Cloud computing and connectivity provider Beeks Financial has signed two significant multi-year contracts that the company says will underpin revenue growth going forward.

The contracts, which are covered by non-disclosure agreements, are with global asset management firms and are expected to be worth a total of £1.8 million over three years. The announcement came as Glasgow-based Beeks posted an increase in turnover and underlying earnings for the year to June 30.

AIM-listed Beeks supplies technology that speeds up online trading in financial products, and also operates an international network of data centres. Its Proximity Cloud is a single-use platform that banks and brokers can use without being hosted at a Beeks data centre, while Exchange Cloud is designed specifically for global financial exchanges and electronic communication networks.

“The majority of financial services organisations around the world are exploring how to utilise the power of the cloud to support their ambitions,” chief executive Gordon McArthur said. “This presents us with a considerable opportunity and through our Private Cloud, Proximity Cloud and Exchange Cloud, we have the offering to address it.”

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He added that the company will continue to invest in expansion following a £15m fundraising in April, of which more than £10m gross remains.

“Going for a higher amount allowed us to frontload capacity, so you’ll see we’ve got a couple of million pounds’ worth of stock sitting on the balance sheet which will allow us to deliver this year’s number, and then again as some of these [new] deals land we will keep growing the investment both in product and infrastructure,” Mr McArthur added.

The stockpile includes servers, networking gear and other IT equipment that has minimised the impact of supply chain disruptions on Beeks’ customers. From its new headquarters in Braehead, the company has also increased staffing levels to approximately 100 employees.

Beeks posted a 57 per cent increase in revenues which rose to £18.3m during the year to June, Underlying earnings were 52% higher at £6.3m.

After taking account of approximately £2m in deferred earn-out payments for the April 2020 acquisition of network monitoring specialist Velocimetrics, pre-tax profits fell to £660,000 from £1.25m the previous year.

Shares in Beeks closed 9.5p lower yesterday at 145.5p.