Beeks Financial CLoud Group PLC on Tuesday boasted of two major contracts for its cloud-based offerings, as the company now expects future trading to be ‘significantly ahead’ of expectations.

Shares in the Glasgow-based cloud computing and connectivity provider rose 30% in London on Tuesday morning, currently trading at 140.20 pence each.

This came after the company revealed the successful signing of a ‘multi-million-dollar, multi-year expansion contract’ for its proximity cloud trading environment, as well as a new win for its exchange cloud offering.

The former comes after the successful deployment of proximity cloud with an unnamed ‘tier 1 investment manager’ in November, who has awarded Beeks a new contract for additional locations. The latest win adds $2.3 million in value to the contract, now worth $3.6 million in aggregate over a four-year period.

Only 30% of the customer’s trading infrastructure has migrated to the proximity cloud trading environment so far, leaving significant potential for growth, Beeks said.

The company has also signed a conditional contract with ‘one of the world’s largest exchange groups’ for its exchange cloud service. This contract marks the beginning of a potential multi-year partnership with the unnamed exchange, the third major international exchange to sign up for the offering, for which Beeks continues to see a ‘building pipeline of opportunities’.

Completion of the contract is subject to regulatory approval, after which recognition of revenue will commence.

Beeks also provided an update on trading over the six months to December 13, which has remained in line with its previous expectations. Revenue growth was over 25% for the period versus the first half of financial 2023, in which revenue was £10.4 million.

Beeks achieved a positive free cash flow position in the lead-up to December 31, finishing the calendar year with £5.5 million compared to £4.4 million in June.

Thanks to the recent contract wins, Beeks said it is confident in achieving results in line with expectations for the year ending June 30.

Looking further ahead, the company said that it had won a number ‘competitive tenders’ over the past months for upcoming projects, which will bring trading ‘significantly ahead’ of expectations for financial 2025.

While Beeks did not provide figures alongside these forecasts, Progressive Equity Research Ltd on Tuesday predicted that the company would bring in £29.1 million in revenue for financial 2024, followed by £38.5 million the subsequent year. Revenue was £22.4 million in the recent year ended June 2023.

The company expects to release its interim results for the six months ended December 31 in early March.

Chief Executive Officer Gordon McArthur said: ‘We continue to progress with the execution of our land and expand strategy, quickly demonstrating the value of our offerings, as evidenced by the significant proximity cloud expansion contract announced this morning and the winning of a third major global exchange customer for our exchange cloud offering. We see considerable expansion potential across our customers, as they migrate increasing proportions of their trading infrastructure to the cloud.

‘The delivery of free cash flow was a key objective for the current year and we are pleased to have achieved that to plan, as we capitalise on the investments we have made into the expansion of our product offering. Our growing contract momentum demonstrates the considerable appetite we see across the financial markets, and we now anticipate financial 2025 will be significantly ahead of our previous expectations.’

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