27th Feb 2019 09:19
LONDON (Alliance News) - Beeks Financial Cloud Group PLC on Wednesday reported a swing to a profit for the first six months of its financial year, but lowered its annual profit expectations.
Shares in the cloud computing and connectivity provider dropped 14% on Wednesday morning, trading a 110.00 pence each.
For the six months to the end of 2018, Beeks posted pretax profit of GBP340,000 compared to a pretax loss of GBP106,000 a year ago. On an adjusted basis pretax profit was GBP410,000.
Revenue rose 36% to GBP3.5 million from GBP2.6 million a year prior.
"We are pleased to report on a steady first half performance, in which we have delivered both revenue and profit growth, while expanding our geographic footprint and service," Chief Executive Officer Gordon McArthur said.
Despite the positive results, Beeks said it expects its annual adjusted pretax profit to grow by 25% on last year's GBP1.2 million.
This however, represents a reduction of previous profit expectations reflecting investment in platform infrastructure and operations, increased depreciation and amortization as well as geographic expansion, the company said.
Revenue for the year is expected to be "broadly in line with expectations" as the board is confident in growth over the second half.
Beeks proposed a 0.20 pence per share interim dividend. Last year it had not paid a payout at the half-year stage. For the financial year to June 2018, the firm paid a maiden dividend of 0.3p.
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