Beeks Financial Cloud (BKS)

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.

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