Beeks Financial Cloud, the Scottish cloud computing provider for financial markets, has announced its first step into crypto platforms after posting a 37% rise in half-year underlying profit before tax.

This morning it announced  a “significant” contract with Kraken, one of the longest-standing, most liquid and secure cryptocurrency exchanges, based in San Francisco.

A post-period win with Grupo Bolsa Mexicana de Valores, the second-largest exchange in Latin America, was recently announced.

The Glasgow-based firm said a number of deals in the reporting period included a multi-year contract with one of the largest exchanges globally.

Expansion with existing customers, including a further deal with the Johannesburg Stock Exchange, also contributed to the underlying PTP surge to £1.89 million to the end of December, from £1.38m in the corresponding period.

Conversations are taking place with several of the world’s leading exchanges, among other opportunities.

The company said AI-based analytics offering market intelligence will be launching in the next financial year.

Statutory profit before tax was up 188% to £0.46m (H1 2024: £0.16m) on a 22% rise in revenue to £15.79m (£12.96m).

The outlook for FY25 remains positive and within the range of market expectations.

Gordon McArthur, CEO, said: “We have once again successfully delivered double-digit growth and increasing profit margins as we grow and scale with some of the largest financial organisations globally.

“Our unique proposition has the potential to transform the future of cloud technology in capital markets.

“The regular flow of new contracts and the conversations currently taking place with Tier 1 organisations around the world reflects the value of our offering and provides us with confidence in continued strong uptake throughout H2 and beyond.”

Canaccord Genuity analysts noted a 22% rise in revenue while there was a more modest 7% uplift in recurring revenue, reflecting some churn among Beeks’ heritage retail brokerage as well as one larger Proximity Cloud customer.

In a briefing after the results, Mr McArthur said this issue with ‘legacy’ business would work itself out over 18 months.

On the development of the AI analytics product he said it was probably six months from release but would offer the markets a greater capability for detecting anomalies in trading.