Research on Beeks Financial Cloud Group Plc (BKS:LON) from Progressive Equity Research
Beeks’ trading update (for the six months to 31 December) is a comforting balm: H1 trading is ‘in line’ and Beeks reiterates FY26 guidance. This follows a busy period of contract wins, uptake at seven stock exchanges globally and a ‘record strength’ pipeline. CEO Gordon McArthur states that Beeks has ‘record levels of revenue visibility’, and the H2 focus is on ‘executing against a strong pipeline’. In H1, ACMRR swelled to £32.8m, and the growth cadence is increasing; +5% Y/Y for FY25, +15% Y/Y now. In these troubled times for the tech sector, Beeks is a long-term secular growth investment play, with a ‘best of breed’ financial model, strengthening moat and executing on a global TAM. In our view, this is not reflected in the pedestrian 9.6x FY26E EV/EBITDA valuation (UK tech 13x).