages of the business lifecycle, and the failure rate of companies at that stage is usually much higher than those at a later stage. As of 2022, 57% of companies that are incorporated in the United Kingdom fail within the first five years of the companies incorporation, according to the Office for National Statistics.<ref>https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/businessdemography/2020#the-south-west-continued-to-have-the-highest-five-year-survival-rate</ref>

=== Illiquid investment ===
The number of transactions in shares of private companies is usually significantly lower than in public companies, typically resulting in it taking longer to sell shares in private companies at a price that is at least equal to the price that the shares were bought at. Accordingly, the Freetrade investment opportunity is considered to be higher risk than more liquid companies (such as Hargreaves Lansdown).

=== Regulatory ===
Freetrade operates in an industry with extensive and comprehensive regulation. The risk that the company fails to comply with the existing standards of the regulatory system has the potential impact for financial penalties, regulatory censure and negative publicity. There is also a risk that the regulatory environment evolves in a manner that has a negative impact on its business and operations, whether through reduced revenue, higher costs or increases in capital and liquidity requirements.

=== Business ===
Freetrade operates in a competitive environment and runs the risk that revenue and customer growth do not meet expectations or slow down. Freetrade’s customer activity is sensitive to market conditions and volatility.

=== Operational ===
High volume or levels of activity through the trading platform can place stress on Freetrade’s systems, people and processes, which could result in service outages or in Freetrade being unable to deliver the level of service that its customers expect. Poor customer service and outcomes could result in a loss of customers and reputational damage.

=== Conduct ===
Freetrade runs the risk that its culture, values and actions fail to adequately support customer focused conduct and thereby lead to potentially poor customer outcomes or not treating customers fairly. Equally, Freetrade interacts with financial markets and poorly controlled activities could threaten the sound, stable, resilient and transparent operation of the financial markets. These risks could result in regulatory censure, as well as a reputational impact, a loss of customers and increased difficulty in attracting new customers.

=== Information security ===
Freetrade or its trusted third party service providers could suffer a data breach as a result of a cyber attack, just as any other financial services company. Such a breach could result in financial penalties or censure from both data protection and financial regulators. As well as reputational damage impacting Freetrade's ability to attract and retain customers.

=== Third party ===
Freetrade contracts with third-party providers to provide services to customers and to support back-end processes. The risk of a loss of service from a third-party provider which could result in a delay or inability to process customer transactions or perform regulatory reconciliations and could result in customer dissatisfaction and financial loss to Freetrade through a reduction in transactions through the trading platform or regulatory penalties.

== Valuation ==
===What's the expected return of an investment in the company?===

The Stockhub users estimate that the expected return of an investment in the company over the next five years is 202%, which equates to an annual return of 25%. In other words, an £1,000 investment in the company is expected to return £3,016 in five years time. The assumptions used to estimate the return figure can be found in the table below.

Assuming that a suitable return level over five years is 10% per year and Freetrade achieves its expected return level (of 25%), then an investment in the company is considered to be an 'suitable' one.

===What are the assumptions used to estimate the return?===

{| class="wikitable"
|+ Key inputs
!Description 
!Value
!Commentary
|-
| Which valuation model do you want to use?
|Discounted cash flow 
|Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>, so that's the approach that he Stockhub users suggest to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report).

Freetrade has never paid cash dividends, and on 7th February 2022, it said that it currently does not anticipate paying any cash dividends in the foreseeable future. Accordingly, the Stockhub users suggest using the free cash flow valuation method (rather than the dividend discount model). 
|-
|Which financial forecasts to use?
| Stockhub
|The only available long-term forecasts (i.e. >15 years) are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so the Stockhub users suggest using those.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>'''
|-
|Discount rate (%)
|30%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
|70%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 1) is 90%.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>''' 
|-
|Discount rate (%)
| 15%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
| 80%
| Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 80%.

|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>''' 
|-
|Discount rate (%)
| 10%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
|100%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%.

|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>''' 
|-
|Discount rate (%)
| 10%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
| 100%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%.

|-
| colspan="3" |'''<div style="text-align: center;">Other key inputs</div>'''
|-
|What's the current value of the company?
|£225 million
|As at 13th June 2023, the current value of its company at £225 million.<ref name=":9" />
|-
|Which time period do you want to use to estimate the expected return?
| Between now and five years time
|Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years.<ref>https://www.newyorkfed.org/mediabrary/media/medialibrary/media/research/staff_reports/research_papers/9809.pdf</ref> Accordingly, Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|}

===Sensitivity analysis===

The main inputs that result in the greatest change in the expected return of the Freetrade investment are, in order of importance (from highest to lowest):   

#The size of the total addressable market (the default size is $1.3 trillion);
#Freetrade peak market share (the default share is 1%); and
#The discount rate (the default time-weighted average rate is 16.50%).

The impact of a 50% change in those main inputs to the expected return of the Freetrade investment is shown in the table below.

{| class="wikitable sortable"
|+Freetrade investment expected return sensitive analysis
!Main input
!50% worse 
!Unchanged
!50% better
|-
|The size of the total addressable market
|
|202%
|
|-
|Freetrade peak market share
|
| 202%
|
|-
|The discount rate

|
|202%
|

|}

== Appendix ==

=== Relative valuation approach ===
As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach.

==== What's the expected return of an investment in Freetrade using the relative valuation approach? ====
Stockhub estimates that the expected return of an investment in Freetrade over the next five years is 4044%, which equates to an annual return of 111%. In other words, an £1,000 investment in the company is expected to return £5044 in five years time. The assumptions used to estimate the return figure can be found in the table below.

==== What are the assumptions used to estimate the return figure? ====
{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
|Which type of multiple do you want to use?
|Growth-adjusted EV/sales
|For the numerator, the Stockhub users believe that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, the Stockhub users believe that because it expects Freetrade to reinvest almost all of its revenue back into the business over the five year forecast period and therefore its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, the Stockhub users suggest valuing its company using the EV/sales ratio. However, the Stockhub users think that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the growth-adjusted EV/sales multiple, rather than the EV/sales multiple.
|-
|In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use?
|Year 5
|Stockhub suggests that with sales forecast to grow exponential over the five year forecast period, it's best to use forward-looking data, rather than historic data.
In regards to the growth-adjusted EV/sales multiple, for the sales figure, Stockhub suggests that in order to account for the forecasted exponential growth of the business, it's best to use one at the end of the forecast period (i.e. Year 5).
|-
|In regards to the growth-adjusted EV/sales multiple, for the sales growth figure, which year(s) do you want to use?
|Year 6, from now
|Stockhub suggests that for the sales growth figure, it's best to use Year 6.
|-
|In regards to the growth-adjusted EV/sales multiple, what multiple figure do you want to use?
|0.19x
|In Stockhub's view, Freetrade closest peers are AJ Bell, Hargreaves Lansdown, Robinhood Markets, Inc, Avanza Bank Holding AB and The Charles Schwab Corporation.
|-
|Which financial forecasts to use?
|Stockhub
|The only available forecasts are the ones that are supplied by the Stockhub company (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
|-
|What's the current value of the Stockhub company?
|£225 million
|As at 13th June 2023, the current value of its company at £225 million.<ref name=":9">https://www.telegraph.co.uk/business/2023/06/13/freetrade-stock-trading-start-up-valuation-plunge/</ref>
|-
|Which time period do you want to use to estimate the expected return?
|Between now and five years time
|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|}

==== Sensitivity analysis ====
The main inputs that result in the greatest change in the expected return of the Freetrade investment are, in order of importance (from highest to lowest):   

#The growth-adjusted EV/sales multiple (the default multiple 0.19);
#Freetrade Year 5 sales figure (the default figure is £777 million); and
#Freetrade Year 6 sales growth rate (the default rate is 63%).

The impact of a 50% change in those main inputs to the expected return of the Freetrade investment is shown in the table below.

{| class="wikitable sortable"
|+Freetrade investment expected return sensitive analysis
!Main input
!50% worse 
!Unchanged
!50% better
|-
|The growth-adjusted EV/sales multiple
|
|4044%
|
|-
|Freetrade Year 5 sales figure
|
|4044%
|
|-
|Freetrade Year 6 sales growth rate

|
|4044%
|

|}

=== Freetrade peer(s) ===
{| class="wikitable"
|+
!
!Freetrade
!Trading 212
!Robinhood
!Hargreaves Lansdown
!AJ Bell
!Avanza Bank Holding AB
!The Charles Schwab Corporation
!Average (median)
|-
! colspan="6" |Relative valuation data
!
!
!
|-
|Local currency
|GBP
|EUR
|USD
|GBP
|GBP
|SEK
|USD
|N/A
|-
|Current market capitalisation (local currency, million)
|658
|N/A
|8,500
|4,080
|1,300
|34,690
|100,102
|N/A
|-
|Year ago sales
|16
|
|1,360
|583
|164
|2,970
|20,760
|N/A
|-
|Current sales
|37
|N/A
|1,860
|709
|212
|3,540
|19,570
|N/A
|-
|Sales growth rate (%)
|135
|N/A
|37
|22
|30
|19
|(5.70)
|N/A
|-
|Current cash
|23
|
|10,520
|446
|100
|9,050
|81,300
|N/A
|-
|Current debt
|32<ref>https://www.crowdcube.com/companies/freetrade/pitches/qQNNal</ref>
|
|2,750
|15
|13
|83
|76,850
|N/A
|-
! colspan="6" |Relative valuation metrics
!
!
!
|-
|Enterprise value/sales
|41.69
|N/A
|0.39
|5.15
|5.72
|7.27
|4.89
|'''5.15'''
|-
|Growth-adjusted enterprise value/sales ratio
|0.31
|N/A
|0.01
|0.23
|0.19
|0.38
|(0.85)
|'''0.19'''
|-
! colspan="6" |Absolute valuation data
!
!
!
|-
|Lifecycle growth stage
|Stage 1 (of 4)
|Stage 2 (of 4)
|Stage 1 (of 4)
|Between stage 2 and 3 (of 4)
|Stage 3 (of 4)
|Stage 3 (of 4)
|Between stage 2 and 3 (of 4)
|N/A
|-
|Cost of goods sold as a proportion of revenue (%)
|12.92%
|N/A
|N/A
|N/A
|N/A
|
|
|
|-
|Operating expenses as a proportion of revenue (%)
|230.83%
|41.11%
|174.45%
|46.31%
|64.00%
|
|
|
|-
|Tax rate (%)
|(6.23)%
|15.23%
|0.10%
|19.84%
|19.98%
|
|
|
|-
|Depreciation and amortisation rate (%)
|76.85%
|79.52%
|35.67%
|22.91%
|14.94%
|
|
|
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|15.12%
|1.13%
|2.06%
|2.35%
|2.06%
|
|
|
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|121.88%
|52.01%
|(20.03)%
|(3.09)%
|0.18%
|
|
|
|-
|Net borrowing as a proportion of revenue (%)
|43.49%
|0.27%
|0%
| -0.67%
| -1.52%
|
|
|
|-
|Interest expense as a proportion of revenue (%)
|0.12%
|0.41%
|0%
|0.14%
|0.48%
|
|
|
|}
{| class="wikitable"
|+Key metrics for different stages of the business lifecycle
!
!Stage 1
!Stage 2
!Stage 3
!Stage 4
|-
|Cost of goods sold as a proportion of revenue (%)
|12.92%
|0.00%
|0.00%
|36.13%
|-
|Operating expenses as a proportion of revenue (%)
|202.64%
|41.11%
|55.16%
|174.39%
|-
|Tax rate (%)
|(3.07)%
|15.23%
|19.91%
|(1.94)%
|-
|Depreciation and amortisation rate (%)
|56.26%
|79.52%
|18.93%
|47.29%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|8.59%
|1.13%
|2.21%
|6.25%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|50.93%
|52.01%
|(1.46)%
|2.13%
|-
|Net borrowing as a proportion of revenue (%)
|21.75%
|0.27%
|(1.10)%
|0%
|-
|Interest expense as a proportion of revenue (%)
|0.06%
|0.41%
|0.31%
|0%
|}
{| class="wikitable"
|+Stage 1
!
!Freetrade
!Robinhood
!
!Median
|-
|Cost of goods sold as a proportion of revenue (%)
|12.92%
|N/A
|
|12.92%
|-
|Operating expenses as a proportion of revenue (%)
|230.83%
|174.45%
|
|202.64%
|-
|Tax rate (%)
|(6.23)%
|0.10%
|
|(3.07)%
|-
|Depreciation and amortisation rate (%)
|76.85%
|35.67%
|
|56.26%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|15.12%
|2.06%
|
|8.59%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|121.88%
|(20.03)%
|
|50.93%
|-
|Net borrowing as a proportion of revenue (%)
|43.49%
|0%
|
|21.75%
|-
|Interest expense as a proportion of revenue (%)
|0.12%
|0%
|
|0.06%
|}
{| class="wikitable"
|+Stage 2
!
!Trading 212
!
!
!Median
|-
|Cost of goods sold as a proportion of revenue (%)
|N/A
|
|
|0.00%
|-
|Operating expenses as a proportion of revenue (%)
|41.11%
|
|
|41.11%
|-
|Tax rate (%)
|15.23%
|
|
|15.23%
|-
|Depreciation and amortisation rate (%)
|79.52%
|
|
|79.52%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|1.13%
|
|
|1.13%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|52.01%
|
|
|52.01%
|-
|Net borrowing as a proportion of revenue (%)
|0.27%
|
|
|0.27%
|-
|Interest expense as a proportion of revenue (%)
|0.41%
|
|
|0.41%
|}
{| class="wikitable"
|+Stage 3
!
!AJ Bell
!Hargreaves Lansdown
!
!Median
|-
|Cost of goods sold as a proportion of revenue (%)
|N/A
|N/A
|
|0.00%
|-
|Operating expenses as a proportion of revenue (%)
|64.00%
|46.31%
|
|55.16%
|-
|Tax rate (%)
|19.98%
|19.84%
|
|19.91%
|-
|Depreciation and amortisation rate (%)
|14.94%
|22.91%
|
|18.93%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|2.06%
|2.35%
|
|2.21%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|0.18%
|(3.09)%
|
|(1.46)%
|-
|Net borrowing as a proportion of revenue (%)
| -1.52%
| -0.67%
|
|(1.10)%
|-
|Interest expense as a proportion of revenue (%)
|0.48%
|0.14%
|
|0.31%
|}
{| class="wikitable"
|+Stage 4
!
!Blackberry
!
!
!Median
|-
|Cost of goods sold as a proportion of revenue (%)
|36.13%
|
|
|36.13%
|-
|Operating expenses as a proportion of revenue (%)
|174.39%
|
|
|174.39%
|-
|Tax rate (%)
|(1.94)%
|
|
|(1.94)%
|-
|Depreciation and amortisation rate (%)
|47.29%
|
|
|47.29%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|6.25%
|
|
|6.25%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|2.13%
|
|
|2.13%
|-
|Net borrowing as a proportion of revenue (%)
|0%
|
|
|0%
|-
|Interest expense as a proportion of revenue (%)
|0%
|
|
|0%
|}
{| class="wikitable"
|+Hargreaves Lansdown
!
!30/06/2018
!30/06/2019
!30/06/2020
!30/06/2021
!30/06/2022
|-
! colspan="6" |Profit and loss
|-
|Revenue (£'million)
|447.50
|480.50
|550.90
|631.00
|583.00
|-
|Gross profit
|
|
|
|N/A
|N/A
|-
|Operating profit/(loss)
|291.10
|303.30
|337.70
|365.60
|270.00
|-
|Net interest
|1.30
|2.50
|1.80
|0.40
|(0.80)
|-
|Profit Before Tax
|292.40
|305.80
|378.30
|366.00
|269.20
|-
|Profit for the period
|236.70
|247.60
|313.20
|296.30
|215.80
|-
! colspan="6" |Balance sheet
|-
| colspan="6" |'''Assets'''
|-
| colspan="6" |'''Non-current assets'''
|-
|Goodwill
|
|
|
|1.3
|1.3
|-
|Other intangible assets
|
|
|
|33.6
|37.3
|-
|Property, plant and equipment
|
|
|
|22.5
|28.6
|-
|Deferred tax assets
|
|
|
|3.7
|1.9
|-
| colspan="6" |'''Current assets'''
|-
|Investments
|
|
|
|0.9
|0.8
|-
|Trade and other receivables
|
|
|
|869.2
|523.5
|-
|Cash and cash equivalents (£'million)
|125.30
|179.30
|235.90
|445.3
|488.3
|-
|Current tax assets
|
|
|
|1.5
|0.6
|-
|Total current assets
|
|
|
|1,316.9
|1,013.2
|-
| colspan="6" |'''Liabilities'''
|-
| colspan="6" |'''Non-current liabilities'''
|-
|Debt (£'million)
|0
|0
|19.90
|15.00
|11.80
|-
| colspan="6" |'''Current liabilities'''
|-
|Trade and other payables
|
|
|
|774.0
|488.3
|-
|Total current liabilities
|
|
|
|774.0
|488.3
|-
|Net assets
|405.20
|459.30
|557.60
|592.40
|573.50
|-
! colspan="6" |Cash flow statement
|-
|'''Net cash from/(used in) operating activities'''
|
|
|'''265.4'''
|'''328.6'''
|'''262.9'''
|-
| colspan="6" |'''Investing activities'''
|-
|Decrease in term deposits
|
|
|
|170.0
|40.0
|-
|Purchase of property, plant and equipment
|
|
|
|(5.4) 
|(2.8)
|-
|Purchase of intangible assets
|
|
|
|(12.8)
|(10.9)
|-
|Proceeds on disposal of subsidiary
|
|
|
|0.2
|0.0
|-
|Proceeds/(purchase) on disposal of investments
|
|
|
|(0.3)
|0.1
|-
|'''Net cash from/(used in) investing activities'''
|
|
|'''7.8'''
|'''151.7''' 
|'''26.4'''
|-
| colspan="6" |'''Financing activities'''
|-
|Purchase of own shares in EBT 
|
|
|
|(7 .7)
|(4.2)
|-
|Proceeds on sale of own shares in EB
|
|
|
|4.3
|2.8
|-
|Payment of principal in relation to lease liabilities
|
|
|
|(4.0)
|(3.9) 
|-
|Dividends paid to owners of the parent
|
|
|
|(263.5)
|(241 .0) 
|-
|'''Net cash from/(used in) financing activities'''
|
|
|'''(216.6)''' 
|'''(270.9)'''
|'''(246.3)'''
|-
! colspan="6" |Revenue breakdown
|-
| colspan="6" |'''Ongoing revenue'''
|-
|Platform fees
|
|
|
|263.7
|289.1 
|-
|Fund management fees
|
|
|
|60.8
|60.3
|-
|Ongoing advice charges
|
|
|
|9.0
|8.3
|-
|Interest earned on client money
|
|
|
|51.9
|51.8
|-
|Renewal commission
|
|
|
|5.1
|4.6
|-
| colspan="6" |'''Transactional revenue''' 
|-
|Fees on stockbroking transactions
|
|
|
|231.6
|164.6
|-
|Initial advice charges
|
|
|
|5.1
|4.0
|-
|Other transactional income
|
|
|
|3.8
|0.3
|-
! colspan="6" |Operating costs
|-
|Depreciation of owned plant and equipment and right-of-use assets
|
|
|
|9.0
|8.9
|-
|Amortisation of other intangible assets
|
|
|
|6.1
|6.2
|-
|Impairment of intangible assets
|
|
|
|1.1
|1.0
|-
|Marketing costs
|
|
|
|28.3
|25.8
|-
|Operating lease rentals payable – property
|
|
|
|
|
|-
|Office running costs – excluding operating lease rents payable
|
|
|
|
|
|-
|FSCS costs
|
|
|
|
|
|-
|Dealing and financial services costs
|
|
|
|
|
|-
|Data and technology costs
|
|
|
|
|
|-
|Legal and professional costs
|
|
|
|
|
|-
|Other operating costs
|
|
|
|
|
|-
|Staff (including contractors) costs
|
|
|
|
|
|-
|Total
|
|
|
|266.0
|313.0
|-
! colspan="6" |Metrics
|-
|Cost of goods sold as a proportion of revenue (%)
|
|
|
|N/A
|N/A
|-
|Operating expenses as a proportion of revenue (%)
|65.05
|63.12
|61.30
|57.94
|46.31
|-
|Tax rate (%)
|19.05
|19.03
|17.21
|19.04
|19.84
|-
|Depreciation and amortisation rate (%)
|
|
|
|26.92
|22.91
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|
|
|
|2.88
|2.35
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|
|
|
|
|(3.09)
|-
|Net borrowing as a proportion of revenue (%)
|
|
|
| -0.62%
| -0.67%
|-
|Interest expense as a proportion of revenue (%)
|
|
|
|0.16%
|0.14%
|}
{| class="wikitable"
|+AJ Bell Plc 
!
!30/09/2018
!30/09/2019
!30/09/2020
!30/09/2021
!30/09/2022
!30/09/2023
!30/09/2024
|-
! colspan="6" |Profit and loss
!
!
|-
|Revenue (£'000)
|
|
|126,749
|145,826
|163,847
|212,100
|240,900
|-
|Administrative expenses
|
|
|
|(89,975)
|(104,866)
|
|
|-
|Operating profit
|
|
|
|55,851
|58,981
|
|
|-
|Investment income
|
|
|
|23
|198
|
|
|-
|Finance costs
|
|
|
|(790)
|(768)
|
|
|-
|Profit before tax
|
|
|
|55,084
|58,411
|79,800
|92,600
|-
|Tax expense
|
|
|
|(11,262)
|(11,672)
|
|
|-
| colspan="8" |'''Profit for the financial year attributable to:'''
|-
|Equity holders of the Parent Company
|
|
|
|43,822
|46,739
|
|
|-
| colspan="8" |'''Earnings per share:'''
|-
|Basic (pence)
|
|
|
|10.71
|11.39
|
|
|-
|Diluted (pence)
|
|
|
|10.67
|11.35
|
|
|-
! colspan="6" |Balance sheet
!
!
|-
| colspan="8" |'''Assets'''
|-
| colspan="8" |'''Non-current assets'''
|-
|Goodwill
|
|
|
|6,991
|6,991
|
|
|-
|Other intangible assets
|
|
|
|6,014
|8,779
|
|
|-
|Property, plant and equipment
|
|
|
|3,351
|3,325
|
|
|-
|Right-of-use assets
|
|
|
|13,325
|12,273
|
|
|-
|Deferred tax asset
|
|
|
|940
|610
|
|
|-
|
|
|
|
|30,621
|31,978
|
|
|-
| colspan="8" |'''Current assets'''
|-
|Trade and other receivables
|
|
|
|37,462
|49,436
|
|
|-
|Current tax receivable
|
|
|
|51
|38
|
|
|-
|Cash and cash equivalents (£'000)
|
|
|
|94,008
|84,030
|
|
|-
|
|
|
|
|131,521
|133,504
|
|
|-
|Total assets
|
|
|
|162,142
|165,482
|
|
|-
| colspan="8" |'''Liabilities'''
|-
| colspan="8" |'''Current liabilities'''
|-
|Trade and other payables
|
|
|
|(12,765)
|(15,604)
|
|
|-
|Lease liabilities
|
|
|
|(1,708)
|(1,566)
|
|
|-
|Provisions
|
|
|
|(1,526)
|(519)
|
|
|-
|
|
|
|
|(15,999)
|(17,689)
|
|
|-
| colspan="8" |'''Non-current liabilities'''
|-
|Lease liabilities
|
|
|
|(13,886)
|(12,395)
|
|
|-
|Provisions
|
|
|
|(1,549)
|(2,004)
|
|
|-
|
|
|
|
|(15,435)
|(14,399)
|
|
|-
|Total liabilities
|
|
|
|(31,434)
|(32,088)
|
|
|-
|Net assets
|
|
|
|130,708
|133,394
|
|
|-
| colspan="8" |'''Equity'''
|-
|Share capital
|
|
|
|51
|51
|
|
|-
|Share premium
|
|
|
|8,658
|8,930
|
|
|-
|Own shares
|
|
|
|(740)
|(473)
|
|
|-
|Retained earnings
|
|
|
|122,739
|124,886
|
|
|-
|Total equity
|
|
|
|130,708
|133,394
|
|
|-
! colspan="6" |Cash flow statement
!
!
|-
| colspan="8" |'''Cash flows from operating activities'''
|-
|Profit for the financial year
|
|
|
|43,822
|46,739
|
|
|-
| colspan="8" |Adjustments for:
|-
|Investment income
|
|
|
|(23)
|(198)
|
|
|-
|Finance costs
|
|
|
|790
|768
|
|
|-
|Income tax expense
|
|
|
|11,262
|11,672
|
|
|-
|Depreciation and amortisation
|
|
|
|3,623
|3,643
|
|
|-
|Share-based payment expense
|
|
|
|4,952
|4,728
|
|
|-
|Decrease in provisions and other payables
|
|
|
|(69)
|(1,007)
|
|
|-
|Loss on disposal of property, plant and equipment
|
|
|
|13
|21
|
|
|-
|Profit on disposal of right-of-use assets
|
|
|
|(3)
|0
|
|
|-
|Increase in trade and other receivables
|
|
|
|(6,889)
|(11,974)
|
|
|-
|Increase / (decrease) in trade and other payables
|
|
|
|(1,347)
|2,839
|
|
|-
|Cash generated from operations
|
|
|
|56,131
|57,231
|
|
|-
|Income tax paid
|
|
|
|(11,455)
|(11,433)
|
|
|-
|Interest expense paid
|
|
|
|(1)
|0
|
|
|-
|Net cash from/(used in) operating activities
|
|
|
|44,675 
|45,798
|
|
|-
| colspan="8" |'''Cash flows from investing activities'''
|-
|Purchase of other intangible assets
|
|
|
|(2,370)
|(2,365)
|
|
|-
|Purchase of property, plant and equipment
|
|
|
|(1,174)
|(1,014)
|
|
|-
|Acquisition of subsidiary, net of cash acquired
|
|
|
|(2,561)
|0
|
|
|-
|Interest received
|
|
|
|23
|198
|
|
|-
|Net cash from/(used in) investing activities
|
|
|
|(6,082)
|(3,181)
|
|
|-
| colspan="8" |'''Cash flows from financing activities'''
|-
|Payments of principal in relation to lease liabilities
|
|
|
|(1,241)
|(1,716)
|
|
|-
|Payments of interest on lease liabilities
|
|
|
|(789)
|(768)
|
|
|-
|Proceeds from issue of share capital
|
|
|
|199
|272
|
|
|-
|Dividends paid
|
|
|
|(29,138)
|(50,383)
|
|
|-
|Net cash from/(used in) financing activities
|
|
|
|(30,969)
|(52,595)
|
|
|-
! colspan="8" |Metrics
|-
|Cost of goods sold as a proportion of revenue (%)
|
|
|
|0%
|0%
|
|
|-
|Operating expenses as a proportion of revenue (%)
|
|
|
|61.70%
|64.00%
|
|
|-
|Tax rate (%)
|
|
|
|20.45%
|19.98%
|
|
|-
|Depreciation and amortisation rate (%)
|
|
|
|15.97%
|14.94%
|
|
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|
|
|
|2.43%
|2.06%
|
|
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|
|
|
|
|0.18%
|
|
|-
|Net borrowing as a proportion of revenue (%)
|
|
|
| -1.39%
| -1.52%
|
|
|-
|Interest expense as a proportion of revenue (%)
|
|
|
|0.53%
|0.48%
|
|
|}
{| class="wikitable"
|+Trading 212 Group Limited
!Year
!1<ref>https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/VjHMtIQiiQi__nVCWAt11Y5huQG68koLl03pvpnqrn0/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3KS3H3G5V%2F20230606%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20230606T213520Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEAMaCWV1LXdlc3QtMiJIMEYCIQC660r%2Bjx4D8MAt7dZnQyI4rQKB%2ByjmjuPvdqPe%2FzG5gwIhAMWx9BAf15tgFNPWA30ZMAQoITU1FekaZU4DdaDpbqpBKroFCEwQBBoMNDQ5MjI5MDMyODIyIgxTLwy1663v14A2ya4qlwW716KZyuhql1qyYzIKJqYYB3LoPM5dO6SP%2BGh1aYozdNJq7ZXCxOATczExlzncRJDmLWz0z1CurY9ZplLg4eiabGEMU0sZQshK4gKgagQ1A4rNWijM5fefc0CIoE%2FanqRcqu95iDs%2FiQofP48NNSqCxwcNUcBk1sSojK4RPJIlJxb5AeU2khPA1ldd80lrLdDrLswPOtjjyzLenNFGf5q2ArWweQL%2FzvPIg%2FelxdUzd91W1PLmU%2BBXfDEw%2BXdnD25AB2%2BLhij7Ueg8hc9hl0wSikQ6%2BLXpQyJBlgy0sURS0k2FSsEDv35cmdHX%2BTG0jUMQvdeKRy7FhHZhp%2BkcAnTMXoD5Q8flHUeigOAM1H4Upeukj%2FQvHxeIJwJECydGsGxed8x8uzREXYJPoijgRJjaXIMQXPY%2FwZ%2F0uK0iZnNwLPdQ3iUfwFFr5Z8LJB22iJA0WQOGVXtrWOPm2ePOkVz7kYYVYYFWaUKsFJXoTz1ddQ6yxrlXJELpXwOqClKe%2B2jXqA%2FPPjGqJzhxN08oKsE4R1tI%2F5XO8CkkVt1j9dzkcg3j46oz%2Frah5op4BvY%2BZ5SwJKe1k7IAjzerriBgvb0nevlWE%2B2M7P6wX0xqaFh28yzraDWif0VYhqwWbxm4Fa1QooHBTDLNSHcUKAPrWMfa8dA3OKIgOqybGtrBu%2FGIcsBkEXOajDjVE5OlmQakV%2Brz8XRPYEbzMMNuSawNwrv8NW3Mm7mb8y%2Bivq72a4YuaqwRhPPXv7ZJMPBs48hgjH8lRNMqmyK6FLaEIDyFLAGiRpXCTsaRyDqA7ydsGd4sdEUKzlAwpXzKH3ZrR%2B8webQv4S4Mo7lY9XmLXF1a4UEjiX6MNYLQfhpEs6WfAIL%2B6CiR7U1PfuQwiIf%2BowY6sAHe%2B%2FOG%2FE7AbAx8JhLgEhcGzWkFdOHiC0G5h%2Brx6a7s%2BKDx6Y2uB%2FH8Iz2BvGmuyJywGfydIu%2BpuBpyXDJIiSHEaPXgdem9Vr1qfWp4DgAKBDqbXXynyVzhBfIcTshNhDAV%2FeCRyk1sMW8wOGvkXh09tP6hekKWL84gHFuzpO5P2TD5ssECMlD2mzAKzgG%2FJ4m6s1vPE6uS%2F7zLhcjceOfFo1CH2Vzib3s5ZkCMSQo%2Bbg%3D%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=b2374cf4a6daa79a50613961fbeed5cee094a9ab08c59ad284c7ee50ff859a78</ref>
!2
!3
!4
!5
!6
!7<ref>https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/TSm136YZkgOVAft-B377F-NKlBy9iC-6ZBi-J0I__mk/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3KS3H3G5V%2F20230606%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20230606T211732Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEAMaCWV1LXdlc3QtMiJIMEYCIQC660r%2Bjx4D8MAt7dZnQyI4rQKB%2ByjmjuPvdqPe%2FzG5gwIhAMWx9BAf15tgFNPWA30ZMAQoITU1FekaZU4DdaDpbqpBKroFCEwQBBoMNDQ5MjI5MDMyODIyIgxTLwy1663v14A2ya4qlwW716KZyuhql1qyYzIKJqYYB3LoPM5dO6SP%2BGh1aYozdNJq7ZXCxOATczExlzncRJDmLWz0z1CurY9ZplLg4eiabGEMU0sZQshK4gKgagQ1A4rNWijM5fefc0CIoE%2FanqRcqu95iDs%2FiQofP48NNSqCxwcNUcBk1sSojK4RPJIlJxb5AeU2khPA1ldd80lrLdDrLswPOtjjyzLenNFGf5q2ArWweQL%2FzvPIg%2FelxdUzd91W1PLmU%2BBXfDEw%2BXdnD25AB2%2BLhij7Ueg8hc9hl0wSikQ6%2BLXpQyJBlgy0sURS0k2FSsEDv35cmdHX%2BTG0jUMQvdeKRy7FhHZhp%2BkcAnTMXoD5Q8flHUeigOAM1H4Upeukj%2FQvHxeIJwJECydGsGxed8x8uzREXYJPoijgRJjaXIMQXPY%2FwZ%2F0uK0iZnNwLPdQ3iUfwFFr5Z8LJB22iJA0WQOGVXtrWOPm2ePOkVz7kYYVYYFWaUKsFJXoTz1ddQ6yxrlXJELpXwOqClKe%2B2jXqA%2FPPjGqJzhxN08oKsE4R1tI%2F5XO8CkkVt1j9dzkcg3j46oz%2Frah5op4BvY%2BZ5SwJKe1k7IAjzerriBgvb0nevlWE%2B2M7P6wX0xqaFh28yzraDWif0VYhqwWbxm4Fa1QooHBTDLNSHcUKAPrWMfa8dA3OKIgOqybGtrBu%2FGIcsBkEXOajDjVE5OlmQakV%2Brz8XRPYEbzMMNuSawNwrv8NW3Mm7mb8y%2Bivq72a4YuaqwRhPPXv7ZJMPBs48hgjH8lRNMqmyK6FLaEIDyFLAGiRpXCTsaRyDqA7ydsGd4sdEUKzlAwpXzKH3ZrR%2B8webQv4S4Mo7lY9XmLXF1a4UEjiX6MNYLQfhpEs6WfAIL%2B6CiR7U1PfuQwiIf%2BowY6sAHe%2B%2FOG%2FE7AbAx8JhLgEhcGzWkFdOHiC0G5h%2Brx6a7s%2BKDx6Y2uB%2FH8Iz2BvGmuyJywGfydIu%2BpuBpyXDJIiSHEaPXgdem9Vr1qfWp4DgAKBDqbXXynyVzhBfIcTshNhDAV%2FeCRyk1sMW8wOGvkXh09tP6hekKWL84gHFuzpO5P2TD5ssECMlD2mzAKzgG%2FJ4m6s1vPE6uS%2F7zLhcjceOfFo1CH2Vzib3s5ZkCMSQo%2Bbg%3D%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=d6d6e64d192d38e0d55e9784f1eeaea2fc9d75fc7a93e9c93081aa1ac5c5bc57</ref>
|-
!Year end date
!31/12/2015
!31/12/2016
!31/12/2017
!31/12/2018
!31/12/2019
!31/12/2020
!31/12/2021
|-
!
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
|-
! colspan="8" |Profit and loss
|-
|Revenue (£'000)
|925
|3,081
|
|
|
|124,077
|138,685
|-
|Gross profit (£'000)
|
|
|
|
|
|124,077
|138,685
|-
|Other operating income
|
|
|
|
|
|106
|4,701
|-
|Administrative expenses
|
|
|
|
|
|(108,782)
|(57,018)
|-
|Profit from operations
|345
|1,603
|
|
|
|15,401
|86,368
|-
|Finance income
|
|
|
|
|
|79
|244
|-
|Finance expense
|
|
|
|
|
|(321)
|(564)
|-
|Profit before tax
|
|
|
|
|
|15,159
|86,048
|-
|Tax expense
|
|
|
|
|
|(5,048)
|(13,109)
|-
|Profit for the year
|
|
|
|
|
|10,111
|72,939
|-
|Exchange (losses)/gains arising on translation on foreign operations
|
|
|
|
|
|1,522
|(1,317)
|-
|Total comprehensive income
|
|
|
|
|
|11,633
|71,622
|-
! colspan="8" |Balance sheet
|-
| colspan="8" |'''Assets'''
|-
| colspan="8" |'''Non-current assets'''
|-
|Property, plant and equipment
|
|
|
|
|
|1,882
|1,384
|-
|Intangible assets
|
|
|
|
|
|67
|37
|-
|Investment in associates
|
|
|
|
|
|202
|215
|-
|Trade and other receivables
|
|
|
|
|
|35
|34
|-
|Deferred tax assets
|
|
|
|
|
|37
|99
|-
|
|
|
|
|
|
|2,223
|1,769
|-
| colspan="8" |'''Current assets'''
|-
|Trade and other receivables
|
|
|
|
|
|28,952
|13,360
|-
|Cash and cash equivalents
|
|
|
|
|
|24,649
|114,813
|-
|Current asset investments
|
|
|
|
|
|14,076
|34,995
|-
|
|
|
|
|
|
|67,677
|163,168
|-
|Total assets
|
|
|
|
|
|69,900
|164,937
|-
| colspan="8" |Liabilities
|-
| colspan="8" |'''Non-current liabilities'''
|-
|Loans and borrowings
|
|
|
|
|
|27
|40
|-
|
|
|
|
|
|
|27
|40
|-
| colspan="8" |'''Current liabilities'''
|-
|Trade and other payables
|
|
|
|
|
|24,524
|47,900
|-
|Loans and borrowings
|
|
|
|
|
|636
|625
|-
|
|
|
|
|
|
|25,160
|48,525
|-
|Total liabilities
|
|
|
|
|
|25,187
|48,565
|-
|Net assets
|
|
|
|
|
|44,713
|116,372
|-
| colspan="8" |'''Issued capital and reserves attributable to owners of the parent'''
|-
|Share capital
|
|
|
|
|
|3,132
|3,132
|-
|Foreign exchange reserves
|
|
|
|
|
|970
|(347)
|-
|Other reserves
|
|
|
|
|
|720
|720
|-
|Retained earnings
|
|
|
|
|
|39,891
|112,867
|-
|
|
|
|
|
|
|44,713
|116,372
|-
|Total equity
|
|
|
|
|
|44,713
|116,372
|-
! colspan="8" |Cash flow statement
|-
| colspan="8" |'''Cash flows from operating activities'''
|-
|Profit for the year
|
|
|
|
|
|10,111
|72,939
|-
| colspan="8" |'''Adjustments for:'''
|-
|Depreciation of property, plant and equipment
|
|
|
|
|
|705
|1,099
|-
|Amortisation of intangible fixed assets
|
|
|
|
|
|22
|31
|-
|Interest and other finance income
|
|
|
|
|
|(79)
|(244)
|-
|Interest and other finance expenses
|
|
|
|
|
|321
|564
|-
|Loss/(gain) on sale of property, plant and equipment
|
|
|
|
|
|(50)
|904
|-
|Foreign exchange gain/(loss) of revaluation of assets
|
|
|
|
|
|(40)
|45
|-
|Foreign exchange (loss)/gain on consolidation
|
|
|
|
|
|1,522
|(1,280)
|-
|Interest paid
|
|
|
|
|
|(321)
|(564)
|-
|Interest received
|
|
|
|
|
|79
|244
|-
|Income tax expense
|
|
|
|
|
|5,048
|13,109
|-
|
|
|
|
|
|
|17,318
|86,847
|-
| colspan="8" |'''Movements in working capital:''' 
|-
|Decrease/(increase) in trade and other receivables
|
|
|
|
|
|(23,894)
|15,531
|-
|Increase in current asset investments
|
|
|
|
|
|(13,861)
|(20,919)
|-
|Increase in trade and other payables
|
|
|
|
|
|13,156
|19,033
|-
|Cash generated from operations
|
|
|
|
|
|(7,281)
|100,492
|-
|Income tax paid
|
|
|
|
|
|(2,061)
|(9,134)
|-
|Net cash from/(used in) operating activities
|
|
|
|
|7,306
|(9.342)
|91,358
|-
| colspan="8" |'''Cash flows from investing activities'''
|-
|Purchases of property, plant and equipment
|
|
|
|
|
|(1,819)
|(1,564)
|-
|Purchases of intangible assets
|
|
|
|
|
|(79)
|0
|-
|Proceeds from disposal of property, plant and equipment
|
|
|
|
|
|131
|0
|-
|Net cash from/(used in) investing activities
|
|
|
|
|121
|(1,767)
|(1,564)
|-
| colspan="8" |'''Cash flows from financing activities'''
|-
|Finance lease payments
|
|
|
|
|
|(112)
|(69)
|-
|New finance leases
|
|
|
|
|
|0
|86
|-
|Loan repayments
|
|
|
|
|
|(91)
|(7,210)
|-
|Loans received
|
|
|
|
|
|7,210
|7,563
|-
|Net cash from/(used in) financing activities
|
|
|
|
|(3,902)
|7,007
|370
|-
! colspan="8" |Metrics
|-
|Cost of goods sold as a proportion of revenue (%)
|
|
|
|
|
|0%
|0%
|-
|Operating expenses as a proportion of revenue (%)
|
|
|
|
|
|87.67%
|41.11%
|-
|Tax rate (%)
|
|
|
|
|
|33.30%
|15.23%
|-
|Depreciation and amortisation rate (%)
|
|
|
|
|
|37.30%
|79.52%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|
|
|
|
|
|1.53%
|1.13%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|
|
|
|
|
|
|52.01%
|-
|Net borrowing as a proportion of revenue (%)
|
|
|
|
|
|5.65%
|0.27%
|-
|Interest expense as a proportion of revenue (%)
|
|
|
|
|
|0.26%
|0.41%
|}
{| class="wikitable"
|+Robinhood Markets, Inc.
!
!31/12/2018
!31/12/2019
!31/12/2020
!31/12/2021
!31/12/2022
|-
! colspan="6" |Profit and loss
|-
| colspan="6" |'''Revenues:'''
|-
|Transaction-based revenues
|
|
|
|1,402
|814
|-
|Net interest revenues
|
|
|
|256
|424
|-
|Other revenues
|
|
|
|157
|120
|-
|Total net revenues
|
|
|
|1,815
|1,358
|-
|
|
|
|
|
|
|-
| colspan="6" |'''Operating expenses:'''
|-
|Brokerage and transaction
|
|
|
|158
|179
|-
|Technology and development
|
|
|
|1,234
|878
|-
|Operations
|
|
|
|368
|285
|-
|Marketing
|
|
|
|325
|103
|-
|General and administrative
|
|
|
|1,371
|924
|-
|Total operating expenses
|
|
|
|3,456
|2,369
|-
|
|
|
|
|
|
|-
|Change in fair value of convertible notes and warrant liability
|
|
|
|2,045
|0
|-
|Other (income) expense, net
|
|
|
|(1)
|16
|-
|Income (loss) before income taxes
|
|
|
|(3,685)
|(1,027)
|-
|Provision for (benefit from) income taxes
|
|
|
|2
|1
|-
|Net income (loss)
|
|
|
|(3,687)
|(1,028)
|-
| colspan="6" |'''Net income (loss) attributable to common stockholders:'''
|-
|Basic
|
|
|
|(3,687)
|(1,028)
|-
|Diluted
|
|
|
|(3,687)
|(1,028)
|-
| colspan="6" |'''Net income (loss) per share attributable to common stockholders:'''
|-
|Basic
|
|
|
|(7.49)
|(1.17)
|-
|Diluted
|
|
|
|(7.49)
|(1.17)
|-
| colspan="6" |'''Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:'''
|-
|Basic
|
|
|
|492,381,190
|878,630,024
|-
|Diluted
|
|
|
|492,381,190
|878,630,024
|-
! colspan="6" |Balance sheet
|-
| colspan="6" |'''Assets'''
|-
| colspan="6" |'''Current assets:'''
|-
|Cash and cash equivalents
|
|
|
|6,253
|6,339
|-
|Cash segregated under federal and other regulations
|
|
|
|3,992
|2,995
|-
|Receivables from brokers, dealers, and clearing organizations
|
|
|
|88
|76
|-
|Receivables from users, net
|
|
|
|6,639
|3,218
|-
|Securities borrowed
|
|
|
|0
|517
|-
|Deposits with clearing organizations
|
|
|
|328
|186
|-
|Asset related to user cryptocurrencies safeguarding obligation
|
|
|
|0
|8,431
|-
|User-held fractional shares
|
|
|
|1,834
|997
|-
|Prepaid expenses
|
|
|
|92
|86
|-
|Other current assets
|
|
|
|57
|72
|-
|Total current assets
|
|
|
|19,283
|22,917
|-
|Property, software, and equipment, net
|
|
|
|146
|146
|-
|Goodwill
|
|
|
|101
|100
|-
|Intangible assets, net
|
|
|
|34
|25
|-
|Non-current prepaid expenses
|
|
|
|44
|17
|-
|Other non-current assets
|
|
|
|161
|132
|-
|Total assets
|
|
|
|19,769
|23,337
|-
| colspan="6" |'''Liabilities and stockholders’ equity'''
|-
| colspan="6" |'''Current liabilities:'''
|-
|Accounts payable and accrued expenses
|
|
|
|252
|185
|-
|Payables to users
|
|
|
|6,476
|4,701
|-
|Securities loaned
|
|
|
|3,651
|1,834
|-
|User cryptocurrencies safeguarding obligation
|
|
|
|0
|8,431
|-
|Fractional shares repurchase obligation
|
|
|
|1,834
|997
|-
|Other current liabilities
|
|
|
|134
|105
|-
|Total current liabilities
|
|
|
|12,347
|16,253
|-
|Other non-current liabilities
|
|
|
|129
|128
|-
|Total liabilities
|
|
|
|12,476
|16,381
|-
| colspan="6" |'''Commitments and contingencies'''
|-
| colspan="6" |'''Stockholders’ equity:'''
|-
|Additional paid-in capital
|
|
|
|11,169
|11,861
|-
|Accumulated other comprehensive income (loss)
|
|
|
|1
|0
|-
|Accumulated deficit
|
|
|
|(3,877)
|(4,905)
|-
|Total stockholders’ equity
|
|
|
|7,293
|6,956
|-
|Total liabilities and stockholders’ equity
|
|
|
|19,769
|23,337
|-
! colspan="6" |Cash flow statement
|-
| colspan="6" |'''Operating activities:'''
|-
|Net income (loss)
|
|
|
|
|
|-
| colspan="6" |Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|-
|Depreciation and amortization
|
|
|10
|26
|61
|-
|Net cash from/(used in) operating activities
|
|
|1,876
|(885)
|(852)
|-
| colspan="6" |'''Investing activities:'''
|-
|Purchase of property, software, and equipment
|
|
|(24)
|(63)
|(28)
|-
|Capitalization of internally developed software
|
|
|(8)
|(20)
|(29)
|-
|Acquisitions of a business, net of cash acquired
|
|
|0
|(125)
|0
|-
|Purchase of investments
|
|
|0
|(27)
|(25)
|-
|Sales of investments
|
|
|0
|0
|42
|-
|Other
|
|
|0
|(3)
|(20)
|-
|Net cash from/(used in) investing activities
|
|
|(32)
|(238)
|(60)
|-
| colspan="6" |'''Financing activities:'''
|-
|Proceeds from issuance of common stock in connection with initial public offering, net of offering costs
|
|
|0
|2,052
|0
|-
|Proceeds from issuance of common stock under the Employee Stock Purchase Plan
|
|
|0
|7
|16
|-
|Taxes paid related to net share settlement of equity awards
|
|
|0
|(422)
|(12)
|-
|Proceeds from issuance of convertible notes and warrants
|
|
|0
|3,552
|0
|-
|Draws on credit facilities
|
|
|938
|1,968
|21
|-
|Repayments on credit facilities
|
|
|(938)
|(1,968)
|(21)
|-
|Payments of debt issuance costs
|
|
|0
|0
|(10)
|-
|Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs
|
|
|1,267
|0
|0
|-
|Proceeds from exercise of stock options, net of repurchases
|
|
|9
|14
|6
|-
|Net cash from/(used in) financing activities
|
|
|1,276
|5,203
|0
|-
! colspan="6" |Metrics
|-
|Cost of goods sold as a proportion of revenue (%)
|
|
|
|N/A
|N/A
|-
|Operating expenses as a proportion of revenue (%)
|
|
|
|190.41%
|174.45%
|-
|Tax rate (%)
|
|
|
|0.05%
|0.10%
|-
|Depreciation and amortisation rate (%)
|
|
|
|14.44%
|35.67%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|
|
|
|3.47%
|2.06%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|
|
|
|
|(20.03)%
|-
|Net borrowing as a proportion of revenue (%)
|
|
|0%
|0%
|0%
|-
|Interest expense as a proportion of revenue (%)
|
|
|
|0%
|0%
|}
{| class="wikitable"
|+Blackberry
!
!28/02/2019
!28/02/2020
!28/02/2021
!28/02/2022
!28/02/2023
|-
! colspan="6" |Profit and loss
|-
|Revenue
|
|
|893
|718
|656
|-
|Cost of sales
|
|
|250
|251
|237
|-
|
|
|
|
|
|
|-
|Gross margin
|
|
|643
|467
|419
|-
|
|
|
|
|
|
|-
|Operating expenses
|
|
|
|
|
|-
|Research and development
|
|
|215
|219
|207
|-
|Selling, marketing and administration
|
|
|344
|297
|340
|-
|Amortization
|
|
|182
|165
|96
|-
|Impairment of goodwill
|
|
|594
|0
|245
|-
|Impairment of long-lived assets
|
|
|43
|0
|235
|-
|Gain on sale of property, plant and  equipment, net
|
|
|0
|0
|(6)
|-
|Debentures fair value adjustment
|
|
|372
|(212)
|(138)
|-
|Litigation settlement
|
|
|0
|0
|165
|-
|
|
|
|1,750
|469
|1,144
|-
|Operating loss
|
|
|(1,107)
|(2)
|(725)
|-
|Investment income (loss), net
|
|
|(6)
|21
|5
|-
|
|
|
|
|
|
|-
|Income (loss) before income taxes
|
|
|(1,113)
|19
|(720)
|-
|Provision for (recovery of) income taxes
|
|
|(9)
|7
|14
|-
|
|
|
|
|
|
|-
|Net income (loss)
|
|
|(1,104)
|12
|(734)
|-
|Earnings (loss) per share
|
|
|
|
|
|-
|Basic
|
|
|(1.97)
|0.02
|(1.27)
|-
|Diluted
|
|
|(1.97)
|(0.31)
|(1.35)
|-
! colspan="6" |Balance sheet
|-
| colspan="6" |'''Assets'''
|-
| colspan="6" |'''Current'''
|-
|Cash and cash equivalents
|
|
|
|378
|295
|-
|Short-term investments
|
|
|
|334
|131
|-
|Accounts receivable, net of allowance of  $1 and $4, respectively
|
|
|
|138
|120
|-
|Other receivables
|
|
|
|25
|12
|-
|
|
|
|
|
|
|-
|Income taxes receivable
|
|
|
|9
|3
|-
|Other current assets
|
|
|
|159
|182
|-
|
|
|
|
|
|
|-
|
|
|
|
|1,043
|743
|-
|Restricted cash and cash equivalents
|
|
|
|28
|27
|-
|Long-term investments
|
|
|
|30
|34
|-
|Other long-term assets
|
|
|
|9
|8
|-
|
|
|
|
|
|
|-
|Operating lease right-of-use assets, net
|
|
|
|50
|44
|-
|Property, plant and equipment, net
|
|
|
|41
|25
|-
|Goodwill
|
|
|
|844
|595
|-
|Intangible assets, net
|
|
|
|522
|203
|-
|
|
|
|
|
|
|-
|
|
|
|
|2,567
|1,679
|-
| colspan="6" |'''Liabilities'''
|-
| colspan="6" |'''Current'''
|-
|Accounts payable
|
|
|
|22
|24
|-
|Accrued liabilities
|
|
|
|157
|143
|-
|Income taxes payable
|
|
|
|11
|20
|-
|Debentures
|
|
|
|0
|367
|-
|Deferred revenue, current
|
|
|
|207
|175
|-
|
|
|
|
|397
|729
|-
|Deferred revenue, non-current
|
|
|
|37
|40
|-
|Operating lease liabilities
|
|
|
|66
|52
|-
|Other long-term liabilities
|
|
|
|4
|1
|-
|Long-term debentures
|
|
|
|507
|0
|-
|
|
|
|
|
|
|-
|
|
|
|
|1,011
|822
|-
|Commitments and contingencies
|
|
|
|
|
|-
|Shareholders' equity
|
|
|
|
|
|-
|Capital stock and additional paid-in  capital
|
|
|
|
|
|-
|Preferred shares: authorized unlimited  number of non-voting, cumulative, redeemable and retractable
|
|
|
|0
|0
|-
|Common shares: authorized unlimited  number of non-voting, redeemable, retractable Class A common shares and  unlimited number of voting common shares
|
|
|
|
|
|-
|Issued and outstanding - 582,157,203  voting common shares (February 28, 2022 - 576,227,898)
|
|
|
|2,869
|2,909
|-
|Deficit
|
|
|
|(1,294)
|(2,028)
|-
|Accumulated other comprehensive loss
|
|
|
|(19)
|(24)
|-
|
|
|
|
|1,556
|857
|-
|
|
|
|
|2,567
|1,679
|-
! colspan="6" |Cash flow statement
|-
| colspan="6" |'''Cash flows from  operating activities'''
|-
|
|
|
|
|
|
|-
|Net income (loss)
|
|
|(1,104)
|12
|(734)
|-
|Adjustments to reconcile net income  (loss) to net cash provided by (used in) operating  activities:
|
|
|
|
|
|-
|Amortization
|
|
|198
|176
|105
|-
|
|
|
|
|
|
|-
|Stock-based compensation
|
|
|44
|36
|34
|-
|Gain on sale of investment
|
|
|0
|(22)
|0
|-
|Impairment of goodwill
|
|
|594
|0
|245
|-
|Impairment of long-lived assets
|
|
|43
|0
|235
|-
|
|
|
|
|
|
|-
|Gain on sale of property, plant and  equipment, net
|
|
|0
|0
|(6)
|-
|Debentures fair value adjustment
|
|
|372
|(212)
|(138)
|-
|
|
|
|
|
|
|-
|Operating leases
|
|
|(4)
|(16)
|(16)
|-
|Other
|
|
|(5)
|(3)
|(5)
|-
|Net changes in working capital items
|
|
|
|
|
|-
|Accounts receivable, net of allowance
|
|
|29
|44
|18
|-
|Other receivables
|
|
|(11)
|0
|13
|-
|
|
|
|
|
|
|-
|Income taxes receivable
|
|
|(4)
|1
|6
|-
|Other assets
|
|
|55
|15
|(1)
|-
|Accounts payable
|
|
|(11)
|2
|2
|-
|Accrued liabilities
|
|
|(20)
|(16)
|(11)
|-
|Income taxes payable
|
|
|(15)
|5
|9
|-
|Deferred revenue
|
|
|(79)
|(50)
|(29)
|-
|Net cash provided by (used in) operating  activities
|
|
|82
|(28)
|(263)
|-
| colspan="6" |'''Cash flows from investing activities'''
|-
|Acquisition of long-term investments
|
|
|(5)
|(1)
|(3)
|-
|Proceeds on sale, maturity or  distribution from long-term investments
|
|
|0
|35
|0
|-
|Acquisition of property, plant and  equipment
|
|
|(8)
|(8)
|(7)
|-
|Proceeds on sale of property, plant and  equipment
|
|
|0
|0
|17
|-
|Acquisition of intangible assets
|
|
|(36)
|(31)
|(34)
|-
|
|
|
|
|
|
|-
|Acquisition of  short-term investments
|
|
|(1,039)
|(916)
|(514)
|-
|Acquisition of restricted short-term  investments
|
|
|(24)
|0
|0
|-
|Proceeds on sale or maturity of  restricted short-term investments
|
|
|0
|24
|0
|-
|Proceeds on sale or maturity of  short-term investments
|
|
|1,047
|1,104
|717
|-
|
|
|
|
|
|
|-
|Net cash provided by (used in) investing  activities
|
|
|(65)
|207
|176
|-
| colspan="6" |'''Cash flows from financing activities'''
|-
|Issuance of common shares
|
|
|19
|10
|6
|-
|
|
|
|
|
|
|-
|Payment of finance lease liability
|
|
|(1)
|0
|0
|-
|Repurchase of 3.75% Debentures
|
|
|(610)
|0
|0
|-
|Issuance of 1.75% Debentures
|
|
|365
|0
|0
|-
|
|
|
|
|
|
|-
|Net cash provided by (used in) financing  activities
|
|
|(227)
|10
|6
|-
|Effect of foreign exchange gain (loss)  on cash, cash equivalents, restricted cash, and  restricted cash equivalents
|
|
|2
|(1)
|(3)
|-
|Net increase (decrease) in cash, cash  equivalents, restricted cash, and restricted cash  equivalents during the period
|
|
|(208)
|188
|(84)
|-
|Cash, cash equivalents, restricted cash,  and restricted cash equivalents, beginning of period
|
|
|426
|218
|406
|-
|Cash, cash equivalents, restricted cash,  and restricted cash equivalents, end of period
|
|
|218
|406
|322
|-
! colspan="6" |Metrics
|-
|Cost of goods sold as a proportion of revenue (%)
|
|
|28.00%
|34.96%
|36.13%
|-
|Operating expenses as a proportion of revenue (%)
|
|
|195.97%
|65.32%
|174.39%
|-
|Tax rate (%)
|
|
|0.81%
|36.84%
| -1.94%
|-
|Depreciation and amortisation rate (%)
|
|
|
|31.61%
|47.29%
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|
|
|4.93%
|5.43%
|6.25%
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|
|
|
|89.97%
|2.13%
|-
|Net borrowing as a proportion of revenue (%)
|
|
|
|0%
|0%
|-
|Interest expense as a proportion of revenue (%)
|
|
|
|0%
|0%
|}

=== Funding History<ref>https://www.crunchbase.com/organization/freetrade-limited</ref> ===
As of November 24th 2021, the company held a valuation of £658 million. However, it has since executed two funding rounds through debt financing instead of equity, which hints at a potential decrease in its valuation from the previous £658 million. It has been reported by relatively reliable sources that the current valuation of the company is £225 million.<ref name=":9" /> <!-- The figures in the table below don't quite align with the figures in the financial statements of Crowdcube. I think the more accurate source is the financial statements, so I suggest going with the figures there. -->

{| class="wikitable"
!Date announced
!Investment type
!Post money valuation
!Amount
!No. of investors
|-
|15/09/2022
|Equity Crowdfunding
| -
|US$1,733,820.00
| -
|-
|20/05/2022
|Debt Financing
| -
|£30,000,000.00
|6
|-
|24/11/2021
|Equity Crowdfunding
|£658,363,176.00
|£8,363,176.00
| -
|-
|23/03/2021
|Series B
|US$345,057,713.00
|£35,000,000.00
|4
|-
|14/05/2020
|Equity Crowdfunding
| -
|£7,099,999.00
| -
|-
|31/10/2019
|Series A
| -
|£12,000,000.00
|1
|-
|25/06/2019
|Equity Crowdfunding
| -
|£3,793,410.00
|1
|-
|25/04/2019
|Equity Crowdfunding
| -
|US$1,927,630.00
|1
|-
|29/07/2018
|Equity Crowdfunding
|£46,516,630.00
|£3,516,630.00
|1
|-
|18/05/2018
|Pre Seed
| -
| -
|2
|-
|05/03/2017
|Equity Crowdfunding
| -
|£1,071,850.00
|4
|-
|01/03/2017
|Seed
| -
| -
| -
|-
|28/07/2016
|Equity Crowdfunding
|£2,069,980.00
|£169,980.00
| -
|}
According to Crunchbase, Freetrade has raised a total of $135.5 million since the company's inception across 13 funding rounds.<ref>https://www.crunchbase.com/organization/freetrade-limited/company_financials</ref> However, that seems inaccurate when compared against the company's financial statements.

===Economic links to cash flow patterns ===
{| class="wikitable"
|+Economic links to cash flow patterns
|-
!Cash flow type!!Introduction!!Growth!!Shake out!!Mature!!Decline
|-
|Operating|| style="background: red; color: white;" |-|| style="background: green; color: white;" |+
| style="background: orange; color: white;" | +/-|| style="background: green; color: white;" |+|| style="background: red; color: white;" |-
|-
|Investing|| style="background: red; color: white;" |-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-
| style="background: green; color: white;" | +
|-
|Financing|| style="background: green; color: white;" |+|| style="background: green; color: white;" |+|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-
|}

=== Beta risk profile ===
{| class="wikitable"
|+
!Beta value
!Risk rating
|-
|style="background: green; color: white;" |0 to 0.50
|style="background: green; color: white;" | Low
|-
|style="background: orange; color: white;" | 0.50 to 1.50
|style="background: orange; color: white;" | Medium
|-
|style="background: red; color: white;" | 1.50 to 3.00
|style="background: red; color: white;" | High
|-
|style="background: purple; color: white;" | 3.00 and above
|style="background: purple; color: white;" | Extremely high
|}

=== Freetrade adjusted beta calculation ===
{| class="wikitable"
|+
!Date
!iShares MSCI World ETF share price
!Freetrade valuation (£)
!iShares MSCI World ETF share price change
!Freetrade valuation change
|-
|01/07/2018
|82
|2,069,980
|
|
|-
|01/08/2018
|83
|46,516,630
|1.14%
|2147.20%
|-
|01/09/2018
|84
|46,516,630
|0.75%
|
|-
|01/10/2018
|78
|46,516,630
|style="color: red;" |(7.14)%
|
|-
|01/11/2018
|79
|46,516,630
|1.13%
|
|-
|01/12/2018
|72
|46,516,630
|style="color: red;" |(8.51)%
|
|-
|01/01/2019
|78
|46,516,630
|8.75%
|
|-
|01/02/2019
|81
|46,516,630
|2.98%
|
|-
|01/03/2019
|82
|46,516,630
|1.49%
|
|-
|01/04/2019
|85
|46,516,630
|3.72%
|
|-
|01/05/2019
|80
|46,516,630
|style="color: red;" |(5.79)%
|
|-
|01/06/2019
|84
|46,516,630
|4.91%
|
|-
|01/07/2019
|86
|46,516,630
|2.30%
|
|-
|01/08/2019
|84
|46,516,630
|style="color: red;" |(2.20)%
|
|-
|01/09/2019
|86
|46,516,630
|2.16%
|
|-
|01/10/2019
|88
|46,516,630
|2.55%
|
|-
|01/11/2019
|90
|46,516,630
|2.80%
|
|-
|01/12/2019
|92
|46,516,630
|2.09%
|
|-
|01/01/2020
|92
|46,516,630
|style="color: red;" |(0.13)%
|
|-
|01/02/2020
|85
|46,516,630
|style="color: red;" |(8.25)%
|
|-
|01/03/2020
|74
|46,516,630
|style="color: red;" |(13.09)%
|
|-
|01/04/2020
|81
|46,516,630
|10.82%
|
|-
|01/05/2020
|86
|46,516,630
|5.03%
|
|-
|01/06/2020
|87
|46,516,630
|1.59%
|
|-
|01/07/2020
|92
|46,516,630
|5.96%
|
|-
|01/08/2020
|98
|46,516,630
|6.53%
|
|-
|01/09/2020
|95
|46,516,630
|style="color: red;" |(3.34)%
|
|-
|01/10/2020
|92
|46,516,630
|style="color: red;" |(3.00)%
|
|-
|01/11/2020
|104
|46,516,630
|12.86%
|
|-
|01/12/2020
|107
|46,516,630
|3.19%
|
|-
|01/01/2021
|107
|46,516,630
|style="color: red;" |(0.10)%
|
|-
|01/02/2021
|110
|46,516,630
|2.49%
|
|-
|01/03/2021
|114
|46,516,630
|3.69%
|
|-
|01/04/2021
|119
|274,498,000 
|4.32%
|490.11%
|-
|01/05/2021
|121
|274,498,000
|1.61%
|
|-
|01/06/2021
|121
|274,498,000
|0.77%
|
|-
|01/07/2021
|125
|274,498,000
|2.59%
|
|-
|01/08/2021
|128
|274,498,000
|2.48%
|
|-
|01/09/2021
|122
|274,498,000
|style="color: red;" |(4.21)%
|
|-
|01/10/2021
|129
|274,498,000
|5.84%
|
|-
|01/11/2021
|127
|274,498,000
|style="color: red;" |(2.05)%
|
|-
|01/12/2021
|131
|274,498,000
|3.22%
|
|-
|01/01/2022
|125
|274,498,000
|style="color: red;" |(4.44)%
|
|-
|01/02/2022
|121
|274,498,000
|style="color: red;" |(2.91)%
|
|-
|01/03/2022
|125
|274,498,000
|2.87%
|
|-
|01/04/2022
|114
|274,498,000
|style="color: red;" |(8.38)%
|
|-
|01/05/2022
|115
|274,498,000
|0.44%
|
|-
|01/06/2022
|104
|274,498,000
|style="color: red;" |(9.38)%
|
|-
|01/07/2022
|114
|274,498,000
|9.07%
|
|-
|01/08/2022
|108
|274,498,000
|style="color: red;" |(4.58)%
|
|-
|01/09/2022
|98
|274,498,000
|style="color: red;" |(9.37)%
|
|-
|01/10/2022
|106
|274,498,000
|7.47%
|
|-
|01/11/2022
|113
|274,498,000
|7.47%
|
|-
|01/12/2022
|107
|658,363,176 
|style="color: red;" |(5.36)%
|139.84%
|-
|01/01/2023
|116
|658,363,176
|7.89%
|
|-
|01/02/2023
|113
|658,363,176
|style="color: red;" |(2.59)%
|
|-
|01/03/2023
|117
|658,363,176
|3.24%
|
|-
|01/04/2023
|119
|658,363,176
|1.80%
|
|-
|01/05/2023
|117
|658,363,176
|style="color: red;" |(0.99)%
|
|-
|01/06/2023
|120
|658,363,176
|2.10%
|
|-
|09/06/2023
|121
|225,000,000<ref name=":9" />
|0.97%
|(65.82)%
|}
{| class="wikitable"
|+Freetrade beta and adjusted beta value
|Beta:
|61.33
|-
|Adjusted beta:
|41.22
|}

=== Other information ===
Freetrade was unsuccessful in its 'Freetrade' word application in the EU.<ref>https://www.trademarkelite.com/europe/trademark/trademark-detail/014989172/FREETRADE</ref> Does this mean that Freetrade has to pay the trademark holder a fee to use the 'Freetrade' word in the EU?

{| class="wikitable"
|+
!
!Freetrade
!Trading 212
!Hargreaves Lansdown
|-
|Austria
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0">https://globefunder.com/trading-212-countries/</ref>
|style="background: red; color: white;" |No
|-
|Bulgaria
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Croatia
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Cyprus
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Czech Republic
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Denmark
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Estonia
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Finland
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|France
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|French Guiana
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Gibraltar
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Greece
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Guadeloupe
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Guernsey
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Hungary
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Iceland
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Ireland
|style="background: green; color: white;" |Yes<ref name=":1">https://www.financemagnates.com/forex/brokers/freetrade-enters-netherland-ireland-with-zero-free-services/</ref>
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Isle of Man
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Italy
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Jersey
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Latvia
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Liechtenstein
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Lithuania
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Luxembourg
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Malta
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Martinique
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Mayotte
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Netherlands
|style="background: green; color: white;" |Yes<ref name=":1" />
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Norway
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Poland
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Portugal
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Reunion
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Romania
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Slovakia
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Slovenia
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Spain
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Sweden
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|Switzerland
|style="background: red; color: white;" |No
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: red; color: white;" |No
|-
|United Kingdom
|style="background: green; color: white;" |Yes<ref>https://help.freetrade.io/en/articles/1794457-which-countries-is-freetrade-available-in</ref>
|style="background: green; color: white;" |Yes<ref name=":0" />
|style="background: green; color: white;" |Yes
|}

{| class="wikitable"
|+
!
!Population
!Population date
!Date source
!Data source link
|-
|Austria
|9,154,938
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/austria-population/
|-
|Bulgaria
|6,797,490
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/bulgaria-population/
|-
|Croatia
|4,032,123
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/croatia-population/
|-
|Cyprus
|1,232,816
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/cyprus-population/
|-
|Czech Republic
|10,766,276
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/czech-republic-population/
|-
|Denmark
|5,851,092
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/denmark-population/
|-
|Estonia
|1,329,115
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/estonia-population/
|-
|Finland
|5,851,092
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/finland-population/
|-
|France
|65,682,979
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/france-population/
|-
|French Guiana
|321,180
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/french-guiana-population/
|-
|Gibraltar
|33,662
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/gibraltar-population/
|-
|Greece
|10,276,210
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/greece-population/
|-
|Guadeloupe
|395,766
|09/06/2023
|Worldometer
|https://worldpopulationreview.com/countries/guadeloupe-population
|-
|Guernsey
|63,521
|09/06/2023
|Worldometer
|https://worldpopulationreview.com/countries/guernsey-population
|-
|Hungary
|9,589,714
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/hungary-population/
|-
|Iceland
|347,645
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/iceland-population/
|-
|Ireland
|5,096,846
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/ireland-population/
|-
|Isle of Man
|86,334
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/isle-of-man-population/
|-
|Italy
|60,205,049
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/italy-population/
|-
|Jersey
|111,725
|09/06/2023
|Worldometer
|https://nationsgeo.com/population/europe/je/
|-
|Latvia
|1,825,986
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/latvia-population/
|-
|Liechtenstein
|38,445
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/liechtenstein-population/
|-
|Lithuania
|2,612,554
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/lithuania-population/
|-
|Luxembourg
|655,414
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/luxembourg-population/
|-
|Malta
|534,914
|09/06/2023
|Worldometer
|https://nationsgeo.com/population/europe/mt/
|-
|Martinique
|374,430
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/martinique-population/
|-
|Mayotte
|334,796
|09/06/2023
|Worldometer
|https://nationsgeo.com/population/africa/yt/
|-
|Netherlands
|17,244,317
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/netherlands-population/
|-
|Norway
|5,543,798
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/norway-population/
|-
|Poland
|37,727,112
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/poland-population/
|-
|Portugal
|10,110,612
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/portugal-population/
|-
|Reunion
|913,818
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/reunion-population/
|-
|Romania
|18,864,146
|09/06/2023
|Worldometer
|http://srv1.worldometers.info/world-population/romania-population/
|-
|Slovakia
|5,467,253
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/slovakia-population/
|-
|Slovenia
|2,079,771
|09/06/2023
|Worldometer
|http://srv1.worldometers.info/world-population/slovenia-population/
|-
|Spain
|46,807,044
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/spain-population/
|-
|Sweden
|10,281,472
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/sweden-population/
|-
|Switzerland
|8,839,152
|09/06/2023
|Worldometer
|http://srv1.worldometers.info/world-population/switzerland-population/
|-
|United Kingdom
|68,916,741
|09/06/2023
|Worldometer
|https://www.worldometers.info/world-population/uk-population/
|}
{| class="wikitable"
|+
!
!Freetrade
!Trading 212
!Hargreaves Lansdown
|-
|How many people are able to access the platform?
|68,916,741
|436,397,348
|68,916,741
|-
|What proportion of the global population is able to access the platform?<ref>Here, we have assumed that the global population is 8,037,772,395 people (source: https://www.worldometers.info/world-population/#:~:text=World%20Population%20Clock%3A%208%20Billion,(LIVE%2C%202023)%20%2D%20Worldometer<nowiki/>)</ref>
|0.86%
|5.43%
|0.86%
|}

=== Key terms of the convertible loan note ===
{| class="wikitable"
|+Key terms
! colspan="3" |A convertible loan is an investment for equity in a company where shares will be issued at a future date. Usually, the shares will be issued when the company completes a larger round of investment. A convertible loan allows a company to raise equity finance without setting a valuation.

Please see below a summary of the key terms of within tranche 1 of the convertible loan notes offered to Crowdcube investors in this round.
|-
|Share type(s) on offer
|Series B shares.
|The convertible loan notes will convert into the most senior share class created and in issue at the point of conversion.

The Company's most senior share class is currently Series B shares, which carry voting and pre-emption rights and a preference to receive the issue price back first alongside the other preference shares in certain circumstances.
|-
|Duration/Relevant Date
|12 months from the date of issue.
|If no conversion event occurs before this date, the convertible loan notes will automatically convert into Shares.
|-
|Discount Rate
|20%
|This is the amount of discount on the Shares which investors will receive compared to the share price at which other shares in the Company are being issued following a Qualified Financing event.
|-
|Interest
|N/A.
|The convertible loan notes offered in tranche 1 of this Crowdcube round do not accrue interest.
|-
|Valuation Cap
|£400,000,000 pre-money valuation.
|Convertible loans may contain a Valuation Cap, which is the maximum pre-money valuation of the Company that will be used to calculate the share price if there is a Qualified Financing prior to the Relevant Date.
|-
|Default Price
|£3.7711
|The Default Price is the price per Share of the Company that will be used to calculate the number of Shares investors will receive following a CET1 Capital Event, Sale or on the Relevant Date.
|-
|Conversion Events
|The convertible loan will convert into fully paid Shares on the occurrence of the following:

* Qualified Financing - automatically if the Company raises at least £40,000,000 at a price per Share of more than £3.7711 (Default Price).
* CET1 Capital Event - in the event that the capital held by the Company to meet its regulatory capital requirements under the FCA’s rules, falls below a certain level. Please note that in the event that there is a CET1 Capital Event only the amount of outstanding convertible loan required to meet the regulatory capital requirement will convert.
* Relevant Date - if no conversion event has occurred automatically on the date falling 12 months after the date of issue of the convertible loan note (or such other date as may be agreed between the Company and the Noteholder Majority).
* Sale - automatically on a sale of all, or substantially all of, the Company’s assets; or a sale of any of the shares in the Company resulting in a change of control of the Company.
|The convertible loan notes will convert into fully paid Shares in the Company on the occurrence of certain events.
|-
|Conversion Price
|
* On a Qualified Financing a price per Share equal to the lower of:
** the lowest price per Share paid by investors in the Qualified Financing by a 20% discount; and
** a price per share which results from dividing a pre-money valuation of £400,000,000 by the number of Shares in the Fully Diluted Share Capital.
* On a CET1 Capital Event; the Relevant Date; or a Sale, the Default Price (£3.7711 per Share).
|This is the price per Share at which the convertible loan notes will convert into Shares in the Company following a Qualified Financing, CET1 Capital Event, Relevant Date or Sale.
|-
|Additional Shares
|In the event that, following conversion of any of the convertible loan notes prior to a Qualified Financing, the Company issues Shares at a price less than the Default Price, noteholders will  be issued with such number of additional Conversion Shares to put them in the position they would have been if the loan notes had converted at the lower price.
|The convertible   loan   notes   being offered to Crowdcube investors benefit from anti-dilution protection.
|-
|Repayment
|Provided no CET1 Capital Event has occurred and the FCA has given prior permission for such repayment, the convertible loan notes are repayable at the written demand of the majority of noteholders (being holders of 66.67% of the principal amount outstanding) on an Event of Default - i.e. if the Company becomes insolvent.
|In certain circumstances the convertible loan notes may be repaid, rather than converted into Shares.
|-
|Tax relief being offered
|N/A.
|Tax relief is not being offered in respect of tranche 1 of the convertible loan notes offered in this Crowdcube round.
|}

==Actions==

To invest in Freetrade, click [mailto:hello@freetrade.io here].

To contact Freetrade, click [mailto:hello@freetrade.io here].

== References and notes ==
[[Category:Thesis]]
[[Category:Equities]]

__INDEX__
<references />