Beeks Financial Cloud (BKS)

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Beeks Financial Cloud BKS Logo

A UK based company focused on providing niche cloud computing and connectivity services for automated trading in futures and forex financial products.

29-Aug-2018 – 78p – £38.5m – PER 23.3

Final Results For The 12 Months To End June 2018 – Revenues up by 41% to £5.58m (2017: £3.97m), Underlying PBT £1.19m (2017: £0.0m) with Underlying EPS of 2.27p (2017: 0.22p loss). Net Cash at £2.09m (2017: Net debt £0.74m) and there’s a Maiden Final Dividend of 0.3p (2017: 0.0p). Strong pipeline of sales opportunities, confident of the year ahead.

I am long here and these results look good (pretty much as expected) – I will continue to hold for now.

27-Feb-2019 – 127.5p – £64.7m – PER 43

Interim Results For The 6 Months To End December 2018 – Revenue up 36%, Underlying PBT up 46%, Underlying Basic EPS up 88%, Net Cash down from £2.55m to £1.84m, there’s a proposed Maiden Interim Dividend of 0.2p. Confident of continued strong organic growth following the historic trend of stronger H2. However, FY Revenue expected to be broadly in-line with underlying PBT growth expected to be circa 25% (due to platform and operations spend). 99% of Revenue is recurring.

Not sure this is quite enough given the rating, I will keep an eye on the market reaction here as there is still a lot to like. Not at this price though, perhaps!

Subsequent note: Sold out here today as 25% was not really the growth I was expecting, the latest Broker note I read (by Cenkos) also suggested, based on my analysis, a 2 Year fair price of 100p (I sold at 112p) or so.

23-Jul-2019 – 89p – £45m – PER 21

Trading Update – 2 Tier 1 clients signed and confirmed FY to end 2019 has traded in-line.

Sold out here after the interims and estimating a fair value circa 100p – I wonder if these new clients mean others will now be knocking down the door and if so, what will the lead times be? Based on the latest Broker note this morning, in my opinion, this still looks overvalued on a 1 Year and way undervalued on a 2 Year view – I am not a buyer as I just have no idea if or when those additional Tier 1 clients will come on board.

5-Sep-2019 – 80p – £41m – PER 28.4

Results For The 12 Months To End June 2019 – Revenue up 32% to £7.35m, Underlying PBT up 11% to £1.32m with EPS at 2.58p, Net Cash at £1.02m (down from £2.09m), Total Dividend of 0.35p (0.3p).

I still don’t see value here and I remain on the side-lines as I just have no idea if or when those additional Tier 1 clients will come on board (which I believe are necessary to make a material difference here).

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