Beeks shares up 70% YTD as revenue, contracts cheer

Beeks Financial Cloud Group plc, the Glasgow-based cloud computing and connectivity provider for financial markets, said it has achieved “preferred cloud computing and connectivity vendor status for one of the world’s largest banking groups” in a competitive pitch process.

“The onboarding process is underway and revenue from the win, which has the ability for further expansion, is expected to commence in H1 FY25, with an aggregate value of approximately £5 million over five years, supporting recently upgraded board expectations,” said Beeks.

Beeks also reported strong 2023 results. Its share price rose as much as 2% on Tuesday to around £1.75 — and the company’s stock is up about 70% in 2024, lifting its stock market value to about £115 million.

Beeks CEO Gordon McArthur said of the preferred vendor news: “We continue to experience strong momentum across our offerings, typified by this latest Proximity Cloud win with a significant new customer, one of the world’s largest banking groups.

“We remain focused on the continued execution of our land and expand strategy, and we are well-placed to benefit as the global financial markets continues its transition to the cloud.”

The news came as Beeks reported a 25% rise in its 2023 revenues to £12.96 million and a jump of 113% in underlying profit before tax to £1.38 million.

In its outlook, Beeks said: “Exchange Cloud is a transformational opportunity, with significant early successes to date …

“Confident in achieving results for FY24 in line with board expectations …

As previously announced, FY25 trading anticipated to be significantly ahead of prior board expectations …

“Confidence underpinned by high levels of contracted, multi-year, recurring revenue, a unique proposition, and growing Tier 1 customer base.”

On the company’s results, CEO McArthur said: “The consistent growth we continue to demonstrate, combined with our confident outlook for this and next year, underline the size of the opportunity we are addressing.

“Financial markets are still only at the start of the journey to the cloud.

“With our proven offering and growing tier 1 customer base, which includes some of the largest financial organisations in the world, as well as our increasing profit margins and cash generation, we have never been better placed to seize the opportunity.

“Our focus for the second half remains the conversion of our significant pipeline.”