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Paul Scott on Stockopedia today - “another contract win. This niche IT services company seems to be making excellent progress. It's won a £2.5m, 3 year contract extension with an existing client, to go into a new territory. Hence a record quarter for contract signings. When you look at the potential size of its markets, globally, this company could be a multibagger I reckon. BUT, it has to be seen as high risk, due to the market cap already looking expensive - worth it, for the growth potential, in my opinion”
Good news such as this, deserves to have its own headlines:
08 February 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 £2.5 million contract extension over three years with an existing Tier 1 customer. The contract is for the provision of private cloud services into an additional geography.
This follows the announcement last week of a $2.2m contract for the Group's Proximity Cloud, bringing the Total Contract Value of deals signed in the current quarter to over $6m - a record for the Group and evidence of the momentum behind Beek's specialist cloud offerings for financial markets.
Gordon McArthur, CEO of Beeks Financial Cloud commented:
"We continue to secure notable contracts with some of the world's largest players in the financial services industry, demonstrating our growing reputation and the quality of our offerings. This latest contract contributes towards underpinning our FY23 expectations. With growing levels of committed future revenues and a record pipeline, we are confident in continued growth."
Definitely a stock to buy. Great to learn that the move has been accomplished, fairly smoothly it would seem. This is an excellent start, in a very exciting new chapter for the company.
More good news for Beeks in the niche market they are working in.
A stock to "buy and forget"
Nice surprise yesterday, another Tier 1 client, hopefully there will be more to come. The money to be invested in the growing sales pipeline. Which will mean more staff, filling the new facilities, due to be occupied soon. Also will be pleased to learn of Proximity Cloud upgrades. The increased investment likely to slow bottom line growth but create a sound platform for very solid growth in the years to come.
Gordon McArthur is still very bullish on Beeks' future prospects including;
"The prospects for Beeks have never been more promising and with a growing pipeline we are excited by the opportunity ahead."
Happy to be holding and will look to add when the sp looks attractive.
DYOR
Never come across the expression "coffee tin" used with shares before.
Fantastic TU and Contract win in a niche market.
Definitely a "Coffee Tin" share.
The company I was referring to was Arcontec (ARC). Their sp has halved since year highs on the back of that news. The fall almost certainly overdone. Though they are serving the same kind of clients, I don't think they are in direct competition with Beeks. In fact am wondering if Beeks were seeking to expand in future, that Arcontec might well be an ideal acquisition.
Unlikely we will hear from Beeks before March. The move to the larger premises is scheduled for February. Omicron variant a potential worry regarding international travel, though vaccines and previous infections do appear to offer protection.
Read a trading update last month from a financial information supplier, they were losing two major clients. One of them opting for a comprehensive package from another supplier, instead of renewal when their contract ends. Can't say that this has anything to do with Beeks going forwards, which is why I did not keep the actual rns. Am determined to hold onto my shares, though not suggesting anybody should buy on my say so. Somebody with better knowledge than I, of these businesses will probably know of which company I'm referring to. That said they might not be able to enlighten further for obvious reasons.
DYOR as always before making any financial decision
Likely our buyer is back today as the BKS sp dropped to attractive levels.
The future of this business hasn't changed.
Fraser McDonald CFO, has sold the shares he was recently awarded under a company share scheme. He probably needed the money. As the share scheme has around a million options left, it is likely, he will be receiving some more.
More significant is the purchase of 17,950 shares @194p by Non Exec Director, William Meldrum. He already holds shares and was not obliged to buy. Reading his background on the Beeks' Governance page would suggest his expertise is in Data. So he should have more than an inkling, of the direction Beeks are headed.
A decent sized block of shares sold after hours. The mm have given themselves some wriggle room with a lower selling price.
12-Nov-21 16:40:09 187.727 55,000 Sell* 194.00 200.00 103.25k
Don't think the current buyer will chase the price over 200p. Therefore the sp likely to fall back to just below 180p unless there is news. Can't guarantee it will be good. Though the noises coming from BKS and reading between the lines in the Final Results, suggest it would be a shock if not more than just promising. Shocks do happen though, it has to be said.
GLA.
Current buys appear more significant than the sells. Yesterday the Market Maker upped the sp after this sell:
11-Nov-21 10:03:17 183.55 8,441 Sell* 184.00 188.00 15.49k O
Which suggests that they knew the buyer would be back for more (and sellers are more than welcome).
This is usually a quiet time for BKS with possibly no trading information emerging before the Interims in March. Though it is possible that BKS could issue a pre-AGM trading statement if good news is demanding one. AGM date not issued yet, should be fairly soon.
Looking like it is now getting noticed :-)
...and another new all time high.
Went through the highlights of the year and the numbers, including a slide showing the growth of business from a now major client, over the last two years. Emphasizing how important it is to get the smaller (trial) initial order from the Tier 1 institution. Not to over-promise and fail to deliver, in order to get an expanded contract, they will come.
Most significant is that Beeks' Proximity Cloud service is unique. Major Tier 1 Financial companies are prevented from using the usual cloud systems, for their core activities, due to security requirements. That's because the companies providing the service would technically have access to the data. Proximity Cloud circumvents that problem as the cloud infrastructure will be all in house (of the financial institution). This brings all ofthe top Tier 1 financial institutions into play.
Other snippets of info gleaned include:
Gordon McArthur says that Proximity Cloud has attracted a lot of interest already. The company focus is going to be developing the product leading to Proximity 2, Proximity 3 (etc).
Beeks are hoping that Proximity will generate revenues many multiples higher than present. Extra staff hiring likely to be around 25 over the year.
He did say that next year's profit would be at this year's level due to the higher capex required to install Proximity.
On being asked what Beeks total market is, Gordon McArthur says we don't know. He goes on to say that the top 30 Tier 1 institutions each spend $100-150m on services relevant to Beeks annually.
Towards the end of the session, a questioner asks what the likely revenues would be in three years time. Gordon McArthur said I can't tell you that. We have a number but I can't tell you.
......
Last week I calculated that Beeks would hit £10 a share within 8-10 years. Now my instincts tell me that the Beeks sp will reach this mark within 5 years. Just think of the expenditure of the top Tier 1 financial institutions. The company is aiming to capitalize on their market leading advantage with Proximity Cloud, which has been developed over the last 18 months. Nothing to suggest that Gordon McArthur and Beeks will be doing anything else, having heard the year ahead being described as landmark and breakthrough.
Of course success over the next few years is likely to attract the attentions of a predator. That is just another reason to be holding BKS.
Very interesting presentation and comments. Will post my take on it later, not surprised the sp has risen again today. Regarding the property, there are a couple of existing tenants. Who will be able to remain in newly adapted space within the building post March 2022, following Beeks' fit out. Until such time as Beeks need that space. Will mean an extra bit of cash from a no brainer deal.
CEO on Investor Meet webinar states that they are currently paying circa £15 - 17k per month on current leased building so it was a no-brainer to purchase new premises which they will move to Feb-Mar 2022
Niche market they operate in and...Way to go IMO and nice to see a new all time high on SP since webinar finished.
Been too busy to fully go through the results this morning. What I have learned is that the order pipeline has moved to a new record level. The obvious priority would be to reduce that, as revenues don't start until servers etc; are installed and become operational. Therefore it would seem as if the proposed move, to the Riverside Business Park in Braehead, can't come quick enough. Exciting days, ahead with the potential for growth to expand above current levels, in the years ahead.
A pullback is possible at the current level, though think we are looking at 250p+ this time next year.
GLA
‘Interesting’ it going to be fantastic! This company will continue with steady long term growth. It has cuts out a niche for itself and looks to set to exploit it further with the future growth. ‘Buying’ and not ‘leasing’ its new offices which are 3x as big is a big indicator as to how the board see future growth of the company. Everything is very transparent and the CEO is heavily invested to boot. I wouldn’t be surprised to see a possible takeover in the near future.
The company had been approached 3 years ago and the offer was turned down, the board know they are on to a winner.
It is clear now why they bought new premises which they plan to move into early 2022.
With 3 x capacity of current building they lease this will support their expansion plans.
Company Webinar tomorrow through Investor Meet will be very interesting.
Another new all time high hit just before COB today making it 82.35% gain over 52 week period.
Awaiting Finals on Monday 27th
Interesting times indeed.
DYOR
New all time high reached today, 6 days before finals are released.
Hmm, promising!!
DYOR
As a rule haven't usually taken the opportunity to listen to these events. Registered for the Full Year Investor Presentation on Tuesday 28 September. Following registration took the opportunity to listen to the H1 event. Am satisfied that revenues for H2 will be higher than H1 due to revenues coming online from a number of client installations delayed by Covid travel restrictions. Beeks able to test and fine tune these installations from HQ online but had to rely on local contractors to do the physical work. Other contracts have been increased following customer satisfaction.
Other snippets gleaned include;
Operating in a niche market with two rival companies, not a highly competitive market.
Clients are giving Beeks relative smaller sized contracts initially, looking for reliable performance first. Thus offering the prospect of substantial growth from existing clients alone.
Working with IPC (ipc,com) to provide for their own customers.
The private cloud service now branded Proximity, will open the door for Beeks, to a wealth of potential Tier 1 clients.
Institutions are putting pressure on the CEO to consider halting dividends to fund growth. He did point out that he was receiving the most of this money.
Beeks respect customer privacy, which is why they don't put names to contracts.
Gordon McArthur came across as uncomplicated and trustworthy.
He reminded that Beeks had received a £2m grant from the Scottish Government.
He is expecting 20% growth year on year for the forseeable future.
Final Results to be announced on September 27.
https://ir.q4europe.com/Tools/newsArticleHTML.aspx?solutionID=3744&customerKey=beeks&storyID=15181028&language=en
Beeks headquarters will move from the existing leased office of the Lumina Building to the nearby Riverside Building in Riverside Business Park, King's Inch Road, Braehead PA4 8YU in early 2022, following two years at the Company's current address, during which time the business has grown considerably. With approximately three times the square footage, these larger premises will provide the necessary space to fulfil the Company's growth potential. Consideration for the property was £2.1 million, payable to Braehead Park Estates Limited, which was funded out of existing Company cash balances and available debt facililties. There are no profits or losses attributable to the property pursuant to the acquisiton.
A company confident of future growth, on the back of investing in Proximity Cloud, let's hope it is money well spent.
Another new all time high today before of release of full year figs later this month..
Interesting.
Watching and waiting.
DYOR