Beeks Financial Cloud Group PLC on Monday reported a double-digit rise in annual revenue but a drop in profit, as it eyes current financial results to be in line with guidance.

Meanwhile, the Glasgow-based cloud computing and connectivity provider said it won two private cloud contracts with global asset management firms.

Shares were down 4.5% at 148.00 pence each on Monday morning in London.

For the year that ended on June 30, it reported revenue of £18.3 million, up 57% from £11.6 million the year before.

Annualised committed monthly recurring revenue went up 40% to £19.3 million from £13.8 million.

Pretax profit, however, fell to £66,000 from £1.3 million, as cost of sales increased by 65% to £10.9 million from £6.6 million the year before.

Administrative expenses widened by 31% to £7.6 million from £5.8 million.

Share-based payments cost widened significantly to £1.7 million from £546,000 the year before.

Chief Executive Officer Gordon McArthur said: ‘Beeks is now recognised as an established technology provider to financial markets, with a track record and compelling reference clients, providing us with a strong foundation to drive our business forward. The majority of financial services organisations around the world are exploring how to utilise the power of the cloud to support their ambitions.’

Looking ahead, the firm said the size of sales pipelines provides the board with confidence. It expects financial 2023 results to be in line with market expectations.

Net cash amounted to £7.9 million as at June 30, compared to £1.9 million a year ago.

Additionally, Beeks said it won two multi-year contacts worth $2.0 million in total over three years.

The contracts are with unnamed global asset management firms, which further underpin the firm’s financial 2023 expectations.

McArthur added: ‘We continue to see positive sales momentum across our range of cloud computing offerings and are delighted that our partnerships go from strength to strength, supporting our direct sales activities. A substantial pipeline continues to build across our Private Cloud, Proximity Cloud and Exchange Cloud offerings, and we are confident in our ability to further increase our market share of the growing cloud computing market.’

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