Beeks Financial Cloud (BKS) , a cloud computing and connectivity provider for financial markets, announced unaudited results for the 6 months to December 31, 2023.
Beeks reported 25% higher revenues to £12.96m, 15% higher gross profit to £4.99m and 28% higher underlying EBITDA to £4.61m. Underlying profit before tax jumped 113% to £1.38m, and underlying diluted EPS was up 42% to 1.77p. Cashflow from operations increased 27% to £4.69m.
Operationally, the company noted the growth of its Tier 1 customer base following significant new customer wins, including a 3rd global exchange for its Exchange Cloud offering post-period. Expansion also continued within existing customers, including a contract for Beeks' Proximity Cloud which doubled to £3.6m post-period.
Other notable wins included a £5m deal for Proximity Cloud, and preferred cloud computing and connectivity vendor status for "one of the world's largest banking groups". Beeks also began a collaboration with BlueVoyant, a leading cybersecurity provider.
BKS expressed confidence in achieving FY24 results in line with management expectations, and FY25 results "significantly ahead of prior Board expectations".
Net cash at period end was £5.44m, up from £4.41m at the end of H1.
View from Vox
Excellent results from Beeks Financial Cloud, showing another period of significant, double-digit growth. Total revenues and annualised monthly recurring revenues both rose by 25% as Beeks continued to grow its Tier 1 customer base as well as sales from its existing customer base. With significant product development, including the new Exchange Cloud service that has shown early success, material upside potential remains across the majority of Beeks' existing customers.
If the current growth trajectory continues, Beeks should easily meet FY24 guidance and exceed FY25 prior guidance. High visibility is underpinned by high levels of contracted, multi-year, recurring revenue, a unique proposition, and a growing Tier 1 customer base. The company's main focus in H2 will be on conversion of its existing pipeline, to drive further cash generation higher margins in the ever growing financial cloud services market.
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