FeedHenry posts 2013 loss despite revenue increase

FeedHenry, the Waterford-based mobile software company that was recently acquired in a multi-million euro deal, made a loss of more than €1m last year.

The company, which develops technology used in the creation of specialist mobile apps recorded a loss after tax of €1.39m in 2013, down from just under €1.5m the previous year.

The loss came about despite the company increasing its turnover by more than 100% to €4.29m in the year.

While FeedHenry’s cost of sales remained largely stable in the 12 months, a large interest payment eroded some of the revenue gains.

Total finance costs and interest payable totalled almost €350,000 — a large increase on the €76,000 paid in 2012. Administrative expenses also rose from €3.1m to just shy of €5m.

FeedHenry, founded by start-up entrepreneur Barry Downes, was bought for €63.5m by US multinational software firm Red Hat in September in a sign of the company’s success to date.

A number of key shareholders, including Kernel Capital, VMWare and Intel Capital, are set to benefit significantly from the buyout of the Waterford Institute of Technology spinout company which was established in 2010.

The mobile apps market, which is estimated to be worth up to €28bn by 2015, and in which FeedHenry specialises, is among the fastest growing sectors in software.

According to the firm’s latest accounts, staff costs rose to more than €3.45m in 2013 from €2.14m in 2012.

This total is based on 46 workers employed — a number that has now risen to approximately 70 people across its operations in the UK, US and the firm’s Waterford headquarters.