Beeks ‘delivering on promises’ amid strong sales pipeline
Gordon McArthur: ‘We look to the future with confidence’
Beeks Financial Cloud Group, a cloud computing and connectivity provider for financial markets, said it has begun the new financial year in a strong position and enjoyed a good level of trading in the first two months.
The company, which floated in 2017 and has just relocated from Linwood to the nearby Hillington Industrial Park on the edge of Glasgow, reported a 27% rise in underlying EBITDA for the year to the end of June. Profit before tax was £1.04m (2018: £0.75m).
It said it was seeing a “considerably increased sales pipeline”.
Gordon McArthur, CEO of Beeks Financial Cloud, commented: “Following an excellent close to the year, during which Beeks signed three Tier 1 clients, we have entered the new financial year in a strong position and enjoyed a good level of trading in the first two months of the year.
“Our core business with mid-tier organisations continues to grow and we are now layering on more strategic engagements with larger organisations.
“Overall, the business is delivering on its early promise, using the enhanced profile and strengthened balance sheet resulting from the IPO in 2017 to capitalise on the growth in demand for Infrastructure as a Service offerings within financial markets.
“We are confident the quality of our service will see our client list continue to grow in the year ahead, and we look to the future with confidence.”
Speaking to Daily Business, he said the company was in discussion about expansion into Asia and the US and said the Brexit issue was not something that was testing any of the firm’s clients.
“We have not had one client from 250 who has expressed any intention of moving their business because of it,” he said.
He also said that he has had no difficulties hiring skilled staff and sees no evidence of a shortage of people.
- Revenues increased 32% to £7.35m (2018: £5.58m)
- Annualised Committed Monthly Recurring Revenue (ACMRR) up 32% to £9.1m (2018: £6.9m)
- Gross profit up 22% to £3.65m (2018: £2.98m)
- Gross profit margin 50% (2018: 53%)
- Underlying* EBITDA increased 27% to £2.48m (2018: £1.95m)
- Underlying* EBITDA margin 34% (2018: 35%)
· Underlying profit before tax** increased 11% to £1.32m (2018: £1.19m)
- Underlying EPS** 2.58p (2018: 2.27p)
- Net cash as at 30 June 2019 of £1.02m (30 June 2018: Net cash £2.09m)
- Proposed final dividend of 0.15p per share equating to full year dividend payment of 0.35p (2018: 0.30p)
- Signing of three Tier 1 clients representing a major step change for the Company with strong pipeline of further institutional contracts
- Number of institutional customers increased to 220 (2018: 192)
- Average entry level new institutional customer contract increased to £2,200/month (2018: £800/month)
- Expansion of second Equinix New York data centre, and generation of first revenues from our two newest data centres – London InterXion and Singapore
- Acquisition of Commercial Network Services (CNS), a US-based online service provider, for $1.4m
- Continued expansion of our new asset classes, including our Fixed Income and Cryptocurrency offerings, including new partnership with BeQuant Exchange, a leading cryptocurrency exchange based in London and Malta
- Further key developments to the Self-service portal, including the ability to provision dedicated servers, manage infrastructure inventory, and monitor Beeks’ global server capacity