Beeks Financial reports fall in H1 recognised revenues

(Sharecast News) - Cloud computing firm Beeks Financial Cloud traded lower early on Monday after it flagged a drop in firsthalf recognised revenue, driven by lower upfront Proximity Cloud income and a shift towards revenueshare contracts.

Beeks Financial Cloud said interim revenues were expected to come in at �14.7m, down from �15.8m a year earlier, reflecting the timing of recent contract wins and the move to a revenueshare model within Exchange Cloud.

However, Beeks said trading for the six months ended 31 December had been in line with internal expectations, with new contract wins secured across major exchanges and Tier 1 financial institutions. It also said several sizeable deals were signed late in the period, including two Exchange Cloud contracts, with a combined total contract value of more than �7m - around half of which was expected to be recognised in H2.

Underlying runrate revenue from Private Cloud grew 15%, with annualised committed monthly recurring revenues rising to �32.8m from �28.5m a year earlier.

Gross cash stood at �7m, broadly unchanged, while net cash fell to �3.3m from �7m in June following upfront investment to deploy new cloud contracts.

Looking ahead, the AIM-listed firm highlighted that its pipeline remained at record strength and reiterated confidence in delivering fullyear results in line with expectations.

Chief executive Gordon McArthur said: "The first half of FY26 has seen strong commercial momentum across all offerings, securing multiple large-scale contracts, demonstrating the growing demand for our secure, high-performance cloud infrastructure across the global financial markets.

"We have entered the second half of the year with record levels of revenue visibility, underscoring our confidence in full year numbers, and our focus remains on executing against a strong pipeline."

As of 1020 GMT, Beeks shares were down 7.98% at 209.80p.

Reporting by Iain Gilbert at Sharecast.com