Beeks Financial Cloud registers 27% increase in revenues in FY20

Maria Nikolova

Beeks’ revenues increased through the combination of continued organic growth and the full year impact of last year’s acquisition of CNS.

Cloud computing and connectivity provider for financial markets Beeks Financial Cloud Group PLC (LON:BKS) today posted its final results for the full year to end-June 2020.

Group revenues grew by 27% to £9.36 millioon (2019: £7.35m), through the combination of continued organic growth and the full year impact of last year’s acquisition of CNS. The Velocimetrics acquisition contributed £0.29 million revenue in the final two months of the year. Of the Group’s revenues, 94% were recurring. Annualised Committed Monthly Recurring Revenues (ACMRR) increased by 23% to £11.2 million (2019: £9.1m) with Velocimetrics representing £0.8 million of this increase.

The company has increased the number of institutional customers to 242 from 220 as at June 30, 2020 and its top 10 customers accounted for 36% of recognised revenue in the year (2019: 32%).

Underlying gross profit earned increased 30% to £4.75 million (2019: £3.65m), with gross margins similar to last year. Beeks has made further expansion across its Datacentre footprint with the opening of seven new Datacentres: Singapore SG1, London LD8 and LD4.2, Paris PA1, Sydney and NY2 and NY5 in New York. These have all been driven by customer demand. The new Datacentres are revenue generating but not are not all yet at breakeven levels which is typically achieved 12 months from go-live.

Operational costs have increased by £0.8 million as Beeks supports both a growing and more mature customer base and to gear up for future growth plans. Overall, they increased by 35% to £3 million (2019: £2.2m).

Finance costs have increased compared with last year. Finance lease interest costs have reduced as a result of some historic finance leases coming to the end of life but this has been offset by higher loan interest due to the £1 million debt facility taken to finance the CNS acquisition and latterly in the year, a £1.5 million debt facility taken to help support the Velocimetrics acquisition.

Earnings before interest, tax, depreciation, amortisation and exceptional non-recurring costs (“Underlying EBITDA”) increased by 34% to £3.33 million (2019: £2.48m).

In terms of outlook, the company anticipates continued growth of its existing Tier 1 accounts, as they expand the use of its offering into new geographies and the company believes the launch of its analytics offering has the potential to layer on new SaaS product revenues.

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