Beeks Financial Cloud: Progressive
Finals sparkle, with an ‘in-line’/beat set of results (adj. EPS 6.4p vs our 5.1p estimate). Looking ahead, FY25 estimates are covered by recurring revenue, a strong pipeline and a new FY that is off to a flying start. To wit, ACMRR already ticked by £0.5m to £28.5m to 31 August – 74% of our FY25 revenue estimate. CEO Gordon McArthur telegraphs further progress: ‘Demand for our product is stronger than ever, fuelling a regular flow of new contract wins and extensions that offer long-term, recurring revenues.’ The offer has matured with service extensions, new sites, new ‘C’ suite hires and strides in go-to-market as Beeks gains from secular tailwinds (cloud adoption, compliance, data sovereignty, cybersecurity, sustainability, analytics, payment modernisation, AI in risk management etc) – all enabling Beeks to carve out a moat as market leader in cloud infrastructure for financial markets and payments. Shares have performed well, +157% YTD vs sector +4.7%, but TSR only reflects the operational momentum. The FY1 valuation (EV/Sales 4.0x vs cohort 4.2x) does little to reflect the proven execution on global TAM. We believe that offers long-term secular growth.
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