Today’s H1 trading update flags 22% revenue growth, 31% growth in underlying PBT, £6.6m net cash and ‘in line’ for FY25. This follows the latest exchange contract (18 February) with the second largest exchange in Latin America, Grupo Bolsa Mexicana de Valores (BMV). The update and customer momentum: (i) confirms trading in line with FY expectations, (ii) illustrates Beeks’ ability to sell globally, (iii) reinforces the ‘moat’ – BMV is the fourth Tier 1 Exchange client, and (iv) promises more.
Beeks states there are ‘advanced discussions taking place with other major exchanges across the globe’. Beeks CEO Gordon McArthur adds ‘we have never been more confident in our ability to capture the opportunity ahead’. We leave estimates unchanged into results on 17 March. Our view is unchanged: Beeks is gaining from secular tailwinds (cloud adoption, compliance, data sovereignty, cybersecurity, sustainability, analytics, payment modernisation, AI in risk management etc), which have enabled it to carve out a moat as market leader in cloud infrastructure for financial markets and payments. Investors buy Beeks for long-term secular growth.