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I think the main benefit of being a LSE member is direct trading access to the LSE, which I assume means that members can buy and sell securities listed on the exchange, ultimately leading to reduced brokerage fees and commission. Please confirm that reduced brokerage fees and commissions is the main benefit? If so, what's the fee difference relatively to not being a member?
I think the main benefit of being a LSE member is direct trading access to the LSE, which I assume means that members can buy and sell securities listed on the exchange, ultimately leading to reduced brokerage fees and commission. Please confirm that reduced brokerage fees and commissions is the main benefit? If so, what's the fee difference relatively to not being a member?
== Work-in-Progress ==
{| class="wikitable"
|+
!Year
!1
!2
!3
!4
!5
!6
|-
!Year end date
!30/09/2016
!30/09/2017
!30/09/2018
!30/09/2019
!30/09/2020
!30/09/2021
|-
!
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
|-
! colspan="7" |Revenue breakdown
|-
|Transaction revenue (£'000)
|
|
|
|
|1,323
|9,048
|-
|Recurring revenue (£'000)
|
|
|
|
|338
|3,274
|-
|Transaction revenue as a proportion of total revenue (%)
|
|
|
|
|80
|74
|-
|Recurring revenue as a proportion of total revenue (%)
|
|
|
|
|20
|26
|-
! colspan="7" |Operating loss
|-
| colspan="7" |'''Operating loss is stated after charging:'''
|-
|Depreciation of plant, property and equipment
|
|
|
|
|84
|116
|-
|Depreciation of right-of-use assets
|
|
|
|
|0
|215
|-
|Amortisation of intangible assets
|
|
|
|
|592
|1,143
|-
|Share-based payments
|
|
|
|
|2,022
|818
|-
! colspan="7" |Auditor's remuneration
|-
|For the audit of Freetrade Limited and the consolidated financial statements
|
|
|
|
|65
|81
|-
|Audit related assurance services
|
|
|
|
|138
|96
|-
|Non-audited related services
|
|
|
|
|0
|30
|-
|Total
|
|
|
|
|203
|207
|-
! colspan="7" |Employee costs
|-
| colspan="7" |'''Staff costs (including Directors) comprise:'''
|-
|Wages and salaries
|
|
|
|
|3,983
|8,769
|-
|Social security costs
|
|
|
|
|455
|1,044
|-
|Pension costs
|
|
|
|
|188
|355
|-
|Share-based payments
|
|
|
|
|2,022
|818
|-
|Total
|
|
|
|
|6,648
|10,986
|-
| colspan="7" |'''The number of permanent employees (excluding Directors) was:'''
|-
|As at 30 September
|
|
|
|
|80
|201
|-
|Monthly average for the financial year
|
|
|
|
|61
|118
|-
! colspan="7" |Taxation
|-
|Current tax:
|
|
|
|
|
|
|-
|Current period
|
|
|
|
|
|
|-
|Adjustments in respect of prior periods
|
|
|
|
|
|
|-
|Total current tax
|
|
|
|
|
|
|-
|Deferred tax:
|
|
|
|
|
|
|-
|Origination and reversal of temporary differences
|
|
|
|
|
|
|-
|Adjustment in respect of prior periods
|
|
|
|
|
|
|-
|Total deferred tax
|
|
|
|
|
|
|-
|Total income tax expense
|
|
|
|
|
|
|-
|Profit before tax
|
|
|
|
|
|
|-
|Current corporation tax of 19%
|
|
|
|
|
|
|-
|Prior year adjustment
|
|
|
|
|
|
|-
|Share-based payments
|
|
|
|
|
|
|-
|Non-deductible expenses
|
|
|
|
|
|
|-
|Difference in overseas tax rates
|
|
|
|
|
|
|-
|Deferred tax not recognised
|
|
|
|
|
|
|-
|R&D tax credit
|
|
|
|
|
|
|-
|Other
|
|
|
|
|
|
|-
|Total income tax credit
|
|
|
|
|
|
|-
| colspan="7" |'''Investments:'''
|-
|Investment in Freetrade Europa AB
|
|
|
|
|0
|544
|-
| colspan="7" |'''Property, plant and equipment'''
|-
| colspan="7" |'''Cost:'''
|-
|Computer equipment
|
|
|
|
|203
|432
|-
|Office equipment
|
|
|
|
|38
|127
|-
|Right-of-use assets
|
|
|
|
|0
|5,499
|-
|Total
|
|
|
|
|241
|6,058
|-
| colspan="7" |'''Accumulate depreciation:'''
|-
|Computer equipment
|
|
|
|
|121
|226
|-
|Office equipment
|
|
|
|
|26
|37
|-
|Right-of-use assets
|
|
|
|
|0
|215
|-
|Total
|
|
|
|
|147
|478
|-
| colspan="7" |'''Net book value:'''
|-
|Computer equipment
|
|
|
|
|82
|206
|-
|Office equipment
|
|
|
|
|12
|90
|-
|Right-of-use assets
|
|
|
|
|0
|5,284
|-
|Total
|
|
|
|
|94
|5,580
|-
! colspan="7" |Intangible assets
|-
|Cost
|
|
|
|
|
|
|-
|Accumulated amortisation
|
|
|
|
|
|
|-
|Net book value
|
|
|
|
|
|
|-
| colspan="7" |'''Trade and other receivables'''
|-
|Trade receivables
|
|
|
|
|127
|397
|-
|Less: provision for impairment of trade receivables
|
|
|
|
|(87)
|(309)
|-
|Prepayment and accrued income
|
|
|
|
|409
|5,476
|-
|Amounts due from subsdiary undertakings.
|
|
|
|
|0
|300
|-
|Other receivables
|
|
|
|
|2,312
|3,017
|-
|Total
|
|
|
|
|2,761
|8,881
|-
|Current
|
|
|
|
|2,761
|8,150
|-
|Non-current
|
|
|
|
|0
|731
|-
| colspan="7" |'''Trade and other payables'''
|-
|Trade payables
|
|
|
|
|421
|1,880
|-
|Accruals
|
|
|
|
|965
|2,960
|-
|Deferred revenue
|
|
|
|
|0
|183
|-
|Other taxation and social security
|
|
|
|
|0
|99
|-
|Other payables
|
|
|
|
|75
|109
|-
|Total
|
|
|
|
|1,461
|5,231
|-
| colspan="7" |'''Key management personnel'''
|-
|Salary, benefits and bonus
|
|
|
|
|447
|377
|-
|Defined contribution pension cost
|
|
|
|
|24
|16
|-
|Share-based payments
|
|
|
|
|1,585
|411
|-
|Total
|
|
|
|
|2,056
|804
|-
| colspan="7" |'''Directors' emoluments for the year included in staff costs are as follows:'''
|-
|Salary, benefits and bonus
|
|
|
|
|297
|356
|-
|Defined contribution pension cost
|
|
|
|
|16
|16
|-
|Share-based payments
|
|
|
|
|960
|610
|-
|Total
|
|
|
|
|1,273
|982
|-
| colspan="7" |'''In respect of the highest paid Director'''
|-
|Salary, benefits and bonus
|
|
|
|
|130
|151
|-
|Defined contribution pension cost
|
|
|
|
|7
|7
|-
|Share-based payments
|
|
|
|
|756
|411
|-
|Total
|
|
|
|
|893
|569
|-
| colspan="7" |'''Other related parties'''
|-
|Blacher Limited
|
|
|
|
|19
|36
|-
! colspan="7" |Equity
|-
|A Ordinary
|
|
|
|
|23,055,383
|21,527,583
|-
|B Investment
|
|
|
|
|25,267,169
|27,021,193
|-
|Series A
|
|
|
|
|6,276,124
|6,276,124
|-
|Series B
|
|
|
|
|0
|9,281,111
|-
|Total
|
|
|
|
|54,598,676
|64,106,011
|}


== References and notes ==
== References and notes ==

Revision as of 13:33, 20 June 2023

'Freetrade' word trademark

Freetrade was unsuccessful in its 'Freetrade' word application in the EU.[1] Does this mean that Freetrade has to pay the trademark holder a fee to use the 'Freetrade' word in the EU? If so, is there an agreement in place, and if yes, what's the estimated cost per year of the agreement for Freetrade?

Series B funding amount

In March 2021, the company said that it raised £50 million in an oversubscribed Series B.[2]

The company annual report financial statements shows that in the year ended 30th September 2021, the total amount raised in the period is £35 million, a difference of £15 million from the £50 million. Is the main reason for the difference becasue the raised amount is based on certain milestones being achieved? If so, what's the milestones? If not, what's the reason?

Groupship Consulting Limited

In 2017, the company wrote, "[t]he Company...has a consultancy agreement with Groupship in relation to book keeping, accounting and general administration. Adam Dodds, a director of the Company, is also a director of Groupship. The fee under the current agreement is for £6,000 per quarter."[3]

£6k per quarter seems materially above the market rate. How was the rate determined, why was the agreement made and why was the agreement subsequently terminated?

Freetrade's proprietary brokerage system

The Crowdcube Freetrade campaign page details that Tim is the original architect of the company's proprietary brokerage system, the Freetrade Cloud Platform.

It's reasonable to assume that the CTO of the company when the brokerage system was first released is the original architect of the system.

Is there any evidence to confirm the actual architect?

London Stock Exchange member

Freetrade details that it's a member of the London Stock Exchange.

I think the main benefit of being a LSE member is direct trading access to the LSE, which I assume means that members can buy and sell securities listed on the exchange, ultimately leading to reduced brokerage fees and commission. Please confirm that reduced brokerage fees and commissions is the main benefit? If so, what's the fee difference relatively to not being a member?

References and notes

  1. ↑ https://www.trademarkelite.com/europe/trademark/trademark-detail/014989172/FREETRADE
  2. ↑ https://www.altfi.com/article/7731_freetrade-eyes-50m-raise
  3. ↑ https://www.crowdcube.com/companies/freetrade/pitches/ZpDyPZ/download/lm2zkZ
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