Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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Paul Scott ‘slams’ Beeks Financial Cloud (BKS) in the latest PIWORLD/Stockopedia StockSlam at 45m17s
Watch the video here: https://www.piworld.co.uk/education-videos/stockopedia-piworld-stockslam-april-2022/
Or listen to the podcast here: https://piworld.podbean.com/e/stockopediapiworld-stockslam-april-2022/
Very good news. Firstly am pleased for Gordon McArthur and Beeks. A lot of work and clear thinking has been done to put them in the tremendous position that they are in today. He is receiving the rewards of his success, which hopefully will be shared by the many shareholders that have put their faith in him.
With regard to the placing, fantastic for it to be oversubscribed. It has given the opportunity for new investors to get on board at a reasonable price but also fair to existing shareholders. The placing still has to be voted through. Though in reality that should be a formality.
The size of the placing took me by surprise. However the planning is far thinking. There is a large pipeline of potential contracts. The money will be there to fund the work required. Significantly the materials to assemble these Cloud units is going to be stocked in sufficient quantities to allay worries over any supply chain issues.
Not too fussed about the share price, that will look after itself over the next few years. Have no intention of selling mine for a long while.
Good luck to all shareholders.
The £2.20 target price that analysts at Canaccord Genuity put on the sp back on 21st March is on the horizon after this oversubscribed cash raise @ £1.65.
A "Coffee Can" share for sure.
Yeah, has to be a good sign. Let’s see what we get.
Looking like Primary Bid offer will close early.
Good sign IMO
apologies for omitted word:
by saying I can't tell you
Share placing and Primary Bid offer looking to raise c£15m. No price for the shares issued yet.
The size of the placing and the proposed prudent use of £8m to build up the stock of items required to build their Cloud system units suggests that Beeks are expecting many more contracts, including for The Exchange Cloud system over the course of the next year. That is, as well as avoiding supply chain issues and inflated prices.
Gordon McArthur in the recent InvestorMeet meeting responded to a question regarding the future share price, by I can't tell you that but I would expect it be many multiples more than now.
The share buy must have involved one of the large trades that went through on Thursday. I notice that they are buying with funds labeled, discretionary clients. Quite likely more than one fortunate client is going to acquire a decent chunk of BKS shares. It is a large vote of confidence in the future of Beeks.
Canaccord increasing their holding by another 3% on 24th March
Coffee Can share indeed.
Perhaps something is being organised for next week. the size of the placing will be an indication of the potential number of contracts that could be won before the year end. Not unreasonable to imagine that there could be at least four for Proximity Cloud. If Exchange Cloud is released by July, it's possible there may be a further two before December, probably much earlier. I think that £5m would be enough with the extra revenue starting to come through. Assuming installation is done within 16 weeks, Beeks could be looking at revenues of £28m+ for the financial year ending June 23.
If Exchange Cloud is embraced by the exchanges, driven with the potential for them to earn money from it. There could be a time when they all want their own system. Then we really are talking about multiples of the current sp. Am not surprised that Gordon McArthur is excited (at the prospect of Beeks generating so much cash in 2/3 years time). Likely that predators will have their eyes on Beeks by then. You couldn't blame him for accepting the right offer though.
All speculation of course, a lot of rewarding work for Beeks between now and then. Right, not going post here again until the next significant rns pops up.
Good luck all.
Really good call & interesting company that has clearly made a lot of progress in the last couple of years. I'm holding off investing until they've sorted out the balance sheet though, I don't care what the CFO/CEO said about alternatives to a vanilla equity placing, they would be mad to go down the route of debt financing at the present time. I suspect a £5-10m placing at around 150p would do the job nicely and result in a strong move higher in the aftermath.
Nice sp increase today, even though today's buys weren't really nudging the Ask price for a large chunk of the day. Then these trades went through:
24-Mar-22 14:47:51 155.00 1,180,000 Unknown* 154.00 156.00 2m O
24-Mar-22 14:47:42 155.00 1,125,000 Unknown* 154.00 156.00 2m O
24-Mar-22 14:47:37 155.00 25,273 Unknown* 154.00 156.00 39.17k O
24-Mar-22 14:47:30 155.00 162,000 Unknown*154.00 156.00 251.10k O
It could well be that most of these numbers are sales and the marker maker has been trying to offload them for the past month or so. That is before the war in Ukraine intervened. Now possible that the chances of a share placing to raise the working capital, for Beeks to cope with their surge in sales, has increased.
I might be in danger of thinking too much but a successful placing soon, could be the driver for the sp to test the 200p levels again.
Most important points - the large Tier 1 contracts are becoming a cash drain, as it takes a year to return the initial investment with the client. Various options being considered, including asking clients for a year in advance, raising credit finance or possibly an equity raise. Get the impression that other options will be considered before a share placing.
Gordon McArthur still seems very optimistic for the future. On being asked about the share price, he doesn't mention where he thinks where BKS could rise to, other than many multiples. The Beeks team are working hard to deliver. They are anticipating a few more contracts over the coming months. Revenues for the next final year expected to be around £25m. New contracts take 12-16 weeks to set up.
Exchange Cloud. A special version of Proximity Cloud with multiple users set up for exchanges to contract and host. They will then be able to lease out a partitioned space on the system for their own clients' use. Beeks are already in discussion with a number of exchanges. Designing the system to cater for their requirements. Product could be available in two months. Beeks believe that orders will soon follow as this product would be an earner for the exchanges as well. Also with the kit set up on site, new clients could be added very quickly.
An upgrade to single user Proximity Cloud under development for the year end, is likely to mark the end of the current spike in product development expenditure, as it then returns to a more normal level.
Heard nothing today, that would deter investment in BKS. In fact the future, once getting over the need for some necessary capital investment, looks brighter than imagined last night.
I've topped up again this morning. Don't want to put too much pressure on Beeks, though they must surely realise that this moment is the opportunity to capitalize on their product advantage. Likewise now is the time for the private investor to invest for the longterm.
A reminder:
The Company will provide a live presentation relating to the results via the Investor Meet Company platform on 24 March 2022 at 12:00pm GMT.
The presentation is open to all existing and potential shareholders and registration can be completed via the following link:
https://www.investormeetcompany.com/beeks-financial-cloud-group-plc/register-investor
Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
I imagine Paul Scott at Stockopedia has the same "Coffee Can" sentiment.
"another very encouraging contract win. It’s becoming increasingly obvious that BKS has passed a tipping point, where its cloud-based connection services for financial markets are being more rapidly taken up by big clients, globally.
Therefore an exciting future is on the horizon, as those recurring revenues build.
I reviewed Beeks interim results earlier this week. Although the numbers at this stage are barely above breakeven, that’s missing the point. It’s the very rapid organic growth, of recurring revenues, which is laying the groundwork for a much bigger, and potentially highly profitable company in future.
This is generally a bad time to be investing in growth companies, so there is that strong market headwind, but when growth is this strong, with big contracts rolling in faster than ever before, it’s time to sit up and take notice.
For that reason, and despite it being difficult to value, BKS is fast becoming a high, maybe even highest, conviction holding for me. I need to just ignore market sentiment, and buy more (as a long-term hold).
I think this is probably the best reasonably-priced, high organic growth company on the UK market right now"
Coffee Can share for sure
More good news today. We could well be seeing annual recurring revenues topping £20m in FY23.
24 March 2022 - Beeks Financial Cloud Group Plc (AIM: BKS), a cloud computing and connectivity provider for financial markets, is pleased to announce the signing of a multi-year Private Cloud contract. The contract, worth £4.4 million over five years, is for a new European Tier 1 client, and was secured via a partner.
The latest contract is testament to the strong sales momentum across the Group, now successfully targeting the world's largest financial services organisations and exchanges. Both the Private Cloud and Proximity Cloud Offerings have significantly contributed to Beeks' record third quarter of trading, with c. $15 million in total contracted value during the period, representing a three-fold uplift on our previous record quarter of Q1 FY22.
Gordon McArthur, CEO of Beeks Financial Cloud commented:
"Successfully securing a further contract of such significance reinforces our belief that the prospects for Beeks have never been stronger, as financial services organisations accelerate their cloud strategies. Alongside other recent wins we have announced, this latest contract contributes towards underpinning our FY23 expectations. A substantial pipeline continues to build across our Private Cloud and Proximity Cloud offerings, and we are confident in our ability to further increase our market share."
I notice that the buying price parked @147p max today. The last time it was parked, when @165p , it was if on a hill with the handbrake off. Beeks are geared up, expecting to receive more contracts and are working hard to achieve that. Therefore not going to worry excessively about short-term movement in the sp. The investor presentation could give an indication of how confident Beeks are. Though with regard to details they won't be revealing any specifics.
The Canaccord Genuity is close to my own estimations going forward. though am tempered by the realization that the markets are looking for profit and currently reducing valuations if there is any doubt going forward. That doesn't mean that sentiment won't have changed again by the end of 2023.
Analysts at Canaccord Genuity nudged up their target price on software and services firm Beeks Financial Cloud from 210.0p to 220.0p on Monday after the group reported interim sales that beat expectations.
Canaccord Genuity, which reiterated its 'buy' rating on the stock, said Beeks' first-half sales were stronger than it had expected, while adjusted underlying earnings were in line.
The Canadian bank stated Beeks' outlook statement was positive and that it had upgraded full-year 2022-23 sales estimates in February after its first three Prox Cloud contracts were announced.
"With the new Prox Cloud offering gaining traction, combined with the underlying increase in Private Cloud offering uptake from tier 1 clients, we feel confident that sales growth can exceed 35% FY21/24 and margins increase from FY22est by c100bps pa in FY23 and again in FY24," said Canaccord. "We further increase our sales forecasts for FY22/23 with no change to adj EBIT and introduce FY24."
Increased investment mostly on product development and installation has dented profits short term. We will get a better idea of Beeks future trajectory in September, with the company in plenty of discussions regarding new contracts with clients. Current contracts are going to bring in over £17m on a annual basis. This number will increase with any additional contracts which Beeks are ready to land. An increase in the use of an agreed loan facility is facilitating this expansion without further placing of new shares. Thereby avoiding dilution of the sharebase. The benefits of which, will be seen in future years earnings.
There would also have been costs associated with the move but Beeks are now in a facility that is three times the size of the old one. The successful expansion of this company is well and truly underway.
Exchange Cloud is a new product being developed in response to feedback from some clients and more importantly prospective new clients. Will hope to glean some more information from this week's investor presentation.
300k+ shares bought today with Interims to 31 Dec out on Monday 21st March and Investor Presentation on 24th March
https://www.investormeetcompany.com/beeks-financial-cloud-group-plc/register-investor.
Should be very interesting.
Three large contracts in three weeks is really encouraging. No coincidence that these happen to coincide with the Riverside Way move. They have more room to work in now. Presumably these contracts will require assembly work and testing before being shipped out for installation.
The partner could well be, not definitely, IPC. As Beeks have a number of existing contracts through them. Handy though, as this new contract indicates that the sales force for Proximity Cloud is not solely restricted to Beeks own staff.
With regard to the share price, agree pre-Sept 21, the recent news would be driving it well over £2. AIM indices are down over 20% since then. Today the market maker has had a decent volume of buys but has parked the price at 165p to buy. Thoughts of what Russia might do next, probably making that easy. Just need to be patient. A couple more of these contracts by September, would get the sp moving, regardless of the market, in calculation of forward earnings for 2023. An influential tip would do it earlier but not required for long-term holders.
Good news just keeps on flowing with BKS
In normal markets this would be trading north of £2
Coffee Can share for sure!!
Through a partner for a North American bank.
https://www.lse.co.uk/rns/BKS/2-million-proximity-cloud-win-mm2ux8nep0nm9kc.html
For me the best part of the rns is what Beeks CEO Gordon McArthur said:
" I am confident the investment we are making in additional features to Proximity Cloud, will see our pipeline continue to increase."
This means Beeks will be avoiding sitting back, thinking the job is done and customers will be forever knocking at their door. They realise that investing in their competitive offering is the best way to keep it competitive. Good news is always welcome on a rocky period for the markets. Thank you all at Beeks.
Last year's Interim Results came out on March 8. Therefore don't think we will have to wait long for a further update. Also quite likely to be an Investor Presentation. What we do know is that the company has a growing record pipeline. Gordon McArthur says "we are confident in continued growth". Hopefully we will have the chance to learn of Beeks' expansion plans, now that the move to larger premises has taken place.