FreeFlow records annual revenues of €20.2 million
FreeFlow, the business-to business auction site run by Alan Scroope, the former Ernst & Young Emerging Entrepreneur of the Year, is recording annual revenues of €20.2 million.
New accounts for the company reveal that turnover grew from €19.4 million to €20.2 million in the year ending May 31, 2009.
FreeFlow saw its cost of sales rise from €17.6 million to €18.1 million in the same period, but it managed to cut its administrative expenses from €2.2 million to €1.7 million.
After posting a loss in the previous year, the company returned to profitability last year, with a €408,319 net profit. The firm now has €2.2 million in accumulated profits.
FreeFlow allows large technology companies to sell excess inventory. Its clients include some of the best known names in the industry, including Apple, Creative, Logitech 3Com and Microsoft. A breakdown of sales revealed that most of the company’s business comes from international clients. €2.3 million in revenues came from Ireland last year, with €821,000 from Europe and the balance of €17 million accounted for by the rest of the world.
FreeFlow reported that debtors declined from €663,000 to €635,000 during the year, while creditors rose from €1.4 million to €2 million in the same period. Its cash position, meanwhile, improved from €1 million to €2.6 million.
The company now has 11 employees and a wage bill of €525,000.
FreeFlow was founded by Scroope in 2001.He previously worked for 3Com and had noticed the problems that hardware firms experienced in managing their inventories, since demand could not be predicted with precise accuracy.
The company operates its own auction site FreeFlowAuctions.com, in addition to running a number of branded auction sites for larger clients.
