**Summary of Beeks Financial Cloud Group PLC Interim Results (H1 FY26):**
**Financial Highlights**
**Annualised Committed Monthly Recurring Revenue (ACMRR):** Increased by 15% to £32.80 million (H1 2025: £28.50 million), reflecting strong recurring revenue growth.
**New Contracts** Total Contract Value (TCV) of new contracts signed rose by 23% to £11.9 million (H1 FY25: £9.7 million), driven by high demand across all offerings.
**Revenue and Profitability** Revenues slightly declined to £14.65 million (H1 2025: £15.79 million) due to contract timing and the shift to a revenue share model for Exchange Cloud. Gross profit fell to £4.50 million (H1 2025: £6.03 million), and underlying EBITDA decreased to £4.12 million (H1 2025: £5.74 million). Underlying profit before tax turned to a loss of £0.69 million (H1 2025: £1.89 million profit), but strong profit progression is expected in H2 as contracts deploy and revenue recognition commences.
**Cash Position** Gross cash remained stable at £6.96 million, with net cash at £3.29 million (H1 2025: £6.57 million) after upfront investments to support contract wins.
**Operational Highlights**
**Commercial Momentum** Secured £6 million TCV of Proximity Cloud contracts in December 2025, with revenue recognition largely starting in H2.
**Exchange Cloud** Signed two new contracts (TMX Group and nuam) under the revenue share model, bringing the total to seven exchanges signed, with four on the revenue share model. Live deployments are transitioning to profitability ahead of expectations.
**Market Edge Intelligence™** Launched an AI-powered analytics platform, with a proof-of-concept customer (a major global bank) now in contractual discussions.
**Customer Base** Supports over 30 Tier-1 banks and investment managers, with significant expansion opportunities.
**Outlook**
**H2 FY26 Revenue** Expected to be supported by £4.5 million in revenue recognition from H1 contract wins, remaining deployment of the Grupo Bolsa Mexicana (BMV) DR site, and go-live of two Exchange Cloud contracts.
**Pipeline** Multiple significant contracts in discussion across all offerings, with the Board confident in full-year performance in line with expectations.
**Long-Term Growth** Significant addressable opportunity with limited competition, positioning the company for considerable long-term growth.
**CEO’s Commentary (Gordon McArthur)**
Highlighted strong commercial momentum and a robust customer base with expansion potential. Emphasized that while H1 financial performance was impacted by contract timing and revenue share models, it lays the foundation for significant profitable growth in the future.
**CFO’s Commentary (Fraser McDonald)**
Noted the impact of contract timing and revenue share models on H1 financials but stressed the strengthening recurring revenue base and expected H2 profitability. Highlighted continued investment in infrastructure and product development, with a focus on efficient capital allocation and margin improvement.
**Key Metrics**
**ACMRR Growth** 15% to £32.80 million.
**TCV Growth** 23% to £11.9 million.
**Revenue Decline** 7% to £14.65 million.
**Gross Profit Decline** 25% to £4.50 million.
**Underlying EBITDA Decline** 28% to £4.12 million.
**Underlying Loss Before Tax** £0.69 million (H1 2025: £1.89 million profit).
**Conclusion**
Beeks Financial Cloud Group PLC demonstrated strong commercial progress in H1 FY26, despite short-term financial headwinds due to contract timing and revenue model transitions. The company is well-positioned for significant revenue and profit growth in H2 and beyond, supported by a robust pipeline, expanding customer base, and innovative product offerings.
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue (£'000) | 14,653 | 15,794 | (7%) |
| Gross Profit (£'000) | 4,500 | 6,028 | (25%) |
| Underlying EBITDA (£'000) | 4,120 | 5,740 | (28%) |
| Underlying (Loss)/Profit Before Tax (£'000) | (690) | 1,890 | (136%) |
| Statutory (Loss)/Profit Before Tax (£'000) | (1,868) | 461 | (506%) |
| Net Cash (£'000) | 3,290 | 6,570 | (50%) |
| Gross Debt (£'000) | 8,599 | 1,953 | 340% |
| Net Debt (£'000) | (1,641) | 5,378 | (131%) |