Beeks Financial Cloud Group (AIM: BKS), the cloud and connectivity provider for financial markets, reported record revenue of £40.0m for the year to the 30th of June, up 11% from £35.9m. Underlying EBITDA, which excludes a £2.5m share-based payment charge, rose 18% to £16.1m. Underlying profit before tax rose 15% to £6.3m.
The shares closed Friday at 175p, down 2.78% from 180p on Thursday and 22.2% below the 225p closing high of the 15th of September.
The update says Beeks secured about $4m of Exchange Cloud contract extensions in the first quarter of its new financial year, additional to the previously announced Stock Exchange of Thailand win. Beeks now has eight Exchange Cloud customers. Chief executive Gordon McArthur said:
We have made a strong start to FY27, in what is typically our quietest quarter, with around $4m of Exchange Cloud® extensions…
Gordon McArthur, chief executive
For the year to June 2027 the board expects revenue of £43m to £48m, growth of 7.5% to 20%, with an underlying EBITDA margin of 38% to 42%, against 40.3% in FY26. It is taking a prudent view of new customer wins.
The catch is cash. Net cash fell to £0.6m from £7.0m, even though operating cash flow before working capital rose 26% to £17.8m. Beeks paid upfront for hardware on contracts deployed in the final quarter and bills customers over three to five years. Contract assets rose to £17.7m from £11.6m. Of that, £4.5m is expected to be billed within 12 months and £13.2m after.
Borrowings are £4.7m, and Beeks has agreed an undrawn £5m revolving credit facility with Barclays, running to October 2028. The company says it is prioritising deals with upfront or milestone payments and expects net cash to rebuild.
Growth leaned on analytics, where Market Edge Intelligence, its AI-powered offering, lifted revenue to £4.4m from £0.6m. Proximity and Exchange Cloud revenue slipped to £9.3m from £10.3m, which the company puts down to go-live timing, with most new contracts live only in May and June. A £0.5m impairment followed a Proximity Cloud customer dispute.
Two launches are planned for the third quarter of FY27: Beeks Global Network, and AI infrastructure with OmniPhi, in which Beeks has made a strategic minority investment. How fast the £17.7m converts to cash is the test.