Beeks Financial Cloud's Shares Jump 40% on New Deals, Upgraded Forecasts

<p>The shares of
Scotland-based cloud computing provider for financial markets Beeks Financial
Cloud Group PLC (LSE: <a href="https://www.financemagnates.com/tag/beeks-financial-cloud/" target="_blank" rel="follow">BKS</a>), surged 40% on Tuesday after the company made several
key announcements regarding new customer wins and upgraded financial forecasts.</p><p>Beeks Financial Cloud
Announces Major Contract </p><p>The company has signed a multi-million dollar, multi-year expansion
agreement to provide additional infrastructure through its Proximity Cloud
offering to an existing Tier 1 investment manager customer. This new contract
more than doubles the value of Beeks' initial engagement with the customer to
$3.6 million over four years. Beeks noted significant additional growth
potential with this customer, as currently only 30% of their trading
infrastructure has migrated to Proximity <a href="https://www.financemagnates.com/terms/c/cloud/">Cloud</a>.</p><p>Beeks also
announced a conditional contract with one of the world's largest exchange
groups to deliver its Exchange Cloud solution, pending regulatory approval.
Exchange Cloud provides a cloud-based trading environment optimized for global
exchanges. This marks Beeks' third major international <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> customer for
Exchange Cloud.</p><p>The CEO of Beeks, Gordon McArthur, highlighted the company's "land and expand" strategy
with customers and the considerable further growth potential as the financial
markets continue adopting cloud solutions.</p><p>Higher Financial Forecasts</p><p>On the back
of robust H1 FY2024 results and new contract momentum, Beeks now expects FY2025
performance to exceed previous forecasts significantly. The company delivered
over 25% year-over-year revenue growth in H1 FY2024 along with improved
margins. Beeks also generated positive free cash flow in the half, ending
December 2023, with £5.5 million in net cash.</p><p>“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," added the CEO of Beeks. “Our
growing contract momentum demonstrates the considerable appetite we see across
the financial markets.”</p><p>With
contract momentum accelerating, McArthur said that Beeks now anticipates FY2025 will
substantially surpass expectations.</p><p>Beeks Shares Surge Higher</p><p>Investors
very positively received the information provided by the company, and its
shares opened much higher on Tuesday, rising 40% to 155 pence. This is the
highest value for BKS shares since the end of 2022. The move retraces a
significant portion of the downtrend observed over the past two years.</p><p>The
reaction from shareholders should not come as a surprise, as the report shows
that after the annual financial results for the year ending on 30 June 2023,
Beeks expects a clearer rebound. Although the last reported period has shown <a href="https://www.financemagnates.com/institutional-forex/beeks-revenue-soars-to-238-million-but-where-did-the-profit-go/" target="_blank" rel="follow">a jump of 22% in revenue</a>, there was no room for profits. The operating <a href="https://www.financemagnates.com/institutional-forex/beeks-financial-forecasts-238-million-revenue-in-fy23-secures-jse-deal/" target="_blank" rel="follow">loss amounted
to £331,000</a>.</p>

This article was written by Damian Chmiel at www.financemagnates.com.