Beeks Financial Forecasts £23.8 Million Revenue in FY23, Secures JSE Deal

<p>Beeks
Financial Cloud Group plc (AIM: <a href="https://www.financemagnates.com/tag/beeks-financial-cloud/" target="_blank" rel="follow">BKS</a>), a cloud computing and connectivity
provider for financial markets, has released its trading update for the fiscal
year ending 30 June 2023. The company reported significant growth, particularly
in its Private Cloud and Exchange Cloud offerings, and has entered the new
fiscal year with strong momentum.</p><p>Beeks Forecasts £23.8m
Revenue in FY23</p><p>The company
closed the fiscal year with a growth of 20% in annualized contract monthly
recurring revenue (ACMRR), reaching £23.8 million, which is up from £19.3 million seen in the
previous year. As of 31 August, this figure has further increased to over £25
million. </p><p>According
to the company's representatives, Beeks Financial has closed a strong year,
particularly in its Private Cloud services. The company also signed a new
<a href="https://www.financemagnates.com/institutional-forex/beeks-announces-the-launch-of-exchange-cloud/" target="_blank" rel="follow">Exchange Cloud</a> contract with the Johannesburg Stock Exchange (JSE), the largest
<a href="https://www.financemagnates.com/terms/s/stock-exchange/">stock exchange</a> in Africa. This new contract adds to the company's growing
portfolio and is expected to contribute to future growth.</p><p>Beeks
Financial Cloud Group's revenue for FY23 is projected to be <a href="https://www.financemagnates.com/institutional-forex/beeks-sees-record-trading-performance-in-fy22-partners-with-ice/" target="_blank" rel="follow">over 20% higher
than that of FY22</a>. The company additionally expects to report an underlying EBITDA
growth of over 35% and an underlying profit before tax growth of around 10%
compared to FY22. In the latter half of FY23, Beeks achieved a positive free
cash flow, ending the period with an unaudited net cash of £4.41 million.</p><p>"FY23
was a year of double-digit growth and one in which we continued to expand the
pipeline across each of our offerings," Gordon McArthur, the CEO at Beeks,
commented. "With two Exchange Cloud contracts now secured following the
addition of the JSE in the year, and many more in discussion, we remain
confident in the opportunity ahead, as we capitalize on our unique <a href="https://www.financemagnates.com/terms/c/cloud/">cloud</a>
computing offering for the global financial services industry."</p><p>This robust
growth and the upcoming JSE Exchange Cloud deployment provide a clear outlook
for the company's performance in FY24. Beeks Financial Cloud Group plans to
release its audited results for FY23 in early October 2023. </p><p>Growing Costs and Deeper
Loss in H1</p><p>In
February, the firm disclosed its <a href="https://www.financemagnates.com/institutional-forex/beeks-groups-h1-losses-deepens-amid-growing-costs/" target="_blank" rel="follow">preliminary financial figures for the first
half of the fiscal year 2023</a>, revealing an annual increase of 35% in revenue, reaching
£10.4 million. Despite the revenue growth, the company's pre-tax losses
expanded to £0.76 million, which is up from last year's loss of £0.27 million. The firm,
which is publicly traded in London, closed the six-month period from July to
December 2022 with a negative basic earnings per share of 0.73 pence, which is a decline
from 0.42 pence the prior year.</p><p>The
company's losses deepened due to a surge of 29% in the cost of sales, amounting to
£5.94 million. This was mainly attributed to direct expenses and a rise in
depreciation. Additionally, administrative costs climbed 35% to £3.67 million
due to increased personnel expenses. The firm also reported capitalized
development expenditures of £1.43 million, as it continued to invest in its
Exchange Cloud platform, introduced in the previous year. </p><p>In a more
recent development, the company <a href="https://www.financemagnates.com/forex/news-nuggets-16-may-futu-exits-china-app-stores-beeks-new-contract/" target="_blank" rel="follow">revealed plans</a> to offer a private computing
environment for OneChronos' forthcoming Alternative Trading System (ATS).</p><p>"After
a thorough review of the market, we're thrilled to have successfully outsourced
infrastructure to Beeks Group's high-performance, modern compute
capabilities," Iris McAtee, the Head of Engineering at OneChronos, said. </p>

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