Beeks Financial Cloud Share Discussion Threads

[saltraider] 26/11/2021 18:35

Not sure why you posted this km18. It's old news and the market has taken a much more postive view of Beeks than WealthOracle in the months since then.

What is your point exactly?

[km18] 26/11/2021 18:00

From WealthOracle earlier in the year...

Beeks Financial Cloud plc published its final results for the year ended June 2021. Revenues were up 24% to £11.62m, underlying profit before tax was up 13% to £1.61m, underlying diluted EPS was up over 20% to 2.99p from 2.45p. The balance sheet is getting stronger, with net cash up to £1.89m from net debt of £0.75m a year ago. The business is growing, as is the market cap, up to £95m. Valuation is no longer cheap, forward PE ratio is over 50, PS ratio is over 8. Both are bottom quartile for the Software & IT services market. The business and the growth of the business have been pretty solid, but with valuation this stretched, there is no rush to buy here. BKS is a stock to monitor for the time being...

[husbod] 26/11/2021 11:32

Think the CFO got the better deal.

[ali47fish] 17/11/2021 07:25

one direction sells the other buys rnsDirectors' Dealings

17 November 2021 - Beeks Financial Cloud Group plc (AIM: BKS), a cloud computing and connectivity provider for financial markets, has been informed that on 16 November 2021:

Fraser McDonald, Chief Financial Officer sold 68,627 ordinary shares of 0.125 pence each ("Ordinary Shares") at a price of 194p per share. Following the transaction, Mr. McDonald retains a holding of 44,118 Ordinary Shares, representing 0.08% of the total issued share capital of the Company.
William Meldrum, independent Non-executive Director of the Company, purchased 17,950 Ordinary Shares at a price of 194p per share. Following the transaction, Mr. Meldrum has a holding of 41,450 Ordinary Shares, representing 0.07% of the total issued share capital of the Company.

[petewy] 16/11/2021 09:34

Does anyone know of the review this share gets in Techinvest?

[29palms] 12/11/2021 10:45

Quietly on the upward trend again 😊
We may be due another TU soon.

[ali47fish] 03/11/2021 16:27

I didn't ask for advice just your opinion-many thanks

[masurenguy] 03/11/2021 16:02

Well I haven't added today but I can't advise you whether you should or not. In my opinion todays fall is more to do with a down day in the market as a whole since the BKS 5% drop is on just a paltry volume of circa 50,000 shares traded.

[ali47fish] 03/11/2021 14:59

measures have you added- do you think this is a good entry to add

[masurenguy] 04/10/2021 11:50

Hi Maddox, I may also add again in the future if the shareprice deteriorates further and/or the metrics become less stretched.

[maddox] 04/10/2021 10:20

Hi Masurenguy,

Can't argue with your move from a risk control viewpoint - no way you can lose money on your investment. Also, I agree the share price looks expensive based on the metrics.

However, those metrics are backward looking and the Analysts are being very cautious in revising their forecasts.

Canaccord, has upgraded its sales estimates by 8% and adjusted underlying earnings forecasts by 4%.

"These new forecasts still assume immaterial Cloud Proximity revenue, even although the first contract for this (worth $1.0m) was received in September. We allow for margin compression in FY22E as depreciation, R&D amortisation and headcount costs should increase ahead of sales all to support the forecast organic sales growth now at over 40% in FY22E. We expect margins to increase in FY23E as investment slows relative to sales growth," said Canaccord, which also reiterated its 'buy' rating on the stock.

I’m expecting BKS sales to accelerate substantially and Brokers to have to upgrade their forecasts – so essentially that BKS’ justifies those metrics. In the meantime, I’m hoping for a pull-back in the share price so I can average-up my holding and get more chips on the table.

[ninedoors99] 01/10/2021 12:05

I don't believe There's such a thing as after hours trading. This would have been Delayed reporting of an earlier transaction.

[masurenguy] 01/10/2021 08:30

Over the past couple of days I have reduced my shareholding by 35%, to recover more than my entire investment here. The price has almost doubled in the past 8 weeks and has probably run ahead of itself on both PER and P/S ratios. The balance of 65% that I still retain constitutes pure profit which I plan to keep invested here on a longer term basis.

[29palms] 29/9/2021 16:42

After the bell trade of 51,500 @ 207.7961
That's confidence for you 😊

[robow] 29/9/2021 15:57

from Progressive Research Solid FY 21A results, a strong start to FY 22E

Cloud computing, connectivity and analytics provider for financial markets, Beeks Financial Cloud Group (“Beeks”) has delivered solid FY 21A results in our view. Against a backdrop of COVID19 and ongoing investment in new products and the platform, the group has reported impressive growth in both revenue and profits. The accompanying trading update confirms a record start to the current financial year, including a number of sizeable contract wins. We increase FY 22E forecasts following the announcements, with revenue and adjusted EBITDA increasing by 15% and 13% respectively.

[ali47fish] 29/9/2021 10:06

Maddox you might be right- I can never understand why results are reported, adjusted -really frustrating

[maddox] 29/9/2021 09:59

The flaw in the InvestorsChampion analysis is that it's focusing on the reported results - which are by their nature are backwards looking. Proximity Cloud was only launched in August - and you obviously won't find any evidence of in last years numbers - apart from the investment costs.

If Proximity Cloud is 'the future of the business' IC has missed the point.

[29palms] 29/9/2021 09:02

Looking like it is now getting noticed 😊

...and another new all time high.

[masurenguy] 29/9/2021 08:03

Finally breached 200p with some early share buys this morning ! 🙂

[ali47fish] 28/9/2021 15:57

but some caveats from champion investorBeeks: strong results and plenty of fans, but…
Shares in Beeks Financial Cloud (LON: BKS), the cloud computing and connectivity provider for financial markets, moved higher on encouraging results and a positive trading update. The sky-high rating this small company carries suggests it has plenty of fans, but it looks a bit over-hearted to us.
For its financial year ending 30 June 2021 revenues increased 24% to £11.62m and the all-important Annualised Committed Monthly Recurring Revenue (ACMRR) was up 23% to £13.8m.
Gross profit rose 16% to £5.33m representing a gross margin of only 45.8%, which seems quite low to us, relative to their activities. In comparison AIM quoted cloud computing group iomart (LON:IOM) generates gross margins of 60%+.
They quote underlying EBITDA of £4.14m, up 24%, but also this seems an odd measure for a business paying out large sums for fixed assets, namely servers. Our preferred measure is free cash flow after capitalised developments costs, which was still an encouraging £3.2m.
Underlying profit before tax rose 13% to £1.61m with underlying earnings per share 2.99p (2020: 2.45p).
Return on equity was c14%.
Sales through July, August and September were ahead of expectations and consequently management now anticipates revenues for the year ended 30 June 2022 will be ahead of current market expectations.
Contracts won in the first quarter include the Company's largest contract to date, totalling $2.7m for a private cloud deployment with a European bank via a partner.
Prior to any upgrades today, at a price of 190p the shares trade at an eye-popping 42x forecast earnings for its financial year ending June 2023, nearly two years hence. The current market capitalisation of £106m is equivalent to 9x revenue for 2021. That rating implies some special attributes and very strong growth potential which we struggle to see in the numbers.
On p's David Jill very bullish and says target 200p

[29palms] 28/9/2021 15:40

CEO on Investor Meet webinar states that they are currently paying circa £15 - 17k per month on current leased building so it was a no-brainer to purchase new premises which they will move to Feb-Mar 2022

Niche market they operate in and...Way to go IMO and nice to see a new all time high on share price since webinar finished.

[maddox] 28/9/2021 15:27

Excellent presentation and opportunity for questions on Investor Meets. A few points I'd pick out:

>> The Q1 trading update indicated market demand across Private Cloud, Proximity Cloud and Analytics propositions;

>> Proximity Cloud is unique and targeted at a specific niche with no incumbent suppliers;

>> Proximity Cloud is client hosted which takes away any cyber-security responsibilities or risks;

>> No figures available for the total addressable market - but clearly huge, so niche but huge, lucrative and defendable - "Proximity Cloud is the future of the Business";

>> Strong pipeline of Tier 1 clients at various stages of evaluation.

>> The size of the opportunity justifies another year of investment, so revenue will build but profits lag. 2021 Rev consensus of £17m (growth +46.5%)is beatable.

This is a very exciting growth business.

Regards, Maddox

[ninedoors99] 27/9/2021 16:05

Yep. Really strong day and finish with decent volume. Waited 3 years for this TU / day :-)

[masurenguy] 27/9/2021 15:46

Closing in on 200p. Currently quoting 196.67p to Buy !
McArthur has done well here with his current shareholding worth circa £50m.

[maddox] 27/9/2021 09:04

The Results are great but the Trading Update is extremely positive - if this pace of sales generation is maintained BKS will be shooting the lights out. One point of caution is that BKS is in expansion-mode, and the fact that it is proving successful, will justify further investment, so margins and profits will lag. It's important that this is factored into expectations.

Looking forward to the Investor Meets pressy.

Regards Maddox