8th Aug 2024. 8.59am
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Beeks Financial Cloud reports record growth in FY24
Beeks Financial Cloud (BKS) recently released a strong trading update for the year ended 30 June 2024 (FY24), highlighting significant growth.
The cloud computing for financial markets company expects to meet consensus expectations, demonstrating substantial double-digit growth compared to the prior year. This growth has been driven by the robust performance of Beeks’ Private, Proximity, and Exchange Cloud solutions.
One of the highlights from the update was the 18% increase in Annualized Committed Monthly Recurring Revenue (ACMRR), which reached £28.0 million by the end of FY24, up from £23.8 million at the end of the previous fiscal year. Additionally, the company anticipates a 27% increase in revenue for FY24 compared to FY23, which is expected to drive over 27% growth in underlying EBITDA and approximately 67% growth in underlying profit before tax.
Beeks achieved a positive free cash flow position in H2 FY24, aligning with management’s strategy, and reported unaudited net cash of £6.58 million at the period end, up from £5.44 million in H1 24 and £4.41 million in FY23.
Looking ahead, CEO Gordon McArthur said Beeks remains focused on converting its record pipeline of opportunities across its offerings. The company has started the new financial year on a promising note, with contracts already signed in FY24 expected to contribute to delivery and revenue in FY25.
BKS Daily Candle Chart
Ceres Power signs new manufacturing licence partner
Ceres Power (CWR), a developer of clean energy technology, has signed a global long-term licence agreement with a major OEM in the Asia Pacific region for manufacturing its proprietary solid oxide electrolyser cell (SOEC) technology.
The agreement is expected to generate significant revenues through licence fees, engineering services, hardware, and royalty payments on future commercial production and sales of SOEC equipment. Details about the partner will be disclosed in early August.
In its trading update, Ceres increased its full-year revenue guidance to £50-60 million, with first-half revenue expected to be £27-29 million, more than doubling from £11.7 million in H1 2023. Gross margins for the first half rose to 75-80%, up from 62% in the same period last year. The company had approximately £126 million in cash and short-term investments as of 30 June 2024, with a reduced cash outflow of £14 million in H1 2024 compared to £21 million in H1 2023.
Ceres has shown strong momentum, signing its second major licence deal this year, following a manufacturing collaboration with Delta announced in January 2024. CEO Phil Caldwell expressed excitement about the commercial progress and adoption of Ceres’ SOEC technology by leading global companies, positioning Ceres as a leader in industrial decarbonisation and the global energy transition.
CWR Daily Candle Chart
eEnergy sees strong second half momentum following restructuring
Net zero energy services provider, eEnergy (EAAS) recently reported a trading update for the six months ended 30 June 2024.
The period focused on restructuring following the sale of the Energy Management Division. Q1 24 faced challenges due to a constrained balance sheet and weak market conditions, leading to a slow start. However, market conditions improved, and H2 24 has begun with strong momentum, supported by a robust forward order book.
eEnergy achieved Core Revenue of £6.2 million for H1 24, down from £11.0 million in the same period last year, and a Core Adjusted EBITDA loss of £-2.1 million. Despite these figures, a significant £5.2 million solar contract with Spire Healthcare, the largest to date, and a new £40 million project funding facility with NatWest will bolster growth.
The sales pipeline grew by 25% during the period, and H2 24 is expected to generate £12.9 million in revenue from contracted orders, covering 75% of forecasted Solar revenues and 44% of LED revenues. The balance sheet has been strengthened by the £29.3 million disposal of the Energy Management Division, repaying all previous debt and funding the Energy Services Division.
CEO Harvey Sinclair highlighted the transformative impact of the sale, improved financial position, and the appointment of Nick Clark as COO to drive operational growth. The company is well-positioned to capitalize on improved market conditions and a solid forward order book, expecting most revenue generation for FY24 to occur in the second half of the year. Interim results are set to be reported in September 2024.
EAAS Daily Candle Chart
Eleco delivers 31% jump in recurring revenue
Eleco (ELCO) reported a strong trading update for the six months ended 30 June 2024. The specialist software provider achieved record growth in Annualised Recurring Revenue (ARR) and Total Recurring Revenue (TRR), reflecting successful execution of its growth strategy.
ARR surged 31% to approximately £25.8 million, up from £19.7 million the previous year. TRR also grew by about 24% to £12.0 million, representing 74% of total revenue, up from 72% in H1 2023. Excluding acquisition impacts, the organic growth rate for the period was 12%. Total revenue increased by 21% to around £16.3 million, or £16.5 million in constant currency terms, compared to £13.5 million in H1 2023.
Cash reserves stood at £12.0 million as of 30 June 2024, up from £9.4 million a year earlier, despite acquisition costs and an increased dividend payment. The Vertical Digital acquisition, completed in April, added £1.1 million to acquisition costs and is expected to enhance the company’s technical capabilities and market presence.
CEO Jonathan Hunter highlighted the positive momentum and advancements in Eleco’s technology offerings, including the launch of AstaGPT, which has been shortlisted for Innovation of the Year at the Digital Construction Awards 2024. The introduction of Asta Vision LiveTM offers enhanced collaboration in a secure, cloud-based environment.
The integration of Vertical Digital is progressing well, and Eleco remains confident in meeting market expectations for the full year. Interim results will be reported in September, with the company well-positioned in an expanding technology-driven market for the built environment.
ELCO Daily Candle Chart
FRP Advisory’s earnings per share surges 67%
FRP Advisory’s (FRP) share price jumped higher after it reported a strong performance for the year ended 30 April 2024. The insolvency company achieved growth across several key metrics, underscoring the effectiveness of its strategic focus on organic growth and selective acquisitions.
Revenue for the year increased by 23% to £128.2 million, up from £104.0 million in FY2023, with 19% coming from organic growth and 4% from acquisitions. Adjusted underlying EBITDA rose by 37% to £37.1 million, compared to £27.0 million the previous year. Reported EBITDA saw an impressive 80% increase to £33.3 million, up from £18.5 million. Adjusted profit before tax grew by 39% to £33.7 million, while reported profit before tax nearly doubled to £29.9 million.
The company also saw significant improvements in earnings per share, with adjusted total EPS rising by 27% to 9.94 pence, and basic EPS increasing by 67% to 9.35 pence. The total dividend for the year was increased to 5.0 pence, up from 4.6 pence the previous year. FRP maintained a strong balance sheet with net cash of £29.7 million, up from £22.9 million in FY2023.
Operationally, FRP continued to expand its team, with a 19% increase in staff to 657, driven by both organic growth and acquisitions. The restructuring team remained highly active in the UK market, and the corporate finance division was ranked as the 24th most active financial adviser in the UK M&A market. The forensic services team was notably engaged in a high volume of confidential projects.
Geoff Rowley, CEO, highlighted the successful execution of the Group’s strategy, the positive trading environment, and the strong M&A pipeline, indicating confidence in meeting future market expectations.
FRP Daily Candle Chart
Gaming Realms expands content licensing operations
Gaming Realms (GMR) saw revenues jump in the first half of the year, with a notable 18% increase compared to the same period last year. The innovative developer reported approximately £13.5 million in revenue for H1 2024, reflecting a robust performance driven by significant growth in its core content licensing business.
The expansion of Gaming Realms’ content licensing operations was a major factor in this growth, as revenue from this segment surged by 28% year-on-year. This impressive rise in licensing revenue was supported by the successful onboarding of 22 new clients and the launch of 7 new Slingo games, enhancing the company’s market presence and appeal.
In North America, Gaming Realms made strides with the launch of its Slingo games in new states and with new partners. The company introduced its portfolio with Fanduel in Pennsylvania and Connecticut, the Atlantic Lottery Corporation in Canada, and Fanatics in New Jersey, Michigan, and Pennsylvania. Meanwhile, in Europe, Slingo games went live with prominent partners such as Pokerstars in Italy and Romania, DAZN in the UK and Spain, and others across the continent.
The strong performance in the first half of the year underscores Gaming Realms’ effective strategy of market expansion and innovation. The company’s positive momentum gives it confidence in meeting its full-year targets.
GMR Daily Candle Chart
GlobalData targets £500 million in annual revenue
GlobalData (DATA) announced robust half-year results for the period ending 30 June 2024…
The data, analytics, and insights platform company reported a continued improvement in Adjusted EBITDA, reaching £57.8 million (+8%) with a margin of 41%. Underlying revenue grew by 5%, although foreign exchange impacts reduced total reported revenue growth to 3%, totalling £139.6 million. Profit before tax increased by 13% to £26.9 million.
Significant milestones included the completion of Inflexion’s 40% investment in GlobalData’s Healthcare business, bringing gross cash proceeds of £451.4 million and reshaping the Group Balance Sheet. Additionally, GlobalData has proposed acquiring digital media and industry news assets and completed a minority investment in a tech-enabled solution provider.
CEO Mike Danson expressed confidence in the company’s sustainable value generation and highlighted progress in the first year of their Growth Transformation Plan 2024-2026. With good traction in subscription revenue and over 80% revenue visibility, GlobalData is on track to meet full-year expectations and targets £500 million in annual revenue by the end of the three-year plan.
Mr Danson added that GlobalData is well-positioned for resilient growth, aiming to achieve a 45% Adjusted EBITDA margin and high single to double-digit organic revenue growth, supplemented by strategic M&A to surpass £500 million in annualised revenue.
DATA Daily Candle Chart
Somero Enterprises reports mixed first half
Somero Enterprises (SOM) recently reported a trading update ahead of its interim results announcement on August 29th.
The cement screeding company said the US non-residential construction market remains strong, driven by an active manufacturing sector, onshoring, and electric vehicle and battery plants. However, trading in North America has faced challenges due to project start delays, labour shortages, concrete rationing, and significant inclement weather, leading to a weaker performance compared to H1 2023.
The European market saw positive non-residential construction activity, resulting in trading comparable to H1 2023. Australia experienced inclement weather, causing project delays and a decline in trading compared to its record H1 2023 performance. The Rest of the World region, particularly the Middle East and Latin America, saw a decline in trading due to lower sales volume.
Despite these challenges, Somero anticipates improved performance in H2 2024, driven by new product revenue growth and better weather conditions. The company has initiated a workforce reduction of approximately 15% and implemented cost controls to mitigate the impact on profitability.
Somero now expects FY 2024 revenues of approximately $110.0 million, EBITDA of $30.0 million, and year-end cash of $27.0 million, all lower than previous market consensus estimates.
President & CEO Jack Cooney emphasised that while H1 2024 faced significant challenges, the long-term growth drivers for the non-residential construction market remain strong, and Somero is well-positioned to adapt and emerge strongly from these conditions.
SOM Daily Candle Chart
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