Beeks - InvestorMeet Presentation13 Nov 2022 19:20
Taken a while to write my take, on what was said at the InvestorMeet presentation on Oct 13. This time it took place with video as well as audio. Beeks were represented by Gordon McArthur, CEO and Fraser McDonald, CFO.
The event took place with commentary to a slideshow covering the events and numbers for the last financial year. As usual the most interesting part was the Q & A session that followed. The snippets below were said to random questions but have been sorted.
In response to a question regarding staff numbers, the CEO responded with "just over 100". The year end number was 89, which reflects the continuing growth of Beeks. As Gordon said "23 is the year of sales execution". In response to another question, he didn't hold back when said, "would have liked one or two more contracts".
With regard to a question on anything new, we were told that there is "no new product development on the horizon. We will be investing to improve existing products."
On the subject of inflation/energy costs, we were informed that, Beeks "can pass on power costs to monthly charged customers. Proximity customers supply their own energy."
There would appear to be a question mark with passing on increasing costs to some Private Cloud customers. With Fraser McDonald on a question regarding doing things better, letting slip the remark "writing good contracts that will allow price increases."
Regarding the recent release of Exchange Cloud, Gordon said "high hopes going forward". There were no numbers given with the announcement of the ICE (IGN) contract advised by rns on September 12. It was revealed in this session about Exchange Cloud, "about 12-18 months to billing". Which suggests they could prove to be very large, indeed potentially Beeks largest contracts to date.
We also learnt "that ICE have been incentivised to promote Beeks products". I would assume that means commission from selling Proximity Cloud to their own clients, that want to expand and develop their cloud usage. No further information available "ICE have a period of exclusivity, can't disclose details apart from already issued."
All food for thought, it would appear that Exchange Cloud could have an impact on costs in year 23 but no revenues. Therefore one or two other contracts would be welcome short-term. We will have to wait to get an idea of the potential value of this first Exchange Contract. The secrecy surrounding it, does suggest that very substantial is quite likely.
The impact of contracts that don't allow price increases could have an adverse on margins in the current financial year. Which might mean that year-end 24 could be the start of increasing profitability. Who knows, perhaps ICE have somebody in an office somewhere in their empire, crunching numbers. The only answer that makes sense is to acquire Beeks. Giving Mr Gordon McArthur an offer he can't refuse...
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