REG - Beeks Fin Cloud Grp - Significant Contract Wins and Trading Update

Beeks Financial CloudAnnouncement

06/02/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240206:nRSF0929Ca&default-theme=true

RNS Number : 0929C  Beeks Financial Cloud Group PLC  06 February 2024

Beeks Financial Cloud Group plc

("Beeks" or the "Company")

Proximity Cloud Contract Win, Exchange Cloud Win and Trading Update

Continued land and expand success, FY25 now expected to be significantly ahead
of expectations

06 February 2024 - Beeks Financial Cloud Group plc (AIM: BKS), a cloud
computing and connectivity provider for financial markets, is pleased to
announce the signing of a multi-million-dollar, multi-year expansion contract
for its Proximity Cloud offering, a new win with its Exchange Cloud Offering,
and provide an update on a period of continued positive trading momentum in
the six months to 31 December 2023 (H1 FY24).

Having won a number of competitive tenders in H1 FY24, the Company now expects
trading in FY25 to be significantly ahead of previous Board expectations for
FY25.

$2.3 million Proximity Cloud expansion contract

Following the successful deployment of an initial contract with a Tier 1
investment manager, signed in November 2023 for Proximity Cloud, Beeks' fully
configured and pre-installed physical trading environment, a new contract has
been awarded for additional locations. The latest win more than doubles the
initial contract's value to $3.6 million in aggregate over a four year period.

The Company anticipates considerable further expansion with the customer, with
only approximately 30% of the customer's trading infrastructure currently
migrating to Proximity Cloud, demonstrating the strong growth potential for
the offering.

Exchange Cloud win with one of the largest exchange groups globally

The Company is also delighted to announce the signing of a conditional
contract with one of the largest exchange groups globally (the "Exchange") for
its Exchange Cloud offering, a multi-home, fully configured and pre-installed
physical trading environment fully optimised for global exchanges to offer
cloud solutions to their end users. The deal marks the initial phase of an
intended multi-year partnership between Beeks and the Exchange, and completion
of the contract is subject to regulatory approval, following which deployment
of services and recognition of revenue will commence.

This is the third major international exchange to sign up to the Exchange
Cloud offering, demonstrating the significant potential for the offering.
Beeks continues to see a building pipeline of opportunities across its
Exchange Cloud offering.

Trading Update: FY24 in line and FY25 significantly ahead of expectations

Trading in H1 FY24 has been in line with Board expectations, with revenue
growth of over 25% versus H1 FY23, combined with improved margins.  In line
with strategy, Beeks has achieved a positive free cash flow position in the
period, with unaudited net cash increasing to £5.5m at 31 December 2023 (June
2023 net cash of £4.4m). The Board continues to be confident in achieving
results for FY24 in line with its expectations.

Having won a number of competitive tenders in recent months for projects
commencing in the upcoming reporting period and excluding any contribution
from the conditional Exchange Cloud contract, the Company now expects trading
in FY25 to be significantly ahead of previous Board expectations.

The Company expects to release its Interim Results for the six months ended 31
December 2023 in early March 2024.

Gordon McArthur, CEO of Beeks Financial Cloud commented:

"We continue to progress with the execution of our land and expand strategy,
quickly demonstrating the value of our offerings, as evidenced by the
significant Proximity Cloud expansion contract announced this morning and the
winning of a third major global exchange customer for our Exchange Cloud
offering. We see considerable expansion potential across our customers, as
they migrate increasing proportions of their trading infrastructure to the
cloud.

"The delivery of free cash flow was a key objective for the current year and
we are pleased to have achieved that to plan, as we capitalise on the
investments we have made into the expansion of our product offering. Our
growing contract momentum demonstrates the considerable appetite we see across
the financial markets, and we now anticipate FY25 will be significantly ahead
of our previous expectations."

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018.

For further information please contact:

 Beeks Financial Cloud Group plc
 Gordon McArthur, CEO             via Alma
 Fraser McDonald, CFO

 Canaccord Genuity                +44 (0)20 7523 8000
 Adam James / Alex Orr

 Alma Strategic Communications    +44(0)20 3405 0205
 Caroline Forde / Joe Pederzolli

 

About Beeks:

Cloud computing is crucial to Capital Markets and finance.

Beeks Group is a leading managed cloud provider exclusively within this
fast-moving sector. Our Infrastructure-as-a-Service model is optimised for
low-latency private cloud 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 beeksgroup.com

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSSIESIELSESE