Beeks first half profit rises, inks deal with crypto exchange Kraken
Beeks Financial Cloud Group on Monday reported stronger first half earnings, as it announced its first deal with a cryptocurrency exchange provider.
Beeks is a Glasgow-based cloud computing and connectivity provider for financial markets.
The firm reported pretax of £461,000 in its first half ended December 31, multiplying from £158,000 a year prior. Diluted earnings per share was 0.45 pence, compared to 0.12 pence.
Revenue increased 22% to £15.8 million from £13.0 million a year prior.
Operating profit was £487,000, up 70% from £286,000 in 2023.
Chief Executive Officer Gordon McArthur commented: ‘We have once again successfully delivered double-digit growth and increasing profit margins as we grow and scale with some of the largest financial organisations globally. Our unique proposition has the potential to transform the future of cloud technology in capital markets. The regular flow of new contracts and the conversations currently taking place with Tier 1 organisations around the world reflects the value of our offering and provides us with confidence in continued strong uptake throughout [the second half] and beyond.’
Further on Monday, Beeks announced an agreement with San Francisco-based cryptocurrency exchange provider Kraken, the company’s first crypto exchange partner
Under the contract, Beeks will offer low-latency, institutional-grade infrastructure from Kraken’s European data centre, while Kraken will rent cloud compute from Beeks’ Exchange Cloud offering.
Beeks expects the deal to be accretive beginning in the second half.
Shannon Kurtas, Head of Trading at Kraken, commented: ‘Kraken has spent over a decade continuously enhancing our infrastructure and technology, but we recognise that many of our clients require ultra-low latency for their trading strategies. By working with Beeks Exchange Cloud, we’re ensuring that clients who need high-speed execution can optimise their trading strategies while benefiting from the security and reliability of Kraken.’
For the second half, Beeks says its outlook remains positive, with current trading within market expectations. It expects further commercial wins in the near term to follow the Kraken deal.
‘The steady flow of new contract wins and extensions are material evidence of the size of the market opportunity ahead and Beeks has the products, the team and the reputation necessary to seize this opportunity,’ CEO McArthur added.
‘This competitive advantage, together with our strong recurring revenue profile and visibility of pipeline, provides us with confidence in delivering value to our stakeholders and shaping the future of cloud technology in capital markets into [the second half] and beyond.’
Beeks shares traded down 18% at 207.77 pence in London on Monday
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