Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Freetrade
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
=== Operating expenses === Freetrade, 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 brokerage market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, 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? | 5 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 five years (i.e. 68% of all sales happen within five 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. |}
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)