Beeks Financial Cloud soars to new highs after securing major exchange contract

Beeks Financial Cloud (BKS) surged to new trend highs following a series of strategic developments that have significantly bolstered investor confidence and market momentum.

Beeks’ ability to secure contracts with major international exchanges further underscores its strong position in the competitive cloud computing market for financial services. This success builds on Beeks’ proven track record, solidifying its reputation as a leading provider of low-latency cloud infrastructure for trading environments.

The market is optimistic about the long-term growth potential as Beeks continues to expand its customer base and pipeline, particularly with other major exchanges currently in advanced discussions to adopt its Exchange Cloud platform.

CML Microsystems on track to meet full-year expectations

CML Microsystems (CML) released an AGM statement last week, indicating that it is on track to meet the market’s full-year expectations.

CML expressed optimism about the future, particularly as it anticipates an improvement in customer inventory levels during the second half of the financial year. This anticipated uptick is expected to further bolster CML’s performance as it capitalizes on the growing demand for its mixed-signal, RF, and microwave semiconductors.

The AGM statement also reflected the Board’s satisfaction with the underlying progress of the business. CML said it was strategically focused on key growth opportunities within its target markets, which are driven by the increasing need for faster and more secure data transmission, the global upgrade of telecom infrastructure, and the rise of private commercial wireless networks linked to the Industrial Internet of Things (IIoT).

Whilst the shares have underperformed of late, we remain more than happy to hold them in our list of AIM Investor open positions.

EQTEC nears £2m settlement as Deeside site sale becomes unconditional

Waste-to-energy company EQTEC (EQT) provided an important update regarding its ongoing settlement agreement with Logik Developments.

The sale of the site, initially scheduled for completion by 28 June 2024 and later extended to 12 July 2024, has encountered delays due to ongoing negotiations and legal processes. On 29 July 2024, EQTEC informed its stakeholders that discussions were still progressing, and that the finalisation of funding documents was underway.

In the latest update, EQTEC announced that the sale has now moved to an unconditional status, meaning that all necessary conditions have been met, and the sale is set to proceed. A new long stop date has been set for 16 August 2024, by which time the completion funds are expected to be transferred.

Once the sale is finalised and the funds are transferred, EQTEC will receive the £2 million settlement under the agreement. The company has assured stakeholders that further updates will be provided once the transaction is fully completed and the settlement funds are received.

This development is a significant step forward for EQTEC, as the settlement funds are expected to support the company’s ongoing initiatives in waste-to-energy and other clean energy solutions.

Gattaca rebounds from lows after reporting resilient FY24 performance

Gattaca’s (GATC) share price bounced from lows last week following the release of its trading update for the year ended 31 July 2024. The staffing specialist reported a resilient performance that aligned with market expectations, providing a positive surprise for investors.

Further details from the update revealed that the company’s underlying profit before tax was expected to fall within the previously announced range of £2.4 to £2.7 million, and it maintained a strong net cash position of £21 million. Positive trends were noted in key sectors, with Defence and Infrastructure showing growth, and productivity per sales head increasing by 6% in the latter half of the year.

The announcement of a planned 2.5p per share dividend and a forward-looking statement about increasing market share and managing operating costs further buoyed investor sentiment. CEO Matthew Wragg’s optimistic outlook and focus on leveraging market-leading technology to drive future growth added to the positive market reaction, helping the stock recover from its recent lows.

IXICO jump after major contract win and strong trading update

IXICO’s (IXI) share price rallied more than 30% last week following a series of positive developments that significantly boosted investor confidence. The surge was primarily driven by two major announcements from the company:

2. Positive trading update for FY24: IXICO also released a trading update indicating that its financial performance for the year ending 30 September 2024 is set to exceed market expectations. The company reported new contract wins worth £5.8 million since its last update, which are expected to drive full-year revenue between £5.5 million and £5.9 million. This represents a marked increase in revenue growth for the second half of the year compared to the first half. Additionally, the company’s order book is anticipated to rebound to previous levels, and improvements in cash flow and EBITDA performance are expected to outpace earlier projections of a £1.4 million cash position and a £2.1 million EBITDA loss.

The combination of these announcements has led to a strong rally in IXICO’s share price, reflecting investor optimism about the company’s future growth prospects and its ability to deliver on its strategic goals. The market’s reaction underscores the positive impact of IXICO’s contract wins and financial performance on its overall valuation.

Team Internet falls after mixed results and rising debt

Team Internet Group’s (TIG) share price dropped last week following the release of its unaudited financial results for the six months ended 30 June 2024. Despite reporting year-on-year growth across all key financial metrics, the market reaction was notably negative.

Additionally, the significant rise in net debt to $109.9 million, up from $74.1 million at the end of 2023, likely contributed to the market’s unease. The increased leverage ratio, driven by substantial cash outflows for the acquisition of Shinez I.O. Ltd, share repurchases, and dividend payments, may have overshadowed the positive aspects of the financial results. The decline in adjusted operating cash conversion to 87%, with expectations to normalise later in the year, might have further dampened investor confidence.

Furthermore, despite increasing the final dividend by 100% to 2 pence per share and planning an interim dividend of 1 pence per share, some investors might have been worried about the balance between rewarding shareholders and maintaining financial flexibility given the growing debt levels.