Page 11 - Beeks Financial Cloud Group Annual Report 2021

Beeks Financial Cloud Group PLC
Strategic Report – Chief Executive’s Review For the year ended 30 June 2021

Chief Executive’s

Review

OUR VISION IS SIMPLE: BUILD. The significant investments made teams. With phase 1 of Proximity
CONNECT. ANALYSE. PROVIDING during this and the prior year across Cloud now launched, and a growing
END TO END OUTSOURCING OF our platforms, teams, offering and proportion of our Tier 1 customers STRATEGIC REPORT
FINANCIAL SERVICES COMPUTE operations, means we now have the now delivering revenue, operating
ENVIRONMENTS. right platform to take advantage margin is expected to increase in the
of the rapid acceleration of Cloud years ahead.
I am pleased to report on another deployment taking place across
year of consistent performance, in the financial services industry. We PRODUCT EXPANSION
which we grew revenues, underlying are continuing to see an increase We have been commenting that
EBITDA and Annualised Committed in the number of financial services FY21 would be the ‘year of product’, in
Monthly Revenues (ACMRR). Group organisations taking advantage of which we would invest in our offering
revenue is increase derived from the benefits of cloud infrastructure, to enhance its value of to the Tier
some of the world’s largest institutions, providing a significant long-term 1 segment of the financial services
transforming our long-term growth opportunity for Beeks. market, increasing our competitive
prospects. Beeks is now recognised as positioning and addressable market.
an established technology provider to FINANCIAL PERFORMANCE This has been successfully achieved
financial markets, with a track record Revenue (excluding grant income) and we now have a considerable
and compelling reference clients, in the period grew by 24% to £11.62m enhanced offering, providing us
providing us with a strong foundation (2020: £9.36m), resulting in an with the ability to target a larger
to drive our business forward. increase in underlying EBITDA of 24% segment of the market, resulting in a
Importantly, we have delivered on to £4.14m (2020: £3.33m). The Group’s growing average contract value and
our investment objectives in the year, business model drives high levels increased sales pipeline.
culminating in the launch post year of recurring revenue, with over 93%
end of our Proximity Cloud offering, of revenue recurring and customer During the year, we launched Beeks
alongside a launch partner and an retention remained within target. Analytics as a Service. This is the first
initial $1m contract. cloud-neutral network monitoring and
Group ACMRR grew 23% to £13.8m at trade analytics tool for the financial
The attractions of our expanding 30 June 2021, increasing from £11.2m markets, providing further competitive
offering, our growing list of at 30 June 2020. This figure further differentiation and additional cross
reference able clients and the increased to £14.8m at 31 August sale opportunities. A new customer
expansion of our sales team, 2021 following a positive start to the secured in the year for the offering
means we have seen continued new financial year. was the new Members Exchange
strong growth in our Tier 1 customer (MEMX), the fastest growing U.S.
base, with nine now at various In line with our expectations, equities exchange, following their
stages of deployment. These operating profit margin decreased review of packet capture, latency
types of engagements take time in the Year, reflecting the significant and analytics solutions for Capital
to reach full levels of deployment investment in both the analytics Markets. We are now starting to see
and revenue contribution, providing and Proximity Cloud offerings, and an increased number of new and
considerable future expansion the hiring of a Head of Sales in New cross-sell opportunities in our pipeline
opportunity for The Group and a York alongside additional sales, and expect this to be a contributor to
pathway to accelerated growth. marketing and customer delivery revenue growth in the year ahead.
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