Beeks Financial Cloud Share Discussion Threads

[masurenguy] 24/7/2024 01:20

Beeks are in a sweet spot at this time !

Alphabet profits jumps 29% as cloud computing sales boom

Growing cloud computing sales and search engine advertising have powered a rise in second quarter profit at Alphabet, the parent company of Google. Google’s cloud computing division saw revenues rise 29% to $10.3bn, as companies adopt AI technology.

[masurenguy] 23/7/2024 13:30

Buyers now paying just under 218p today, which of course is yet another ATH. Clearly there is anticipation that the regularatory approval and corresponding announcement is imminent.

[ianhamo] 22/7/2024 19:16

I wonder if BKS were expecting to get the regulatory approval for the contract in time for today's update? Possibly the IT outage last week delayed things. So shortly could be any day now.

[faz] 22/7/2024 19:13

I wasnt disappointed at all with the update and once the regulatory stuff is out of the way the announcement that revenue has started will add momentum to the price. The update confirmed that the future looks very bright indeed here.

[ianhamo] 22/7/2024 17:33

https://shows.acast.com/paulscottsmallcaps/episodes/beeks-financial-cloud-bks-paul-scott-interviews-ceofounder-g

[petewy] 22/7/2024 17:21

See Progressive Equity copy below and paste in URL
hxxps://d321bl9io865gk.cloudfront.net/view?src=hxxps%3A%2F%2Fprogressive-singletrack.s3.eu-west-2.amazonaws.com%2FBKS_20240722.pdf%3FX-Amz-Algorithm%3DAWS4-HMAC-SHA256%26X-Amz-Credential%3DAKIAW3DTAMO2FOTG3HE7%2F20240722%2Feu-west-2%2Fs3%2Faws4_request%26X-Amz-Date%3D20240722T162009Z%26X-Amz-Expires%3D86400%26X-Amz-Signature%3Dafc60f609d43a7a11c03499bcc2452f10c4b3678672c656ce1047e50c2760c3f%26X-Amz-SignedHeaders%3Dhost&data=CPuaHDnpPWrDExwl4Is4k28HxkMr9JnQ02MsBlwD5V7PZ59HB1AMjdoUdRU0CrVmBLG13DmVvo3oucpglUA%2BgY1KQ3AplB8rZ0aA%2FvW8CmKI08Loh6YIMbcDlYk0Y0Ix&referrer=hxxps%3A%2F%2Fresearch.progressive-research.com%2F&namespaced=true&aid=a0NTw000003xjCuMAI&perms=copy-paste;download;print&perms_sign=QAevNo5ybpCXV%2FbIElYIPbVjIY5DbkCo5gc%2BWUK4XqPkpXIbJWCYEsqxgbqm6Kjxe7aLTOR28eTz8fyMK0oBPMTNx4sH6HETBgnxmXvGlapRAmrX5Lm4onGekb1LIFzPCCWhIr%2B4YgffDeEHYF%2B09wvATrSZVrfoqENe90tNn2w%3D&timestamp=1721665210&rating_opts={%22ratingValue%22:%220%22,%22ratingType%22:%22star%22}

[masurenguy] 22/7/2024 13:23

route1, it's only timing that is the issue here. Revenue and pretax profits were only marginally below the prior forecast as a result of that, while net cash has significantly increased.

Revenue: £28.4m v CBN £30m (5.3%)
Adj PBT: £3.8m v CBN £4.1m (7.3%)
Net Cash: £6.6m v LY £4.4m + 50.0%

"The conversion of Beeks' record pipeline across each of its offerings remains a core focus for FY25 and the new financial year has started promisingly, including the contracts already signed in FY24 for delivery and revenue in FY25."

The price of this stock has always been driven by its moat, its accelerating global growth potential and a likely premium take out price at some point in the future. PER and EV metrics don't really apply here in those circumstances providing that the company is profitable and has good net cash balances. Since their last placing @1.65p in April 2022, sales are 55% higher and pretax profits are 85% higher than they were then. After a little flurry of some predictable profit taking at the open the shareprice has recovered to last Fridays close of 200p.

[route1] 22/7/2024 09:47

Disappointed given all the positives stated in the trading update, however it seems that the company is advancing in the right direction and new contracts will be signed in due course, just a matter of time and patience.

[ianhamo] 22/7/2024 08:32

I think this will drift until approval for this contract materialises.




As announced on 6 February 2024, Beeks conditionally secured a third Exchange Cloud contract with one of the largest exchanges globally (the "Exchange"). Completion of the contract with the Exchange is subject to regulatory approval, following which deployment of services and recognition of revenue will commence. Advanced progress has been made on this approval process, in line with expectations, and Beeks looks forward to updating shareholders on the outcome shortly.

[74tom] 22/7/2024 08:22

No idea how they can claim in line with consensus when Sharepad has that figure at £29.6m and Cannacord's last research tree note was for £30m, Cannacord had forecast top line growth of 34% vs the 27% reported today... The FCA need to stop small caps manipulation of 'expectations', if a company is claiming in line then it needs to publish the numbers in the RNS.

[hatfullofsky] 22/7/2024 07:46

It's good but not great (considering the recent strength) I think we'll see a pull back today. Really need the Exchange news to hit.

They're actually below expectations

10/10/23 Cannacord Broker Note, target 200p

FY24 FY25
Revenue £30m £35m
EBIT £4.4m £5.6m
Adj PBT £4.1m £5.3m

[masurenguy] 22/7/2024 07:16

Strong and positive update with further pipeline conversion enhancing FY 25 prospects !

Trading Update

22 July 2024 - Beeks Financial Cloud Group provides a trading update for the year ended 30 June 2024.

FY24 results are expected to be in line with consensus expectations, with Beeks having delivered significant double-digit growth on the prior year, driven by a strong performance across Beeks' Private, Proximity and Exchange Cloud offerings. Beeks exited FY24 with approximately 18% growth in ACMRR in the year to £28.0m (30 June 2023: £23.8m). Revenue for FY24 is expected to be approximately 27% higher than FY23, delivering underlying EBITDA1 growth of over 27% and underlying profit before tax2 growth of approximately 67% versus FY23.

Significant wins secured in H2 FY24, including (as announced in March) the Johannesburg Stock Exchange's (JSE) Exchange Cloud Contract Extension and a Proximity Cloud Win with one of the world's largest banking groups, have contributed to Beeks' increasing levels of contracted, multi-year, recurring revenue, providing a strong basis for accelerated growth. In the second half of the year, Beeks continued to achieve a positive free cash flow position in line with management's previously stated strategy, with unaudited net cash of £6.58m at the period end, (H1 24: net cash of £5.44m; FY23: net cash of £4.41m) notwithstanding continued investment in Beeks' product offering.

As announced on 6 February 2024, Beeks conditionally secured a third Exchange Cloud contract with one of the largest exchanges globally (the "Exchange"). Completion of the contract with the Exchange is subject to regulatory approval, following which deployment of services and recognition of revenue will commence. Advanced progress has been made on this approval process, in line with expectations, and Beeks looks forward to updating shareholders on the outcome shortly. The Exchange Cloud pipeline continues to build, with advanced discussions taking place with other major Exchanges across the globe. Having signed a contract extension during FY24 to meet stronger than anticipated customer demand for the solution, the JSE is providing strong references to other potential customers of Exchange Cloud. The conversion of Beeks' record pipeline across each of its offerings remains a core focus for FY25 and the new financial year has started promisingly, including the contracts already signed in FY24 for delivery and revenue in FY25. The above indicative financial results are subject to audit. The Company expects to release audited results for FY24 in early October 2024.

Gordon McArthur, CEO at Beeks, commented: "We are delighted to have delivered another set of record financial results and a further year of significant growth. The increased traction of our products is testament to Beeks' growing reputation across the financial markets as technology provider of choice. We are confident in our ability to continue satisfying strong demand for our solutions and we remain focused on the conversion of our substantial pipeline."

[ianhamo] 20/7/2024 21:42

JSE not impacted by global IT outage"The JSE has been made aware of the global connectivity issues. The JSE hasn't been impacted and all markets are in continuous trading," a JSE spokesperson told News24 in a statement issued by mid-morning on Friday.That should help promote BKS exchange products.

[hatfullofsky] 19/7/2024 15:40

GBP 20k and 60k trades just gone through.Could build to the close

[hatfullofsky] 18/7/2024 13:31

A small top up for me as I think the buying will return later today and Friday

[ianhamo] 17/7/2024 15:03

Some serious amount of delayed trades going through. Question is are they buys or sells. If traded today, I'd say buys.

[hatfullofsky] 16/7/2024 13:48

BKS should be measured on its high quality ARR which should now be around £30m - a 10x valuation on ARR is more than achievable. Therefore a £300m valuation has an share price of 476p, it will take a while but that's my base valuation the upside over 5 years is where the real value will out I think McAthur wants BKS to be a unicorn.

[masurenguy] 16/7/2024 12:54

I think such a shareprice is extremely unlikely with annual sales in the region of £27m, an eps of circa 4p - 5p and a market cap of circa £130m. A 300p shareprice would value the business at circ £200m. The PER is already circa 45 and the sales to market cap ratio is circa 5. In my view sentiment here is largely driven by the potential premium that could arise from a predator acquiring the company in due course. The relevant metrics would be determined by the prevailing performance ratios at that time.

[ianhamo] 16/7/2024 10:58

I'm hoping for 300p if we get a humdinger of a trading update next week, along with contract news.

[masurenguy] 16/7/2024 08:53

Some inevitable profit taking this morning after such a recent upswing. Volumes are small but the shareprice can move quite sharply up or down on fairly modest trading levels.

[masurenguy] 14/7/2024 08:20

BKS finally reached a new ATH @210p last week with the shareprice having more than doubled since the begining of this calendar year. Beeks normally provide a year end trading update but this is usually not until August or September so this year it is quite early on July 22. Also I do not remember them ever giving notice of a year end trading update in the past either so perhaps the above speculation that it could be "materially significant" just might turn out to be the case.

[ninedoors99] 13/7/2024 19:52

Don't think I have. Maybe it's because it's going to be materially significant ! Dyor etc

[ianhamo] 13/7/2024 10:35

I don't think I've seen a company give notice of a Trading Update before. Final and interim results yes but not trading updates. Anyone seen this before?

[ianhamo] 12/7/2024 10:45

Haha well done.

[the count] 12/7/2024 10:34

--->IANHAMO

I just took advantage on a small amount of shares (2,000) on the pricing anomaly that was quoting me 209.2p to sell and 208.45p to buy.

So I sold and bought immediately for a quick gain of 15 quid. That's a few cans of beer sorted out for the weekend at least. :-)

Regards,

TC!