Deal with major UK bank among £3m of contract wins for Glasgow's Beeks Financial Cloud

Fintech Beeks Financial Cloud Group has sealed contract wins worth more than £3 million including a “significant” deal, via a partner, with one of the UK’s largest banks.

Beeks ­Financial Cloud Group chief executive Gordon McArthur. Picture: Layton Thompson

The Glasgow-based cloud computing and connectivity provider for financial markets said the new business came on the back of “good contract momentum”. The firm announced its second Exchange Cloud customer, the Johannesburg Stock Exchange, in June, providing increasing levels of revenue visibility for the current financial year “and beyond”.

Bosses said the company, which did not disclose the name of the major UK bank, had a strong and growing pipeline across its various offerings. The two Exchange Cloud contracts signed to date have the ability for “considerable expansion”, they noted, and there is a pipeline of additional such opportunities which have the “potential to be transformational” for the stock market-listed business.

Chief executive Gordon McArthur said: “The global financial services industry continues to move to cloud computing, presenting us with a considerable opportunity. With a growing number of the world’s largest financial institutions as customers, recognition of the value of our cloud offerings is increasing and we remain focused on the conversion of our sales pipeline.”

Last October, Beeks reported revenues of almost £18.3 million for the year to the end of June, up 57 per cent on the year before. Underlying earnings increased 52 per cent, year on year, to some £6.3m while underlying profit before tax was up 28 per cent to just over £2m. Highlights during the year included increasing the group’s headcount to 89 and a further expansion of data centre geographies, with additional operations now in Switzerland and the Netherlands.

This February’s interim results showed further progress with revenues up by 35 per cent to £10.4m in the six months to the end of December 2022. McArthur told investors at the time: “While the macro environment presents challenges to all businesses, we believe the shift of the financial services sector to cloud computing will continue at pace. Our pipeline of business with both existing and potential new customers provides us with a considerable runway of visible revenue and our balance sheet strength has enabled us to continue to make substantial investment into product, people and stock capacity to capitalise on this pipeline and considerable market opportunity.”