Profits grow

Beeks surges as bank contract underpins growth

Gordon McArthur
Gordon McArthur: strong momentum

Financial markets company Beeks said revenues and profits rose strongly in the first half as it announced a further contract win.

Income at the Renfrewshire-based business was up 25% to £12.96m (H1 2023: £10.40m), with underlying profit before tax up 113% to £1.38m (H1 2023: £0.65m).

The board said was confident in achieving results for FY24 in line with its expectations, underpinned by high levels of contracted, multi-year, recurring revenue, a unique proposition, and growing Tier 1 customer base.

Beeks 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.

Its shares closed 2p higher at 175p after a strong run. The company’s stock is up about 70% in 2024.

Gordon McArthur, CEO at Beeks, commented: “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 are well-placed to benefit as the global financial market continues its transition to the cloud.”

Speaking afterwards, he said the client was a British bank and revealed that the contract had been concluded after four years of talks.

Commenting on the results, he 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.”

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