Glasgow cloud computing firm Beeks bullish over sales outlook after annual profit jump

Glasgow-based fintech Beeks Financial Cloud Group is expecting revenues for its present financial year to beat current market expectations, as it also cheered a leap in sales and profit for the previous 12-month period.

The cloud computing and connectivity provider for financial markets has in a trading update cheered an unprecedented start to its current financial year, achieving record sales in excess of $5 million (£3.6m) of total contract value in the three months to September, including its largest contract to date.

That came as Beeks also revealed its full-year results to June 30 2021, with revenues increasing to £11.62m, representing a 24 per cent year-on-year jump.

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Earnings before interest, taxes, depreciation and amortisation (Ebitda) – a measure of underlying profitability – was up by the same percentage to £4.14m, while underlying pre-tax profit grew 13 per cent to £1.61m with underlying diluted earnings per share increasing to 2.99p from 2.45p.

'The prospects for Beeks have never been more promising,' says CEO Gordon McArthur. Picture: Layton Thompson.

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The firm cheered continued strong growth in its tier one customer base, and the launch of two products, namely Proximity Cloud, and Analytics as a Service.

Beeks also highlighted its headcount growing by 15 to reach 80 at June 30, as well as the expansion of its data centre geographies, with operations now in Canada and Australia, and the integration of Velocimetrics (acquired last year) into the business and rebranded as Beeks Analytics.

Looking ahead, the firm expects a “positive” market environment, “notwithstanding the ongoing impact of Covid-19, and [a] considerably increased sales pipeline”, while it is optimistic about securing more tier one customers in the year ahead.

Chief executive Gordon McArthur said: "The prospects for Beeks have never been more promising. The successes with our tier one clients means we are now recognised as an established technology provider to financial markets, with a track record and compelling reference clients, providing us with a strong foundation to drive our business forward.

Pipeline

"Having completed the first stages of our product investment, our focus for the year ahead will be on sales execution and delivery for our customers. Whilst we continue to assess the ongoing impact of Covid-19 on our business and operations, and the pipeline of opportunities will take time to convert, this pipeline is at a record level which combined with the expansion opportunities within our current customer base gives us confidence in another strong year of growth ahead."

In the separate trading update, the group said its annualised committed monthly recurring revenue has increased to £15m, from £13.8m on June 30 of this year, and it will recognise an additional £1.3m of revenue from non-recurring product-related bookings during the year from signings to date.

Additional revenue generated in the current financial year “will be reinvested in the further development of the Proximity Cloud offering, to capitalise on its growing sales pipeline and significant market opportunity”.

The firm, which debuted on the Alternative Investment Market in 2017, said: “The increasing size of deals being secured by Beeks underpins the board's confidence in the ability of the company to benefit from the growing demand for cloud computing and connectivity from financial services organisations.”

Mr McArthur said that to achieve a record first quarter “in what is typically our quietest period is testament to the strength and value of our enlarged offering”.

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