Beeks Financial Cloud Share Discussion Threads

[husbod] 20/8/2024 11:02

Thanks Philly that's really informative and augurs well for the future. Clearly this is a very well run company with a world leading product.Btw is your centre of the universe just north of Cardiff?

[philly cheesesteak] 20/8/2024 10:44

@Husbod, look at the last time they raised capital way back on 4th April 2022. First the why;

"The proposed Fundraising is intended to be used to accelerate the Company's growth strategy and capitalise on the significant market opportunity and solid sales pipeline. Funds will be used to provide additional infrastructure capacity and product development (including internal and external resource) for Exchange Cloud, investment into the aforementioned recent contract wins and for additional working capital, including advanced purchases of IT rack capacity, computer servers and other associated hardware to help minimise impact from global supply chain issues, and for transaction costs."

And then the use of proceeds;


"approximately £8m for advance purchases of IT rack capacity, computer servers and other associated hardware across the business to manage supply chains for Beeks' substantial pipeline of deals, including a number of Tier 1 opportunities; plus additional working capital and transaction expenses"

They got way ahead of the exchange cloud pipeline & I think this likely helped them win NASDAQ. This is also why we saw such a bump in CAPEX during 2022 & 2023.

They are now strongly cash generative and as such I see no reason why they'll ever need to raise further capital. With FY25 EBITDA forecast to be £14.9m, even stripping out say £5m for CAPEX, £3m for capitalised dev spend & £1m for lease payments they will still grow their cash pile by just under £6m.

By the end of FY26 they could have a cash pile north of £20m

[husbod] 20/8/2024 10:27

Indeed here's a potential scenario - the company issues an RNS confirming the Nasdaq contract and at the same time announces a placement or rights issue.I reckon any such rights issue would not involve much of a discount and would be heavily oversubscribed.Just thought I'd throw that into the verbal arena.

[husbod] 20/8/2024 10:24

Being a tech ignoramus I wonder if some more knowledgeable holder could help me out on this point.Assuming the Nasdaq contract is confirmed (ie the regulatory approval is forthcoming)and further assuming this leads to other interested parties does the potential scaling up involve heavy capex and if so can this be carried by our existing resources or are we going to have to raise capital one way or the other?

[kirkie001] 20/8/2024 09:58

I had these flagged to me when they put out their trading update a month ago - and immediately liked them, but thought they were pretty fully valued at 230p. Told myself that I'd look for an entry point at 200p... with the hope that I'd be able to do this before they announced their "big new contract".

Well, the little market jitters 17 days ago gave me a chance at 203.75p, and for once I wasn't greedy enough to try and hit my price target. 2 weeks later, and I'm already sitting on a 33% gain....

One of the very very few times I've lucked into good timing as opposed to bad!

My instinct says I should take money off the table now, but I think the 12-18 month prospects for this are strong.

[husbod] 20/8/2024 09:31

I'm rather hoping this British tech success story will be the exception to the rule and will become a world class company without being gobbled up by some US, Japanese, German etc mega corporation.Wish I had added on that slight pull back after the results some 6 weeks or so ago. Down 15p at the time to around £2 if I remember correctly.

[masurenguy] 20/8/2024 08:02

Well you can be fairly sure that there are already some potential predators accross the pond who will be watching events evolve here. Once the NASDAQ contract has been formally confirmed then BKS will be clearly on more Silicon Valley radar screens.

[philly cheesesteak] 20/8/2024 07:57

What a fantastic testimonial;

Tebalo Tsoaeli, Chief Innovation Officer at the JSE, commented: "Since the launch of Colo 2.0 in September 2023, JSE has seen significant adoption of the Colo 2.0 service by customers, demonstrating a clear demand for the product offering. This has resulted in additional demand for a secondary solution aimed at addressing the redundancy and Disaster Recovery requirements of existing customers. Through our partnership with Beeks and IPC, JSE seeks to power a truly cloud-based marketplace infrastructure that is modern, hyper-scalable, ultra-resilient, highly performant, and accessible to all market participants."

Hard to believe that other major exchanges won't be expediting their contract discussions given the developments in the last week.

[grahamhacker] 20/8/2024 07:55

The BEEKS business is akin to a successful mine! The high costs are upfront, firstly the risk of whether it will deliver & the demand is there, then you dig out the gold (fairly cheaply), leaving only maintenance and further known development costs, to keep the gold coming. The big difference is - currently there is no competition, very loyal customers, & when/if competition comes development will be long and costly. Very, very high margin now delivering into a very deep pocketed (& demanding) industry. Banks are used to paying top dollar for everything. JSE has been the perfect starting point to clear up the initial startup issues.This sort of business is every accountants dream :-)

[route1] 20/8/2024 07:55

FOMO, this is a classic example as every Exchange in the world will want to sign up once they see how the present Exchanges are benefiting from this incredible system.

[ianhamo] 20/8/2024 07:48

BKS at inflection point.

[valustar1] 20/8/2024 07:18

Land and expand!

[masurenguy] 20/8/2024 07:05

Extension of JSE Colo 2.0 partnership with Beeks Exchange Cloud and IPC

Significant further extension of JSE Colo 2.0 into a second data centre location

20 August 2024 - Beeks Financial Cloud Group is pleased to announce that the Johannesburg Stock Exchange (JSE) has signed a further significant contract extension for the provision of Beeks' Exchange Cloud, to a second data centre location. The multi-year contract extension further supports the Board's confidence in its financial expectations. The JSE's 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. Under the extended contract, the service will also be available at the JSE's Teraco data centre, specifically to meet the needs of large banks' regulatory requirements for dual location disaster recovery. This expansion follows the successful launch of the JSE Colo 2.0 in September 2023, and a significant contract extension in March 2024 to meet stronger than anticipated customer demand.

Tebalo Tsoaeli, Chief Innovation Officer at the JSE, commented: "Since the launch of Colo 2.0 in September 2023, JSE has seen significant adoption of the Colo 2.0 service by customers, demonstrating a clear demand for the product offering. This has resulted in additional demand for a secondary solution aimed at addressing the redundancy and Disaster Recovery requirements of existing customers. Through our partnership with Beeks and IPC, JSE seeks to power a truly cloud-based marketplace infrastructure that is modern, hyper-scalable, ultra-resilient, highly performant, and accessible to all market participants."

Gordon McArthur, CEO commented: "We are delighted to announce this further expansion with the JSE to meet the growing demand for the Colo 2.0 service from the JSE's customers. Exchange Cloud continues to be a unique offering in the market, and the success of the solution at the JSE is supporting our discussions with other global exchanges, underpinning our confidence in continued momentum."

[adorling] 19/8/2024 17:56

Good to see the short term profit takers gone and then BEEKS making a decisive breakout to new highs - no doubt FOMO will be on their minds as we head further north and we still have not had the “Official̶1; announcement RNS to confirm the new Exchange contract is with Nasdaq - the share price will be going one way when that happens on its journey to multi-bagger returns. Be patient as the best is yet to come!

[petewy] 19/8/2024 17:32

So my question as to top slicing gets ignored. Cheers mfrs.
I bought these cheap a while ago.

[hatfullofsky] 19/8/2024 16:53

Nasdaq also provide trading systems to other exchanges, so this could be very significant it it eventually becomes part of the Nasdaq suite of products. For now having it installed at nasdaq will act as validation to all Nasdaq exchange clients (and there are some big ones)

[zho] 19/8/2024 16:06

>>Brilliant find zho>>

Not mine - hatfullofsky, I think, on this thread, and highlighted by Paul Scott in his weekend small caps review.

[grahamhacker] 19/8/2024 15:59

Brilliant find zho - This must force BEEKS to make an announcement soon - possibly tomorrow??

[husbod] 19/8/2024 15:21

Thanks zho - good find if I may say so.I wonder how much the contract is worth and more importantly once you have a toe in the door with Proximity whether this opens other areas in the Nasdaq constellation that we can exploit eg with our cloud offering.Either way it is an impressive win and what's good enough for the Nasdaq should be good enough for other major exchanges.No wonder the share price has been motoring.

[zho] 19/8/2024 15:09

>>Is that wishful thinking that it’s Nasdaq or genuine information?>>

See

[blueball] 19/8/2024 14:53

Incredible this is set for 300p in a short while.

Hey ho here we go ever so high.

[husbod] 19/8/2024 14:47

Is that wishful thinking that it's Nasdaq or genuine information?If it is Nasdaq a predator might start to take a look.

[masurenguy] 19/8/2024 13:16

When the "further announcement" is made by BKS and "the Exchange", formally revealing that it is NASDAQ, then this should create some media coverage which will bring Beeks onto many more peoples radar. Given that BKS is also engaged in "advance discussions" with other major Exchanges around the world this should heighten some further interest in the forward potential for the shareprice.

"Following receipt of regulatory clearance, the deployment of services and recognition of revenue has commenced. A further announcement will be made by both the Company and the Exchange when the full platform is available for customer deployments in due course. This deal marks the third international exchange to sign up to Exchange Cloud, Beeks' multi-home, fully configured and pre-installed physical trading environment fully optimised for global exchanges to offer cloud solutions to their end users. With a proven ability to secure contracts with the world's largest exchanges, Beeks remains highly confident in fulfilling the product's transformational potential. The Exchange Cloud pipeline continues to build, with advanced discussions taking place with other major Exchanges across the globe." extract from 14 August RNS statement.

[philly cheesesteak] 19/8/2024 09:01

I always think it's easy to assume that most market participants on AIM small caps read bulletin boards, and would therefore be aware of the NASDAQ document that circulated last week, confirming they were the customer. However, the reality is that only applies if you were already interested in Beeks & happened to be switched on mid August.

For many would be shareholders, this is the type of contract that gets them interested in a new company. And with good reason too. It's transformational to the future prospects of BKS, and therefore the potential future value of the company. NASDAQ could quite literally partner with anyone in the world, its a massive vote of confidence for a £160m market cap & confirms BKS competitive position is second to none.

The share price is now in price discovery mode and has hit another all time high this morning. Once the partnership is officially unveiled in the coming weeks / months, I think we'll be trading substantially higher.