Beeks Financial Cloud Group plc (AIM: BKS) announced on Monday its preliminary financial results for the fiscal year ending June 30, 2024, reporting revenue growth and an increase in recurring revenue.

The cloud computing and connectivity provider for financial markets stated that its revenue for fiscal year 2024 (FY24 )is expected to be approximately 27% higher than the previous year. The company's Annualized Committed Monthly Recurring Revenue (ACMRR) reached £28.0 million, marking an 18% increase from £23.8 million reported at the end of the previous fiscal year.

Beeks Financial Cloud Reports Revenue Growth for Fiscal Year 2024

Beeks also reported that its underlying EBITDA growth exceeded 27%, while underlying profit before tax is projected to increase by approximately 67% compared to fiscal year 2023 (FY23). According to unaudited figures, the company ended the fiscal year with a net cash position of £6.58 million.

During the second half of FY24, Beeks secured several new contracts, including an extension with the Johannesburg Stock Exchange for its Exchange Cloud offering and a deal with a major banking group for its Proximity Cloud service. The company also mentioned ongoing discussions with other exchanges globally for potential Exchange Cloud contracts.

"The increased traction of our products is testament to Beeks' growing reputation across the financial markets as technology provider of choice,” Gordon McArthur, CEO at Beeks, commented. “We are confident in our ability to continue satisfying strong demand for our solutions and we remain focused on the conversion of our substantial pipeline."

The company stated that it anticipates its FY24 results to be in line with market consensus expectations. Beeks plans to release its audited results for FY24 in early October 2024.

In its latest report from early March, Beeks disclosed financial outcomes for the first half of FY24, highlighting a 25% surge in revenue to £12.96 million. Pre-tax profits soared by 113% reaching £1.38 million, and the statutory earnings increased by 121% to £0.16 million.

New Deals and New Executive

During the same period, Beeks finalized a multi-million dollar, multi-year expansion contract to enhance the infrastructure provided to a premier Tier 1 investment manager via its Proximity Cloud service. This agreement amplifies the initial contract's value to $3.6 million over the next four years. Beeks acknowledged that there is considerable potential for further expansion, noting that only 30% of the client’s trading infrastructure is currently utilizing the Proximity Cloud.

Furthermore, Beeks secured a conditional agreement to supply its Exchange Cloud solution to one of the largest global exchange groups, pending regulatory nods. The Exchange Cloud solution is designed to facilitate a cloud-based trading environment tailored for major exchanges, marking the third significant global exchange to adopt this technology.

Concurrently, Beeks strengthened its leadership team by appointing Zech Kottilil as the new Technical Pre-Sales Specialist. Kottilil, who has amassed over 15 years of experience with industry leaders such as Nasdaq and Amazon Web Services (AWS), is expected to bring a deep reservoir of knowledge and expertise to the Beeks team.