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The Herald Scotland

Beeks in record month for private cloud infrastructure sales

The new contract wins are made up of agreements spanning four to five years with clients in "key locations" across the UAE and Europe. Read more: Meanwhile, demand has also remained healthy for Beek's Exchange Cloud offering, which allows multiple organisations to use the same technology infrastructure. Significant wins include a deal announced in March with cryptocurrency exchange operator Kraken, a first for Beeks in the crypto sector. All told, Beeks is now anticipating a 25% surge in revenues for the financial year to the end of June. Those results are expected to be released in early October. "Consistent with previous years, we are yet again set to deliver significant double digit growth," said Gordon McArthur, founder and chief executive of Beeks. "The steady flow of new customer wins, as well as the significant expansion potential across our existing customer base, serve as a testament to the value of our product offerings, our ability to execute on sales, and our established position as a leading technology provider for financial markets. We enter FY26 with ongoing confidence in our ability to convert the strong pipeline of opportunities across our offerings." Read more: Revenue for the year to June is expected to come in at £35.5m, up from £28.5m previously. Underlying earnings are forecast to be 29% higher at £13.8m. Pre-tax profit is due to jump by a heftier 41% to £5.5m. This was despite the deferment of £1.3m of revenue related to an Exchange Cloud contract with Grupo Bolsa Mexicana de Valores (BMV) into the current financial year due to constraints at the Mexico City Disaster Recovery data centre. Beeks said the primary site involved in that deal, which was announced in February of this year, has recently gone live. Based in San Francisco, Kraken is renting computing capacity from Beeks' Cloud Exchange offering to service its 13 million-plus clients from its base in San Francisco. The contract is the first under a new revenue sharing model that will reduce the amount of money paid to Beeks upfront but materially increase recurring fees that will grow as client usage increases. Read more: This is expected to create some temporary headwinds in the first half of the current financial year which Mr McArthur has previously said should prove a "one-off" in a small legacy part of the business. Mr McArthur founded Beeks, which employs more than 100 people from its headquarters in Renfrewshire, in 2011 after a career in software and IT solutions businesses including IBM, where he worked in both financial services and the industrial sector. The company expanded its headcount significantly up until the spring of 2024 when growth in staffing numbers turned more incremental as the company focused on using AI to help clients make use of the large volumes of data collected on their behalf by Beeks' software. Shares in Beeks, which listed on London's Alternative Investment Market in 2017, were trading nearly 5% lower as of mid-afternoon today.