Key Moments
- Beeks Financial Cloud Group (LSE: BKS) signed two new contracts totaling $3.8 million, including a three-year Private Cloud deal worth $1.5 million with a Canadian bank.
- An expanded Proximity Cloud agreement with a large FX broker lifted that client’s total commitment to £4 million over five years, with the new £2 million portion signed recently.
- Both recently signed contracts are expected to begin contributing revenue in the second half of Beeks’ current fiscal year, which runs through June 2026.
New Cloud Contracts Deepen Institutional Relationships
Beeks Financial Cloud Group (LSE: BKS) announced two new contracts worth $3.8 million. As a result, the company is continuing to broaden its ties with major financial institutions. It added a new Canadian banking client. In addition, it expanded its relationship with a large Forex broker. However, Beeks did not disclose the identities of either counterparty in its Wednesday update.
The company signed a three-year Private Cloud agreement with the unnamed Canadian bank. The contract is valued at $1.5 million. In a separate deal, Beeks expanded its long-standing partnership with a major FX broker through a new £2 million Proximity Cloud agreement. As a result, the broker’s total commitment to Beeks now stands at £4 million over five years.
Both newly signed contracts are scheduled to begin generating revenue in the second half of Beeks’ current fiscal year. This period concludes in June 2026.
Commenting on the commercial backdrop, CEO Gordon McArthur stated: “We have a wide range of opportunities progressing through our sales pipeline across the breadth of our product offering.”
Recent Performance Driven by Exchange-Focused Solutions
Beeks continues to build momentum in its exchange-related business. This follows a period of strong top-line growth. For the year ended June 30, revenue rose 26% to £35.9 million.
Sales from its Proximity and Exchange Cloud offerings rose sharply. Revenue from these products tripled to £10.3 million. This growth was supported by several major contracts. For example, Beeks secured deals with the Australian Securities Exchange, Mexico’s Grupo Bolsa Mexicana de Valores, and the digital asset platform Kraken.
After the fiscal year ended, Beeks entered a partnership with TMX Datalinx to provide the technology behind a new service called TMX Elastic Market Access. However, the service still requires regulatory approval. The arrangement further extends Beeks’ reach in North America, a region where it has been actively targeting increased penetration among financial institutions.
Expanding Global Exchange Relationships
The company reported that it now has commercial agreements with six of the 30 largest exchanges globally. In addition, Beeks noted that negotiations are in the final stages with four other exchanges that also rank within the top 30 worldwide.
During the last fiscal year, Beeks converted some Exchange Cloud agreements to a revenue-sharing framework. According to the company, this approach helps shorten sales cycles by easing the initial cost burden for exchange partners.
| Metric | Most Recent Value | Prior Comparable Value |
|---|---|---|
| Total revenue (year ended June 30) | £35.9 million | Not disclosed |
| Proximity and Exchange Cloud revenue | £10.3 million | Approximately one-third of £10.3 million (prior year, exact figure not specified) |
| Statutory profit before tax | £2.79 million | £1.46 million |
| Underlying profit before tax | £5.5 million | Not disclosed (increase of 41% reported) |
| Gross profit margin | 40.9% | 39.8% |
Private Cloud Momentum and Recurring Revenue Trends
The new Canadian bank transaction underscores the progress of Beeks’ Private Cloud segment. This unit provides clients with dedicated infrastructure deployed either within their own premises or in third-party data centers.
Activity in this area supported growth in the company’s annualized committed monthly recurring revenue, which rose to £31.5 million by September, compared with £29.5 million at the end of the fiscal year in June.
Beeks described the start of the current fiscal year for its Private Cloud business as strong, although the pace of expansion in this segment has been more measured than the rapid growth seen in Exchange Cloud. For the most recent fiscal year, Private Cloud revenue advanced 5% to £14.7 million, while Exchange and Proximity Cloud sales nearly tripled over the same period.
Record Pipeline and Profitability Metrics
The company reported that its sales pipeline has reached record levels across all product categories, with multiple ongoing discussions involving leading global financial institutions. The board reiterated its expectation that Beeks will achieve its financial objectives for fiscal 2026, even though the current fiscal year remains at an early stage.
On the profitability front, statutory profit before tax almost doubled to £2.79 million from £1.46 million in the prior year. Underlying profit before tax increased 41% to £5.5 million. Beeks also reported an improvement in gross profit margin to 40.9%, up from 39.8% previously.
Limited Impact From Exchange Contract Termination
During fiscal 2025, one major exchange contract originally secured in the preceding year was terminated. Beeks indicated that the financial impact from this cancellation would be minimal because the associated service had not been fully launched. The company did not reveal the name of the exchange involved or the size of the contract.
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