Beeks Financial Cloud Group announces significant contract wins and positive trading momentum

Beeks Financial Cloud Group plc (AIM: BKS), a leading provider of cloud computing and connectivity solutions for financial markets, has revealed a substantial multi-year expansion contract valued at $2.3 million for its Proximity Cloud service. This development, marking a significant leap from an initial contract signed in November 2023, which has now more than doubled in value to $3.6 million over four years, underscores the company’s robust growth trajectory and the strong demand for its innovative Proximity Cloud offering. This fully configured and pre-installed physical trading environment has caught the attention of a Tier 1 investment manager, indicating only about 30% of the customer’s trading infrastructure is currently utilizing Proximity Cloud, highlighting significant expansion potential.

Moreover, Beeks Financial Cloud has also secured a new win with its Exchange Cloud Offering through a conditional contract with one of the largest exchange groups globally. This agreement signals the initial phase of a promising multi-year partnership, subject to regulatory approval, showcasing the Exchange Cloud offering’s appeal as a multi-home, fully configured, and pre-installed physical trading environment optimized for global exchanges. This marks the third major international exchange to adopt Beeks’ Exchange Cloud, further demonstrating its potential within the financial sector.

The company’s trading update for the first half of the fiscal year 2024 (H1 FY24) has been positive, with a revenue growth exceeding 25% compared to H1 FY23 and improved margins, contributing to a positive free cash flow position. With unaudited net cash rising to £5.5 million as of December 31, 2023, Beeks is on track to achieve its FY24 expectations and anticipates FY25 trading to be significantly ahead of previous Board expectations, thanks to winning several competitive tenders.

Gordon McArthur, CEO of Beeks Financial Cloud, expressed enthusiasm about the company’s progress, emphasizing the significant expansion potential across its customer base as more trading infrastructure migrates to the cloud. The company’s focus on delivering free cash flow and expanding its product offerings reflects its strategic commitment to capitalizing on the growing demand within the financial markets.

Beeks Financial Cloud Group plc distinguishes itself as a premier managed cloud provider exclusively within the fast-moving financial sector. Its Infrastructure-as-a-Service model, optimized for low-latency private cloud compute, connectivity, and analytics, offers unparalleled flexibility, enabling clients to deploy and connect to exchanges, trading venues, and public cloud services for a comprehensive hybrid cloud experience. This approach not only underscores Beeks’ commitment to innovation but also positions it as a key player in the evolving landscape of financial market technologies.