Beeks Financial Cloud Group
plc
("Beeks" or the
"Company")
Proximity Cloud Contract Win,
Exchange Cloud Win and Trading Update
Continued land and expand
success, FY25 now expected to be significantly ahead of
expectations
06
February 2024 - Beeks Financial
Cloud Group plc (AIM: BKS), a cloud computing and connectivity
provider for financial markets, is pleased to announce the signing
of a multi-million-dollar, multi-year expansion contract for its
Proximity Cloud offering, a new win with its Exchange Cloud
Offering, and provide an update on a period of continued positive
trading momentum in the six months to 31 December 2023 (H1
FY24).
Having won a number of competitive
tenders in H1 FY24, the Company now expects trading in FY25 to be
significantly ahead of previous Board expectations for
FY25.
$2.3 million Proximity Cloud
expansion contract
Following the successful deployment
of an initial contract with a Tier 1 investment manager, signed in
November 2023 for Proximity Cloud, Beeks'
fully configured and pre-installed physical
trading environment, a new contract has been awarded for additional
locations. The latest win more than doubles the initial contract's
value to $3.6 million in aggregate over a four year
period.
The Company anticipates considerable
further expansion with the customer, with only approximately 30% of
the customer's trading infrastructure currently migrating to
Proximity Cloud, demonstrating the strong growth potential for the
offering.
Exchange Cloud win with one
of the largest exchange groups globally
The Company is also delighted to
announce the signing of a conditional contract with one of the
largest exchange groups globally (the "Exchange") for its
Exchange Cloud offering, a multi-home, fully
configured and pre-installed physical trading environment fully
optimised for global exchanges to offer cloud solutions to their
end users. The deal marks the initial phase of an intended
multi-year partnership between Beeks and the Exchange, and
completion of the contract is subject to regulatory approval,
following which deployment of services and recognition of revenue
will commence.
This is the third major
international exchange to sign up to the Exchange Cloud offering,
demonstrating the significant potential for the offering.
Beeks continues to see a building pipeline of opportunities across
its Exchange Cloud offering.
Trading Update: FY24 in line
and FY25 significantly ahead of expectations
Trading in H1 FY24 has been in line
with Board expectations, with revenue growth of over 25% versus H1
FY23, combined with improved margins.
In line with strategy, Beeks
has achieved a positive free cash flow position in the period, with
unaudited net cash increasing to £5.5m at 31 December 2023 (June
2023 net cash of £4.4m). The Board continues to be confident in
achieving results for FY24 in line with its
expectations.
Having won a number of competitive
tenders in recent months for projects commencing in the upcoming
reporting period and excluding any contribution from the
conditional Exchange Cloud contract, the Company now expects
trading in FY25 to be significantly ahead of previous Board
expectations.
The Company expects to release its
Interim Results for the six months ended 31 December 2023 in early
March 2024.
Gordon McArthur, CEO of Beeks Financial Cloud
commented:
"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."
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018.
For further
information please contact:
|
Beeks Financial Cloud Group plc
|
|
|
Gordon McArthur, CEO
|
via Alma
|
|
Fraser McDonald, CFO
|
|
|
|
|
|
Canaccord Genuity
|
+44 (0)20 7523 8000
|
|
Adam James / Alex Orr
|
|
|
|
|
|
Alma Strategic Communications
|
+44(0)20 3405 0205
|
|
Caroline Forde / Joe
Pederzolli
|
|
About Beeks:
Cloud computing is crucial to Capital
Markets and finance.
Beeks Group is a leading managed
cloud provider exclusively within this fast-moving sector. Our
Infrastructure-as-a-Service model is optimised for low-latency
private cloud compute, connectivity and analytics, providing the
flexibility to deploy and connect to exchanges, trading venues and
public cloud for a true hybrid cloud experience.
ISO 27001 certified, we provide
world-class security aligned to global security
requirements.
Founded in 2011, Beeks Group is
listed on the London Stock Exchange (LSE: BKS) and has enjoyed
continued growth each year. Beeks Group now employs over 100 team
members across the globe with the majority based at our Renfrew
HQ.
Find out more at
beeksgroup.com