Scotland-based cloud computing and financial markets connectivity provider Beeks Financial Cloud Group plc (LON:AIM) has issued a Transaction Update for the financial year ending 30 June 2024 (FY24).
FY24 results are expected to be in line with consensus expectations, with Beeks posting significant double-digit year-over-year growth driven by strong performance in Beeks’ Private, Proximity and Exchange Cloud offerings.
Beeks exited FY24 with around 18% growth in ACMRR in the year to £28.0m (30 June 2023: £23.8m). Revenue for FY24 is expected to be approximately 27% higher than FY23, delivering underlying EBITDA growth of over 27% and underlying earnings before tax growth of approximately 67% over FY23.
Significant wins secured in 2H24, including (as announced in March) the extension of the Johannesburg Stock Exchange (JSE) Cloud swap contract and the Proximity Cloud win with one of the world’s largest banking groups, helped boost levels of Beeks multi-contracts. -year, recurring revenue, providing a strong foundation for accelerated growth.
In the second half of the year, Beeks said it continued to achieve a positive free cash flow position in line with management’s previously stated strategy, with unaudited net cash of £6.58m at the end of the period (1H24: net cash on hand £5.44m 23: net cash £4.41m, despite continued investment in Beeks’ product offering.
As announced on February 6, 2024, Beeks has conditionally secured a third Exchange Cloud contract with one of the world’s largest exchanges (the “Exchange”). Completion of the contract with the Exchange is subject to regulatory approval, after which service development and revenue recognition will commence. Advanced progress has been made in this approval process, in line with expectations, and Beeks looks forward to informing shareholders of the outcome soon.
The Exchange Cloud pipeline continues to grow, with advanced discussions taking place with other major exchanges around the world. Having signed a 24-year contract extension to meet higher than expected customer demand for the solution, JSE provides strong references to other potential Exchange Cloud customers.
Converting Beeks’ record pipeline on each of its deals remains a key focus for FY25 and the new financial year has started with promise, including contracts already signed in FY24 for delivery and revenue in FY25.
The above indicative financial results are subject to verification. The Company expects to publish audited results for the 24th year in early October 2024.
Gordon McArthur, CEO of Beeks, commented:
“We are delighted to deliver another set of record financial results and another year of significant growth. The increased traction of our products is a testament to Beeks’ growing reputation in the financial markets as the technology provider of choice. We are confident in our ability to continue to meet strong demand for our solutions and remain focused on transforming our substantial pipeline.”
About Beeks Financial Cloud
The Beeks Group is a leading cloud management provider exclusively in this rapidly growing sector. Our Infrastructure-as-a-Service model is optimized for low-latency private cloud computing, connectivity and analytics, providing the flexibility to deploy and connect to exchanges, trading venues and public cloud for a true hybrid cloud experience. ISO 27001 certified, we provide world-class security aligned with global security requirements.
Founded in 2011, Beeks Group is listed on the London Stock Exchange (LON:BKS) and has continued to grow every year. The Beeks Group now employs over 100 team members worldwide, with the majority based at its head office in Renfrew, Scotland.