Beeks Financial Cloud Group (LSE: BKS) published its 'unaudited results' for the first half of the fiscal year 2023, reporting a 35 percent yearly jump in revenue to £10.4 million. However, the pre-tax losses of the company widened to £0.76 million from the previous year's loss of £0.27 million.

Beeks Sees Losses despite Revenue Rise

The London-listed company ended the period between July 2022 and December 2022 with negative basic earnings per share of 0.73 pence compared to 0.42 pence in the previous year.

A 29 percent jump in sales cost to £5.94 million, primarily driven by direct costs and an increase in depreciation, sank the company's losses further. Also, the administrative expense of the company went up by 35 percent to £3.67 million with increased staff costs. Its capitalized development costs came in at £1.43 million with continued investment for enhancing Exchange Cloud, which was launched last year.

Growth of Business Remains Healthy

Beeks is headquartered in the United Kingdom and is a cloud computing and connectivity provider for financial markets. The company was established in 2011 and went public in early 2018.

Additionally, the latest financials of the company revealed that its annualized committed monthly recurring revenue (ACMRR) strengthened by 35 percent to £21.3 million. In addition, its gross profit reached £4.35 million, which is 47 percent higher. The group ended the six months with a 48 percent jump in underlying EBITDA to £3.59 million, as the margin improved to 34.5 percent.

"With our proven track record and well-established reputation as a provider of technology to the financial markets, we retain strong confidence in continued success for Beeks. Our principal focus for the second half will be to convert our substantial pipeline of opportunities across the newly launched Exchange Cloud offering," said Gordon McArthur, the CEO of Beeks Financial Cloud.

"Our pipeline of business with both existing and potential new customers provides us with a considerable runway of visible revenue and our balance sheet strength has enabled us to continue to make substantial investment into product, people and stock capacity to capitalise on this pipeline and considerable market opportunity."