REG - Beeks Fin Cloud Grp - Interim Results
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RNS Number : 6741W Beeks Financial Cloud Group PLC 16 March 2026
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Beeks Financial Cloud Group plc
("Beeks" or the "Company")
Interim Results
Strong commercial momentum, laying the foundation for significant, profitable
growth
16(th) March 2026 - Beeks Financial Cloud Group Plc (AIM: BKS)
(https://beeksgroup.com/) , a cloud computing and connectivity provider for
financial markets, is pleased to announce its unaudited results for the six
months ended 31 December 2025.
Financial Highlights
· Annualised Committed Monthly Recurring Revenue (ACMRR) up 15% to £32.80m (H1
2025: £28.50m) providing a growing basis of recurring revenue.
· High level of new contracts secured in the period, with a Total Contract Value
of new contracts signed in the period up 23% to £11.9m (H1 FY25: £9.7m).
· Contract timing and move to a revenue share model for Exchange Cloud reduced
H1 financial performance vs the prior period but provide good visibility for
H2.
· Revenues of £14.65m (H1 2025: £15.79m)
· Gross profit of £4.50m (H1 2025: £6.03m)
· Underlying EBITDA(1) of £4.12m (H1 2025: £5.74m)
· Underlying profit before tax(2) moved to a loss of £0.69m (H1 2025: £1.89m
profit). Strong profit progression anticipated in H2 as recently secured
contracts progress through deployment and revenue recognition commences.
· Underlying diluted EPS(3) -0.68 pence (H1 2025: 2.61 pence)
· Cash flow from operations (before movement in working capital) £4.37m (H1
2025: £5.76m)
· Gross cash was largely maintained at £6.96m (30 June 25: £7.36m) with net
cash(4) of £3.29m (H1 2025: £6.57m; 30 June 2025: £6.96m) following upfront
investment to support contract wins
(1) Underlying EBITDA is defined as profit for the period before amortisation,
depreciation, finance costs, taxation, share based payments, exchange rate
gains/losses on statement of financial position translation and exceptional
non-recurring costs
(2) Underlying profit before tax is defined as profit before tax excluding
amortisation on acquired intangibles, share based payments, exchange rate
gains/losses on statement of financial position translation and exceptional
non-recurring costs
(3) Underlying diluted EPS is defined as underlying profit after underlying
tax divided by the weighted average number of ordinary shares including share
options outstanding but not exercisable.
(4) Net cash is defined as cash less total bank loans and asset financing
liabilities
Operational Highlights
· Strong commercial progress across all offerings, including £6m TCV of
Proximity Cloud contracts secured in the final month of the period, upfront
revenue recognition from which will largely commence in H2.
· Proximity Cloud and early Exchange customers contributing to steady growth in
underlying recurring revenue base.
· Further Exchange Cloud® momentum with two new wins in H1 FY26: TMX Group in
Canada and nuam, the regional holding company that integrates the stock
exchanges of Santiago, Colombia, and Lima, both on the revenue share model.
· Seven exchanges are now signed to Exchange Cloud®, including four under the
revenue share model, with live deployments transitioning to profitability
ahead of expectations.
· Launch of Market Edge Intelligence™, an analytics platform that brings
AI-powered insight directly to the colocation edge, with the proof-of-concept
customer, one of the world's largest banks, now in contractual discussions
Outlook
· H2 FY26 revenue will be supported by c.£4.5m of revenue recognition from
contract wins secured towards the end of H1 FY26, the remaining deployment of
the Grupo Bolsa Mexicana (BMV) DR site secured in FY25, and the go-live of two
recently secured Exchange Cloud® contracts.
· Multiple significant contracts in discussion across each of the Group's
offerings, and while contract timing and deployments with major organisations
can be unpredictable, the growth in underlying recurring revenue and the
current sales pipeline supports the Board's outlook of a full year performance
in line with its expectations.
· The size of the addressable opportunity across all offerings is significant,
and competition continues to be limited, providing the business with a
considerable, long-term growth opportunity.
Statutory Equivalents
The above highlights are based on underlying results. Reconciliations between
underlying and statutory results are contained within the financial
information. The statutory equivalents of the above results are as follows:
· Loss before tax of £1.87m (H1 2025: Profit of £0.46m)
· Basic earnings per share loss of 2.53p (H1 2025: 0.47p
profit)
The largest reconciling item is the consistent add back of the non-cash
share-based payment charge.
Gordon McArthur, CEO of Beeks Financial Cloud commented:
"We enter the second half with strong momentum and a customer base comprising
some of the world's largest financial institutions, each with significant
expansion opportunity. While the timing of contract wins and the increasing
prevalence of revenue share contracts means the impact of this sales momentum
is not reflected in financial performance in the first half, it lays the
foundation for significant and enhanced profitable revenue growth in the years
ahead. We remain focused on fulfilling our growth potential, bolstered by a
building pipeline, while maintaining strict financial discipline to support
our long-term ambitions."
For further information please contact:
Beeks Financial Cloud Group plc via Alma
Gordon McArthur, CEO
Fraser McDonald, CFO
Canaccord Genuity +44 (0)20 7523 8000
Adam James / George Grainger
Alma Strategic Communications +44(0)20 3405 0205
Caroline Forde / Joe Pederzolli / Emma Thompson
About Beeks:
Cloud computing is crucial to Capital Markets and finance.
Beeks Group is a leading managed private infrastructure provider exclusively
within this fast-moving sector. Our Infrastructure-as-a-Service model is
optimised for low-latency compute, connectivity and analytics, providing the
flexibility to deploy and connect to exchanges, trading venues and public
cloud for a true hybrid cloud experience.
ISO 27001 certified, we provide world-class security aligned to global
security requirements.
Founded in 2011, Beeks Group is listed on the London Stock Exchange (LSE: BKS)
and has enjoyed continued growth each year. Beeks Group now employs over 100
team members across the globe with the majority based at our Renfrew HQ.
Find out more at www.beeksgroup.com (http://www.beeksgroup.com)
Chief Executive Officer's Review
The Group has achieved substantial commercial progress during the period,
signing a high number of contracts with Tier 1 financial institutions, across
our Exchange Cloud(®), Proximity Cloud(®) and Private Cloud offerings. The
Total Contract Value secured in the period increased to £11.9m, from £9.7m
in FY25, which was itself a record year, demonstrating the ongoing commercial
momentum in the business.
While the timing of contract wins and increasing prevalence of revenue share
contracts has reduced H1 revenue and profit performance versus the prior year,
the multi-year nature of the contracts and their expansion potential lay the
foundation for significant and enhanced revenue growth in the years ahead.
Seven exchanges globally have now signed for our Exchange Cloud(®) offering,
four of which are under the revenue share model. While this model typically
results in lower upfront deployment revenue, while still incurring set up
costs, we expect it to deliver greater revenue in the medium term than the
prior model, as client engagement scales. Even at an early stage, this model
has delivered ahead of our ambitions. It has successfully shortened sales
cycles, but crucially, the live sites are transitioning into monthly
profitability ahead of our anticipated timeline, paving the way for increased
profitable revenue growth in future years.
We continue to expand our offering, addressing the global demand for next
generation financial market infrastructure. This period saw the launch of our
AI analytics offering, Market Edge Intelligence™. With the proof-of-concept
customer, one of the world's largest banks, now in contractual discussions,
the potential for this high margin software offering is considerable.
Reflecting on where we are today, it is encouraging to see our ambitions at
IPO becoming a reality. Our customer base, both direct and through partners,
now comprises more than 30 of the world's largest financial institutions, each
with considerable expansion opportunity. While contracts with organisations
of this size have protracted sales cycles, the size of each contract,
stickiness once live, and their expansion potential provide Beeks with a
medium-term opportunity that is many times our current revenue profile.
We are focused on unlocking this opportunity, while maintaining the strict
financial discipline with which we have always run the business, to ensure we
deliver long-term shareholder value.
Financial Performance
Beeks continues to have a strong recurring revenue profile, with customer
retention remaining high. Underlying run rate revenue grew 15% with ACMRR at
£32.80m (H1 2025: £28.50m), providing a growing basis of recurring revenue.
H1 reduced financial performance reflects the timing of these Proximity
Cloud® wins, together with the transition to a revenue share model within
Exchange Cloud®, which does not follow the upfront revenue recognition model,
while still incurring set up costs. The period saw recognised revenue of
£14.65m (H1 FY25: £15.79m), flowing through to underlying EBITDA of £4.12m
(H1 FY25: £5.74m) and an underlying loss before tax of £0.69m (H1 FY25:
£1.89m profit).
As is typical in the Group's business model, there is a natural lag between
contract signing, infrastructure deployment and revenue recognition. During H1
FY26 this lag was more pronounced than usual, resulting in a lower level of
revenue recognition in the first half. The majority of these deployments have
now been completed, positioning the Group to recognise the associated revenue
streams in the second half of the financial year. H1 of the prior year
included upfront revenue of £3.30m relating to both Proximity Cloud® and
Exchange Cloud® contracts in comparison to £0.57m recognised in the current
period.
We enjoyed a strong final month of the period, with £7m of Total Contract
Value signed in December 2025, including £6m within Proximity Cloud, of which
approximately 50% is expected to be recognised in H2 FY26, supporting revenue
growth in the second half of the financial year.
We anticipate strong profit progression in H2 as recently secured contracts
progress through deployment and revenue recognition commences.
The Group continues to carefully manage its capital allocation. Cash
generation from operations remained solid, albeit reflecting the timing of
contract wins and the move to the revenue share model. Gross cash was
largely maintained at £6.96m (30 June 2025: £7.36m). Net cash was £3.29m
(30 June 2025 net cash £6.90m) following upfront investment supported by debt
facilities to fund deployment of Proximity Cloud®, Exchange Cloud® and
Private Cloud wins.
Operational Expansion
During the period we have increased the size of our team through targeted
hires, with overall headcount at 116 (30 June 2025: 102). Our focus for sales
and marketing initiatives has been on Exchange Cloud(®), and these have
proved a key driver behind sales momentum. This has included enabling
increased communication between exchanges to drive engagement and support,
which has helped ease the sales cycle with new customers and encouraged them
to share new opportunities.
Our global presence across key datacentres remains strong. We continue to
focus on increasing our datacentre presence in existing locations and
evaluating new locations for expansion in relation to customer demand.
Product
Innovation is central to our growth strategy. A significant milestone this
period was the launch of Market Edge Intelligence(™), our latest AI solution
for passive monitoring of capital markets data at the network edge. Market
Edge Intelligence(™) delivers real-time AI analytics and predictive
intelligence directly within colocation facilities, producing insights
including predictive alerts, infrastructure anomaly detection, capacity
forecasting, and instant trading signal execution. Designed for Tier 1 and 2
organisations, the product has flexible deployment options and can be used
within Beeks Analytics, as a standalone platform or alongside existing
systems.
Early customer feedback has been positive with our proof-of-concept customer,
a Tier 1 organisation, now in contract discussions and several conversations
with new and existing customers ongoing.
The unique nature of our infrastructure provides us with a technical advantage
that has driven success across all our core offerings. This period has seen
the continued enhancements to our products to keep pace with the evolving
needs of the financial markets landscape.
We have continued to invest in our platform, improving the speed and
reliability with which we can deploy and manage client infrastructure. Clients
now have greater self-service control, our teams can provision new capacity
faster than before, and we have laid the foundations to scale efficiently as
demand grows.
Customers
Beeks' customer base spans a diverse range of clientele, from banks, brokers,
hedge funds, cryptocurrency traders, and exchanges to insurance companies,
financial technology firms, payment providers and Independent Software
Vendors. . Between partners and exchanges, the Group now supports more than 30
Tier-1 banks and investment managers on its platforms, reflecting the
continued expansion of our presence among leading global financial
institutions.
This period has seen material progress with new customer acquisition across
all product offerings.
Exchange Cloud(®) momentum has continued with two new revenue share wins:
· TMX Datalinx, part of the Canada-based TMX Group which owns and operates
exchanges across equities, fixed income, derivatives and energy markets,
including the Toronto Stock Exchange.
· nuam, the regional holding company that integrates the stock exchanges of
Santiago, Colombia, and Lima. Increasing the Group's profile in the South
American market.
Both sites are due to go live in H2 FY26 with revenue recognition commencing
shortly thereafter.
The customers secured in FY25 are progressing well:
• Kraken, our first cryptocurrency exchange, secured in March 2025, is now
operating profitably, and has opened the door to discussions with other crypto
platforms.
• ASX, secured in May 2025, successfully went live in H1, as planned, and is
anticipated to reach monthly profitability during H2 FY26.
• Grupo Bolsa Mexicana (BMV), the second-largest exchange in Latin America,
secured in February 2025, saw the initial phase of the deployment successfully
go live in FY25, with the remaining phase expected to go live in H2 FY26.
• The pipeline for Exchange Cloud remains strong and continues to build across
both emerging and more established markets.
Multiple Private Cloud deals were secured in the period, and Proximity
Cloud(®) wins include multi-year contracts with a major South African bank,
and a significant extension with a large FX broker, alongside its continued
usage of the Johannesburg Stock Exchange's (JSE) Colo 2.0 service, which is
delivered through Exchange Cloud(®).
Future Growth and Outlook
Momentum has continued in H2 FY26 with multiple significant contracts in
discussion across the Group's offering. While the timing of deal signature can
be hard to predict, the current sales pipeline supports the Board's outlook of
a full year performance in line with its expectations.
Beeks continues to grow its reputation, offering and customer base. The size
of its addressable opportunity is significant, and competition continues to be
limited, providing the business with a considerable, long-term growth
opportunity.
Gordon McArthur
CEO
16 March 2026
Chief Financial Officer's Review:
Financial Review
Revenue for the period was £14.65m (H1 FY25: £15.79m), reflecting a lower
level of upfront Proximity Cloud® revenue recognised in the period due to the
timing of contract wins secured towards the end of the half, alongside the
continued transition of Exchange Cloud® contracts towards a revenue share
model.
As previously highlighted, the Group's Proximity and Exchange Cloud®
offerings can result in variability in revenue recognition between reporting
periods depending on the timing of infrastructure deployment and the mix
between upfront hardware and software elements and recurring services.
During the latter part of the period, the Group secured contract wins with
total contract value of approximately £7m, including £6m relating to
Proximity Cloud®. Due to the timing of these agreements, the associated
infrastructure deployments will primarily occur during the second half of the
financial year, with approximately half of the Proximity Cloud® value
expected to be recognised in H2 FY26.
Encouragingly, the Group's recurring revenue base continues to strengthen,
with ACMRR increasing 15% to £32.80m (H1 FY25: £28.50m). This growing base
of contracted recurring revenue helps underpin visibility for the remainder of
the financial year and beyond.
As is typical in the Group's business model, there is a natural lag between
contract signing, infrastructure deployment and revenue recognition. During H1
FY26 this lag was more pronounced than usual, resulting in a lower level of
revenue recognition in the first half. The majority of these deployments have
now been completed, positioning the Group to recognise the associated revenue
streams in the second half of the financial year.
Non-recurring revenue - Exchange Cloud® and Proximity Cloud® deployments
In the prior period, the Group recognised £3.3m of upfront revenue from three
new customer engagements, including a multi-site Proximity Cloud® deployment
with one of the world's largest banking groups.
In the current period, non-recurring revenue reflects one customer deployment,
recognising £0.6m of upfront revenue.
As noted above, the majority of the £6m Proximity Cloud® contract wins
secured during the period were agreed towards the end of the reporting period.
The associated infrastructure deployments are now underway, with the majority
of the related upfront revenue expected to be recognised during the second
half of the financial year.
In addition, H2 FY26 will see the disaster recovery site for Grupo Bolsa
Mexicana de Valores (BMV), the second-largest exchange in Latin America, go
live, providing further visibility of revenue recognition in the second half.
During H1 FY26, the Exchange Cloud® contract with Kraken, one of the largest
and longest-standing cryptocurrency exchanges, went live. This represents the
Group's first revenue-share Exchange Cloud® deployment and therefore, unlike
the Group's traditional fixed-price Proximity Cloud® and Exchange Cloud®
contracts, does not include an upfront revenue element. Encouragingly, the
contract moved into monthly profitability during March 2026, ahead of
expectations, demonstrating the potential of this model as trading volumes
grow.
Profitability
The loss in the period primarily reflects the timing of Proximity Cloud®
revenue recognition alongside continued infrastructure investment required to
support recently secured contract wins.
Gross profit for the period decreased 25% to £4.50m (H1 FY25: £6.03m), with
gross margin reducing from 38% to 30%. Over half of this margin reduction can
be attributed to the timing of upfront Proximity Cloud® deals.
The remaining reduction in margin primarily reflects further timing effects.
In addition to the lag between contract signing and service delivery noted
above, the Group's deployment model requires infrastructure investment ahead
of customer launch. As a result, certain costs are recognised in advance of
the associated revenue streams.
The majority of the data centre infrastructure investment required for these
deployments was undertaken during H1 FY26. Consequently, capital and operating
investment in H2 is expected to be more incremental as customer environments
progress towards launch.
With several deployments scheduled to launch in the second half of the
financial year, the Board expects revenue recognition and associated
profitability to be weighted towards H2 FY26.
The Group also continues to review and optimise its data centre supplier
arrangements as part of its normal commercial processes, including securing
improved commercial terms and moderating contractual price escalations where
possible. These initiatives are expected to support margin improvement over
the medium term, alongside the increasing contribution from higher-margin
recurring revenue.
Underlying EBITDA decreased by 28% to £4.12m (H1 FY25: £5.74m), with
underlying EBITDA margin reducing to 28% (H1 FY25: 36%), reflecting the same
margin dynamics noted above.
Underlying loss before tax is defined as loss before tax excluding
amortisation on acquired intangibles, share-based payments, exchange rate
gains/losses on statement of financial position translation and exceptional
non-recurring costs. This decreased to a loss of £0.69m (H1 FY25: £1.89m
profit).
Underlying EBITDA, underlying profit before tax and underlying earnings per
share are alternative performance measures considered by the Board to provide
a clearer reflection of underlying trading performance than statutory measures
alone.
Key performance indicator review
H1 2026 H1 2025 Growth
Revenue £14.65m £15.79m (7%)
ACMRR £32.80m £28.50m 15%
Gross profit £4.50m £6.03m (25%)
Gross margin 30% 38% (8%)
Underlying EBITDA £4.12m £5.74m (28%)
Underlying EBITDA margin 28% 36% (8%)
Underlying (loss) / profit before tax (£0.69m) £1.89m (136%)
Underlying (loss)/profit before tax margin (5%) 12% (17%)
Statutory (loss)/profit before tax (£1.87m) £0.46m (506%)
Underlying basic EPS (0.75p) 2.61p (129%)
*All references to margins are as a percentage of revenue.
Gross margin bridge:
The reduction in gross margin from 38% in H1 FY25 to 30% in H1 FY26 primarily
reflects the timing of infrastructure deployments and revenue recognition
during the period.
The principal drivers were:
1) Lower upfront deployment revenue
H1 FY25 included £3.3m of upfront revenue from three deployments, compared
with £0.6m from one deployment in the current period. As referenced earlier,
c.6% gross margin can be attributed to the timing of the upfront deals
expected in H2.
2) Infrastructure investment ahead of customer launches
Data centre and hardware investment was undertaken during H1 FY26 to support
recently secured Proximity Cloud® deployments, with revenue expected to
follow as these environments go live. This represented approximately 2% of the
reduction in gross margin.
3) Revenue-share contract structure
The Exchange Cloud® deployment with Kraken represents the Group's first
revenue-share model, which does not include the upfront revenue typically
associated with fixed-price deployments.
Margin movement reflects timing and capacity investment rather than structural
changes in pricing or unit economics, with margins expected to improve as
deployments go live.
Profit before Tax Period ended 31 Dec 2025 Period ended 31 Dec 2024
£000 £000
(Loss)/profit before tax for the period (1,868) 461
Deduct:
Grant Income (138) (138)
Add back:
Non-recurring costs 12 81
Amortisation of intangibles 55 65
Share-based payments 1,436 1,352
Exchange rate loss on intercompany translation (40) 71
R&D tax credit (143) -
Underlying (loss)/profit for the period (686) 1,892
Cost of Sales and Administration Expenses
Beeks reported a Statutory loss before tax of £1.87m (H1 2025: £0.46m
profit) with an underlying loss before tax of £0.69m (H1 2025: £1.89m
profit).
Cost of sales (excluding amortisation on acquired assets) increased 6% to
£10.42m (H1 FY25: £9.81m). As referenced earlier, the Group has added
capacity across its global data centre estate during the period, in advance of
customer deployments, with some commitments made ahead of associated revenue
recognition. Infrastructure commitments in H2 are expected to increase at a
slower rate, supporting margin improvement.
Administrative expenses (excluding share-based payments and non-recurring
costs) increased 19% to £4.90m (H1 FY25: £4.11m). The increase primarily
reflects staff investment with staff costs increasing by £0.45m.
Overall, total headcount increased to 116 employees at 31 December 2025,
compared to 102 at 30 June 2025 and 103 at 31 December 2024. Approximately
half of the increase was within sales and pre-sales functions, strengthening
the Group's ability to support enterprise sales cycles, expand its global
pipeline and convert recent contract momentum across Proximity Cloud®,
Exchange Cloud® and Market Edge opportunities.
Gross staff costs as a percentage of revenue, one of the Group's key internal
metrics, increased to 27% in H1 FY26 from 24% in H1 FY25, reflecting the
targeted investment in sales, pre-sales and product capabilities during the
period. Future hiring will remain selective as the Group continues to scale
efficiently while maintaining operational flexibility and protecting margins.
Investment in Edge Intelligence product development continues, with £0.30m
expensed during the period (H1 FY25: £0.30m).
Product Investment
The Group continues to invest in product development, including enhancements
to Exchange Cloud® and its Edge Intelligence platform, which provides
advanced latency and client experience insights designed to enhance trading
performance.
Capitalised development costs during the period were £1.11m (H1 2025:
£1.39m), with the majority of this investment delivered through the Group's
in-house engineering teams.
As in prior periods, this level of investment is expected to be funded through
operational cash generation.
Taxation
The effective tax rate ("ETR") for the period is 9% (H1 FY25: 21%). The
variance to the UK statutory tax rate of 25% primarily reflects timing
differences and deductions arising from the Group's share scheme.
Earnings per Share and Dividends
Underlying basic earnings per share decreased 129% to -0.75 pence (H1 FY25:
2.61 pence).
Underlying diluted earnings per share decreased 129% to -0.68 pence (H1 FY25:
2.61 pence).
Further detail on the calculation of both metrics is included in Note 6.
Balance Sheet and Cash Flows
Cash generated from operations before working capital movements was £4.37m
(H1 2025: £5.76m). After working capital movements, net cash generated from
operating activities was £2.94m (H1 2025: £3.17m).
Working capital movements primarily reflect the timing of infrastructure
investments and the accounting treatment of multi-year infrastructure
contracts, where revenue is recognised upfront and subsequently unwinds
through accrued income as cash is collected.
Trade receivables decreased by £0.7m reflecting the timing of customer
receipts around the period end. Trade payables decreased by £3.4m, primarily
reflecting payments relating to infrastructure deployments for Proximity
Cloud® and Exchange Cloud® installations across customer venues.
Accrued income decreased by £1.5m as previously recognised revenue on
infrastructure contracts converted to cash receipts during the period. At 31
December 2025 accrued income totalled £10.1m, which will unwind over future
periods as associated cash receipts are collected.
Capital expenditure on infrastructure and hardware totalled £3.2m, supporting
deployments including ASX, Kraken and TMX. Inventory increased to £3.4m
(FY25: £2.6m) as hardware was secured in advance of planned infrastructure
deployments, reflecting prudent supply chain management amid ongoing
constraints in high-performance compute and networking equipment driven by
global demand for AI infrastructure.
Capitalised development costs were £1.1m, reflecting continued investment in
the Group's technology platform including Proximity Cloud®, Exchange Cloud®
and Edge Intelligence.
During the period the Group made a strategic minority investment of £0.8m in
Liquid-Markets-Solutions, providing exclusive access to deploy LMS's
ultra-low-latency networking technology within its managed financial services
infrastructure platform.
To support continued infrastructure investment, the Group entered into a
£1.5m loan facility secured against its freehold property and utilised £2.0m
of asset financing to fund customer-deployed infrastructure equipment.
Gross debt remains modest at 0.4x underlying annualised EBITDA (H1 2025:
0.1x), reflecting a conservative balance sheet. Gross debt is defined as
borrowings excluding IFRS 16 lease liabilities divided by annualised
underlying EBITDA.
The Group ended the period with cash of £6.9m (FY25: £7.3m) and a net cash
position of £3.3m, maintaining strong liquidity to support ongoing growth and
infrastructure deployments.
Net assets were £42.96m at 31 December 2025 compared with £39.18m at 31
December 2024 and £43.22m at 30 June 2025.
Overall, the balance sheet remains strong, supporting continued investment in
infrastructure and product development while maintaining a conservative
leverage profile.
Fraser McDonald
CFO
16 March 2026
Beeks Financial Cloud Group PLC
Consolidated statement of comprehensive income
For the period ended 31 December 2025
6 months to 6 months to Year to
Note December 2025 December 2024 June
2025 (audited)
(unaudited) (unaudited)
£'000 £'000 £'000
Revenue 3 14,653 15,794 35,918
Other Income 3 322 191 694
Cost of sales (10,475) (9,957) (21,907)
Gross profit 4,500 6,028 14,705
Administrative expenses (6,348) (5,541) (11,942)
Operating (loss)/profit 4 (1,848) 487 2,763
Analysed as:
Earnings before depreciation, amortisation, share based payments and 4,344 5,875 13,708
non-recurring costs
Depreciation 4 (3,369) (2,693) (5,669)
Amortisation - acquired intangible assets 4 (55) (152) (276)
Amortisation - other intangible assets 4 (1,318) (1,110) (2,336)
Share based payments 4 (1,438) (1,352) (2,551)
Other non-recurring costs 4 (12) (81) (113)
Operating (loss)/profit (1,848) 487 2,763
Finance income 308 129 408
Finance costs (328) (155) (382)
(Loss)/profit before taxation for the period (1,868) 461 2,789
Taxation 5 164 (132) 177
(Loss)/profit after taxation for the period (1,704) 329 2,966
Other comprehensive income
Currency translation differences 12 (2) (31)
Total comprehensive (loss)/income for the period (1,692) 327 2,935
Pence Pence Pence
Basic earnings per share 6 (2.53) 0.47 4.43
Diluted earnings per share 6 (2.37) 0.45 4.12
Beeks Financial Cloud Group PLC
Consolidated statement of financial position
For the period ended 31 December 2025
December 2025 December 2024 June
2025
(unaudited) (unaudited)
(audited)
Note £'000 £'000 £'000
Assets
Non-current assets
Investments in equity instruments 817 - -
Intangible assets 7 9,034 9,474 9,165
Trade and other receivables 6,410 5,135 8,000
Property, plant and equipment 8 21,658 15,268 19,792
Deferred tax 3,266 2,445 3,068
Total non-current assets 41,185 32,322 40,025
Current assets
Trade and other receivables 7,637 4,910 7,711
Inventories 3,355 941 2,607
Cash and cash equivalents 6,958 7,331 7,357
Total current assets 17,950 13,182 17,675
Total assets 59,135 45,504 57,700
Liabilities
Non-current liabilities
Trade and other payables 420 88 11
Lease liabilities 10 3,769 651 3,475
Bank and other loans 1,500 - -
Total non-current liabilities 5,689 739 3,486
Current liabilities
Trade and other payables 7,154 4,288 8,580
Lease liabilities 10 3,330 1,302 2,417
Total current liabilities 10,484 5,590 10,997
Total liabilities 16,173 6,329 14,483
Net assets 42,962 39,175 43,217
Equity
Issued capital 85 84 84
Share premium 23,775 23,775 23,775
Reserves 8,180 6,876 7,668
Retained earnings 10,922 8,440 11,690
Total equity 42,962 39,175 43,217
Beeks Financial Cloud Group PLC
Consolidated statement of changes in equity
For the period ended 31 December 2025
Issued capital Foreign capital reserve Merger reserve Other reserve Share based payments Share premium Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 June 2024 (audited) 83 78 705 (315) 5,829 23,775 7,340 37,495
Profit after tax for the period - - - - - - 329 329
Currency translation difference - (2) - - - - (2)
Deferred tax - - - - - - - -
Issue of share capital 1 - - - - - - 1
Share based payments - - - - 1,352 - - 1,352
Exercise of share options - - - - (771) - 771 -
Balance at 31 December 2024 (unaudited)
84 76 705 (315) 6,410 23,775 8,440 39,175
Profit after tax for the period - - - - - - 2,637 2,637
Currency translation difference - (29) - - - - - (29)
Deferred tax - - - - - - 235 235
Issue of share capital - - - - - - - -
Share based payments - - - - 1,199 - - 1,199
Exercise of share options - - - - (378) - 378 -
Balance at 30 June 2025 (audited) 84 47 705 (315) 7,231 23,775 11,690 43,217
Loss after tax for the period - - - - - - (1,704) (1,704)
Currency translation difference - 12 - - - - - 12
Deferred tax - - - - - - - -
Issue of share capital 1 - - - - - - 1
Share based payments - - - - 1,436 - - 1,436
Exercise of share options - - - - (936) - 936 -
Balance at 31 December 2025 (unaudited) 85 59 705 (315) 7,731 23,775 10,922 42,962
Beeks Financial Cloud Group PLC
Consolidated cash flow statement
For the period ended 31 December 2025
6 months to 6 months to Year to
December 2025 (unaudited) December 2024 June
2025
(unaudited)
(audited)
£'000 £'000 £'000
Cash flows from operating activities
(Loss)/profit before taxation for the period (1,868) 461 2,789
Adjustments for:
Depreciation and amortisation 4,721 3,955 8,281
Interest payable on bank loans - - 6
Lease liability interest 222 60 229
Share based payment charge 1,436 1,352 2,551
Bank interest received - (69) -
Proceeds from grant income (138) - (276)
Operating cash flows before movements in working capital 4,373 5,759 13,581
Decrease/(increase) in receivables 1,664 (2,716) (8,253)
Increase/(decrease) in inventories 205 566 (1,527)
(Decrease)/ increase in payables (3,435) (509) 5,527
Cash generated from operating activities before tax 2,807 3,100 9,328
Corporation tax provision 133 72 97
Net cash generated from operating activities 2,940 3,172 9,425
Cash flows from investing activities
Purchase of investments (817) - -
Purchase of property, plant and equipment (3,220) (1,211) (4,583)
Capitalisation of development costs (1,114) (1,387) (2,444)
Exercise of shares 1 - 1
Net cash used in investing activities (5,150) (2,598) (7,026)
Cash flows from financing activities
Repayment of lease liabilities (1,500) (942) (2,467)
Interest on lease liabilities (222) (60) (229)
Interest payable on bank loans - - (6)
Proceeds from asset finance 2,040 - -
Bank loan receipt 1,500 - -
Bank interest received - 69 -
Net cash generated from financing activities 1,818 (933) (2,702)
Net (decrease) in cash and cash equivalents (392) (359) (302)
Exchange effect on cash and cash equivalents (7) (11) (42)
Cash and cash equivalents at the beginning of the financial period 7,357 7,701 7,701
Cash and cash equivalents at the end of the financial period 6,958 7,331 7,357
Beeks Financial Cloud Group PLC
Notes to the financial statements
For the period ended 31 December 2025
Note 1. General information
The financial information covers the consolidated entity, Beeks Financial
Cloud Group PLC and the entities it controlled at the end of, or during, the
interim period to 31 December 2025.
The company is a public limited company which is quoted on the Alternative
Investment Market and is incorporated and domiciled in United Kingdom. Its
registered office and principal place of business is:
Registered office
Riverside Building
2 Kings Inch Way
Unit A
Riverside
Braehead
PA4 8YU
Note 2. Basis of preparation
The financial information for the period ended 31 December 2025 set out in
this interim report does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006 and is unaudited. The figures for the
year ended 30 June 2025 have been extracted from the Group financial
statements for that year. Those have been filed with the Registrar of
Companies. The auditor's report on those financial statements was unmodified
and did not contain statements under Section 493 of the Companies Act 2006.
The interim financial information has been prepared using the same accounting
policies and estimation techniques as will be adopted in the Group financial
statements for the year ending 30 June 2026. The group financial statements
for the year ended 30 June 2025 were prepared under international accounting
standards in conformity with the requirements of Companies Act 2006. These
interim financial statements have been prepared on a consistent basis and
format with the Group financial statements for the year ended 30 June 2025 and
have not been audited or reviewed by the auditors.
The provisions of IAS 34 'Interim Financial Reporting' have not been applied
in full.
Going Concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Chief
Executive's Statement.
The directors are of the opinion that the Group can operate within their
current debt facilities and comply with its banking covenants. At the end of
the period, the Group had net cash of £3.29m (H1 2025: net cash £6.57m) a
level which the Board is comfortable with given the cash generation of the
Group. The Group has a diverse portfolio of customers with relatively low
customer concentration which are split across different geographic areas. As a
consequence, the directors believe that the Group is well placed to manage its
business risks.
The directors have considered the Group budgets and the cash flow forecasts to
31 December 2027, and associated risks, including the potential impact of the
current economic climate. We have run appropriate scenarios applying
reasonable downside sensitivities and are confident we have the resources to
meet our liabilities as they fall due. The budgets and cash flow forecasts
have assumed all loan facilities being repaid in full. We have also run
reverse stress test scenarios in order to identify circumstances where cash
reserves would be depleted. The circumstances that would lead into such
scenarios (such as moving from revenue growth to revenue attrition) are not
considered plausible given the historic track record and trading prospects of
the Group.
After making enquiries, the directors have a reasonable expectation that the
Group will be able to meet its financial obligations and has adequate
resources to continue in operational existence for the foreseeable future. For
this reason they continue to adopt the going concern basis in preparing the
financial statements.
Note 3. Operating Segments
Identification of reportable operating segments
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision makers. The chief operating
decision makers, who are responsible for allocating resources and assessing
performance of operating segments, have been identified as the Executive
Board. The group does not place reliance on any specific customer and has no
individual customer that generates 38% (H1 2025: 33%) or more of its total
group revenue.
Performance is assessed by a focus on the change in revenue across
public/private cloud and new sales relating to Proximity Cloud/Exchange Cloud.
Cost is reviewed at a cost category level but not split by segment. Assets are
used across all segments and are therefore not split between segments so
management review profitability at a group level.
Revenues by operating segment, further disaggregated are as follows:
Period ended 31/12/25 Period ended 31/12/24 Year ended 30/06/25 (£'000) (Audited)
(£'000) (Unaudited) (£'000) (Unaudited)
Public/ Proximity /Exchange Cloud Total Public/ Proximity /Exchange Cloud Total Public/ Proximity /Exchange Cloud Total
Private Cloud Private Cloud Private Cloud
Over time
Infrastructure/software as a service 12,981 - 12,981 11,471 - 11,471 23,765 - 23,765
Maintenance 66 - 66 421 - 421 363 - 363
Proximity cloud - 763 763 - 266 266 - 709 709
Exchange cloud - 171 171 - 73 73 - 157 157
Professional services 32 - 32 83 - 83 199 - 199
Over time total 13,079 934 14,013 11,975 339 12,314 24,327 866 25,193
Point in time
Hardware/software resale - - - 441 - 441 871 - 871
Software licenses 34 - 34 143 - 143 193 - 193
Set up fees 64 - 64 35 - 35 104 - 104
Software other 56 - 56 55 - 55 111 - 111
Proximity cloud - 486 486 - 2,694 2,694 - 7,818 7,818
Exchange cloud - - - - 112 112 - 1,628 1,628
Point in time total 154 486 640 674 2,806 3,480 1,279 9,446 10,725
Total revenue 13,233 1,420 14,653 12,649 3,145 15,794 25,606 10,312 35,918
6 months to Year to
December 2025 (unaudited) December 2024 (unaudited) June
2025 (audited)
£'000 £'000 £'000
Revenues by geographic location are as follows:
United Kingdom 2,976 6,410 13,243
Europe 1,283 1,127 2,039
US 6,709 6,003 12,427
Rest of World 3,685 2,254 8,209
Total 14,653 15,794 35,918
During the period, £138k (H1 2025: £138k) was recognised in other income for
grant income received from Scottish Enterprise, £40k (H1 2025: £53k) was
recognised as rental income, and £144k (H1 2025: £nil) was recognised in
relation to the expected R&D tax credit.
Note 4. Operating profit
6 months to Year to
December 2025 (unaudited) December 2024 (unaudited) June
2025 (audited)
£'000 £'000 £'000
Operating profit is stated after charging:
Staff costs 4,189 3,736 7,799
Depreciation on owned assets 2,266 2,051 3,826
Depreciation on right of use assets 1,082 642 1,843
Amortisation of acquired intangibles 55 152 296
Amortisation of other intangibles 1,318 1,110 2,316
Other cost of sales and admin* 6,484 6,126 14,893
Foreign exchange losses (40) (24) 212
Share based payments 1,436 1,352 2,551
Other non-recurring costs 12 - 113
* Included within other cost of sales are the direct costs associated with the
business including data centre connectivity, software licences, security and
other direct support costs.
Note 5. Taxation
6 months to Year to
December 2025 (unaudited) December 2024 (unaudited) June
2025
(audited)
£'000 £'000 £'000
Current
UK tax 34 - 62
Foreign tax on overseas companies - 47 65
Total current tax 34 47 127
Origination and reversal of temporary differences (198) 85 (304)
Total deferred tax (198) 85 (304)
Tax on profit on ordinary activities (164) 132 (177)
The effective tax rate for the six months to 31 December 2025, based on the
taxation credit for the period as a percentage of the loss/profit before tax
is 9% (H1 2025: 21%).
Note 6. Earnings per share
As at 31 December 2025, the company had 67,982,890 shares (H1 2025:
67,053,738).
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the year. Diluted earnings per share is calculated by dividing
the earnings attributable to ordinary shareholders by the total of the
weighted average number of ordinary shares in issue during the year and
adjusting for the dilutive potential ordinary shares relating to share
options.
6 months to Year to
December December 2024 (unaudited) June
2025
2025
(audited)
(unaudited)
£'000 £'000 £'000
(Loss)/ profit after taxation attributable to the owners of Beeks Financial (1,704) 329 2,966
Cloud Group PLC
Pence Pence Pence*
Basic earnings per share (2.53) 0.47 4.43
Diluted earnings per share (2.37) 0.45 4.12
Weighted average number of ordinary shares used in calculated basic earnings 67,470,187 66,687,309 66,952,413
per share
Dilutive impact of share options 4,037,381 3,484,037 4,703,077
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares 516,321 224,014 366,982
Weighted average number of ordinary shares used in calculated diluted earnings 72,023,889 70,395,357 72,022,472
per share
*The above is calculated on profit after tax excluding the £121k R&D tax
credit received during the period.
6 months to Year to
December 2025 December June
2025 (audited)
(unaudited) 2024
(unaudited)
£'000 £'000 £'000
Underlying earnings per share
Underlying profit after taxation attributable to the owners of Beeks Financial (1,704) 1,742 5,542
Cloud Group PLC
Pence Pence Pence
Underlying earnings per share - basic (0.75) 2.61 8.47
Underlying earnings per share - diluted (0.68) 2.38 7.60
Weighted average number of ordinary shares used in calculated basic earnings 67,470,187 66,687,309 66,952,413
per share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares 7,153,087 3,708,048 7,668,999
Weighted average number of ordinary shares used in calculated diluted earnings 74,623,274 70,395,357 74,621,412
per share
Included in the weighted average number of shares for the calculation of
underlying diluted EPS are share options that have vested and that are not yet
exercised and share options that have still to meet vesting criteria. It is
management's intention that the vested shares will be exercised and that the
Group will meet the challenging growth targets for the unvested shares to
vest. As such, both these types of share options have been included in the
underlying diluted EPS calculation.
Note 7. Intangible Assets
Acquired customer relationships Development costs IP addresses Trade name Goodwill Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost
As at 1 July 2024 2,499 11,665 104 137 2,336 16,741
Additions - 1,233 - - - 1,233
Foreign exchange movements 18 - - - - 18
As at 31 December 2024 2,517 12,898 104 137 2,336 17,992
As at 1 January 2025
Additions - 913 - - - 913
Foreign exchange movements (135) - - - - (135)
As at 30 June 2025 2,382 13,811 104 137 2,336 18,770
As at 1 July 2025
Additions - 1,114 - - - 1,114
Foreign exchange movements 26 - - - - 26
As at 31 December 2025 2,408 14,925 104 137 2,336 19,910
Accumulated amortisation
As at 1 July 2024 (1,732) (4,558) - (115) (968) (7,373)
Charge for the year (138) (1,110) - (14) - (1,263)
Foreign exchange movements (19) - - - - (19)
Grant income release - 137 - - - 137
As at 31 December 2024 (1,890) (5,531) - (129) (968) (8,518)
As at 1 January 2025
Charge for the year (138) (1,204) - (8) - (1,349)
Foreign exchange movements 124 - - - - 124
Grant income release - 138 - - - 138
As at 30 June 2025 (1,903) (6,597) - (137) (968) (9,605)
As at 1 July 2025
Charge for the year (55) (1,318) - - - (1,373)
Foreign exchange movements (35) - - - - (35)
Grant income release - 137 - - - 137
As at 31 December 2025 (1,993) (7,778) - (137) (968) (10,876)
NBV as at 31 December 2025 415 7,147 104 - 1,368 9,034
NBV as at 31 December 2024 627 7,367 112 - 1,368 9,474
NBV as at 30 June 2025 479 7,214 104 - 1,368 9,165
Note 8. Non-current assets - Property, plant and equipment
Office equipment and fixtures and fittings
Computer Equipment Freehold property
Right of Use Total
Cost £'000 £'000 £'000 £'000 £'000
As at 1 July 2024 23,862 394 8,038 3,040 35,334
Additions 1,057 - 120 - 1,177
Stock transfers - - (46) - (46)
Exchange adjustments 36 - - - 36
As at 31 December 2024 24,955 394 8,112 3,040 36,501
Additions 2,800 49 5,252 - 8,101
Stock transfers - - (79) - (79)
Disposals (501) - - - (501)
Exchange adjustments (28) - 161 - 133
As at 30 June 2025 27,226 443 13,446 3,040 44,155
Additions 3,492 29 1,705 - 5,226
Stock transfers - - (39) - (39)
Transfer from Right of Use Asset 1,036 - (1,036) - -
Exchange adjustments 1 - 66 - 67
As at 31 December 2025 31,755 472 14,142 3,040 49,409
Depreciation
As at 1 July 2024 (13,179) (160) (5,087) (169) (18,595)
Charge for the year (1,748) (49) (860) (36) (2,693)
Exchange adjustments - - - - -
As at 31 December 2024 (14,927) (209) (5,947) (205) (21,288)
Charge for the year (1,933) (24) (983) (36) (2,976)
Transfer to stock
Depreciation on disposals 40 - - - 40
Exchange adjustments (9) - (130) - (139)
As at 30 June 2025 (16,829) (233) (7,060) (241) (24,363)
Charge for the year (2,044) (40) (1,228) (36) (3,348)
Transfer from Right of Use Asset (543) - 543 - -
Exchange adjustments (4) - (36) - (40)
As at 31 December 2025 (19,420) (273) (7,781) (277) (27,751)
As at 31 December 2025 12,878 199 5,818 2,763 21,658
As at 30 June 2025 10,397 210 6,386 2,799 19,792
As at 31 December 2024 10,028 185 2,165 2,835 15,268
Of the total additions in the period of £5.23m, £1.71m (H1 2025: £0.12m)
relates to right-of-use assets, of which £1.27m are assets held under asset
financing arrangements and £0.44m are assets held under IFRS16.
Note 9. Analysis of change in net debt
Cash and cash equivalents Bank loans Lease liabilities Total net debt
£000 £000 £000 £000
At 30 June 2024 7,701 - (2,895) 4,806
Cash and cash equivalents cash outflow (370) - - (370)
Lease additions - - (120) (120)
Lease repayments - - 1,062 1,062
At 31 December 2024 7,331 - (1,953) 5,378
Cash and cash equivalents cash inflow 26 - - 26
Lease additions - - (5,343) (5,343)
Lease repayments - - 1,405 1,405
At 30 June 2025 7,357 - (5,891) 1,466
Cash and cash equivalents cash outflow (399) - - (399)
Asset financing additions - - (2,040) (2,040)
Lease additions (668) (668)
Lease repayments - - 1,500 1,500
Bank loans received - (1,500) - (1,500)
At 31 December 2025 6,958 (1,500) (7,099) (1,641)
Included within lease liabilities in the year is an addition is £0.44m of
leases held under IFRS16 as right of use liabilities. The carrying value of
brought forward asset financed leases at the period end is £2.17m (H1 2025:
£0.76m)
Note 10. Borrowings
31-Dec-25 31-Dec-24 30-Jun-25
£000 £000 £000
Current:
Right of Use Lease liabilities 2,198 684 2,042
Asset financing lease liabilities 1,132 618 375
Bank loans - - -
Total current borrowings 3,330 1,302 2,417
Non-current:
Right of Use Lease liabilities 2,733 510 3,456
Asset financing lease liabilities 1,036 141 19
Bank loans 1,500 - -
Total non-current borrowings 5,269 651 3,475
Total borrowings 8,599 1,953 5,892
Note 11. Availability of announcement and Half Yearly Financial Report
Copies of this announcement are available on the Company's website,
www.beeksgroup.com. Copies of the Interim Report will be downloadable from the
Company's website and available from the registered office of the Company
shortly.
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