Beeks Financial: Progressive
H1 results are in line with the 19 February trading update.Illustrating continuing strong, double-digit sales growth, there is a raft of client wins and enters the crypto exchange market. CEO Gordon McArthur gives an upbeat assessment of the pipeline opportunities while the current ACMRR ‘take rate’ underpins the positive view. The wider ‘cloud’ industry (Oracle’s print, pending CoreWeave IPO) offers ample evidence of strong cloud demand, as does the increase in trading volumes, due to heightened volatility. While customers span UK, US and EMEA, contracts atJSE and BMV illustrate the potential in Asia-Pacific and the wider developing world. Our view is unchanged: Beeks is gaining from secular tailwinds (cloud adoption, compliance, data sovereignty, cybersecurity, sustainability, analytics, payment modernisation, AI in risk management), which have enabled it to carve out a moat as market leader in cloud infrastructure for financial markets and payments. Investors buy Beeks for long-term secular growth and its ‘best of breed’ financial model giving resilience in difficult times.
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