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Shares surge as Beeks contracts boost prospects

Gordon McArthur
Gordon McArthur: continuing to progress

Shares in Beeks, the financial services connectivity group, surged by nearly a third after the Scottish firm announced that it has won two major contracts and expects its results for the next financial year to be ‘significantly ahead’ of previous forecasts. 

Investors piled in to the stock, driving the shares 31.9%, or 34.5p, higher to close at 142.5p.

Beeks said a $2.3 million Proximity Cloud expansion contract has been awarded for additional locations, more than doubling the initial contract’s value to $3.6 million.

Renfrewshire-based Beeks has also secured a conditional Exchange Cloud contract with one of the largest exchange groups globally, marking the start of an intended multi-year partnership, and the third major international exchange to sign up to the offering. 

It said trading in the first half to the end of December was in line with board expectations, with revenue growth of over 25% versus H1 FY23 and a positive free cash flow position in the period.

Gordon McArthur, CEO, said: “We continue to progress with the execution of our land and expand strategy, quickly demonstrating the value of our offerings, as evidenced by the significant Proximity Cloud expansion contract announced this morning and the winning of a third major global exchange customer for our Exchange Cloud offering.

“We see considerable expansion potential across our customers, as they migrate increasing proportions of their trading infrastructure to the cloud.

“The delivery of free cash flow was a key objective for the current year and we are pleased to have achieved that to plan, as we capitalise on the investments we have made into the expansion of our product offering.

“Our growing contract momentum demonstrates the considerable appetite we see across the financial markets, and we now anticipate FY25 will be significantly ahead of our previous expectations.”

John Moore, senior investment manager at RBC Brewin Dolphin, said: “Since it listed in 2017, Beeks has been on a journey to build a cash-flow positive, self-financed cloud computing and connectivity business focused on financial markets.

“Today’s announcement is a meaningful milestone in terms of the cash generation of the business and how this momentum and end-market growth potential are aligning to make for a highly attractive trading environment.

“Valued at around £100 million, Beeks remains in the micro-cap end of the UK stock market, but over time it could grow into a leading Scottish company.”

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