Beeks Financial Cloud Group plc (AIM: BKS), a cloud computing and connectivity provider for financial markets, has released its annual financial results for the year ending on 30 June 2023. The company reported significant growth in various financial metrics, including an increase of 22% in revenue and a rise of 23% in Annualized Committed Monthly Recurring Revenue (ACMRR). However, the company did not achieve profitability, reporting a operating loss of £331,000.
Beeks Reports Mixed Results in FY23
On the one hand, Beeks’ revenue increased to £22.36 million, which is up from £18.29 million in 2022. ACMRR saw an increase of 23%, reaching £23.8 million (in line with forecasts from nearly a month ago) and further rising to £25 million by the end of August 2023. Gross profit also rose 15% to £9.12 million. Underlying EBITDA and profit before tax increased 33% and 13%, respectively, reaching £8.42 million and £2.33 million.
“With an established reputation and a track record of sustained growth, we are well-positioned to capitalize on the shift of the financial services sector to cloud computing and continue on our growth trajectory,” commented Gordon McArthur, the CEO of Beeks. “The deals signed to date and our exit ACMRR mean the Board is confident in achieving results for FY24 in line with its expectations.”
From another perspective, the company significantly increased its administrative costs (from £7.6 million to £9.5 million), which turned the operating profit of £385,000 from the fiscal year 2022 into an operating loss of £331,000. The total loss before taxation amounted to £650,000.
We described a similar situation yesterday (Sunday). The UK-based branch of Hong Kong-originated Hantec Markets reported an increase in revenue of 7%, but also a net loss of £83,968 for 2022.
Operational and Technological Updates
The company signed a multi-year contract with the Johannesburg Stock Exchange (JSE), the largest stock exchange in Africa. This contract went live in September 2023, with Beeks now providing cloud services to JSE customers. Additionally, the company has been in advanced discussions with other major global exchanges.
Beeks has also been focusing on product innovation. The company launched a major user interface refresh for its infrastructure automation portal, allowing for a more tailored user experience. It also re-designed its underlying server hosting platform to improve efficiency and drive long-term cost benefits.
“We remain focused on converting our record pipeline of opportunities across our product offerings, and in particular the recently launched Exchange Cloud offering. The advanced nature of several of these discussions, including additional proof of concept implementations, provides confidence in our ability to provide growth acceleration in FY24,” the CEO added.
In the meantime, the company has signed a contract with OneChronos to provide a private computing environment for OneChronos' new Alternative Trading System (ATS).
