Beeks Financial Cloud registers 22% increase in revenues in FY23
Beeks Financial Cloud Group plc (LON:BKS), a cloud computing and connectivity provider for financial markets, today announced its final results for the year ended 30 June 2023.
FY23 was another good year for Beeks in terms of revenue growth. Group revenues grew by 22% to £22.36m (2021: £18.29m) driven mainly by Beeks’ core Private Cloud offering across both existing and new customers.
Statutory gross profit earned increased 15% to £9.12m (2022: £7.94m), with gross margin reduced due to increased depreciation and amortisation charges following the investment made during FY23 into both Exchange Cloud and across Beeks’ global asset base. The investment in both Proximity Cloud and Exchange Cloud including Analytics during the year has incurred internal gross capitalised development costs of £2.87m (2022: £2.59m) in line with the additions to the software development team made during the year.
With a strong pipeline of Proximity and Exchange Cloud deals and with investment expected to be at a lower quantum when compared to sales growth, Beeks anticipates gross margins to increase as these deals are converted.
Earnings before interest, tax, depreciation, amortisation and exceptional non-recurring costs (Underlying EBITDA) increased by 33% to £8.42m (2022: £6.31m). The growth in Underlying EBITDA has been driven by continued organic revenue growth.
Underlying earnings per share decreased 4.00% to 4.31p (2022: 4.49p). Underlying diluted earnings per share decreased to 3.96p (2022: 4.19p). The decrease in underlying EPS is largely as a result of the increased group share capital following the equity raise in April-22 given the increased underlying profitability and higher tax credit in FY23.
Basic loss per share decreased to 0.14p (2022: earnings per share of 1.43p). The decrease in basic EPS is as a result of the statutory loss in the period as well as the additional share capital in FY23 following last year’s equity raise. Diluted loss per share has also decreased to 0.13p (2022: earnings per share 1.35p).
In terms of outlook, Beeks commented:
“The Board is confident in achieving growth acceleration and results for FY24 in line with its expectations. Confidence underpinned by high levels of contracted, recurring revenue, a unique proposition and growing international profile”.