Beeks Financial Cloud Group (LSE: BKS) reported revenue climbed 26% to £35.9 million for the year ended June 30, powered by a tripling of sales from its Proximity and Exchange Cloud products as major stock exchanges adopted the company's infrastructure services.
The London-listed provider of cloud computing for capital markets said statutory profit before tax nearly doubled to £2.79 million from £1.46 million a year earlier. Underlying profit before tax, which excludes share-based payments and other non-cash items, jumped 41% to £5.5 million.
“Yet again we have achieved double-digit growth in revenue and profitability, strengthened our recurring revenue profile and secured significant contracts with some of the world's largest financial institutions,” CEO Gordon McArthur said in the statement.
Major Exchange Wins Fuel Beeks’ Growth
Revenue from Proximity and Exchange Cloud products hit £10.3 million, up from £3.5 million in the prior year. The company signed contracts during the period with the Australian Securities Exchange , Mexico's Grupo Bolsa Mexicana de Valores, cryptocurrency platform Kraken, and after year-end, a division of TMX Group that owns the Toronto Stock Exchange.
The company also extended an existing agreement with the Johannesburg Stock Exchange. However, Beeks disclosed one unnamed major exchange contract won in the previous fiscal year was terminated during the period, though management said the financial impact would be “insignificant” because the service hadn't fully launched to the exchange's customers.
Beeks now counts six of the world's 30 largest exchanges among its multi-year contract holders. The company said it has four additional top-30 exchanges in final contracting stages.
Financial Performance Overview
Key Performance Indicator | FY 2025 | FY 2024 | Change |
Revenue | £35.9m | £28.5m | +26% |
Annualized Committed Monthly Recurring Revenue (ACMRR) | £29.5m | £28.0m | +5% |
Gross Profit | £14.7m | £11.3m | +30% |
Gross Profit Margin | 40.9% | 39.8% | +1.1pp |
Underlying EBITDA | £13.6m | £10.7m | +27% |
Underlying EBITDA Margin | 37.9% | 37.7% | +0.2pp |
Underlying Profit Before Tax | £5.5m | £3.9m | +41% |
Statutory Profit Before Tax | £2.8m | £1.5m | +91% |
Underlying Diluted EPS | 7.60p | 6.36p | +19% |
Basic EPS | 4.43p | 3.33p | +33% |
Net Cash | £7.0m | £6.6m | +6% |
Revenue Model Shift Accelerates Sales
The company introduced a revenue-sharing structure for certain Exchange Cloud deals during the year, a change management said shortens sales cycles and enhances long-term profitability. Three exchanges now operate under this model, with one already generating revenue profitably.
Under the new approach, Beeks shares in usage-based fees rather than charging fixed upfront and recurring amounts. Management expects “considerable runway of growth” from these arrangements over the next 12 to 24 months as deployed infrastructure scales up.
Annualized committed monthly recurring revenue increased 5% to £29.5 million at year-end, then rose further to £31.5 million by September following what the company called a strong start to the current fiscal year for its Private Cloud business.
AI Product Targets New Market
Shortly after the fiscal year closed, Beeks launched Market Edge Intelligence, which the company described as an AI and machine learning solution for monitoring capital markets data at the network edge. The product delivers real-time analytics and predictive alerts for infrastructure anomalies, capacity forecasting, and trading signals.
The offering can be deployed standalone or integrated with existing systems, creating what management called “a new channel of recurring revenue” beyond the company's core infrastructure business. Beeks said early customer feedback has been positive, with multiple conversations underway.
Outlook Remains Confident
Beeks said its sales pipeline stands at record levels across all product lines, with multiple opportunities involving leading global financial institutions. The company cited growing customer desire to modernize technology infrastructure and outsource non-competitive functions as cloud adoption accelerates in capital markets.
“The launches of the revenue share model for Exchange Cloud and the first-of-its-kind Market Edge Solution enhance the scale of our opportunity and the quality of our earnings,” McArthur said. “We move into FY26 in a strong position, bolstered by a widened offering and a record pipeline of opportunities.”
The board said it remains confident of achieving results for the fiscal year ending June 2026 in line with expectations, despite being early in the period.
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