Research on Beeks Financial Cloud Group Plc (BKS:LON) from Progressive Equity Research
Interim results are in line with guidance, and Beeks reiterates FY guidance. H1 FY26 features continued growth, with Annualised Committed Monthly Recurring Revenue rising by 15% Y/Y to £32.80m. The growth cadence is increasing: +5% Y/Y for FY25, +15% Y/Y now. H1 FY26 also reflects the effect of the new Exchange Cloud revenue-share model and timing of the Proximity Cloud wins, which shunts rev/rec into H2 FY26 and reduces H1 revenue to £14.65m (vs £15.79m last year). That leads to lower Underlying EBITDA, -28% Y/Y to £4.12m. Gross cash was £7m vs £7.4m as at 30 June 2025. CEO Gordon McArthur states that Beeks enters H2 ‘with strong momentum and a customer base comprising some of the world’s largest financial institutions, each with significant expansion opportunity.’ Beeks remains a long-term secular growth investment play, ‘best of breed’ financial model, with a strengthening moat and executing on a global TAM, not reflected in the pedestrian 8.3x FY26E EV/EBITDA.