Beeks Financial Cloud Share Discussion Threads

[masurenguy] 09/10/2023 08:20

Looks like this has probably now bottomed and is on the upturn. 👍
It really doesn't take much volume to impact the shareprice either way.

[masurenguy] 02/10/2023 07:57

Final Results for the year ended 30 June 2023

Financial highlights

-- Revenues(1) increased 22% to GBP22.36m (2022: GBP18.29m)
-- Annualised Committed Monthly Recurring Revenue (ACMRR) up 23% to GBP23.8m (2022: GBP19.3m) increasing further to GBP25.0m by the end of August 2023 following a strong start to the new financial year
-- Gross profit up 15% to GBP9.12m (2022: GBP7.94m)
-- Underlying(2) EBITDA increased 33% to GBP8.42m (2022: GBP6.31m)
-- Underlying profit before tax(3) increased 13% to GBP2.33m (2022: GBP2.06m)
-- Underlying diluted EPS(4) 3.96p (2022: 4.19p)
-- Net cash(5) as at 30 June 2023 of GBP4.41m (30 June 2022: GBP7.86m)

Statutory Equivalents

The statutory equivalents of the above results are as follows:

-- Loss before tax was GBP0.65m (2022: Profit before tax GBP0.07m)
-- Basic (LPS)/EPS was (0.14p) (2022: EPS 1.43p)

Operational highlights

-- Continued customer base expansion and growing pipeline:
-- Continued customer base expansion and growing pipeline. Johannesburg Stock Exchange (JSE) - the largest stock exchange in Africa, signed a multi-year contract for Exchange Cloud. The contract went live during September 2023 with capacity now sold to JSE customers and follow on opportunities advancing The Exchange Cloud pipeline continues to build with advanced discussions taking place with major Exchanges across the globe, including additional proof of concept implementations.
-- Continued product innovation:
-- Major user interface refresh of the Beeks infrastructure automation portal, allowing clients to tailor the user experience for their own users.
-- Re-architecture of the underlying server hosting platform to improve the efficiency of the Group, driving long-term cost benefits.
-- Investment in enhanced security:
-- Completed stage 1 of industry-leading SOC 2 security accreditation with a view to being SOC 2 compliant by calendar year end.
-- Launch of Beeks Security Operations, providing end to end security detection and response capabilities for our customers, through partnership with cybersecurity service provider BlueVoyant.
-- Investment in inventory, team and sales and marketing, to deliver on the growth opportunity:
-- Investment into inventory, ensuring the Group is capable of delivering against all contracts either signed or in the immediate pipeline.
-- Implementation of new inventory management system to streamline stock management and audit compliance.
-- Increased average headcount to 103 (2022: 89) to support the product development roadmap.
-- Increased brand awareness through attendance at international industry conferences in Bangkok, Chicago, Boca Raton and Paris.

Outlook

-- The Company continues to be supported by underlying market trends, with the ongoing shift of the financial services sector to cloud computing.
-- Well positioned moving forward, with an established reputation and a track record of sustained growth.
-- Core focus on converting the record pipeline of opportunities across the Group's product offerings, in particular the Exchange Cloud offering with a number of contracts at an advanced stage.
-- Exchange Cloud remains a potentially transformational opportunity for Beeks, with significant traction with both existing and new customers, including additional proof of concept implementations, albeit contracts of this size take time to convert.
-- The Board is confident in achieving growth acceleration and results for FY24 in line with its expectations. Confidence underpinned by high levels of contracted, recurring revenue, a unique proposition and growing international profile.

Gordon McArthur, CEO of Beeks, commented: "With an established reputation and a track record of sustained growth, we are well-positioned to capitalise on the shift of the financial services sector to cloud computing and continue on our growth trajectory. The deals signed to date and our exit ACMRR mean the Board is confident in achieving results for FY24 in line with its expectations. 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. With high levels of contracted, recurring revenue, a unique proposition and growing international profile, we look to the future with continued confidence."

[ali47fish] 02/10/2023 07:42

update today mainly in line

[ali47fish] 29/9/2023 16:13

so what can we expect monday 2 oct for the update

[masurenguy] 29/9/2023 07:16

Beeks Financial Cloud Group will issue its final results for the year ended 30 June 23 on 2 October 23.

[masurenguy] 12/9/2023 07:50

Johannesburg Stock Exchange launches Colo 2.0 with Beeks and IPC

12 September 2023 - Beeks Financial Cloud Group is pleased to confirm the successful go live of the Johannesburg Stock Exchange's (JSE) Colo 2.0, making on demand private cloud computing and low latency analytics available to JSE customers. JSE is the largest stock exchange in Africa. Launching less than three months since the contract was announced, Colo 2.0 is an advanced managed infrastructure as a service based on the Beeks Exchange Cloud offering, in partnership with IPC. Colo 2.0 provides JSE customers with leading edge innovative hosting and connectivity solutions, accessing on-demand private cloud computing and low latency analytics.

Gordon McArthur, CEO at Beeks, commented: "We are delighted to confirm the go live of Colo 2.0, highlighting the speed with which these significant implementations can launch once contracts are signed. Since announcing the deal, JSE has seen considerable customer interest in the offering, demonstrating a clear demand for Exchange Cloud. We look forward to nurturing a long and successful relationship with the JSE."

[masurenguy] 11/9/2023 16:56

The shareprice is still slipping on very paltry trading volumes. Forward PER is now in the teens and the value equation is starting to look much more interesting.

[zipstuck] 06/9/2023 17:05

Seems a wait and see for me.
May be weasel words but FY 24 forecast of 5.5p EPS seems beatable with new client wins.

[ali47fish] 06/9/2023 08:49

progressive summary dosnt raise any problem

Growth in FY23, strong start to FY24
Beeks’ FY23 trading update (12 months to 30 June) confirms that the group delivered impressive growth in revenue and profits during the year (revenue +20% YoY, underlying EBITDA +35%). Although this outcome is ahead of our forecast at the EBITDA level, we understand revenue progression was impacted by the shifting of certain Exchange Cloud revenues into FY24. The release signals a ‘strong’ start to FY24, with record ACMRR of over £25m and good visibility on FY24 revenue. Cash performance during FY23 was solid, with the group delivering positive free cash flow in H2 23 and closing the year with a £4.4m net cash balance.

[masurenguy] 06/9/2023 08:43

74tom - Beeks has always had a "future tech" evaluation - the shareprice virtually tripled to circa 140p in 2018, the year following the IPO. That's why I sold 35% of my stake a couple of years ago @198p to recover my entire original investment here. Since then the annual sales have doubled and the shareprice has halved. I retained the balance of my shareholding since I expected the company to be taken out at a premium by a predator in due course. My view has not changed in that context.

[74tom] 06/9/2023 08:16

@Masurenguy, a more cynical way of looking at the forecasts is that they were overly aggressive to underpin the rich valuation. FY24 fully adjusted EPS is forecast to be 5.5p, so at 95p it's on 17x forward PE. That's not at all cheap for a CAPEX hungry IT stock with 40% gross margins.

[74tom] 06/9/2023 08:05

It's likely priced in, however IMO it's blatantly obvious that they didn't issue a trading update to avoid the shares being taken to the cleaners & allowing a cheap entry point. They must have known for over 2 months that the forecast revenue figures in the market are wrong, yet they are allowed to carry on regardless. How is it not price sensitive to have incorrect forecasts in the market?!

[purplepelmets] 06/9/2023 07:53

Wasn't much in the mood for a profit warning ffs

[masurenguy] 06/9/2023 07:51

Sales blip against broker forecasts looks like a timing issue - revenue growth still positive as is FCF.

Trading Update

6 September 2023 - An update on trading for the year ended 30 June 2023 (FY23).

Following a strong performance across the Group's Private Cloud offering, and a further Exchange Cloud contract signed with the Johannesburg Stock Exchange (JSE), the largest stock exchange in Africa, Beeks has delivered significant growth on the prior year. Beeks exited FY23 with over 20% growth in ACMRR in the year to £23.8m (30 June 2022: £19.3m), which has further increased to over £25m as at 31 August 2023, as a result of a strong start to the new financial year. This strong growth in ACMRR, combined with the expected JSE Exchange Cloud deployment in the coming weeks provides significant visibility of the Board's FY24 expectations.

Revenue for FY23 is expected to be over 20% higher than FY22, delivering underlying EBITDA growth of over 35% and underlying profit before tax growth of approximately 10% versus FY22. In the second half of the year, Beeks achieved a positive free cash flow position in line with management's stated strategy, with unaudited net cash of £4.41m at the period end (H1 23: net cash of 3.35m; FY 22: net cash of 7.86m). The Company's pipeline of opportunities for each of its offerings is significant and growing. Exchange Cloud remains a potentially transformational opportunity for Beeks, with significant traction with both existing and new customers, albeit contracts of this size will take time to convert. The above indicative financial results are subject to audit. The Company expects to release audited results for FY23 in early October 2023.

Gordon McArthur, CEO at Beeks, commented: "FY23 was a year of double digit growth and one in which we continued to expand the pipeline across each of our offerings. 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 capitalise on our unique cloud computing offering for the global financial services industry. We have entered the new year with high levels of revenue visibility and strong momentum and thus remain in line with management expectations for FY24, with further upside potential from new client wins."

[mammyoko] 06/9/2023 07:46

Completely untrustworthy - deserves to get clobbered on the open

[74tom] 06/9/2023 07:32

Cheeky TU this morning.

FY22 revenue = £18.3m, revenue for FY23 'expected by over 20% higher' with no exact figure provided, despite the year end being over 2 months ago... so ~£22m if it's just over the 20% level

Check sharepad forecasts for FY23 and see forecast revenue was £24.7m.

Check research tree and see Cannacord forecasts were for £25m (37% growth)

Cannacord's note this morning is headlined; 'small speed bump but road ahead remains clear'

Small extract of why they think BKS missed on revenue;

"We believe the sales shortfall is mainly the result of slower signings of new Proximity & Exchange cloud deals, where typically half the TCV is recognised upfront."

Why are BKS allowed to emphasise that they are in line with expectations on positive free cash flow for FY23 and revenue for FY24, but ignore the fact they missed on FY23?!

[masurenguy] 04/9/2023 16:26

Shareprice at a 30 month low despite good interims last February and positive newsflow since then.

[eeza] 31/7/2023 18:47

RNS - Octopus reduce holding.

[husbod] 24/7/2023 11:40

Think that seller may have a few more to unload

[husbod] 24/7/2023 09:21

That quite large sell has held back the rise.Must be a forced seller or someone with a very large holding just taking a bit of profit to sell after an RNS like that.Really good news and shows growing momentum for what is clearly an outstanding product.Onwards and upwards........ hopefully.

[masurenguy] 24/7/2023 08:27

Private Cloud Contract Wins

24 July 2023 - Beeks Financial Cloud Group is pleased to announce the signing of a number of Private Cloud contracts in July, with a total contract value of over $4m. These include a significant win, via a partner, with one of the UK's largest banks. The wins come on the back of good contract momentum, with Beeks having announced its second Exchange Cloud customer, the Johannesburg Stock Exchange, in June 2023, providing increasing levels of revenue visibility for FY24 and beyond. The Company has a strong and growing pipeline across its different offerings. The two Exchange Cloud contracts signed to date have the ability for considerable expansion, and the Company has a pipeline of additional such opportunities which, while they may take time to progress to signing, have the potential to be transformational for the Company.

Gordon McArthur, CEO at Beeks, commented: "The global financial services industry continues to move to cloud computing, presenting us with a considerable opportunity. With a growing number of the world's largest financial institutions as customers, recognition of the value of our cloud offerings is increasing and we remain focused on the conversion of our sales pipeline."

[ali47fish] 12/7/2023 13:36

any idea where we are with share price outllok here

[maddox] 11/7/2023 09:01

I was reading in the FT that data from global funds network Calastone showed that investors moved £662m out of equity funds in June. Whereas, £1.38bn went into fixed income and money market funds, presumably attracted by rising Interest rates and avoiding falling equities in the face of an expected recession. June was the 25th consecutive month of equity outflows.

The Chronic Investor also reported that the share of the UK stock market now owned by UK pension funds and insurance companies has declined from 39 per cent to 4 per cent. It didn't specify a timeframe but I assume it's over a few decades. Clearly, this is the underlying reason the UK is comparatively cheap.