20th Mar 2025. 9.01am
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Regency View:
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Beeks Financial Cloud dips despite strong results
Beeks Financial Cloud’s (BKS) share price retraced last week despite delivering a strong set of interim results that underscored the company’s continued growth and expanding market presence…
Revenue rose by 22% to £15.8m, while underlying profit before tax surged 37% to £1.9m, reflecting both operational efficiency and strong demand for Beeks’ cloud-based trading infrastructure. With recurring revenue now making up a significant proportion of total sales, the business remains well-positioned for long-term scalability. Management reiterated confidence in the company’s trajectory, highlighting the resilience of its model even in a challenging market environment. However, despite the robust financial performance, the shares failed to hold onto recent gains, likely due to profit-taking following their strong run in the months prior.
Beyond the headline numbers, Beeks continues to secure high-profile contracts that strengthen its foothold across major financial exchanges and Tier 1 institutions. A standout development was the post-period contract win with Kraken, which marks Beeks’ first foray into the cryptocurrency exchange market, an area of growing institutional interest. Additionally, the company deepened relationships with key financial hubs, including JSE and Grupo Bolsa Mexicana de Valores, reinforcing its reputation as the go-to provider of low-latency cloud solutions.
Looking ahead, Beeks’ ability to integrate AI and automation into its infrastructure offering could prove a key differentiator as financial institutions seek more efficient ways to manage trading operations. At the same time, the broader shift towards cloud-based trading solutions continues to accelerate, providing a long-term tailwind. While short-term share price fluctuations are to be expected, particularly after a period of strong gains, the underlying fundamentals remain intact.
BKS Daily Candle Chart
GlobalData’s growth plan gathers momentum
GlobalData (DATA) delivered a solid set of full-year results, with revenue rising 5% to £285.5m and profit before tax surging 32% to £54.9m.
The company’s Growth Transformation Plan, launched in 2024, is already yielding results, with its AI-first approach gaining traction and over 42,000 users now engaged with its AI Hub. Strategic acquisitions, including four completed deals in 2024 and the recent purchase of AI Palette for $11.5m, have further strengthened the company’s platform and enhanced its insight-driven offerings. While operating profit dipped 12% due to restructuring and acquisition costs, the company’s focus on long-term expansion remains clear.
A major highlight of the year was the £451.4m investment from Inflexion Private Equity, which secured a 40% stake in GlobalData’s Healthcare division and allowed the company to fully settle its previous debt facilities. This has bolstered GlobalData’s financial position, enabling further investment in M&A and shareholder returns, including £29.3m in completed share buybacks and a further £50m planned for 2025. Despite a 46% cut in total dividends as capital is redirected toward acquisitions, the company’s Contracted Forward Revenue grew 12% to £171.4m, providing strong visibility into future growth.
Looking ahead, GlobalData is targeting £500m in annualised revenue by 2026, combining high single- to double-digit organic growth with strategic M&A. The company’s upcoming move to the Main Market of the London Stock Exchange is expected to enhance its profile and investor base.
DATA Daily Candle Chart
Restore strengthens market position as profitability rises and debt falls
Restore (RST) delivered a solid performance in 2024, with a focus on profitability and operational efficiency driving results despite flat revenue. Adjusted operating profit rose 10% to £48.8m, while profit before tax surged 14% to £34.4m. The company also made significant strides in reducing leverage, with net debt falling 9% to £89m, helping to support both growth initiatives and shareholder returns.
The integration of Digital and Records Management into a single Information Management division has streamlined operations and enhanced customer offerings. This restructuring, combined with cost efficiencies and property consolidation—such as the opening of new storage facilities in Markham Vale and Durham—has pushed operating margins higher, with the company now targeting 20% in the medium term.
On the growth front, Restore secured major contracts, including a Department of Work and Pensions mailroom deal, and announced the acquisition of Synertec, a document management firm serving the public sector. This acquisition, alongside an improved fixed-price paper offtake agreement for Datashred, strengthens Restore’s position in its core markets. With strong cash generation and a 12% dividend increase, the company is in a solid position to expand both organically and through further acquisitions.
RST Daily Candle Chart
Sylvania Platinum’s shares rebound as strong production lifts earnings
Sylvania Platinum (SLP) delivered a solid set of interim results, with higher PGM production and an improving price environment boosting financial performance. Revenue rose 17% to $47.6m, while EBITDA climbed 36% to $9.9m, reflecting stronger margins and disciplined cost control. Net profit more than doubled to $7.2m, underlining the company’s ability to generate returns even in a challenging commodity price landscape.
Operationally, the company’s SDO delivered 39,398 ounces of 4E PGMs, with a 17% improvement in feed grades supporting output growth. Sylvania also made progress on its expansion projects, with the Thaba JV on track to commence production in May 2025, promising additional low-cost PGM and chrome output. Meanwhile, a two-year wage agreement provides stability at its operations, and process optimisation efforts are helping to sustain efficiency gains.
Despite a muted market reaction to February’s results, Sylvania’s shares have gained momentum in recent sessions, suggesting investors are beginning to recognise its strong cash generation and future growth potential. With a growing cash balance, a share buyback in progress, and an increased production outlook for the full year, the company remains well positioned to deliver value for shareholders.
SLP Daily Candle Chart
Synectics delivers solid full-year results
Synectics (SNX) delivered an in-line set of full-year results for the period ending 30 November 2024, meeting market expectations with solid growth across its key financial metrics…
Revenue increased by 13.6% year-on-year, reaching £55.8 million, while underlying operating profit saw an impressive 56.8% rise to £4.8 million. The company also reported a robust order book of £38.5 million at the close of the financial year, providing a strong foundation for FY25. This performance reflects the effectiveness of Synectics’ strategic focus on delivering advanced security and surveillance solutions, particularly within the gaming sector, which was a key contributor to growth.
Despite the challenges posed by a rapidly evolving market, Synectics’ focus on innovation and customer relationships has clearly paid off. The company launched new AI capabilities, including Synergy DETECT, and continued to invest in product development. The rebranding of Synectics Security to Ocular Integration further signals the Group’s commitment to strengthening its position within the security solutions market. Additionally, with a solid cash balance of £9.6 million and no bank debt, Synectics is well-positioned to capitalise on future growth opportunities, including potential acquisitions to enhance its capabilities.
Looking ahead, Synectics has set the stage for continued momentum with a strategic shift towards key sectors such as critical infrastructure, energy, transport, and leisure. This new direction will help the company align its services with market demands for enhanced security solutions. Overall, the results are a testament to Synectics’ strong operational execution, and with the current order book and strategic initiatives in place, the outlook for FY25 remains positive.
SNX Daily Candle Chart
1Spatial faces setback as delayed contracts weigh on performance
1Spatial’s (SPA) share price took a significant hit this week after the company released a trading update that failed to meet market expectations.
While the Group reported an impressive 35% increase in software sales, driven by growth in term licence and SaaS revenue, the overall performance was hampered by a substantial decline in services revenue. This decline was largely attributed to delays in the commencement of the large Belgian contract announced earlier in the year, which, despite now being underway, affected the overall pace of the Group’s growth.
The weaker-than-expected services revenue impacted overall company earnings, with the Group’s total revenue growth falling below market forecasts. Adjusted EBITDA showed a modest improvement, but this was not enough to offset the concerns raised by the delay in contract execution, particularly as it has been compounded by external factors such as government contract slowdowns in both the UK and US. The net borrowings of £1.1 million further added to the negative sentiment, as the Group’s working capital requirements and higher finance charges contributed to the outflow.
Looking forward, 1Spatial remains optimistic about its future prospects, with a number of new customer contracts in the final stages of negotiation and a positive outlook for FY2026. The company is also set to announce a third significant contract for its 1Streetworks SaaS solution in the first quarter of 2025. Despite the current setback, the investments made in software development and new sales leadership are expected to support future growth, though investors will be closely monitoring the Group’s ability to recover from this short-term dip.
SPA Daily Candle Chart
Serica Energy delays Triton production restart
Serica Energy’s (SQZ) share price came under pressure this week after the company revealed that production from the Triton FPSO, which had been expected to resume in mid-to-late March, will now not restart until May at the earliest.
This delay follows further complications arising from the aftermath of Storm Éowyn in January, which had already caused significant disruption. Despite expectations that the necessary repairs would be completed on schedule, the timeline has now been extended, frustrating investors who were hoping for a swift recovery in production.
The ongoing challenges with the Triton FPSO have prompted Serica to engage in discussions with the operator, Dana Petroleum, to explore all available options for improving the long-term performance of the unit. While the company has had excellent drilling results around the Triton area, these successes have yet to translate into sustained production or meaningful cash flow. Serica’s CEO, Chris Cox, expressed dissatisfaction with the current situation, emphasising that the underperformance of the FPSO is not acceptable to the company or its shareholders.
Despite the setbacks, Serica is actively working with Dana to resolve the issues and improve operational efficiency moving forward. However, with production now delayed further, shareholders will be closely watching how quickly the company can restore predictable and consistent output from the Triton FPSO, which remains central to its financial performance in the near term.
SQZ Daily Candle Chart
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