Beeks gets green light on new contract
Beeks has received regulatory approval for Exchange Cloud at ‘one of the largest exchange groups globally’. The contract was first announced on 6 February. Now with regulatory approval, the contract moves to delivery and revenue recognition. This is the third Exchange to sign for Beeks, and today Beeks confirms that the Exchange Cloud pipeline ‘continues to build, with advanced discussions taking place with other major Exchanges across the globe’. CEO Gordon McArthur comments that Beeks is ‘well-placed to satisfy the strong demand for our solutions’. The contract trails a banner FY24E where revenue soared 27% Y/Y. Shares have performed very well – +123% YTD vs sector +8.4% – making Beeks the top performing share YTD in UK tech. But we believe this only reflects the current momentum, while the FY1 valuation (EV/EBITDA 9.7x vs UK at 18x) does little to reflect the proven execution on global TAM. We see Beeks as a long-term secular growth opportunity.