Beeks Financial Cloud registers rise in earnings in H1 FY2020

Maria Nikolova

Gross profit for the six months to end-December 2019 increased 25% to £2.12 million.

Cloud computing and connectivity provider for financial markets Beeks Financial Cloud Group PLC (LON:BKS) has earlier today posted its unaudited results for the six months ended December 31, 2019 (H1 2020), with the figures revealing a rise in profits and revenues.

In the six months to end-December 2019, Group revenues grew by 23% from a year earlier to £4.29 million (H1 2019: £3.50m), supported mainly by continued organic growth with the now embedded CNS business contributing approximately 8% of the Group’s total revenue in the period.

Gross profit for the period amounted to £2.12 million, up 25% from the £1.70 million results registered a year earlier. Gross margin was flat at 49%. It has benefitted by the change in depreciation useful life estimate of computer equipment which resulted in a reduction of depreciation in the period of £0.15 million.

In line with Beeks’ 12-month target, both London InterXion and the original Singapore site are now at break-even level following their launch last year. As with prior years, the Group expects gross margins to increase in the second half of the year, with revenue growth utilising existing capacity without the need for significant additional operating expenditure increase.

Earnings before interest, tax, depreciation, amortisation and exceptional costs (“Underlying EBITDA”) increased by 66% to £1.56 million, with underlying EBITDA margins increasing to 36%.

Reported profit before tax increased to £0.39 million (H1 2019: £0.34m) with underlying profit before tax increasing to £0.60 million (H1 2019: £0.41m).

Cost of sales amounted to £2.17 million in H1 2020, up 20% from a year earlier, largely due to further investment across Beeks’ data centres to expand capacity in both London and New York and to further support geographical expansion.

There has been an increase in Administrative expenses (excluding share based payments, acquisition and non-recurring costs) of 11% to £1.41 million mostly due to an increase in staff.

Finance costs are higher, but in line with expectations at £0.18 million reflecting the £1m debt facility to support the CNS acquisition. No further debt has been taken during the first six months of the year as growth has been financed by existing cash reserves and historic lease finance has been repaid.

Underlying earnings per share has increased to 1.01 pence in the six months to end-December 2019 (H1 2019: 0.96 pence). Underlying diluted earnings per share has increased to 0.98 pence (H1 2019: 0.95 pence).

Maintaining its dividend policy, Beeks will pay an interim dividend of 0.20 pence per share (H1 2019: 0.20 pence) on April 1, 2020 to shareholders on the register on March 13, 2020, with an ex-dividend date of March 12, 2020. This dividend represents a pay-out ratio of 21% of the underlying diluted earnings per share for the interim period.

Read this next

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

<