Renfrewshire fintech Beeks’ profits rise by 44 per cent
Beeks Financial Cloud Group, which provides data processing and connectivity services to the financial markets, also saw a 35% rise in its six-month results to 31 December 2022 to £10.4m, up from £7.72m.
It pointed to a “significant runway of visible revenue” ahead in the update.
It told the City that underlying pre-tax profit reached £650,000, up from £450,000 for the same period a year earlier, with underlying earnings per share of 1.35p, up from 0.9p in the first half of the last financial year.
The statutory equivalents showed a loss of £760,000, up from £270,000 last year, with EPS of 73p against 42p.
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The firm pointed to more contracts and more jobs during the period, and a number of new projects on the way forward.
It said it is in final contract negotiations with two more customers, with a “record pipeline” of new opportunities for its Exchange Cloud product.
It is also in talks with a number of major financial exchanges around the world where it hopes to be able to offer its solutions.
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The Renfrewshire-based firm has increased its headcount to 106, up from 89 last June, to “support both the product roadmap and pipeline execution”. The company said results for the year should be in line with market expectations.
The company added: “While we are not immune to well-documented macroeconomic issues such as inflationary pressures and supply chain disruptions, we continue to manage the situation well.”
Gordon McArthur, chief executive of Beeks, said the pipeline offered “significant opportunities”.
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“Our main focus for the second half of the year will be to convert our significant pipeline of capabilities across the recently launched Exchange Cloud offering,” he said.
“Although the macro environment presents challenges for all businesses, we believe that the transition from the financial sector to the cloud will continue in tandem.
“Our pipeline of business with both existing and potential new customers provides us with a significant runway of visible revenue, and our balance sheet strength has enabled us to continue to make significant investments in product, people and warehouse capacity to leverage this pipeline and significant market . possibility.”
Mr McArthur also said: “Since our IPO [initial public offering] in 2018 we have been focused on expanding our offering to meet the needs of the world’s largest financial services organisations, and investing in our product set and team.”
Shares in Beeks Financial Cloud closed down 0.5p, or 0.35%, at 142p.
