Beeks Financial Cloud Group PLC – BKS – Interim Results

Beeks Financial Cloud Group PLC – BKS – Interim Results

8 March 2021 - Beeks Financial Cloud Group plc (AIM: BKS), a cloud computing and connectivity provider for financial markets, is pleased to announce its unaudited results for the six months ended 31 December 2020.


Financial Highlights

·      Revenues increased by 24% to £5.29m (H1 2020: £4.28m), of which 91% recurring

·      Annualised Committed Monthly Recurring Revenue (ACMRR) up 18% to £12.00m (H1 2020: £10.20m)

·      Underlying gross profit up 18% to £2.59m (H1 2020: £2.19m)

·      Underlying EBITDA* increased by 11% to £1.72m (H1 2020: £1.55m)

·      Underlying profit before tax** down 8% to £0.55m (H1 2020: £0.60m) following increased investment into the business

·      Underlying basic EPS** 0.94 pence (H1 2020: 1.01 pence)

·      Period end net debt of £2.05m (H1 2020: Net cash £0.72m) comfortable at 0.6 times annualised EBITDA***

·      Proposed interim dividend of 0.20p (H1 2020: 0.20p)


Operational Highlights

·    Increased investment into people, operations and product offering in the period, to capitalise on the growing financial service private cloud opportunity

·    Continued progress on Land & Expand strategy, with nine Tier 1 customers at various states of deployment (H1 2020: five)

·    Some continued Covid-19 accessibility restrictions to datacentres, resulting in some delays to customer deployments 

·    Launch of Beeks Analytics, a cloud-based SaaS analytics offering following the acquisition of Velocimetrics, the UK-based monitoring and trade analytics software company, in April 2020

·    Continued progress with the Network Automation Project, as part of the Beeks Private Cloud, progressing well and due to be launched later in 2021.


Post Period end and Outlook

·      As separately announced today, expansion of two Tier 1 customers, a global financial markets technology provider now committed to $2.1m annualized revenue, with a significant proportion of this expected to be delivered by the end of Beeks Financial Year. The other, an open banking provider, has expanded its contract to 135% of original commitment

·      ACMRR as at 28 February 2021 increased to £12.8m

·      Solid sales pipeline, including further Tier 1 opportunities

·     Continuing to see an increase in the number of financial services organisations take advantage of the benefits of cloud infrastructure

·     Increase in new business sales in recent months, trading for the current financial year is positive and remains in line with the range of market expectations

·     Revenue and margins expected to benefit in H2 FY2021 and beyond from growth in both existing and new customers


Statutory Equivalents

The above highlights are based on underlying results. Reconciliations between underlying and statutory results are contained within the financial information. The statutory equivalents of the above results are as follows:

·      Profit before tax of £0.50m (H1 2020: £0.39m)

·      Basic earnings per share of 0.85p (H1 2020: 0.62p)

* Underlying EBITDA is defined as earnings before share based payment charges, amortisation, depreciation, finance costs and exceptional costs

** Underlying profit before tax and underlying EPS excludes share based payment charges, amortisation on acquired intangibles and exceptional costs

***Annualised EBITDA is the last 12 months of EBITDA for the period ended 31 December 2020



Gordon McArthur, CEO of Beeks Financial Cloud commented:


"Current trading is positive and we have entered the second half of the year with a solid pipeline of opportunities, supported by a significantly expanded business, increased customer base, broadened product offering and continued growth of our existing Tier 1 accounts. We have seen increased demand for our offering during the second half of the year to date, giving us confidence in our ability to service a wide range of financial services organisations across different geographies. Whilst we continue to assess the ongoing impact of Covid-19 on our business and operations, we are confident that Beeks is poised for considerable growth within a rapidly developing market."

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