Beeks Financial Cloud (BKS) , a cloud computing and connectivity provider for financial markets, announced a partnership with Securities & Trading Technology (STT), a provider of trading, clearing, and surveillance technology.
The collaboration will see Beeks' financial cloud infrastructure augmented by STT's trading and clearing systems, yielding a combined service-based solution with improved efficiency, reliability, and scalability for trading and clearing.
"By combining Beeks' financial cloud infrastructure with STT's trading and clearing systems, clients will benefit from a comprehensive suite of services that will streamline operations, reduce costs, and enhance market competitiveness." Beeks said in a statement.
Gordon McArthur, CEO of Beeks, commented: "Our collaboration with STT marks an exciting chapter in our mission to innovate the financial services industry. By leveraging our combined expertise, we will provide clients with a streamlined, risk-mitigated solution that is poised to transform the way financial institutions operate."
Zack Hodgson, Chairman of STT, commented: "Joining forces with Beeks represents a pivotal moment in our journey to redefine the financial market landscape. Together, we are set to deliver a complete state-of-the-art exchange trading and clearing solution, enabling institutions of all sizes to excel in this dynamic environment."
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Beeks embarks on a partnership with STT, promising to enhance the full range of its exchange trading suite, including execution and risk management, surveillance, post-trade clearing, and settlement. The unified offering will be delivered as a fully managed service, freeing financial institutions from having to spend on infrastructure and operational overhead. Markets reacted well, pushing BKS shares 4% higher on Friday.
Today's announcement builds on excellent recent performance from Beeks as the cloud computing provider announced last month another half-year period of double-digit growth. Total revenues rose by 25% to £12.96m as BKS continued to grow its Tier 1 customer base. Gross profit rose by 15% to £4.99m and underlying EBITDA increased by 28% 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, and net cash at period end was £5.44m from £4.41m at the end of H1.
With significant product development, including the announced partnership with STT and Beeks' new Exchange Cloud service that has shown early success, material upside remains across the majority of Beeks' existing customers. If the current growth trajectory continues, BKS 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.
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