Defence winner | Cash flow concerns | Plenty going on
News covered here includes our assessment of a positive trading update from a company benefitting from the growth in defence spending, whose shares strangely fell. Elsewhere, we continue to have concerns about a cloud computing company which still has plenty of fans, while a change in accounting policy from a software group has unsettled the market. Read on here for our usual forthright assessment of this and other news.
Beeks: what about the cash flow? Beeks Financial Cloud (AIM: BKS), the cloud computing and connectivity provider for financial markets, issued a promising update, although we are still a little unclear of the ongoing free cash flow for this business. June marked a record month for the Group’s Proximity Cloud product, with c.$10m of contracts signed, the revenue for which is set to be recognised across both June 2025 and 2026 financial years. Revenue for the year to June 2025 is expected to have increased by approximately 25% to £35.5m, with ‘fairy tale’ underlying EBITDA growth of 29% to £13.8m…