Beeks Financial Cloud Share Discussion Threads

[masurenguy] 30/3/2024 09:16

Richard Penney of Crux Asset Management is bullish on Beeks @53.00 minutes.

[hatfullofsky] 28/3/2024 17:53

The largest shareholder has made it very clear he's open to a trade sale. It just has to be at the right price. Only he and the board know that but I'd be very happy with 500m - 1bn

[masurenguy] 28/3/2024 08:34

I agree with valuestar - the longer term prospect is for Beeks to be acquired by a predator.

[valustar1] 28/3/2024 07:34

I would say no in the next 2/3 years as the expected growth means cash generated is required to support that.

By then the plan is a sale if a price can be obtained that reflects the ongoing potential of the business

But if a sale does not happen I am sure the largest shareholder would welcome a dividend flow

[route1] 28/3/2024 07:22

As new contracts are signed and both revenue and profits improve, would there be a likelihood of dividends being distributed.

[masurenguy] 25/3/2024 07:19

Liontrust duo cheers Beeks’ contract wins

Beeks Financial Cloud (BKS) has enjoyed a number of recent contract wins which can carry on its positive trading momentum, says Liontrust duo Anthony Cross and Julian Fosh. The company is a top 10 holding in the pair’s Liontrust UK Micro Cap fund, where it makes up 2.2% of the £146m portfolio.
Cross and Fosh said that the group delivered ‘positive trading momentum’ in the second half of 2023, with revenues up 25% year-on-year, and this momentum can extend this positive run. ‘As a result of recent contract wins, Beeks now expects trading in the year to 30 June 2025 to be significantly ahead of prior expectations. The group signed a contract with a large investment manager in November 23, which has already been upgraded by the customer, more than doubling the contract value to $3.6m over four years. Beeks also announced a new contract for its exchange cloud services, as part of an intended multi-year partnership with a large global exchange group,’ said Cross and Fosh. The shares are up 71% year-to-date on the back of its contract wins.

[masurenguy] 24/3/2024 01:22

MIDAS SHARE TIPS:
'Cloud' pioneer Beeks Group set to see its profits sky-rocket
23 March 2024

[petewy] 23/3/2024 12:06

Thanks measure

[wjccghcc] 22/3/2024 19:50

In their defence they don't get paid much and options/shares are used to remunerate senior management. In 2023 McArthur was paid 64k and McDonald 126k - that's a lot less than most companies their size.

Also, reading between the lines, the CEO's wife is now described as his former spouse so it may be to fund his divorce settlement which would explain the "personal reasons" comment.

[hatfullofsky] 22/3/2024 18:20

Should put a floor in the price

[hatfullofsky] 22/3/2024 18:20

Well I was wrong, great to hear of institutional demand shame both CEO and CFO sold down.

[wjccghcc] 22/3/2024 17:26

McArthur sold 2.2mm and CFO exercised 240k options and sold 284k shares at 165p.

McArthur retains 21.65mm so sold around 9% of his shareholding reducing him to 33%.

CFO retains 719k options he hasn't exercised so sold around 28% of his holdings.

[masurenguy] 22/3/2024 16:07

Looks like those Sells are from one shareholder - either Canaccord or possible McArthur if it was to satisfy demand from another existing or new shareholder. Since these Sells account for more than 8% of the shares in issue there should be an RNS announcement to identify the transactors in due course.

[hatfullofsky] 22/3/2024 15:31

Some big sells just went through, around 5.5m shares only Cannacord and McArthur own that many and I doubt McArthur is sellingSP has held up well though

[74tom] 15/3/2024 09:32

From a high level point of view, isn't it simply that the required up front CAPEX investment makes it unattractive for smaller new entrants & the absolute ROI isn't large enough to attract big players, who are more focused on higher margin cloud offerings? BKS sits right in the middle, and after quite significant investment (£27m raised since listing), they seem to have carved out a niche.

As Paul Scott recently mentioned on SCVR, I wouldn't be surprised to see them raise some additional 'top up' capital in the coming months given the recent contract wins.

[husbod] 14/3/2024 23:25

Thanks for that - interesting.

[hatfullofsky] 14/3/2024 20:32

Husbod - LSEG partnered Microsoft, Deutsche Börse Partnered Google for their cloud provisioning .... but both mentioned the deals were part of their Cloud strategy (data and analytics NO MENTION OF TRADING AND MATCHING). I feel there is still room for BKS in those exchanges but time will tell.

[hatfullofsky] 14/3/2024 20:29

N.Channing

This is a great place to start the first 10 min should help you



Their latest win (expected to be NYSE or Nasdaq) was a competitive tender, so I have no doubts on their competitive advantage.

[husbod] 14/3/2024 17:46

A nice big European stock exchange would be nice. Howzabout the LSE. British company for a British Exchange or is that too big for Beeks at their current stage of development?Anyone know who the other existing SE client is (ie not Joburg)?

[felix1] 14/3/2024 17:14

Beeks 'secret sauce' is in a) the automation they have developed which enables new services to be set up, or existing services to be grown/shrunk quickly & efficiently, and b) more so in the presence they have in the major trading centres and the low latency connections to & between trading systems. This takes time to replicate because of the security & other approvals required. Plus c) the trust they have built with institutions to handle their core critical business, which also takes time. Whence the 'land & expand' approach.

[masurenguy] 14/3/2024 15:23

We're now at a 22 month high with an 80% rise over the past 6 weeks. It looks like we could be heading back above 200p again in due course where we reached an ATH almost 2 years ago.

N.Channing - you can evaluate their business model here:

[nchanning] 14/3/2024 12:51

Not denying there is a moat , just genuinely would like to understand it so I can start buying BKS and never heard it explained properly

[nchanning] 14/3/2024 11:31

Still can't quite get my head around the technology here . It's nearly ten years since Flash Boys was written about locating severs close to exchanges . Surely what Beeks is offering should be highly competitive , commoditised product . What exactly is the 'secret sauce ' that stops competitors doing exactly the same thing in a race to the bottom on price ?