Interim Results

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Beeks Financial Cloud Group plc

("Beeks" or the "Company")

Interim Results

Strong commercial momentum, laying the foundation for significant, profitable growth

16th March 2026 - Beeks Financial Cloud Group Plc (AIM: BKS), a cloud computing and connectivity provider for financial markets, is pleased to announce its unaudited results for the six months ended 31 December 2025.

Financial Highlights

1 Underlying EBITDA is defined as profit for the period before amortisation, depreciation, finance costs, taxation, share based payments, exchange rate gains/losses on statement of financial position translation and exceptional non-recurring costs

2 Underlying profit before tax is defined as profit before tax excluding amortisation on acquired intangibles, share based payments, exchange rate gains/losses on statement of financial position translation and exceptional non-recurring costs

3 Underlying diluted EPS is defined as underlying profit after underlying tax divided by the weighted average number of ordinary shares including share options outstanding but not exercisable.

4 Net cash is defined as cash less total bank loans and asset financing liabilities

Operational Highlights

Outlook

Statutory Equivalents

The above highlights are based on underlying results. Reconciliations between underlying and statutory results are contained within the financial information. The statutory equivalents of the above results are as follows:

· Loss before tax of £1.87m (H1 2025: Profit of £0.46m)

· Basic earnings per share loss of 2.53p (H1 2025: 0.47p profit)

The largest reconciling item is the consistent add back of the non-cash share-based payment charge.

Gordon McArthur, CEO of Beeks Financial Cloud commented:

"We enter the second half with strong momentum and a customer base comprising some of the world's largest financial institutions, each with significant expansion opportunity. While the timing of contract wins and the increasing prevalence of revenue share contracts means the impact of this sales momentum is not reflected in financial performance in the first half, it lays the foundation for significant and enhanced profitable revenue growth in the years ahead. We remain focused on fulfilling our growth potential, bolstered by a building pipeline, while maintaining strict financial discipline to support our long-term ambitions."

For further information please contact:

About Beeks:

Cloud computing is crucial to Capital Markets and finance.

Beeks Group is a leading managed private infrastructure provider exclusively within this fast-moving sector. Our Infrastructure-as-a-Service model is optimised for low-latency compute, connectivity and analytics, providing the flexibility to deploy and connect to exchanges, trading venues and public cloud for a true hybrid cloud experience.

ISO 27001 certified, we provide world-class security aligned to global security requirements.

Founded in 2011, Beeks Group is listed on the London Stock Exchange (LSE: BKS) and has enjoyed continued growth each year. Beeks Group now employs over 100 team members across the globe with the majority based at our Renfrew HQ.

Find out more at www.beeksgroup.com

Chief Executive Officer's Review

The Group has achieved substantial commercial progress during the period, signing a high number of contracts with Tier 1 financial institutions, across our Exchange Cloud®, Proximity Cloud® and Private Cloud offerings. The Total Contract Value secured in the period increased to £11.9m, from £9.7m in FY25, which was itself a record year, demonstrating the ongoing commercial momentum in the business.

While the timing of contract wins and increasing prevalence of revenue share contracts has reduced H1 revenue and profit performance versus the prior year, the multi-year nature of the contracts and their expansion potential lay the foundation for significant and enhanced revenue growth in the years ahead.

Seven exchanges globally have now signed for our Exchange Cloud® offering, four of which are under the revenue share model. While this model typically results in lower upfront deployment revenue, while still incurring set up costs, we expect it to deliver greater revenue in the medium term than the prior model, as client engagement scales. Even at an early stage, this model has delivered ahead of our ambitions. It has successfully shortened sales cycles, but crucially, the live sites are transitioning into monthly profitability ahead of our anticipated timeline, paving the way for increased profitable revenue growth in future years.

We continue to expand our offering, addressing the global demand for next generation financial market infrastructure. This period saw the launch of our AI analytics offering, Market Edge Intelligence™. With the proof-of-concept customer, one of the world's largest banks, now in contractual discussions, the potential for this high margin software offering is considerable.

Reflecting on where we are today, it is encouraging to see our ambitions at IPO becoming a reality. Our customer base, both direct and through partners, now comprises more than 30 of the world's largest financial institutions, each with considerable expansion opportunity. While contracts with organisations of this size have protracted sales cycles, the size of each contract, stickiness once live, and their expansion potential provide Beeks with a medium-term opportunity that is many times our current revenue profile.

We are focused on unlocking this opportunity, while maintaining the strict financial discipline with which we have always run the business, to ensure we deliver long-term shareholder value.

Financial Performance

Beeks continues to have a strong recurring revenue profile, with customer retention remaining high. Underlying run rate revenue grew 15% with ACMRR at £32.80m (H1 2025: £28.50m), providing a growing basis of recurring revenue.

H1 reduced financial performance reflects the timing of these Proximity Cloud® wins, together with the transition to a revenue share model within Exchange Cloud®, which does not follow the upfront revenue recognition model, while still incurring set up costs. The period saw recognised revenue of £14.65m (H1 FY25: £15.79m), flowing through to underlying EBITDA of £4.12m (H1 FY25: £5.74m) and an underlying loss before tax of £0.69m (H1 FY25: £1.89m profit).

As is typical in the Group's business model, there is a natural lag between contract signing, infrastructure deployment and revenue recognition. During H1 FY26 this lag was more pronounced than usual, resulting in a lower level of revenue recognition in the first half. The majority of these deployments have now been completed, positioning the Group to recognise the associated revenue streams in the second half of the financial year. H1 of the prior year included upfront revenue of £3.30m relating to both Proximity Cloud® and Exchange Cloud® contracts in comparison to £0.57m recognised in the current period.

We enjoyed a strong final month of the period, with £7m of Total Contract Value signed in December 2025, including £6m within Proximity Cloud, of which approximately 50% is expected to be recognised in H2 FY26, supporting revenue growth in the second half of the financial year.

We anticipate strong profit progression in H2 as recently secured contracts progress through deployment and revenue recognition commences. 

The Group continues to carefully manage its capital allocation. Cash generation from operations remained solid, albeit reflecting the timing of contract wins and the move to the revenue share model. Gross cash was largely maintained at £6.96m (30 June 2025: £7.36m). Net cash was £3.29m (30 June 2025 net cash £6.90m) following upfront investment supported by debt facilities to fund deployment of Proximity Cloud®, Exchange Cloud® and Private Cloud wins.

Operational Expansion

During the period we have increased the size of our team through targeted hires, with overall headcount at 116 (30 June 2025: 102). Our focus for sales and marketing initiatives has been on Exchange Cloud®, and these have proved a key driver behind sales momentum. This has included enabling increased communication between exchanges to drive engagement and support, which has helped ease the sales cycle with new customers and encouraged them to share new opportunities.

Our global presence across key datacentres remains strong. We continue to focus on increasing our datacentre presence in existing locations and evaluating new locations for expansion in relation to customer demand.

Product

Innovation is central to our growth strategy. A significant milestone this period was the launch of Market Edge Intelligence™, our latest AI solution for passive monitoring of capital markets data at the network edge. Market Edge Intelligence™ delivers real-time AI analytics and predictive intelligence directly within colocation facilities, producing insights including predictive alerts, infrastructure anomaly detection, capacity forecasting, and instant trading signal execution. Designed for Tier 1 and 2 organisations, the product has flexible deployment options and can be used within Beeks Analytics, as a standalone platform or alongside existing systems.

Early customer feedback has been positive with our proof-of-concept customer, a Tier 1 organisation, now in contract discussions and several conversations with new and existing customers ongoing.

The unique nature of our infrastructure provides us with a technical advantage that has driven success across all our core offerings. This period has seen the continued enhancements to our products to keep pace with the evolving needs of the financial markets landscape.

We have continued to invest in our platform, improving the speed and reliability with which we can deploy and manage client infrastructure. Clients now have greater self-service control, our teams can provision new capacity faster than before, and we have laid the foundations to scale efficiently as demand grows.

Customers

Beeks' customer base spans a diverse range of clientele, from banks, brokers, hedge funds, cryptocurrency traders, and exchanges to insurance companies, financial technology firms, payment providers and Independent Software Vendors. . Between partners and exchanges, the Group now supports more than 30 Tier-1 banks and investment managers on its platforms, reflecting the continued expansion of our presence among leading global financial institutions.

This period has seen material progress with new customer acquisition across all product offerings.

Exchange Cloud® momentum has continued with two new revenue share wins:

Both sites are due to go live in H2 FY26 with revenue recognition commencing shortly thereafter.

The customers secured in FY25 are progressing well:

Multiple Private Cloud deals were secured in the period, and Proximity Cloud® wins include multi-year contracts with a major South African bank, and a significant extension with a large FX broker, alongside its continued usage of the Johannesburg Stock Exchange's (JSE) Colo 2.0 service, which is delivered through Exchange Cloud®.

Future Growth and Outlook

Momentum has continued in H2 FY26 with multiple significant contracts in discussion across the Group's offering. While the timing of deal signature can be hard to predict, the current sales pipeline supports the Board's outlook of a full year performance in line with its expectations.

Beeks continues to grow its reputation, offering and customer base. The size of its addressable opportunity is significant, and competition continues to be limited, providing the business with a considerable, long-term growth opportunity.

Gordon McArthur

CEO

16 March 2026

Chief Financial Officer's Review:

Financial Review

Revenue for the period was £14.65m (H1 FY25: £15.79m), reflecting a lower level of upfront Proximity Cloud® revenue recognised in the period due to the timing of contract wins secured towards the end of the half, alongside the continued transition of Exchange Cloud® contracts towards a revenue share model.

As previously highlighted, the Group's Proximity and Exchange Cloud® offerings can result in variability in revenue recognition between reporting periods depending on the timing of infrastructure deployment and the mix between upfront hardware and software elements and recurring services.

During the latter part of the period, the Group secured contract wins with total contract value of approximately £7m, including £6m relating to Proximity Cloud®. Due to the timing of these agreements, the associated infrastructure deployments will primarily occur during the second half of the financial year, with approximately half of the Proximity Cloud® value expected to be recognised in H2 FY26.

Encouragingly, the Group's recurring revenue base continues to strengthen, with ACMRR increasing 15% to £32.80m (H1 FY25: £28.50m). This growing base of contracted recurring revenue helps underpin visibility for the remainder of the financial year and beyond.

As is typical in the Group's business model, there is a natural lag between contract signing, infrastructure deployment and revenue recognition. During H1 FY26 this lag was more pronounced than usual, resulting in a lower level of revenue recognition in the first half. The majority of these deployments have now been completed, positioning the Group to recognise the associated revenue streams in the second half of the financial year.

Non-recurring revenue - Exchange Cloud® and Proximity Cloud® deployments

In the prior period, the Group recognised £3.3m of upfront revenue from three new customer engagements, including a multi-site Proximity Cloud® deployment with one of the world's largest banking groups.

In the current period, non-recurring revenue reflects one customer deployment, recognising £0.6m of upfront revenue.

As noted above, the majority of the £6m Proximity Cloud® contract wins secured during the period were agreed towards the end of the reporting period. The associated infrastructure deployments are now underway, with the majority of the related upfront revenue expected to be recognised during the second half of the financial year.

In addition, H2 FY26 will see the disaster recovery site for Grupo Bolsa Mexicana de Valores (BMV), the second-largest exchange in Latin America, go live, providing further visibility of revenue recognition in the second half.

During H1 FY26, the Exchange Cloud® contract with Kraken, one of the largest and longest-standing cryptocurrency exchanges, went live. This represents the Group's first revenue-share Exchange Cloud® deployment and therefore, unlike the Group's traditional fixed-price Proximity Cloud® and Exchange Cloud® contracts, does not include an upfront revenue element. Encouragingly, the contract moved into monthly profitability during March 2026, ahead of expectations, demonstrating the potential of this model as trading volumes grow.

Profitability

The loss in the period primarily reflects the timing of Proximity Cloud® revenue recognition alongside continued infrastructure investment required to support recently secured contract wins.

Gross profit for the period decreased 25% to £4.50m (H1 FY25: £6.03m), with gross margin reducing from 38% to 30%. Over half of this margin reduction can be attributed to the timing of upfront Proximity Cloud® deals.

The remaining reduction in margin primarily reflects further timing effects. In addition to the lag between contract signing and service delivery noted above, the Group's deployment model requires infrastructure investment ahead of customer launch. As a result, certain costs are recognised in advance of the associated revenue streams.

The majority of the data centre infrastructure investment required for these deployments was undertaken during H1 FY26. Consequently, capital and operating investment in H2 is expected to be more incremental as customer environments progress towards launch.

With several deployments scheduled to launch in the second half of the financial year, the Board expects revenue recognition and associated profitability to be weighted towards H2 FY26.

The Group also continues to review and optimise its data centre supplier arrangements as part of its normal commercial processes, including securing improved commercial terms and moderating contractual price escalations where possible. These initiatives are expected to support margin improvement over the medium term, alongside the increasing contribution from higher-margin recurring revenue.

Underlying EBITDA decreased by 28% to £4.12m (H1 FY25: £5.74m), with underlying EBITDA margin reducing to 28% (H1 FY25: 36%), reflecting the same margin dynamics noted above.

Underlying loss before tax is defined as loss before tax excluding amortisation on acquired intangibles, share-based payments, exchange rate gains/losses on statement of financial position translation and exceptional non-recurring costs. This decreased to a loss of £0.69m (H1 FY25: £1.89m profit).

Underlying EBITDA, underlying profit before tax and underlying earnings per share are alternative performance measures considered by the Board to provide a clearer reflection of underlying trading performance than statutory measures alone.

Key performance indicator review

*All references to margins are as a percentage of revenue.

Gross margin bridge:

The reduction in gross margin from 38% in H1 FY25 to 30% in H1 FY26 primarily reflects the timing of infrastructure deployments and revenue recognition during the period.

The principal drivers were:

1) Lower upfront deployment revenue

H1 FY25 included £3.3m of upfront revenue from three deployments, compared with £0.6m from one deployment in the current period. As referenced earlier, c.6% gross margin can be attributed to the timing of the upfront deals expected in H2.

2) Infrastructure investment ahead of customer launches

Data centre and hardware investment was undertaken during H1 FY26 to support recently secured Proximity Cloud® deployments, with revenue expected to follow as these environments go live. This represented approximately 2% of the reduction in gross margin.

3) Revenue-share contract structure

The Exchange Cloud® deployment with Kraken represents the Group's first revenue-share model, which does not include the upfront revenue typically associated with fixed-price deployments.

Margin movement reflects timing and capacity investment rather than structural changes in pricing or unit economics, with margins expected to improve as deployments go live.

Cost of Sales and Administration Expenses

Beeks reported a Statutory loss before tax of £1.87m (H1 2025: £0.46m profit) with an underlying loss before tax of £0.69m (H1 2025: £1.89m profit).

Cost of sales (excluding amortisation on acquired assets) increased 6% to £10.42m (H1 FY25: £9.81m). As referenced earlier, the Group has added capacity across its global data centre estate during the period, in advance of customer deployments, with some commitments made ahead of associated revenue recognition. Infrastructure commitments in H2 are expected to increase at a slower rate, supporting margin improvement.

Administrative expenses (excluding share-based payments and non-recurring costs) increased 19% to £4.90m (H1 FY25: £4.11m). The increase primarily reflects staff investment with staff costs increasing by £0.45m.

Overall, total headcount increased to 116 employees at 31 December 2025, compared to 102 at 30 June 2025 and 103 at 31 December 2024. Approximately half of the increase was within sales and pre-sales functions, strengthening the Group's ability to support enterprise sales cycles, expand its global pipeline and convert recent contract momentum across Proximity Cloud®, Exchange Cloud® and Market Edge opportunities.

Gross staff costs as a percentage of revenue, one of the Group's key internal metrics, increased to 27% in H1 FY26 from 24% in H1 FY25, reflecting the targeted investment in sales, pre-sales and product capabilities during the period. Future hiring will remain selective as the Group continues to scale efficiently while maintaining operational flexibility and protecting margins.

Investment in Edge Intelligence product development continues, with £0.30m expensed during the period (H1 FY25: £0.30m).

Product Investment

The Group continues to invest in product development, including enhancements to Exchange Cloud® and its Edge Intelligence platform, which provides advanced latency and client experience insights designed to enhance trading performance.

Capitalised development costs during the period were £1.11m (H1 2025: £1.39m), with the majority of this investment delivered through the Group's in-house engineering teams.

As in prior periods, this level of investment is expected to be funded through operational cash generation.

Taxation

The effective tax rate ("ETR") for the period is 9% (H1 FY25: 21%). The variance to the UK statutory tax rate of 25% primarily reflects timing differences and deductions arising from the Group's share scheme.

Earnings per Share and Dividends

Underlying basic earnings per share decreased 129% to -0.75 pence (H1 FY25: 2.61 pence).Underlying diluted earnings per share decreased 129% to -0.68 pence (H1 FY25: 2.61 pence).

Further detail on the calculation of both metrics is included in Note 6.

Balance Sheet and Cash Flows

Cash generated from operations before working capital movements was £4.37m (H1 2025: £5.76m). After working capital movements, net cash generated from operating activities was £2.94m (H1 2025: £3.17m).

Working capital movements primarily reflect the timing of infrastructure investments and the accounting treatment of multi-year infrastructure contracts, where revenue is recognised upfront and subsequently unwinds through accrued income as cash is collected.

Trade receivables decreased by £0.7m reflecting the timing of customer receipts around the period end. Trade payables decreased by £3.4m, primarily reflecting payments relating to infrastructure deployments for Proximity Cloud® and Exchange Cloud® installations across customer venues.

Accrued income decreased by £1.5m as previously recognised revenue on infrastructure contracts converted to cash receipts during the period. At 31 December 2025 accrued income totalled £10.1m, which will unwind over future periods as associated cash receipts are collected.

Capital expenditure on infrastructure and hardware totalled £3.2m, supporting deployments including ASX, Kraken and TMX. Inventory increased to £3.4m (FY25: £2.6m) as hardware was secured in advance of planned infrastructure deployments, reflecting prudent supply chain management amid ongoing constraints in high-performance compute and networking equipment driven by global demand for AI infrastructure.

Capitalised development costs were £1.1m, reflecting continued investment in the Group's technology platform including Proximity Cloud®, Exchange Cloud® and Edge Intelligence.

During the period the Group made a strategic minority investment of £0.8m in Liquid-Markets-Solutions, providing exclusive access to deploy LMS's ultra-low-latency networking technology within its managed financial services infrastructure platform.

To support continued infrastructure investment, the Group entered into a £1.5m loan facility secured against its freehold property and utilised £2.0m of asset financing to fund customer-deployed infrastructure equipment.

Gross debt remains modest at 0.4x underlying annualised EBITDA (H1 2025: 0.1x), reflecting a conservative balance sheet. Gross debt is defined as borrowings excluding IFRS 16 lease liabilities divided by annualised underlying EBITDA.

The Group ended the period with cash of £6.9m (FY25: £7.3m) and a net cash position of £3.3m, maintaining strong liquidity to support ongoing growth and infrastructure deployments.

Net assets were £42.96m at 31 December 2025 compared with £39.18m at 31 December 2024 and £43.22m at 30 June 2025.

Overall, the balance sheet remains strong, supporting continued investment in infrastructure and product development while maintaining a conservative leverage profile.

Fraser McDonald

CFO

16 March 2026

Beeks Financial Cloud Group PLC

Consolidated statement of comprehensive income

For the period ended 31 December 2025

Beeks Financial Cloud Group PLC

Consolidated statement of financial position

For the period ended 31 December 2025

Beeks Financial Cloud Group PLC 

Consolidated statement of changes in equity 

For the period ended 31 December 2025 

Beeks Financial Cloud Group PLC

Consolidated cash flow statement

For the period ended 31 December 2025

Beeks Financial Cloud Group PLC

Notes to the financial statements

For the period ended 31 December 2025

Note 1. General information

The financial information covers the consolidated entity, Beeks Financial Cloud Group PLC and the entities it controlled at the end of, or during, the interim period to 31 December 2025.

The company is a public limited company which is quoted on the Alternative Investment Market and is incorporated and domiciled in United Kingdom. Its registered office and principal place of business is:

Registered office

Riverside Building

2 Kings Inch Way

Unit A

Riverside

Braehead

PA4 8YU

Note 2. Basis of preparation

The financial information for the period ended 31 December 2025 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006 and is unaudited. The figures for the year ended 30 June 2025 have been extracted from the Group financial statements for that year. Those have been filed with the Registrar of Companies. The auditor's report on those financial statements was unmodified and did not contain statements under Section 493 of the Companies Act 2006.

The interim financial information has been prepared using the same accounting policies and estimation techniques as will be adopted in the Group financial statements for the year ending 30 June 2026. The group financial statements for the year ended 30 June 2025 were prepared under international accounting standards in conformity with the requirements of Companies Act 2006. These interim financial statements have been prepared on a consistent basis and format with the Group financial statements for the year ended 30 June 2025 and have not been audited or reviewed by the auditors.

The provisions of IAS 34 'Interim Financial Reporting' have not been applied in full.

Going Concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chief Executive's Statement.

The directors are of the opinion that the Group can operate within their current debt facilities and comply with its banking covenants. At the end of the period, the Group had net cash of £3.29m (H1 2025: net cash £6.57m) a level which the Board is comfortable with given the cash generation of the Group. The Group has a diverse portfolio of customers with relatively low customer concentration which are split across different geographic areas. As a consequence, the directors believe that the Group is well placed to manage its business risks.

The directors have considered the Group budgets and the cash flow forecasts to 31 December 2027, and associated risks, including the potential impact of the current economic climate. We have run appropriate scenarios applying reasonable downside sensitivities and are confident we have the resources to meet our liabilities as they fall due. The budgets and cash flow forecasts have assumed all loan facilities being repaid in full. We have also run reverse stress test scenarios in order to identify circumstances where cash reserves would be depleted. The circumstances that would lead into such scenarios (such as moving from revenue growth to revenue attrition) are not considered plausible given the historic track record and trading prospects of the Group.

After making enquiries, the directors have a reasonable expectation that the Group will be able to meet its financial obligations and has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Note 3. Operating Segments

Identification of reportable operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers. The chief operating decision makers, who are responsible for allocating resources and assessing performance of operating segments, have been identified as the Executive Board. The group does not place reliance on any specific customer and has no individual customer that generates 38% (H1 2025: 33%) or more of its total group revenue.

Performance is assessed by a focus on the change in revenue across public/private cloud and new sales relating to Proximity Cloud/Exchange Cloud. Cost is reviewed at a cost category level but not split by segment. Assets are used across all segments and are therefore not split between segments so management review profitability at a group level. 

Revenues by operating segment, further disaggregated are as follows:

During the period, £138k (H1 2025: £138k) was recognised in other income for grant income received from Scottish Enterprise, £40k (H1 2025: £53k) was recognised as rental income, and £144k (H1 2025: £nil) was recognised in relation to the expected R&D tax credit.

Note 4. Operating profit

* Included within other cost of sales are the direct costs associated with the business including data centre connectivity, software licences, security and other direct support costs.

Note 5. Taxation

The effective tax rate for the six months to 31 December 2025, based on the taxation credit for the period as a percentage of the loss/profit before tax is 9% (H1 2025: 21%).

Note 6. Earnings per share

As at 31 December 2025, the company had 67,982,890 shares (H1 2025: 67,053,738).

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the total of the weighted average number of ordinary shares in issue during the year and adjusting for the dilutive potential ordinary shares relating to share options.

\* The above is calculated on profit after tax excluding the £121k R&D tax credit received during the period.

Included in the weighted average number of shares for the calculation of underlying diluted EPS are share options that have vested and that are not yet exercised and share options that have still to meet vesting criteria. It is management's intention that the vested shares will be exercised and that the Group will meet the challenging growth targets for the unvested shares to vest. As such, both these types of share options have been included in the underlying diluted EPS calculation.

Note 7. Intangible Assets

Note 8. Non-current assets - Property, plant and equipment