Beeks Financial Cloud Group plc (AIM: BKS), a cloud computing and connectivity provider for financial markets, ended the first half of the fiscal year 2024 with a revenue of £12.96 million, an increase of 25 percent year-over-year. The company's pre-tax profit climbed 113 percent to £1.38 million, while the statutory figure is up 121 percent to £0.16 million.

A Profitable Year Half

According to the announcement today (Tuesday), the underlying earnings per share for the six months ended on 31 December 2023 improved 42 percent to 1.77 pence. The basic earnings per share came in at 0.12 pence, compared to a loss of 0.73 in the previous year.

Beeks further reported that its annualized committed monthly recurring revenue went up 25 percent to £26.6 million. The gross profit also elevated 15 percent to £4.99 million.

“Financial markets are still only at the start of the journey to the cloud,” Gordon McArthur, the CEO of Beeks Financial Cloud, said.

“With our proven offering and growing tier 1 customer base, which includes some of the largest financial organizations in the world, as well as our increasing profit margins and cash generation, we have never been better placed to seize the opportunity. Our focus for the second half remains the conversion of our significant pipeline.”

The solid revenue and profit came after the company turned an annual operating loss of £331,000 in the fiscal year 2023. However, its revenue soared 22 percent.

The latest figure revealed that the cash flow from operations jumped 27 percent to £4.69 million. At the end of the period, it had net cash of £5.44 million, compared to £3.35 million in H1 FY23 and £4.41 million in FY23.

Bullish Outlook

Following the results, the company expects to end FY24 “in line with board expectations.” Its expectations are even more bullish for the future as FY25 trading is anticipated to be significantly ahead of prior board expectations.

“The consistent growth we continue to demonstrate, combined with our confident outlook for this and next year, underline the size of the opportunity we are addressing,” McArthur added.