RE: £4.4m Tier 1 Contract over 5 years - new client24 Mar 2022 08:40
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"