Scottish financial cloud computing firm Beeks has swung to an annual profit as it reported “stronger than ever” demand for its products.
The London AIM-listed firm posted a pretax profit of £1.46m for the year ending on 30 June, compared to a £650,000 loss a year prior.
Its underlying pretax profit grew 68 per cent year on year to £3.9m, while gross profit jumped 24 per cent to £11.3m.
Renfrew-based Beeks reported a 27 per cent increase in annual revenue to £28.5m, which it pinned on growth in its Proximity, Exchange Cloud and core Private Cloud products across both existing and new customers.
Of the deals, Proximity Cloud won a £5m contract with one of the world’s biggest banks and a five-year contract with an investment manager worth roughly £2.7m in aggregate.
There were around £3m in total private cloud contracts signed in July, including with one of the UK’s largest banks, Beeks said.
The firm noted that “further expansion potential remains across the vast majority of existing customers”.
Shares in Beeks gained 5.3 per cent in early trading on Monday, adding to a rally that has seen the stock surge 160 per cent so far this year. The firm has a market capitalisation of £172.3m.
“Demand for our product is stronger than ever, fuelling a regular flow of new contract wins and extensions that offer long-term, recurring revenues,” said chief executive Gordon McArthur, who founded Beeks in 2010.
“The expansion of our customer base is a testament to the value of our offering becoming increasingly recognised by the market and has resulted in a record sales pipeline.”
He added that Exchange Cloud offered “the most exciting opportunity” and touted “a pipeline comprising of some of the world’s largest exchanges“.
McArthur continued: “Supported by favourable market trends and our increasingly recognised international reputation, we are confident in driving this momentum into the next financial year and beyond.”