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Fintech to create jobs in Glagow after achieving strong growth in sales

Financial technology firm Beeks Financial Cloud has underlined its growth ambitions after posting a near 50 per cent increase in first half profits as it prepares to create more jobs in Scotland.

Beeks which is based on the outskirts of Glasgow, made an underlying profit of £0.6 million in the six months to December 31, up 46% from £0.41m in the same period of the preceding year.

The company benefited from increased take up of its technology which can be used to speed up online trading in financial products.

After winning a following among day traders Beeks has been making inroads into the lucratiuve market to provide services for financial institutions.

The Aim-market listed firm increased first half revenues by 23% annually, to £4.3m, from £3.5m.

The company signed up two more clients in the Tier 1 sector of significant market players in the first half.

It agreed a deal with a cloud-based payments provider worth £1.1m over three years and one worth $1m (£0.8m) annually with a global financial markets technology provider.

Beeks Financial Cloud’s chief executive, Gordon McCarthur, noted both were of significantly higher value than the company has signed historically.

Beeks has opened more data centres overseas to help it win business and expanded its product line.

Mr McArthur noted the firm is continuing to expand its offering into the wider financial services market.

After focusing on foreign exchange, the company has expanded into what it regards as growth areas such as Fixed Income trading, Cryptocurrencies and Open Banking. Beeks noted new regulations such as the EU’s Second Payment Services directive are requiring institutions to share financial data and encouraging them to adopt cloud-based technology.

“The business has grown considerably over the last six months, in terms of offering and customer base but also in addressable market, due to the successes we have had in new areas of the financial services market,” said Mr McArthur.

”These factors combined with the continued growth in our committed recurring revenues and size of our new business pipeline, provide us with confidence in our continued success.”

He highlighted plans for Beeks to increase activity at its base at Hillington significantly in support of its product development effort.

The company plans to create 17 new posts there after being awarded a £2m research and development grant by Scottish Enterprise in January. It expects to use this to broaden its product offering “in particular to the Tier 1 financial services market”.

Beeks increased head office employee numbers to 30 in the first half, from 25.

Mr McArthur has noted previously that Beeks can recruit talented graduates in Scotland while accommodation costs in the country are relatively affordable .

Beeks could buy more businesses to support growth. Mr McArthur underlined its ambition to enter new geographies. It has bases in the US, Asia and Europe.

In May the company bought a US trading systems specialist, Commercial Network Services, for up to $1.4 million (£1.1m).

The progress that Beeks makes will be followed with interest by development specialists in Scotland.

Financial technology is seen as a promising growth market for Scotland.

Mr McArthur worked in managerial and commercial roles with IMB before founding Beeks in 2010.

Beeks floated on Aim in 2017. Shares in the firm closed down 3p at 96.5p.

Source: The Herald

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