17th Oct 2024. 8.57am
Regency View:
Update
Regency View:
Update
Beeks Financial Cloud reports strong growth for FY24
Beeks Financial Cloud (BKS) has continued its recent trend of delivering bullish trading updates, reinforcing its strong growth trajectory in the financial cloud computing space.
Over the past year, Beeks has consistently exceeded expectations, with impressive revenue growth, significant contract wins, and solid financial performance. This momentum is largely driven by the increasing demand for cloud solutions within the financial services sector, as institutions prioritise digital transformation and enhanced connectivity.
In its latest results, Beeks reported a 27% increase in revenue and a substantial rise in annualised recurring revenue, demonstrating the stickiness of its product offerings and the long-term value of its client relationships. The company’s ability to secure multi-year contracts with some of the largest global financial institutions, including high-profile deals with top-tier banks and exchanges, highlights its expanding footprint in the industry.
Additionally, Beeks’ continuous investment in product innovation, such as the development of its Proximity and Exchange Cloud offerings, has helped it stay ahead of evolving market needs. The company’s leadership in providing secure, scalable solutions, reinforced by industry certifications like SOC 2 compliance, has further solidified its reputation in the market. Beeks’ bullish updates reflect not only its past success but also its potential to continue capitalizing on favourable market trends as financial services increasingly migrate to cloud-based infrastructures.
With a robust sales pipeline and high levels of recurring revenue, Beeks is well-positioned to drive growth well into FY25, giving investors confidence in the company’s future prospects.
BKS Daily Candle Chart
CAML keeps its copper and zinc on the up and up
Central Asia Metals (CAML) has delivered a strong operational update for Q3 2024, showing impressive performance across its assets in Kazakhstan and North Macedonia.
At Kounrad, copper production for the quarter reached 3,641 tonnes, contributing to a total of 10,248 tonnes for the year to date. The company is on track to meet its full-year guidance of 13,000 to 14,000 tonnes, highlighting Kounrad’s consistent operational efficiency.
Meanwhile, Sasa demonstrated resilience despite facing challenges with its new mining system. Zinc and lead production in Q3 amounted to 4,768 tonnes and 6,864 tonnes, respectively. Although the mine is expected to finish the year at the lower end of its production guidance—19,000 to 21,000 tonnes for zinc and 27,000 to 29,000 tonnes for lead—CAML noted an improvement in tonnage processed compared to the first half of the year. Head grades for both metals also showed recovery, which is a positive sign for future output. The management expressed confidence in maintaining this upward trajectory into the fourth quarter.
CAML is also making significant strides with its capital projects at Sasa, aimed at enhancing operational sustainability and efficiency. The ongoing transition to paste-fill mining and dry-stack tailings is a key component of the company’s strategy to maximize resource extraction while extending the mine’s life. The Paste Backfill Plant has successfully placed over 207,000 tonnes of paste underground since commissioning, contributing to ground stability for future mining.
CAML Daily Candle Chart
LCM secures major victory in Poland arbitration
Litigation Capital Management (LIT) has announced a major win for its Fund I portfolio, having successfully funded an international arbitration claim against the Republic of Poland.
The arbitration tribunal ruled in favour of LCM’s funded party, finding that Poland breached its obligations under the Australia-Poland Bilateral Investment Treaty and the Energy Charter Treaty. The awarded amount totals A$490 million plus interest.
LCM has invested A$16.6 million in the case, with A$4.2 million from its own balance sheet and A$12.4 million from third-party capital within Fund I. The return on this investment could reach a multiple of six times LCM’s invested capital, along with significant performance fees, depending on the outcome of the enforcement stage.
CEO Patrick Moloney highlighted the significance of the ruling, stating that, pending any challenges, this investment could be one of the most successful in LCM’s history.
LIT Daily Candle Chart
Mulberry bags Frasers’ offer: Majority shareholder says no sale
Mulberry (MUL) has become the target of a potential takeover by Mike Ashley’s Frasers Group, which has made two conditional offers to acquire the luxury handbag maker…
The first proposal, valuing Mulberry at £83 million, was followed by a second bid on Friday that increased the valuation to £111 million. Despite these advances, Mulberry’s majority shareholder, Challice, firmly rejected both offers. Challice, which owns a 56.4% stake and is controlled by billionaire Ong Beng Seng and his wife Christina, emphasised its strong support for Mulberry’s management and stated that it sees no reason to sell at this time.
Challice’s position has cast doubt on the future of the proposed deal. While acknowledging that Frasers has been a supportive minority shareholder since 2020, Challice expressed that now is an “inopportune time” for the business to be sold. It remains to be seen whether Frasers, which currently holds a 37% stake in Mulberry, will push forward with a formal offer before the October 28 deadline under UK takeover rules or step back from the deal.
Mulberry recently reported a pre-tax loss of £34 million for the year ending March 2024, a sharp downturn from a £13 million profit the previous year. Revenues also fell 4% to £153 million during the same period, highlighting the difficulties the company faces amid a broader slowdown in luxury spending. Despite these hurdles, Challice appears confident in Mulberry’s future, supporting its management’s strategy and the recent appointment of CEO Andrea Baldo to lead a turnaround effort.
MUL Daily Candle Chart
Netcall’s results lifted by cloud power
Netcall (NET) delivered a solid full year performance driven by strong demand for its cloud services and expanding automation solutions.
Total revenue grew 9% to £39.1 million, with cloud service revenues jumping by 19% to £19.8 million. Cloud subscriptions now account for 90% of new bookings, reflecting the company’s successful transition to a cloud-first model.
The Group’s Annual Contract Value (ACV) saw a 15% rise to £32.2 million, with Cloud ACV up 23%. This positive sales momentum also helped lift adjusted EBITDA by 5% to £8.4 million, while profit before tax increased by an impressive 58% to £6.3 million.
Netcall’s strong cash generation further boosted its cash reserves by 37% to £34 million, positioning the company well for future growth opportunities.
One of the year’s standout achievements was the launch of Liberty Converse CX, a cloud-native contact centre solution that combines artificial intelligence (AI) and intelligent automation to elevate customer engagement. This new product contributed to a 51% rise in cloud contact centre revenues, as many customers migrated from on-premise setups to leverage the benefits of cloud technology.
Alongside this, the integration of Skore, now rebranded as Liberty Spark, has expanded Netcall’s digital transformation offerings, allowing for more cross-selling opportunities across its customer base. The company’s strategic investment in AI and cloud technologies is paying off, reflected in a cloud net retention rate of 117%, underscoring high customer satisfaction and repeat business.
NET Daily Candle Chart
PetroTal delivers 39% production boost in Q3
PetroTal (PTAL) announced a strong Q3 2024 update, reporting average production of 15,160 barrels of oil per day (bopd), a 39% increase compared to Q3 2023. This growth keeps the company on track to meet the upper end of its 2024 production guidance.
Despite facing challenges from record low river levels, which impacted crude exports via the Brazil route, PetroTal’s logistics team successfully managed operations. The company’s liquidity remains solid, with $133 million in total cash at the end of Q3, up 18% from the same period last year.
The recently completed 20H well at Bretaña achieved initial production rates exceeding 5,300 bopd, although output has been managed to accommodate current river conditions. Looking ahead, the company has begun drilling the 21H well, expected to be completed by mid-November. PetroTal also made progress with its Block 131 acquisition in Peru, receiving a key Supreme Decree from the Peruvian President, which moves the deal closer to completion.
Additionally, PetroTal’s financial position was strengthened through a share buyback program, dividend payments, and a new hedge agreement. Looking forward, PetroTal said it will provide further details during its Q3 2024 results webcast scheduled for November 14th.
PTAL Daily Candle Chart
1Spatial sees jump in recurring revenue
Shares in 1Spatial (SPA) jumped higher last week following the release of its promising interim results for H1 2025.
The company reported a 5% increase in group revenue to £16.2 million, driven primarily by significant gains in recurring and term licenses revenue. The announcement highlighted a 9% rise in recurring revenue to £8.9 million, accounting for 55% of total revenue, and a 26% increase in term licenses revenue to £4.3 million, attributed to successful business wins in the US.
The market responded positively to the company’s ability to maintain a gross profit margin of 52% despite inflationary pressures. Furthermore, adjusted earnings (EBITDA) rose 18% to £2 million, showing improved operational efficiency and solid management practices.
The news of a £1 million potential award with a County Council, along with progress in the company’s 1Streetworks initiative, has also played a crole in boosting market sentiment. The appointment of an experienced Business Development Director and the expansion of the company’s footprint across 21 states in the US have positioned 1Spatial well for future growth.
CEO Claire Milverton emphasised the company’s focus on accelerating its SaaS offerings and deepening its presence in the US market. Since the update, the shares have rallied back above their 200 day moving average and 50 day moving average. With short-term momentum now realigned with the long-term trend, we expect 1Spatial to have a strong finish to the year.
SPA Daily Candle Chart
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