Flotation will raise £7 million
Scots fintech firm Beeks Financial in £24.5m IPO
Gordon McArthur: growing niche market
Beeks Financial Cloud Group, a Renfrewshire-based fintech company, is to raise £7 million in a flotation on the London Stock Exchange.
The company announced that shares priced at 50p will trade on the Alternative Investment Market valuing the company at £24.5 million.
Admission is expected on or around 27 November. Cenkos Securities is acting as nominated adviser and broker.
The Beeks platform uses a cloud computing model, which enables clients to access and manage the trading services they need via the internet on month to month commitments. Clients use an ‘‘on demand’’ or ‘‘pay for what you use’’ model.
Beeks’ clients include 165 financial institutions and over 6,000 direct/indirect Virtual Private Server clients worldwide. More than 30 forex brokers use the Beeks platform for use by their own clients.
The company has achieved strong revenue growth since 2014 and it has generated a profit in each financial year since trading commenced. It has a highly scalable business model and a high level of recurring revenue.
Established in New Jersey in 2011, Beeks has grown from having a single site to having a presence in nine international data centres and is now headquartered in Linwood near Paisley.
It has a team of 30 employees and contractors who are engaged across the UK, US, Austria, Indonesia and Japan.
For the year to 30 June 2017, the group recorded revenue of £4 million (2016: £2.7m), a 48.2% growth primarily driven by institutional client wins and additional selling to existing clients
Gordon McArthur, CEO, commented: “Beeks has established itself as a leading technology provider in automated trading in Forex and Futures financial products – a growing niche market.
“By accessing our cloud-based platform, which has direct connections to major trading centres around the world, our customers are able to trade quickly and at a fraction of the cost of building their own capability.
“We have proven our ability to grow the business organically and through acquisitions, which has all been self-funded to date.
“We believe there is a clear opportunity to accelerate this growth with additional funding and see the capital markets as an obvious choice, given the nature of our business. I am excited about the prospects that lie ahead.”