Beeks Financial Cloud Share Discussion Threads

[valustar1] 07/10/2024 06:37

Guess we will get some brokers forecasts for year ending 30/6/26 now.

[hatfullofsky] 07/10/2024 06:24

Maybe some profit taking this morning ?

Exchange still under NDA until launch.

[hatfullofsky] 07/10/2024 06:23

Nothing new in the numbers (I would have liked a better ARR number at 30/08)

Cashflow is showing operational gearing. 105 staff (up from 102)

Op Cash £11m - £3m Capitalised Development = £8m

MCAP 170m

[hatfullofsky] 07/10/2024 06:21

Outlook

Material growth in sales pipeline for Exchange Cloud, with several major international exchanges entering the final stages of contracting, and others at earlier points in the sales funnel

[ninedoors99] 07/10/2024 06:08

Understood ! Thanks

[masurenguy] 07/10/2024 06:06

Solid progress over the year - an NDA prevents confirmation of the identity relating to the new contract with the large exchange group until product launch, which remains on track, has taken place.

Final Results for the year ended 30 June 2024

Financial highlights

· Revenues1 increased 27% to £28.5m (2023: £22.4m)

· Annualised Committed Monthly Recurring Revenue (ACMRR) up 18% to £28.0m (2023: £23.8m) increasing to £28.5m by the end of August 2024 following a strong start to the new financial year

· Gross profit up 24% to £11.3m (2023: £9.1m)

· Underlying2 EBITDA increased 27% to £10.7m (2023: £8.4m)

· Underlying profit before tax3 increased 68% to £3.9m (2023: £2.3m)

· Underlying diluted EPS4 6.36p (2023: 3.96p)

· Positive operational free cash flow position, with Net cash5 as at 30 June 2024 of £6.6m (30 June 2023: £4.4m) notwithstanding continued investment in Beeks' product offering

Post-period multi-year Exchange Cloud contract with one of the largest exchange groups globally received regulatory approval, as announced in February. Beeks remains under a Non-Disclosure Agreement (NDA) with the exchange until the product's launch, which remains on track

[masurenguy] 06/10/2024 07:42

Contractual Takeover Offers
Acceptances over shares representing 90% of the target’s voting share capital are required to squeeze out the minority (and thereby enable the bidder to acquire all of the target's voting share capital). Given that bidders typically aspire to acquire 100% of the voting rights in a target company, it is therefore usual for the acceptance condition to be set at 90% (rather than 50%), but for the bidder to have the option to reduce this threshold to shares carrying over 50% of the voting rights. Under the Companies Act 2006, bidders making a contractual takeover offer have the compulsory right to acquire the shares of minority shareholders if they have acquired, or unconditionally contracted to acquire, both 90% of "the shares to which the offer relates" (i.e. shares which were not held by the bidder at the time the offer was made) and 90% of the voting rights in the company to which the offer relates.

A Statutory Scheme of Arrangement
A scheme of arrangement requires approval from shareholders who constitute a majority in number of each class of shareholders who are subject to the scheme of arrangement and who are voting at the meeting. This majority must also represent at least 75% in number of those shares which are voted. The main advantage of a scheme of arrangement is that, if successful, it will bind all shareholders (regardless of whether, or in what way, they voted). However, due to the High Court’s involvement, schemes of arrangement are less flexible structures than contractual takeover offers.

[ninedoors99] 05/10/2024 18:02

My understanding is you have no rights in respect to a sales process, unless you have more than 25 percent of a business.

[masurenguy] 05/10/2024 15:16

Re #721 - so there is no actual source that relates to any target figure that McArthur may have in his mind as an optimum sale figure for his shareholding. The main point here is that he hold the cards while maintaining a personal stake above 10% since a predator would have to obtain 90% of the shares to force the other shareholders to sell. No predator would want a minority shareholder who could block certain decisions that they may wish to make thereafter. However, whatever figure he may decide to accept for his stake would then become the catalyst for the complete sale of the business but we will all have to wait and see what that may be at some future point in time.

Meanwhile the results due on Monday will hopefully include confirmation that NASDAQ is their new major exchange client since that will put the company onto more investors radar screens.

[foetus in your brain] 05/10/2024 08:58

If anyone sells anything for tens of millions of profit they should go and live somewhere tax free or low tax for the relevant period. Italy a good bet.Bought in yesterday btw

[hatfullofsky] 05/10/2024 08:22

I came up with the £1bn figure, rationale is pretty basic. He owns 30%If he sells a 200m, his gain is £60m tax man takes 50% net gain £30m enough but not mega buckIf he sells for 500m gain £150m net gain £75m, much better but still not mega bucksIf he sells for £1bn, gain £300m, net gain £150m, now that's much more like it. You can do a lot with £150mThese are just estimates of course and I'd be more than happy with any of them

[ianhamo] 04/10/2024 17:57

The CEO has said in a few interviews, his intention has always been to build the company to sell and he has a price in his head that he would be tempted to sell.

As the for the rumoured price, I can’t exactly remember where that came from, more than likely on here or the LSE board, but that is all it is….a rumour.


Possibly stems from when MacArthur talked about the valuations US investors put on companies, ie 18 x EBITDA. People working out the future value of BKS on future earnings and the size of the addressable market, which they are only starting to capture.


Perhaps I should have used the word speculated rather than rumour

[masurenguy] 04/10/2024 16:07

"Hopefully MacArthur will stick to his guns regarding his price, rumoured to be $1billion."

What is the source of this "rumour" ?

[hatfullofsky] 04/10/2024 14:13

15 GBP for £1bn MCap

[route1] 04/10/2024 13:56

Thanks for that, have a good weekend.

[ianhamo] 04/10/2024 13:45

I'd say approximately £11.40.

[route1] 04/10/2024 13:42

If a $1 billion bid was accepted in the future, is it possible to calculate what the share price might be at that time?

[hatfullofsky] 04/10/2024 12:58

Nice to see some strength into the results

[ianhamo] 04/10/2024 12:53

Hi Husbod,Hopefully MacArthur will stick to his guns regarding his price, rumoured to be $1billion.

[route1] 04/10/2024 12:32

That was a point that I made 8 days ago when my logic told me that any company, consortium,Fintech or others would obviously seem it to be sensible to bid at this early growth stage knowing that any future bid would cost a lot more.We may of course rest assured that the Board would reject any bid at this early stage, but there are always organizations out there willing to "try their luck ".

[husbod] 04/10/2024 11:16

Hi IanI think my concern is not so much that the take out price would be cheap per se in the sense that given the stage the company is at at the time of the approach the price could well be at a premium.My concern rather is that a bid could come in too early in the company's development so we are taken out way before we have realised our full potential.

[philly cheesesteak] 04/10/2024 10:29

Nice to see a breakout, formal NASDAQ announcement on Monday would be lovely, either way it can't be far off & they will presumably be providing a lot more detail on the impact of the deal on the short, medium & long term outlook. We'll also get more detail on Tuesday's IMC call, so it should be a strong week ahead after the recent consolidation.

[ianhamo] 03/10/2024 18:35

Hopefully that won't happen. Remember MacArthur has his figure, BKS has little debt and is about to start generating plenty of free cash. So they carnt be forced to accept a low ball offer imho.

[ianhamo] 03/10/2024 18:30

I think the news flow over the next 1-2 years should be huge.

[husbod] 03/10/2024 17:50

If we win a few more I fear we might be taken out more cheaply than I would like.