Glasgow-based fintech Beeks eyeing further deals after revenue jump

Glasgow-based fintech Beeks Financial Cloud says it is mulling further acquisitions after seeing a double-digit jump in first-half revenues.

CEO Gordon McArthur (pictured on the day of the firm's stock market float in 2017) hails the firm's current 'positive' trading. Picture: Layton Thompson.

The business, a cloud computing and connectivity provider for financial markets, has reported a 24 per cent year-on-year jump in revenues to £5.29 million, with 91 per cent recurring, in the six months to December 31.

Underlying core earnings were up by 11 per cent to £1.72m, while underlying pre-tax profit fell 8 per cent to £550,000 following increased investment into the business.

The firm, which made its debut on junior market Aim in 2017, flagged increased investment into “people, operations and product offering in the period, to capitalise on the growing financial service private cloud opportunity”.

It also highlighted the launch of Beeks Analytics, a cloud-based software as a service analytics offering following its acquisition of Velocimetrics, the UK-based monitoring and trade analytics software company, in April 2020.

Beeks also pointed out its “solid” sales pipeline, with an increase in new business sales in recent months, and said trading for the current financial year is “positive and remains in line with the range of market expectations”.

In a separate release, it said it now has nine Tier 1 customers at various stages of contractual relationships, “providing a growing recurring revenue base for future years and expansion opportunities”.

As for potential deals, the business commented: “While our focus is on organic growth, we will continue to assess further strategic acquisition opportunities, both 'bolt-on' and/or more transformational in nature, that will accelerate growth and complement our business model.”

Chief executive Gordon McArthur said: "Current trading is positive and we have entered the second half of the year with a solid pipeline of opportunities, supported by a significantly expanded business, increased customer base, broadened product offering and continued growth of our existing Tier 1 accounts.

"We have seen increased demand for our offering during the second half of the year to date, giving us confidence in our ability to service a wide range of financial services organisations across different geographies. Whilst we continue to assess the ongoing impact of Covid-19 on our business and operations, we are confident that Beeks is poised for considerable growth within a rapidly developing market."

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