Final Results

Innovation expanding the Group's addressable market

19 October 2026: Beeks Financial Cloud Group plc (AIM: BKS), a cloud computing and connectivity provider for financial markets, is pleased to announce its final results for the year ended 30 June 2026.

Financial highlights

• Revenues¹ up 11% to £40.0m (2025: £35.9m), with Analytics revenue rising to £4.4m (2025: £0.6m), and Proximity/Exchange Cloud revenue of £9.3m (2025: £10.3m) which reflects the timing of contract go-lives
• Annualised Committed Monthly Recurring Revenue (ACMRR) up 15% to £34.0m on a constant currency basis (up 13% to £33.4m on actual basis) (2025: £29.5m).
• Gross profit up 10% to £16.2m (2025: £14.7m)
• Underlying2 EBITDA increased 18% to £16.1m (2025: £13.6m)
• Underlying profit before tax3 increased 15% to £6.3m (2025: £5.5m)
• Underlying diluted EPS4 7.62p (2025: 7.60p)
• Operating cash flow before working capital up 26% to £17.8m (2025: £14.1m), with £6.8m absorbed by the increase in contract assets on Q4 deployments billed over three to five years
• Gross cash at 30 June 2026 of £5.4m (30 June 2025: £7.4m) and net cash⁵ of £0.6m (30 June 2025: £7.0m). This reflects upfront hardware investment for a number of contracts deployed in Q4, which are billed over their terms, with £17.7m of contracted billings to be collected.

Statutory Equivalents

• Profit before tax increased 41% to £3.94m (2025: £2.79m)
• Basic EPS increased 10% to 4.88p (2025: 4.43p)

Operational highlights

Innovation driving revenue growth and expansion of the Group's addressable market

Gordon McArthur, CEO of Beeks, commented:

"FY26 has been a year defined by another record financial performance alongside two significant strategic milestones. We successfully launched and commercialised Market Edge Intelligence®, securing three new contract wins within months of launch and validating the scale of the opportunity for AI-powered analytics in financial markets. At the same time, we demonstrated the value of our Exchange Cloud® revenue-share model, with both Kraken and ASX achieving monthly profitability during the year.

"Across the Group, we secured significant wins with leading exchanges, banks and financial institutions, increased ACMRR and further strengthened the visibility of our recurring revenue base. These achievements reflect the growing quality of our customer relationships, the strength of our technology and our ability to translate innovation into commercial success."

"Our focus for FY27 remains on commercial execution: converting the pipeline, increasing participation across live Exchange Cloud® deployments, expanding within our existing customer base, and building on the early success of Market Edge Intelligence® and further product innovation through the forthcoming launch of the Beeks Global Network. With a broader proposition, increasing revenue visibility and a significant market opportunity ahead of us, we remain confident in delivering continued growth."

Find out more at beeksgroup.com

Chairman's Statement

FY26 demonstrated the continued development of Beeks as a larger, more profitable business with an increasingly recurring revenue base. Revenue increased by 11% to £40.0m (FY25: £35.9m). Underlying EBITDA increased by 18% to approximately £16.1m (FY25: £13.6m), lifting the underlying EBITDA margin to approximately 40% (FY25: 38%). Diluted earnings per share was up 9% to 4.51p (FY25: 4.12p).

Of particular significance was the development and rapid commercialisation of Market Edge Intelligence®, our proprietary AI-based offering. Its adoption by several world renowned financial institutions, securing over £7.5m in contract wins, provides strong validation of both the sophistication of the technology and the scale of the market opportunity. This achievement further demonstrates Beeks' ability to innovate successfully and rapidly translate that innovation into commercial returns, a capability that sits at the heart of its strategy. Market Edge Intelligence® has established a differentiated, revenue-generating position for Beeks in financial markets AI and represents a significant new driver of recurring growth.

Our wider offerings also continued to perform strongly, with Exchange Cloud® securing new deployments and increasing contributions from revenue share arrangements, Proximity Cloud® winning new contracts and expanding existing customer relationships, as well as Private Cloud delivering strong recurring revenue growth.

This progress was supported by continued investment in the infrastructure required to deliver new contracts and expand capacity across the Group's offerings, alongside development of the Beeks Global Network ahead of its FY27 launch. While this investment was reflected in the year-end cash position, it supports a growing contracted revenue base and is expected to generate increasing returns as customer adoption builds. Beeks therefore enters FY27 with strong revenue visibility and encouraging momentum across its four offerings.

Looking ahead, the Board remains highly confident in the Group's prospects. Beeks has a broader proposition, an expanding base of recurring revenue and established relationships with many of the world's leading financial institutions. Together with a significant market opportunity and healthy pipeline, these strengths provide a strong foundation for continued growth.

Finally, on behalf of the Board, I would like to thank our colleagues for their commitment and contribution throughout the year. I would also like to thank our customers for the trust they place in Beeks, and our shareholders for their continued support.

Will Meldrum

Chairman

Strategic Report

Market Overview

The capital markets industry continues to undergo rapid transformation, driven by technological innovation and regulatory change. Increasingly, firms are recognising the strategic importance of cloud infrastructure to support trading, risk management and analytics in an environment where speed, scale and resilience are paramount.

Cloud adoption within capital markets has accelerated over the past decade. Although institutions have been seeking to outsource functions that do not provide a competitive advantage for some time, historically they have been cautious to outsource cloud due to security and latency concerns. Now, however, organizations are embracing private and hybrid cloud models that provide the control, performance and compliance assurances required in a highly regulated sector. Exchanges, brokers, banks and trading firms are leveraging cloud-based solutions to access on-demand compute power, streamline operations and reduce the costs of maintaining legacy infrastructure.

Key market drivers include:

Looking ahead, the shift towards cloud-native trading and post-trade environments is expected to deepen. As digital assets, machine learning and AI-driven strategies evolve, firms will require infrastructure capable of supporting increasingly complex workloads. Strategic partnerships between cloud providers, exchanges and fintech specialists are likely to define the next phase of industry development.

Beeks is well positioned within this landscape, offering cloud infrastructure specifically designed for the performance, security and compliance needs of capital markets.

Strategy

Our mission is to lead the way in creating flexible, future-ready infrastructure for capital markets, delivering innovation without compromising on reliability.

Our business is driven by three key strategies:

Sales and Marketing

Over the past year, Beeks has continued to evolve its sales and marketing approach with a clear focus on building trust, deepening relationships, and reshaping market perception. Beeks' heritage is rooted in infrastructure; our ambition is to be recognised as an innovative partner for capital markets, one that helps clients navigate complexity, unlock performance, and grow with confidence.

Central to this shift has been a deliberate expansion of our thought leadership programme. By investing in high-quality content, expert commentary, and active participation in the conversations that matter most to our audience, we have strengthened our position as a capital markets expert, not simply an infrastructure provider. This has been complemented by the introduction of paid advertising, allowing us to extend our reach and continue to build brand awareness. Together, these activities are reshaping market perception at scale, reinforcing the message that Beeks brings strategic depth as well as technical excellence.

Our investment in the sales team reflects the same ambition. We have increased headcount across our sales and pre-sales teams to ensure coverage across EMEA, APAC, and the Americas. Our teams have maintained an active presence at key industry events and conferences, building brand recognition, generating qualified pipeline, and opening new conversations across all of our offerings.

Chief Executive's Review

FY26 was an important year for Beeks, marked by two significant strategic milestones. Firstly, we successfully launched and commercialised Market Edge Intelligence®, securing three new contracts within months of launch. The speed of adoption has exceeded our initial expectations and provides strong validation of the scale of the offering's commercial opportunity. Secondly, we made significant progress in the transition of Exchange Cloud® to a revenue share model, demonstrating the flexibility of our offering and enabling us to establish new types of commercial relationships with exchanges. During the year, both Kraken, one of the longest-standing, most liquid and secure cryptocurrency exchanges, and Australian Securities Exchange ('ASX') continued to make strong progress in scaling its use of the platform, with Kraken selling out its first phase and moving into phase two deployment. Together, this progress has broadened our proposition and strengthened the visibility of our recurring revenue base.

In parallel, we delivered another year of record financial performance, with strong growth across revenue, underlying EBITDA and underlying profit before tax. Following a first half shaped by contract timing and the transition to revenue-share arrangements, the Group delivered the strongest second half in its history and achieved a full-year performance in line with the Board's expectations. The growing quality of our revenue base was reflected in a further increase in ACMRR, supported by strong recurring revenue growth in Private Cloud and an increasing contribution from Exchange Cloud® revenue-share contracts.

Commercially, we made progress across all four offerings. We announced two further Exchange Cloud® deployments with TMX in Canada and nuam in South America, and secured significant Proximity Cloud® and Private Cloud wins with leading financial institutions across multiple regions. Combined with the early adoption of Market Edge Intelligence®, this means we enter FY27 with a broader proposition, encouraging momentum across all four product lines and a healthy pipeline of commercial opportunities.

Financial performance

Revenue for the year ended 30 June 2026 increased by 11% to £40.0m (FY25: £35.9m), or by 12% on a constant currency basis to £40.7m. Underlying EBITDA grew by 18% to £16.1m (FY25: £13.6m) and underlying profit before tax grew by 15% to £6.3m (FY25: £5.5m), or by 18% to £6.5m on a constant currency basis.

The shape of performance across the year reflected the timing of contract wins and the increasing prevalence of Exchange Cloud® revenue share contracts. These contracts typically generate lower upfront deployment revenue while still requiring Beeks to incur set-up costs, but are expected to deliver greater revenue versus the prior model over the medium term as customer engagement scales. H2 Revenue increased 73% sequentially compared with H1, benefitting from the recognition of revenue from contracts secured towards the end of H1, a growing contribution from revenue-share arrangements and the significant new wins announced during the second half.

Beeks continues to benefit from a strong recurring revenue profile and high customer retention. ACMRR grew by approximately 15% on a constant currency basis to £34.0m, £33.4m on an actual basis) (30 June 2025: £29.5m). This contracted base provides substantial visibility entering FY27. The year also saw strong momentum across Beeks' newer growth initiatives, with Analytics gaining traction and Market Edge Intelligence® securing several customers within months of launch. The pace of adoption of Market Edge Intelligence® has exceeded our initial expectations, providing strong validation of the commercial opportunity.

Gross cash at 30 June 2026 was £5.4m (30 June 2025: £7.4m). After the £1.5m bank loan (30 June 2025: £nil) and asset finance of £3.2m (30 June 2025: £0.4m), net cash was £0.6m (30 June 2025: £7.0m). The movement principally reflects significant upfront infrastructure investment, weighted towards the final months of the year, to support new Exchange Cloud® revenue share deployments and continued capacity expansion across Proximity Cloud® and Private Cloud. Several revenue share deployments are now operational, demonstrating strong progress in the rollout of the model, and we expect the returns from this investment to build as customer adoption and associated recurring revenue increase. After the year end, we agreed a £5m revolving credit facility with Barclays, which is currently undrawn and provides further flexibility to support our investment plans.

Operational Expansion

During FY26 we continued to expand our operational capability to support the contracts secured across our offerings. We brought further Exchange Cloud® deployments into service, added capacity across our existing data centre estate and continued to invest in the infrastructure required to support Proximity Cloud® and Private Cloud customers.

The Group also increased its team through targeted recruitment, with headcount of 115 at 30 June 2026 compared with 102 at 30 June 2025. Investment was focused on areas that directly support growth, including sales and the continued development and delivery of our technology.

Product roadmap

Innovation remains central to our strategy. During FY26, the principal milestone was the launch and successful commercialisation of Market Edge Intelligence®, which brings AI-powered analytics and predictive intelligence directly to the colocation edge. The platform can identify infrastructure anomalies, support capacity forecasting and provide real-time insight within performance-critical capital markets environments. It broadens our addressable market, provides significant cross-sell opportunity across the customer base and supports the continued growth of our contracted recurring revenue base.

During the year we also secured a minority stake in Liquid-Markets-Solutions, giving Beeks exclusive access within the managed financial services data centre market to its ÜberNIC technology. This ultra-low-latency technology, enhances the performance and attractiveness of our Private Cloud and Exchange Cloud® offerings, while creating an additional route to market. As a strategic investment, it also gives Beeks the opportunity to share in any future increase in the value of the business.

We continued to enhance the speed, resilience and scalability of our wider platform, enabling faster deployment of capacity and greater self-service control for customers. Alongside this, we progressed development of the Beeks Global Network, which will launch in FY27 with two new products: DDoS-Protected Internet and SRv6 Private Transports.

DDoS-Protected Internet will provide customers with high-performance internet connectivity and built-in protection against cyberattacks that overwhelm connections with traffic, helping to keep trading and other critical applications running with minimal delay. SRv6 Private Transports will enable customers to connect different locations through the Beeks private network, with options to meet their requirements for speed, resilience and encryption. Both products will be available to existing customers and organisations that do not currently use Beeks' infrastructure, broadening our addressable market and creating further opportunities to expand existing customer relationships. By offering connectivity alongside our cloud infrastructure and analytics capabilities, we will be able to meet more of our customers' technology needs and introduce new customers to the wider Beeks portfolio. Together, Private Cloud, Proximity Cloud®, Exchange Cloud® and Market Edge Intelligence® provide Beeks with four differentiated offerings addressing the infrastructure, connectivity and analytics requirements of global capital markets. Our specialist focus, proprietary technology and track record of innovation have established a unique position at the intersection of cloud technology and financial market infrastructure. With our offerings now proven and live across some of the world's most demanding financial institutions, we are continuing to extend our competitive lead, creating multiple routes to grow with both new and existing customers.

Sales and Marketing

Our sales and marketing activity remained focused on building relationships with Tier 1 financial institutions and supporting the conversion of opportunities across our four offerings. We continued to invest selectively in our commercial team and to strengthen engagement between our exchange customers and market participants, helping to demonstrate the value of Exchange Cloud® and support the development of new opportunities.

The increasing number of reference customers across exchanges, banks, brokers and other financial institutions is strengthening our position in the market. Customers are now able to see our technology operating successfully within some of the world's leading financial markets, supporting trust, shortening sales discussions and creating opportunities to extend relationships across products and geographies.

Customers

Beeks supports a broad range of capital markets participants, including exchanges, banks, brokers, hedge funds, cryptocurrency platforms, financial technology firms, payment providers and Independent Software Vendors. Between partners and exchanges, our platforms support more than 30 of the world's largest financial institutions, each with considerable potential for expansion.

During FY26, we built further momentum across this customer base, securing significant wins across each of our offerings:

Future Growth and Outlook

We enter FY27 with encouraging momentum across all four offerings and a healthy pipeline of opportunities. ACMRR of c£34.0m provides a strong level of revenue visibility, while the Exchange Cloud® revenue share deployments already in operation are expected to make an increasing contribution as customer participation grows. Q1 has been very positive, as separately announced today, with a multi-year Exchange Cloud® win with the Stock Exchange of Thailand, in addition to c.$4m of Exchange Cloud® contract extensions.

While the timing of major contract awards remains inherently difficult to predict, the combination of growing recurring revenues and continued momentum in Exchange Cloud revenue share provides a high degree of revenue visibility for the year ahead. Accordingly, taking a prudent view of new customer wins, the Board expects FY27 revenue to be in the range of £43m to £48m, representing growth of between 7.5% and 20%, with an underlying EBITDA margin of between 38% and 42%.

The modernisation of global financial market infrastructure continues, as exchanges and financial institutions increasingly seek specialist partners able to deliver secure, resilient and low-latency technology. The size of the addressable opportunity across our offerings remains significant and competition is limited.

Our focus for FY27 remains on commercial execution: converting the pipeline, increasing participation across live Exchange Cloud® deployments, expanding within our existing customer base and building on the early success of Market Edge Intelligence®. We will continue to pursue these opportunities with the financial discipline that has always underpinned the business, supporting sustainable growth.

Gordon McArthur

CEO

Strategic Report - Financial Review

Key Performance Indicator Review

1Revenue excludes grant income and rental income

2ACMRR is Annualised Committed Monthly Recurring Revenue

3Gross profit margin is statutory gross profit divided by Revenue

5Underlying EBITDA margin is defined as Underlying EBITDA divided by Revenue

7Underlying profit before tax margin is defined as Underlying profit before tax divided by Revenue

The Group delivered revenue growth of 11% to £40.0m in FY26, supported by continued growth in Private Cloud and a strong contribution from new Proximity Cloud®, Exchange Cloud® and Analytics contracts, a number of which went live towards the end of the financial year. With underlying administrative expenses increasing by 5%, underlying EBITDA grew by 18% to £16.1m.

The same contracts explain the cash position. Much of their value is recognised on delivery but billed monthly over terms of up to five years, so contract assets rose by £6.1m to £17.7m. We also bought the hardware to deliver them ahead of the year end. Net cash therefore fell to £0.6m at 30 June 2026 (2025: £7.0m), and we expect it to rebuild as these contracts are billed. Since the year end we have agreed a £5m revolving credit facility with Barclays, which is undrawn, to give us more financial flexibility as well as room to keep investing in new customer deployments while the cash from this year's contracts comes through.

Revenue

Private/Public Cloud revenue grew 5% to £26.3m and remains the recurring foundation of the Group. Growth was more measured than in recent years, but the business continued to add customers and capacity We enter FY27 with a healthy Private Cloud pipeline across both new and existing customers.

Proximity/Exchange Cloud® had another healthy year, with revenue of £9.3m (2025: £10.3m). As a significant portion of the value of an upfront contract is recognised on delivery, revenue in any one year depends on when deployments go live, and most of this year's new contracts went live in May and June 2026.

Alongside these upfront contracts, our Exchange Cloud® revenue share model continues to grow. Under this model Beeks provides and retains the infrastructure and earns a share of the revenue the exchange generates over the life of the agreement, rather than an upfront fee. These agreements contributed £0.5m of revenue in FY26, and both Kraken and ASX are now profitable on a monthly basis, with revenue covering the monthly depreciation costs of each deployment. As participation on these venues builds, we expect revenue share income to become a material and recurring part of Group revenue from FY27 onwards.

Analytics was the standout of the year. Revenue rose to £4.4m (2025: £0.6m), following the launch of Market Edge Intelligence® and new contracts with three customers, including a Tier 1 bank. Analytics contracts combine software licences with hardware, connectivity and support. The licence and hardware are recognised when delivered and the services over the contract term, so a large part of FY26 Analytics revenue came from initial deployments.

Across Proximity Cloud®, Exchange Cloud® and Analytics we signed nine new contracts in the year, with a total contract value of £19.2m (2025: £19.1m). Of this, £11.5m was recognised on delivery during the year and £7.7m will be recognised over terms of up to five years.

Recurring revenue was 70% of total revenue (2025: 71%). The lower share reflects the higher proportion of upfront revenue from new contracts rather than any fall in the recurring base. ACMRR grew 13% to £33.4m, 15% on a constant currency basis (2025: £29.5m). Tier 1 customers accounted for 65% of revenue (2025: 54%).

Contract cancellation. During the year a Proximity Cloud® customer, now in the fourth year of its contract, disputed the remaining contract period. Reflecting the uncertainty over recovering the remaining contract value, we recognised a £0.5m impairment of the related contract asset (note 15).

Margins and costs

Gross profit rose 10% to £16.2m. Gross margin eased slightly to 40.5% (2025: 40.9%). The main reason is the £1.5m increase in depreciation and right-of-use charges, which sit in cost of sales and reflect the infrastructure added to deliver new contracts. The full benefit of that investment will come through as the new contracts are billed over their terms.

Underlying administrative expenses (administrative expenses excluding share-based payments and non-recurring costs) rose 5% to £9.7m (2025: £9.3m), around half the rate of revenue growth. Gross employee costs (before capitalised development costs and excluding share based payments within administration costs) rose to £9.0m (2025: £7.8m). Average headcount was 122 (2025: 102), with most of the increase in support and development roles to deliver the new Proximity Cloud®, Exchange Cloud® and Analytics deployments. We also strengthened our sales and pre-sales teams to build and convert the pipeline for these larger contracts.

We capitalised £2.4m of development costs (2025: £2.4m), of which £1.5m related to Proximity/Exchange Cloud® and £0.9m of which related to Analytics and Market Edge Intelligence.

Underlying profitability

Underlying EBITDA rose 18% to £16.1m (2025: £13.6m), and the underlying EBITDA margin improved to 40.3% (2025: 37.9%). Underlying profit before tax rose 15% to £6.3m (2025: £5.5m), a margin of 15.8% (2025: 15.3%).

Statutory profit before tax rose 41% to £3.9m (2025: £2.8m). The main difference from underlying profit is the £2.5m share-based payment charge, a non-cash cost which we exclude from our underlying measures, along with non-recurring costs, amortisation of acquired intangibles, grant income and intercompany exchange differences. The reconciliations are set out below.

Net finance income was £0.1m (2025: £nil). Finance income of £0.8m (2025: £0.4m) is the financing element of contracts billed over time, and finance costs of £0.7m (2025: £0.4m) are mainly interest on leases and asset finance.

*Other non-recurring costs in the year relates exceptional costs in relation to one off staff termination payments, and other one off property costs. Prior year non-recurring costs were incurred due to refinancing and one off property costs. All of these costs are not expected to recur and are therefore disclosed separately to trading results.

**Underlying profit before tax is defined as profit before tax excluding amortisation on acquired intangibles, acquisition costs, share based payments, exchange rate gains/losses on statement of financial position translation and exceptional non-recurring costs

***EBITDA is defined as earnings before interest, tax, depreciation and amortisation

****EBITDA is defined as earnings before interest, tax, depreciation, amortisation, acquisition costs, share based payments and non-recurring costs

Taxation and Earnings per Share

The total tax charge for the year was £624k (2025: £177k credit), an effective tax rate of 15.9% (2025: (6.4%)).

Current tax was £66k (2025: £127k), mainly overseas tax in the US, with UK taxable profits largely sheltered by brought forward losses and share option deductions. The deferred tax charge of £558k (2025: £304k credit) mainly reflects higher capital allowances following the year's investment in data centre infrastructure and the use of brought forward losses, partly offset by an increase in the deferred tax asset on share options (which moves with the year-end share price). The effective rate is below the UK statutory rate of 25%, mainly because tax deductions on share options exercised in the year exceeded the share-based payment charge, which is not deductible. Prior year adjustments also reduced the charge by £206k.

With approximately £16m of UK tax losses carried forward, cash tax payments are expected to remain low in the near term. See notes 9 and 13.

Basic earnings per share was 4.88p (2025: 4.43p) and diluted earnings per share 4.51p (2025: 4.12p). Underlying basic earnings per share was 8.40p (2025: 8.47p) and underlying diluted earnings per share 7.62p (2025: 7.60p). The year-on-year tax movement of £0.8m reduced underlying diluted EPS by around 1.1p, so before tax underlying earnings per share grew broadly in line with underlying PBT. See note 25.

Statement of Financial Position

Net assets rose to £48.7m (2025: £43.2m). The main movements were:

Cash and working capital

Net cash generated from operating activities was £6.3m (2025: £9.4m). Before working capital, operating cash flow increased 26% to £17.8m (2025: £14.1m), showing the strong cash generation of the underlying business.

Working capital absorbed £10.2m in the year (2025: £4.3m). This mainly reflects a £6.9m increase in receivables and contract assets, as revenue on new Proximity Cloud®, Exchange Cloud® and Analytics contracts is recognised on delivery while customers are billed monthly over contract terms of up to five years. These amounts are contracted and will convert to cash as they are billed, with £4.5m expected within the next 12 months. Contract assets will continue to build while upfront revenue remains significant, and we are increasingly seeking upfront payment, particularly for hardware, to reduce the working capital invested ahead of billing. Payables fell by £2.8m, reflecting the settlement of hardware creditors outstanding at the FY25 year end, and we increased inventory by £0.6m to secure key components ahead of price increases.

We invested £8.8m in the business during the year (2025: £7.0m): £6.3m on data centre infrastructure and hardware to support new deployments and revenue share agreements, and £2.4m on capitalised development. We also invested £0.8m in Liquid-Markets-Holdings through a SAFE. Much of this investment was made ahead of the related revenue, and we expect the return on it to come through as contracted billings convert to cash in FY27 and beyond.

Funding

We financed part of this investment with £3.7m of new asset finance and a £1.5m bank loan, while repaying £0.8m of asset finance liabilities. Cash at 30 June 2026 was £5.4m (2025: £7.4m) and net cash was £0.6m (2025: £7.0m). Gross borrowings of £4.7m were 0.3 times underlying EBITDA.

After the year end we agreed a £5m revolving credit facility with Barclays, which is currently undrawn. The facility strengthens our liquidity and gives us more financial flexibility as well as room to continue to invest in new deployments while the cash from this year's contracts comes through.

Looking ahead

Our financial priorities for the year are to:

With a growing base of recurring revenue, a larger contracted book and a clear focus on cash, we are well placed to deliver another year of profitable growth.

Fraser McDonald

Chief Financial Officer

Consolidated Statement of Comprehensive Income

The above income statement should be read in conjunction with the accompanying notes.

Consolidated Statement of Financial Position

These financial statements were approved by the Board of Directors on 9th October 2026 and were signed on its behalf by:

Gordon McArthur, Chief Executive Officer,

Beeks Financial Cloud Group Plc,

Company number: SC521839

The above statement of financial position should be read in conjunction with the accompanying notes.

Consolidated Statement of Changes in Equity

The above statement of changes in equity should be read in conjunction with the accompanying notes

Consolidated Cash Flow Statement

The above cash flow statement should be read in conjunction with the accompanying notes

Notes to the Consolidated Financial Statements

Summary of significant accounting policies

Corporate information

Beeks Financial Cloud Group PLC is a public limited company which is listed on the AIM Market of the London Stock Exchange and is incorporated in Scotland. The address of its registered office is Riverside Building, 2 Kings Inch Way, Renfrew, Renfrewshire, PA4 8YU. The principal activity of the Group is the provision of information technology services and products. The registered number of the Company is SC521839.

Basis of preparation

These financial statements have been prepared in accordance with UK-adopted International Financial Reporting Standards (IFRS) and with the requirements of the Companies Act 2006. The financial statements are prepared in pounds sterling because that is the currency of the primary economic environment in which the Group operates.

Adoption of new and revised standards

The following amendment became effective for the Group for the year ended 30 June 2026:

• Lack of Exchangeability (Amendments to IAS 21).

This amendment did not have a material impact in preparing these financial statements.

There are a number of standards and amendments to standards which have been issued by the IASB that are effective in future accounting periods and have not been adopted early.

The following amendments are effective for annual reporting periods beginning on or after 1 June 2027:

• Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7);
• Annual Improvements to IFRS Accounting Standards - Volume 11 (covering amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7).
• IFRS 18 Presentation and Disclosure in Financial Statements, which will change the presentation of the Consolidated Statement of Comprehensive Income and introduce disclosure requirements for management-defined performance measures, such as underlying EBITDA and underlying profit before tax;
• IFRS 19 Subsidiaries without Public Accountability: Disclosures, which is not expected to apply to the Group.

The Group is currently assessing the impact of IFRS 18. Beyond the information above, it is not practicable to provide a reasonable estimate of the effect of these standards until a detailed review has been completed.

Going concern

The key factors considered by the Directors were:

• Historic and current trading and profitability of the Group
• The rate of growth in sales both historically and forecast
• The competitive environment in which the group operates
• The current level of cash reserves
• The finance facilities available to the Group, including the availability of any short term funding required through the use of the Revolving Credit Facility acquired post year end

The financial position of the Group, its cash flows and liquidity position are described in the Strategic Report - Financial Review.

The directors take comfort from the resilience of our business model. The level of customer churn across our business has remained low and cash collection has been in line with our typical profile. We do however remain vigilant to the economic impact the ongoing macro-economic environment may create, particularly on the SME segment of the market.

Note 17 to the financial statements includes the Group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk.

The directors are of the opinion that the Group can operate within their current levels of cash reserves including further financing facilities available. At the end of the financial year, the Group had gross cash of £5.37m (2025: gross cash £7.36m) a level which the Board is comfortable with given the strong cash generation of the Group and low level of debt to EBITDA ratio. The Group has a diverse portfolio of customers and suppliers with long‐term contracts across different geographic areas. As a consequence, the directors believe that the Group is well placed to manage its business risks.

The directors have considered the Group budgets and the cash flow forecasts to December 2027, and associated risks including the risk of climate change and the impact on our data centre estate, useful economic life of assets, and the availability of bank and leasing facilities. On 6th October 2026, the Group agreed a £5.0m revolving credit facility with Barclays Bank PLC, available until October 2028. The facility is currently undrawn. We have run appropriate scenario and stress tests applying reasonable downside sensitivities in respect of profitability and associated cash flow generation and are confident we have the resources to meet our liabilities as they fall due for a period of at least 12 months from the date of these financial statements.

Accordingly, the Directors have adopted the going concern basis in preparing the Report for the year ended 30 June 2026.

Principles of consolidation

Foreign currency transactions

In line with IAS 21 foreign currency transactions are translated into pound sterling using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign exchange gains and losses resulting from the retranslation of inter-company balances are recognised in profit or loss. Non-monetary assets are translated at the historical rate.

Foreign operations

Business Combinations

Where the Group's assessment of the net fair value of a subsidiary's identifiable assets acquired and liabilities assumed is less than the fair value of the consideration including contingent consideration of the business combination then the excess is treated as goodwill. Where the Group's assessment of the net fair value of a subsidiary's net assets and liabilities exceeds the fair value of the consideration including contingent consideration of the business combination then the excess is recognised through profit or loss immediately. Where an acquisition involves a potential payment of contingent consideration the estimate of any such payment is based on its fair value. To estimate the fair value an assessment is made as to the amount of contingent consideration which is likely to be paid having regard to the criteria on which any sum due will be calculated and is probability based to reflect the likelihood of different amounts being paid. Where a change is made to the fair value of contingent consideration within the initial measurement period as a result of additional information obtained on facts and circumstances that existed at the acquisition date then this is accounted for as a change in goodwill. Where changes are made to the fair value of contingent consideration as a result of events that occurred after the acquisition date then the adjustment is accounted for as a charge or credit to profit or loss.

The Group's accounting policy for common control transactions is to recognize and measure such transactions at carrying amounts, with no gain or loss recognized in the financial statements. This policy ensures consistency and comparability in the treatment of transactions within the Group.

Other investments

Investments in entities over which the Group has neither control, joint control nor significant influence are accounted for as financial assets under IFRS 9.

Investments in equity instruments, and in instruments that convert into equity such as simple agreements for future equity, are measured at fair value through profit or loss, unless the Group makes an irrevocable election on initial recognition to present changes in the fair value of an equity investment in other comprehensive income.

Such investments are initially recognised at fair value, which is normally the transaction price, with transaction costs expensed as incurred. They are subsequently remeasured to fair value at each reporting date. Where there is no quoted market price, fair value is determined using valuation techniques based on the best information available, as described in the fair value measurement policy.

Revenue recognition

Revenue arises from the provision of Cloud-based localisation. To determine whether to recognise revenue, the group follows a five-step process as follows:

• Identifying the contract with a customer
• Identifying the performance conditions
• Determining the transaction price
• Allocating the transaction price to the performance conditions
• Recognising revenue when/as performance obligation(s) are satisfied.

Revenue is measured at transaction price, stated net of VAT and other sales related taxes and discounts, if applicable.

The below outlines all the Group's revenue streams and associated accounting policies:

Infrastructure as a Service (IaaS)

Monitoring software and maintenance services

The group also provides software products that analyse and monitor IT infrastructure. Revenue from the provision of software licences is split between the delivery of the software licence and the ongoing services associated with the support and maintenance. The supply of the software licence is recognised on a point in time basis when control of the goods has transferred, being the delivery of the item to the customer, whilst the ongoing support and maintenance service is recognised evenly over the period of the service being rendered on an over time basis. The group applies judgement to determine the percentage of split between the licence and maintenance portions, which includes an assessment of the expected cost plus margin that would be received in a standalone sale of the performance obligations.

Where an agreement includes a royalty fee as a result of future sales by a customer to third parties and there is a minimum amount guaranteed, this is recognised at point in time when the delivery of the item is complete.

Set up fees

• Any set up fees that are material rights are spread over the group's average contract term

Hardware and software sales

Revenue from the supply of hardware is recognised when control of the goods has transferred. For hardware, this occurs upon delivery and installation of the item to the customer. The Group's software licences give customers a right to use the Group's intellectual property as it exists when the licence is granted. Other than unspecified upgrades, which are accounted for as a separate performance obligation, the Group does not carry out activities during the licence term that significantly change the software, so licence revenue is recognised at a point in time when the customer is able to use and benefit from the licence.

The Group has concluded it acts as a principal in each hardware sales transaction vs an agent. This has been determined by giving consideration to whether the Group holds inventory risk, has control over the pricing over a particular service, takes the credit risk, and whether responsibility ultimately sits within the Group to service the promise of the agreements. Refer to note 2 for more detail on these considerations.

Professional and consultancy services

Revenue from professional and consultancy services are recognised using the output method as these services are rendered and the performance obligation satisfied. Any unearned portion of revenue (i.e. amounts invoiced in advance of the service being provided) is included in payables as a contract liability.

Proximity and Exchange Cloud® Services

• Delivery and installation of the hardware, and provision of the software licence
• Delivery of maintenance and technical support over the contract
• Delivery of unspecified upgrades and future software releases

The delivery and installation of the hardware, and provision of the software licence are highly interrelated and considered to be one performance obligation. Management have assessed that the software is the predominant item within the performance obligation as it is the functionality and use of the developed software that provides benefit to the customer, furthermore the purpose of the contract is for provision of the software licence with the hardware being required to facilitate this. This is recognised on a point in time basis when the control of the goods have been transferred, being when delivery of the item is completed and the right to use the software is granted to the customer. This is further explained in significant judgements.

The maintenance and technical support, as well as the delivery of the unspecified upgrades and future software releases are recognised evenly on an over time basis over the period of the contract. The performance obligation for both is considered to be that of standing ready to provide technical product support and unspecified updates, optional upgrades and enhancements when made available over the period of service being rendered.

These contracts include multiple deliverables. The Group applies judgement to determine the transaction price to be allocated between a) the delivery and installation of the hardware and provision of the software licence, recognised on a point in time basis and b) the stand ready services (support, maintenance, unspecified upgrades) recognised over time. The Group applies the expected cost plus margin approach to the stand ready services and the delivery and installation of the hardware and provision of software licence is estimated using the residual approach, given this is a new product to market and standalone selling prices are not directly observable. Any discount is allocated to all performance obligations in proportion to their standalone selling prices, unless there is observable evidence that it relates to one or more, but not all, of them. Further detail is provided within the critical accounting judgements and key sources of estimation uncertainty in note 2.

Where such contracts include a significant financing component, the group also adjusts the transaction price to reflect the time value of money. Finance income is recognised as other income in the statement of the comprehensive income.

Analytics, including Market Edge Intelligence®

Analytics contracts include a software licence, hardware, and depending on the contract, connectivity and colocation services, and support and maintenance. Each is a separate performance obligation, as the customer can benefit from each element on its own or together with resources readily available to it. The software licence is recognised at a point in time when the licence key is made available and the customer is able to use the software. Hardware is recognised at a point in time when control passes on delivery and installation. Connectivity, colocation and support are recognised over time as the services are provided as performed. Standalone selling prices are estimated using an expected cost plus margin approach or observable third-party prices, with the residual allocated to the licence.

Revenue share arrangements

Under certain Exchange Cloud® agreements the Group provides and retains ownership of the infrastructure and receives a share of the revenue the exchange earns from the service, rather than an upfront fee. As control of the hardware does not pass to the customer, no hardware revenue is recognised and the hardware is held within property, plant and equipment. The consideration is variable and is recognised as the exchange's underlying revenue is earned and the services are provided over time.

Government grant income

Research and development expenditure credits

The Group claims research and development expenditure credits under the UK merged R&D scheme. These are accounted for as government grants under IAS 20, as the credit is received in cash regardless of the Group's tax position and is taxable. A credit is recognised when there is reasonable assurance that it will be received.

The part of the credit relating to development costs that have been capitalised as intangible assets is deferred and released to the income statement over five years, in line with the amortisation of the related assets The part relating to research and development costs that have been expensed is recognised in other income in the year the related costs are incurred. Deferred amounts are included within trade and other payables deferred income (note 19).

Rental Income

Cost of sales

Costs considered to be directly related to revenue are accounted for as cost of sales. All direct production costs and overheads, including indirect overheads that can reasonably be allocated as relating to the Group's revenue generation, have been classified as cost of sales.

Where assets are purchased under a finance lease arrangement, they are recognised initially as Right of Use Assets and disclosed within the Property plant and equipment note 12. Assets that are subsequently sold as part of a Proximity or Exchange Cloud® contract are transferred to profit and loss as cost of sales.

Interest

Other non-recurring costs

Taxation and deferred taxation

Current and non-current classification

Deferred tax assets and liabilities are always classified as non-current.

Cash and cash equivalents

Financial instruments

Financial assets

Trade and other receivables

Trade and other receivables are initially recognised at transaction price, less allowances for impairment. These are subsequently measured at amortised costs using the effective interest method. An allowance for impairment of trade and other receivables is established when there is evidence that Beeks Financial Cloud Group PLC will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtors, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 90 days overdue) are considered indicators that the trade and other receivables may be impaired. The amount of the allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in profit or loss within expenses. When a trade or other receivable is uncollectible, it is written off against the allowance account for trade and other receivables. Subsequent recoveries of amount previously written off are credited against 'administrative expenses' in the Consolidated statement of comprehensive income.

IFRS 9 requires an expected credit loss ("ECL") model which requires the Group to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets. The main financial assets that are subject to the expected credit loss model are trade receivables and contract assets, which consist of billed receivables arising from contracts.

Financial liabilities

Trade and other payables

Borrowings

Defined contribution schemes

Fair value measurement

Inputs determining fair value measurements are categorised info different levels based on how observable the inputs used in the valuation technique utilised are (the "fair value hierarchy"):

• Level 1: Quoted prices in active markets for identical items (unadjusted).
• Level 2: Observable direct or indirect inputs other than Level 1 inputs.
• Level 3: Unobservable inputs (i.e. not derived from market data).

The Group's investment in Liquid-Markets-Holdings Incorporated, held through a Simple Agreement for Future Equity, is measured at fair value through profit or loss and is classified as Level 3, as its fair value is estimated using unobservable inputs. The valuation technique, the significant unobservable inputs and the sensitivity of the fair value to those inputs are set out in note 10 and in the critical accounting estimates in note 2.

The classification of an item into the above levels is based on the lowest level of input used that has a significant effect on the fair value of the item.

The Group's other investments (note 10) are measured at fair value through profit or loss and are classified as Level 3. Trade and other receivables (note 15), trade and other payables (note 19) and borrowings (note 18) are measured at amortised cost, and their carrying amounts approximate their fair values. Share-based payments (note 22) are measured at fair value at the grant date in accordance with IFRS 2.For more detailed information in relation to the fair value of the items above please refer to the applicable notes.

Share based payments

The Group operates equity-settled share based remuneration plans for its employees. Options are measured at fair value at grant date using the Black Scholes model. Where options are redistributed, options are measured at fair value at the redistribution date using the Black Scholes Model. The fair value is expensed on a straight line basis over the vesting period, based on an estimate of the number of options that will eventually vest. Fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability growth targets).

The Group has no legal or constructive obligation to repurchase or settle the options in cash.

Property, plant and equipment (PPE)

• Leasehold property and improvements over the lease period
• Freehold property over 50 years
• Computer Equipment over 5 years and over the length of lease
• Office equipment and fixtures and fittings over 5-20 years

Where assets are purchased under a finance lease arrangement, they are recognised as Right of Use Assets and disclosed within the Property plant and equipment note 12. Where these assets are subsequently sold as part of a Proximity or Exchange Cloud® contract, they are transferred from PP&E to stock and thereafter to the profit and loss as cost of sales.

Inventories

Where inventories are purchased under a finance lease arrangement, they are recognised initially as Right of Use Assets and disclosed within the Property plant and equipment note 12.

Inventories that are subsequently sold as part of a Proximity or Exchange Cloud® contract are transferred to profit and loss as cost of sales.

At each reporting date, inventories are reviewed for impairment, including an annual assessment of slow-moving and aged hardware to confirm it remains usable for deployment or sale. Where items are obsolete or surplus to requirements, or the carrying amount exceeds estimated selling price less costs to complete and sell, inventory is written down to net realisable value. Write-downs, and any subsequent reversals limited to the original write-down, are recognised in profit or loss.

Assets held at Head Office are classified and disclosed as inventory until the point in which the assets purpose is identified. At the point, the asset will either be transferred to property, plant and equipment and sold under Infrastructure-as-a-Service (IaaS) or sold to a customer under a Proximity or Exchange Cloud® solution and transferred to Cost of Sales within the Income statement.

Leases

At the lease commencement date, the Group recognises a right-of-use asset and a corresponding lease liability on the Consolidated statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability measured at the present value of future lease payments, any initial direct costs incurred by the Group. If that rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group assesses the right-of-use asset for impairment under IAS 36 'Impairment of Assets' where such indicators exist.

Lease payments included in the measurement of the lease liability can be made up of fixed payments and an element of variable charges depending on the estimated future price increases, whether these are contractual or based on management's estimate of potential increases. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there are changes in fixed payments. When the lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero. Where non-contractual payment discounts are subsequently received from suppliers, these are treated as a discharge of the lease liability with a credit recognised in the profit or loss statement.

Intangible assets and amortisation

Goodwill

Customer relationships

Development costs

Development costs incurred are capitalised when all the following conditions are satisfied:

• The Group intends to complete the intangible asset and use or sell it;
• The Group has the ability to use or sell the intangible asset;
• The intangible asset will generate probable future economic benefits;

Impairment

Equity

Amounts arising from the revaluation of non-monetary assets and liabilities held in foreign subsidiaries, and joint operations are held within the foreign currency reserve.

Earnings per share

Basic earnings per share

Diluted earnings per share

Value-added tax ('VAT') and other similar taxes

Alternative performance measures

Underlying EBITDA

Underlying profit before tax

Underlying profit before tax is defined as profit before tax adjusted for the following:

• Amortisation charges on acquired intangible assets;
• Exchange variances on statement of final position gains and losses;
• Share-based payment charges;
• M&A activity including:

o Professional fees;

Underlying diluted earnings per share

Net cash/Net Debt

Operational costs

Profit after Tax

Annualised Committed Monthly Recurring Revenue

• Critical accounting judgements and key sources of estimation uncertainty

Key judgements

The key judgments in preparation of the financial statements are below:

Revenue

The group applies judgment for elements of revenue recognition. The key areas of assessment include whether the group acts as a principal vs an Agent for the sale of hardware, where third parties are utilised. The group also applied several areas of judgement within the revenue recognition of Proximity Cloud® contracts as outlined below.

Full details of the Group's revenue recognition policy can be found in note 1.

Principal v agent

Management is required to exercise its judgement in the classification of revenue recognition on either an agent or principal basis. Management have considered the primary indicators used to assess the agent/principal classification and has concluded that the Group acts as a principal in each sales transaction. This judgement has been reached on the basis that the Group holds the inventory risk, has control over the pricing over a particular service, takes the credit risk, and bears the responsibility to service the promise of the agreements. If management concluded that the group acted as agent, then this would result in revenue being recognised on a net basis where margin earned would be recognised as revenue with nil costs being recognised.

Proximity and Exchange Cloud®

The Proximity and Exchange Cloud® contracts include multiple deliverables. The group applies judgement to identify the performance obligations which ultimately feeds into the estimation of the transaction price to be allocated between them. The group has identified the performance obligations as:

• the delivery and installation of the hardware and provision of the software licence (the appliance), recognised on a point in time basis; and
• the stand ready services (support and maintenance) recognised over time
• delivery of unspecified upgrades and future software releases recognised over time

The most significant judgement is that the delivery and installation of the hardware and provision of the software licence are considered to be one performance obligation, with the software considered the predominant item in the contract. This is considered to be the case as it is the functionality and use of the developed software that provides benefit to the customer, furthermore the purpose of the contract is for provision of the software licence with the hardware being required to facilitate this. As the contract is a right to use Beeks' software, revenue for both the software and hardware is recognised on a point in time basis upon delivery. As such, the Group consider this to be one performance obligation, recognised at a point in time basis, once the delivery and installation of the appliance to the customer is complete and the relevant licence key has been provided.

Management considers that the stand ready services do not affect the customers' ability to use and benefit from the software licence and the software can function on its own without this support. As such, the provision of stand ready services is considered to be a separate performance obligation, recognised over time as the services are rendered.

On the occasion that the title for hardware included within Proximity and Exchange Cloud® contracts is retained by the Group and as such, indicate the existence of a lease, management have applied judgment in order to determine the appropriate accounting treatment. Management have assessed that delivery and installation of the hardware, and provision of the software licence is one performance obligation under IFRS 15 as the two are considered to be non distinct. As a result the accounting treatment follows that of the predominant item within the performance obligation which has been assessed by management to be the software and as such is treated as revenue in accordance with IFRS 15 recognised at a point in time rather than a lease under IFRS 16.

Where judgement is required as to the present and enforceable rights and obligations of a Proximity and Exchange Cloud® contract, management have applied judgement as to whether cut off periods are substantive either in nature or in financial quantum. Judgements have been made on a contract by contract basis as to what length of contract should be considered when allocating the transaction price to relevant performance obligations, including considering whether penalties are substantive and what the expected consideration would be. These judgements have supported the enforceable term applied to the recognition of revenue on these types of contracts.

Please refer to Key estimations below for further information.

Software licences and Analytics contracts

Management has applied judgement in identifying the performance obligations in contracts that include software licences.

The Group's software licences give customers a right to use the Group's software as it exists when the licence is granted. Management has concluded that the delivery of the software licence key is a performance obligation recognised at a point in time, when the licence key is delivered and the customer is able to use and benefit from the software. Ongoing support and maintenance, including unspecified upgrades, is a separate performance obligation recognised evenly over the contract term as the service is provided.

Analytics contracts can also include hardware and connectivity services. Management has concluded that each of these elements is a separate performance obligation, as the customer can benefit from each of them independently, rather than a single integrated solution. This differs from Proximity Cloud® and Exchange Cloud® contracts, where the hardware is supplied specifically to run the Group's software and the two are combined as a single performance obligation.

This differs from Proximity Cloud® and Exchange Cloud® contracts, where the hardware is supplied specifically to run the Group's software and the two are combined as a single performance obligation.

Where a contract includes a discount, management allocates it to all performance obligations in proportion to their standalone selling prices, unless there is observable evidence that it relates to one or more, but not all, of them. For connectivity and colocation, standalone selling prices are based on observable third-party market rates where available.

®Development costs

The Group reviews half yearly whether the recognition criteria for development costs have been met. This is necessary as the economic success of any product development is uncertain and may be subject to future technical problems at the time of recognition. In addition, all internal activities related to the development of new products which are not finalised by the period end are continuously monitored by the Directors and assessed for any indications of impairment. Time tracking and categorisation and the resultant capitalisation of development costs for software developers is done via an internal time tracking system with management using judgement for some senior employees who contribute to development projects. Cut off for project capitalisation is made based on the lifecycle and releases within the product roadmap. Any non-development costs are recognised in the statement of comprehensive income. See note 11 for further information.

Inventories / Property, Plant and Equipment

The Group applies judgement to the classification and disclosure of inventories within the financial statements. Assets held at Head Office are classified and disclosed as inventory given these assets could be resold to a customer under a Proximity or Exchange Cloud® sale. At the financial year end, it would not be known whether the assets classified as inventories will be transferred to Property, Plant and Equipment and sold under Infrastructure As A Service, or sold customers as a Proximity or Exchange Cloud® solution.

Deferred tax

The Group applies judgement to the recognition of its deferred tax asset in relation to timing differences on share based payment charges and carried forward losses. Specifically in terms of losses carried forward, management apply judgement to determine if there is sufficient forecastable future taxable profits to utilise the deferred tax asset. Given current profit trajectory in line with future projections, management have concluded the recognition of the deferred tax asset is appropriate.

Key estimates

The key assumptions concerning the future, and other key sources of estimation uncertainty at the year end, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.

Software licences and maintenance

Management have used observable evidence from maintenance support time, pricing models and industry practice comparisons to estimate the percentage of split between licence and maintenance for the sale of software licences that have an attached maintenance performance obligation.

Segment Information

In the current year there is one customer that account for more than 10% of Group revenue. The total revenue for this customer amounts to £11.7m (2025: £10.9m).

Performance is assessed by a focus on the change in revenue across public/private cloud and new sales relating to Proximity Cloud®/Exchange Cloud® and analytics. Cost is reviewed at a cost category level but not split by segment. Assets are used across all segments and are therefore not split between segments so management review profitability at a group level.

Revenues by Operating segment, further disaggregated are as follows:

During the year other income includes £0.3m (2025: £0.3m) recognised for grant income received from Scottish Enterprise, £0.1m (2025: £0.1m) recognised as rental income and £0.1m (2025: £0.3m) recognised in relation to the expected R&D tax credit.

The employee benefits expense during the year was as follows:

Wages and salary costs directly attributable to the development of products are capitalised in intangible assets. The employee benefits expense above is stated gross, before deducting £2,005k (2025: £1,925k) of such costs capitalised during the year. The total additions capitalised in intangible assets relates to payroll costs and external third-party costs. Refer to Note 11 for capitalised development costs.

Directors' emoluments

The effective tax rate (ETR) for the year was 15.85% (2025: 6.36%).

Investments

Included in investments is £828k (2025: nil) in respect of a US$1.1m Simple Agreement for Future Equity (SAFE) in Liquid-Markets-Holdings Inc., acquired on 6 August 2025. The SAFE converts into preferred shares on a future priced equity financing, at a 15% discount to the round price subject to a valuation cap, and returns the amount invested on a liquidity event or dissolution. It carries no interest, maturity date or voting rights.

The SAFE is held at fair value through profit or loss. Fair value is a Level 3 measurement, (see note 1, Financial instruments and fair value).

Management assessed fair value using a probability-weighted analysis of the outcomes available under the SAFE's terms: conversion on a priced equity financing, a liquidity event, dissolution, and no triggering event. In assessing the probabilities, management considered the investee's financial position, its approximately six-year trading history and funding record, its fundraising activity, and the progress of its technology and commercial pipeline. Fair value at 30 June 2026 was assessed at approximately US$1.12m against a cost of US$1.10m. The difference is immaterial and has not been recognised, so the investment is carried at US$1.1m (£828k). The key assumption is the likelihood of dissolution. A 10 percentage point increase in this likelihood, with a corresponding reduction in the likelihood of no triggering event, would reduce fair value to approximately US$1.04m (£780k), and a 20 percentage point increase would reduce it to approximately US$0.95m (£714k).

Intangible assets

Development costs have been recognised in accordance with IAS 38 in relation to the Open Nebula project and development of the Proximity and Exchange Cloud® products and analytics and its integration into this product. Development costs in relation to Proximity and Exchange Cloud® have a useful life of 5 years.

Brought forward development costs consist of £13.8m where £3.0m was capitalised in FY22, £2.9m was capitalised in FY23, £2.8m in FY24, £2.1m in FY25 and £2.4m in FY26.

During 2026, a total of £1.4m development costs relating to the development of Proximity Cloud®/Exchange Cloud® and £1m Analytics and Edge Intelligence project were capitalised. These assets now have a carrying value of £6.9m.

As at 30 June 2026, £0.05m (2025: £0.2m) of development costs capitalised are currently being carried as work in progress not yet amortised. This relates to cost where projects have not yet been completed and made available to customers. All costs incurred during the preliminary stages of development projects are charged to profit or loss.

Impairment test for goodwill

For this review, goodwill was allocated to individual cash generating units (CGU) on the basis of the Group's operations as disclosed in the segmental analysis. As the Board reviews results on a segmental level, the Group monitors goodwill and annually assesses it on the same basis for impairment. The Group is required to test, on an annual basis, whether goodwill has suffered any impairment or where indicators of impairment exist.

The carrying value of goodwill by each CGU is as follows:

2026

£'000

Goodwill has been allocated to the Proximity/Exchange Cloud® CGU and Private/Public cloud CGU. No goodwill has been allocated to the Analytics CGU. Management have reviewed and confirmed that there is no indication of impairment.

• Historic and current trading
• Weighted sales pipeline
• Potential changes to cost base (including staff to support the CGU)
• External factors including competitive landscape and market growth potential

Management performed a full impairment assessment on the goodwill allocated to Public/Private Cloud. This included including modelling projected cash flows based on the current weighted sales pipeline, a discount rate based on the calculated post-tax weighted average cost of capital (15%, 2025: 15%) and cost base assumptions that included contingency and investment to deliver against the weighted sales pipeline. Conservative rates of 5% and terminal growth rates of 2% (2025: 2%) were estimated, which were significantly less than both the Group's internal business plan, external market mid-term forecast as well as historic performance.

Sensitivity analysis has been performed to show the impact of reasonable or possible changes in key assumptions. An increase in discount rate from 15% to 20% was applied with sales growth assumptions reduced. This resulted in no resultant indication of impairment.

Management has also assessed the Group's other intangible assets, principally capitalised development costs and acquired customer relationships, for indicators of impairment. This considered the continued profitability of the CGUs in which they are used, the Group's market capitalisation of £140m at 30 June 2026 compared with net assets of £48.7m, the strength of the sales pipeline, and whether any projects had been discontinued or become obsolete. No indicators of impairment were identified. Development costs not yet available for use were also tested and remain technically feasible and commercially viable.

Non-current assets - Property, plant and equipment

Disposals of £0.7m related to equipment used in the sale of Proximity/Exchange Cloud® products.

Assets held at Head Office are classified and disclosed as inventory until the point in which the assets purpose is identified. Where an asset is sold to a customer under a Proximity or Exchange Cloud® solution, it is transferred to stock and subsequently transferred to Cost of Sales within the Income statement.

Non-current assets - Deferred tax

Deferred tax is recognised at the standard UK corporation tax of 25% for fixed assets in the UK (2025: 25%). Deferred tax in the USA is recognised at an average rate of 21% for 2026 (2025: 21%). The deferred tax asset relates to the difference between the amortisation period of the US acquisitions for tax and reporting purposes as well as the impact of the share options exercised during the year and tax losses carried forward in both UK and overseas companies.

The split of the deferred tax asset and liabilities are summarised as follows:

The movement in deferred tax assets and liabilities during the year is as follows:

The Group holds hardware which can be used in the sale of Proximity or Exchange Cloud® contracts. Subsequent to the year end, if they are not used as part of a Proximity or Exchange Cloud® sale, they will be reclassified as PPE at the point in which they are delivered into one of the Group's data centres.

®Trade and other receivables

Contract assets primarily relate to our rights to consideration for goods or services delivered but not invoiced at the reporting date. The associated performance will either be the delivery of the bundled appliance for Proximity/Exchange Cloud® contracts or the delivery of the licence key for analytics contracts. The contract assets are transferred to receivables when invoiced. Contract liabilities relate to deferred revenue. At the end of each reporting period, these positions are netted on a contract basis and presented as either an asset or a liability in the Consolidated Statement of Financial Position. Consequently, a contract balance can change between periods from a net contract asset balance to a net contract liability balance in the statement of financial position.

Contract assets are subject to IFRS 9 impairment, and the Group recognises lifetime expected credit losses. As these balances are due predominantly from Tier 1 financial institutions and regulated exchanges with strong credit profiles, the expected credit loss is considered immaterial and no general provision has been recognised. Specific impairments are recognised where a balance may not be recoverable, as set out in the table further below.

During the year the Group recognised a £0.5m (2025: £0.1m) impairment of a contract asset following a dispute over the remaining contract period with a Proximity Cloud® customer. Further details are set out in note 15. ®.

The Group continues to monitor the recoverability of contract assets closely, applying a lifetime expected credit loss model under IFRS 9. Other than the specific impairment noted above, the credit quality of contract assets remains strong, with no material concentration of credit risk.

The credit risk relating to trade receivables is analysed as follows:

Movements in the allowance for expected credit losses are as follows:

The Directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value. The group has applied the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss allowance for all trade receivables. The expected credit loss allowance under IFRS 9 as at 30 June 2026 is £44k (2025 - £40k).

The ECL rate in the current year has been increased in line with the risk profile of trade receivables, historic trade losses and continued tight credit control procedures.

Trade receivables consist of a large number of customers across various geographical areas. The ageing below shows that all are less than three months old and historic performance indicates a high probability of payment for debts in this aging.

For contract asset ECL rates, Beeks have concluded that there is minimal credit risk, as it is significantly unlikely that the customers associated with these contract assets default on their contracts. To be prudent, the Group have considered a 0.001% provision which equates to approximately £2,000 and therefore wholly trivial. As such, no additional provision has been incorporated against the value currently sitting within contract assets relating to Proximity or Exchange Cloud® and analytic sales.

Past due but not impaired

The aging of trade receivables at the reporting date is as follows:

Current assets - Financial instruments and risk management

Financial risk management objectives and policies

The impact of the risks required to be discussed under IFRS 7 are detailed below:

Market risk

Foreign exchange risk

Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the functional currency of the operations. The Group had potential exchange rate exposure within USD trade payable balances of £1,071,076at 30 June 2026 (£1,846,837 at 30 June 2025) and potential exchange rate exposure within EUR trade payables balances of £65,327 (£80,815 at 30 June 2025). The Group had potential exchange rate exposure within USD trade receivables of £301,191 (£1,214,571 as at 30 June 2025) and potential exchange rate exposure within EUR trade receivables of £662 (£nil at 30 June 2025). The Group had potential exchange rate exposure within USD intercompany balances of £1,386,164 (£5,046,009 as at 30 June 2025) and within JPY intercompany balances of £77,123 (£150,441 as at 30 June 2025). The Group also has potential exchange rate exposure within USD bank balances of £4,220,134 (£6,154,821 as at 30 June 2025) and £ 70,227 within EUR bank balances (£137,405 as at 30 June 2025).

Cash flow and interest rate risk

The Group has relatively limited exposure to interest rate risk in respect of cash balances and long-term borrowings held with banks and other highly rated counterparties. Loans are at variable rates of interest based on the Bank of England's base rate therefore the Group is subject to changes in interest rates. Given the relatively low level of debt the Board do not consider this to be a significant risk. At 30 June 2026 the Group had total borrowings of £4.7m (2025: £0.4m), comprising £3.2m of asset finance agreements at fixed rates and a £1.5m bank loan at a variable rate. Credit risk

Credit risk is managed on a Group basis. Credit risks arise from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Group. The Group provides standard credit terms (normally 30 days) to all of its customers which has resulted in trade receivables of £1,101K (2025: £1,616K) which are stated net of applicable allowances, and which represent the total amount exposed to credit risk.

None of the Group's financial assets are secured by collateral or other credit enhancements.

Liquidity risk

Current Non-current

Other risks

• Non-current liabilities - Borrowings and other financial liabilities

The loan, together with all other amounts owed to Barclays Bank PLC, is secured by:

• a cross guarantee between Beeks Financial Cloud Limited, Beeks Financial Cloud Group plc and Velocimetrics Limited;
• a standard security over the Group's property at Riverside Building, King's Inch Way, Braehead, Renfrew;
• floating charges over the assets of Beeks Financial Cloud Limited and Beeks Financial Cloud Group plc; and
• a debenture granted by Velocimetrics Limited.

Changes in liabilities arising from financing activities:

Included within the lease liabilities balance of £8.2m is £3.2m of asset finance lease liabilities.

Trade and other payables

Non-current contract liabilities in the prior year relates to deferred income from support contracts that span over one year.

Leases

Right-of-use assets

Leasehold Property and improvement

£000

The Group does not face a significant liquidity risk with regard to its lease liabilities. The interest expense on lease liabilities amounted to £0.3m for the year ended 30 June 2026 (2025: £0.2m). Lease liabilities are calculated at the present value of the lease payments that are not paid at the commencement date.

The Group has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight line basis. During the year ended 30 June 2026, in relation to leases under right of use, the Group recognised the following amounts in the Consolidated statement of comprehensive income:

Ordinary shares

During the year, 1,019,242 share options were exercised.

Share based payments

The movements in the share options during the year, were as follows:

* The weighted average fair value of options outstanding at 30 June 2025 has been corrected from £1.26, as previously reported, to £1.51. This is a disclosure correction only and has no effect on the share-based payment charge.

The Group granted a total of 1,391,670 share options on 27th April 2026. In addition to this, during the year 1,400,000 unapproved options granted in January 2025 were cancelled and replaced with EMI options on identical terms. The replacement has been accounted for as a modification of the original award; as there was no incremental fair value, the share-based payment charge is unaffected.

On 23rd October 2025, 90,000 share options previously forfeited were redistributed to other employees.

The total expense recognised from share based payments transactions on the Group's profit for the year was £2.5m (2025: £2.5m).

Equity - Reserves

Retained earnings represents retained profits and losses.

The other re

serve arose on the share for share exchange and reflects the difference between the value of Beeks Financial Cloud Group Limited and the share capital of the Group being acquired through the share for share exchange. Also included in the other reserve is the fair value of the warrants issued on the acquisition of VDIWare LLC.

Related party transactions

Parent entity

Beeks Financial Cloud Group PLC is the parent entity.

Subsidiaries

Interests in subsidiaries are set out in note 26.

Transactions with related parties

The following transactions occurred with related parties:

At the end of the financial year, the directors loan account totalled £264K (2025 - £35K). In line with the Companies Act 2006 this amount due by the director will be repaid subsequent to the financial year end.

During the financial year, Beeks Financial Cloud Limited received services in the normal course of its business and at arm's length from A&B Property and Rental Services Scotland Limited, a company owned by Gordon McArthur. During the year, Beeks Financial Cloud Limited paid for services of £nil (2025: £1,550) to A&B Property and Rental Services Scotland Limited and the amounts due at the year-end was £nil (2025: £nil).

Key management personnel

Subsidiaries

The subsidiary undertakings are all 100% owned, with 100% voting rights.

Beeks Financial Cloud Co Ltd (Japan) ceased trading during the year and the Directors are in the process of winding up the company. The company is expected to be dissolved in FY27.

Velocimetrics Limited (company number 06943398) and Beeks Financial Cloud Limited (company number SC379602) are exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts for the year ended 30 June 2026 by virtue of section 479A of the Act. In accordance with section 479C of the Act, Beeks Financial Cloud Group plc has guaranteed all outstanding liabilities to which these subsidiaries are subject at 30 June 2026, until they are satisfied in full.

Ultimate controlling party

The Directors have assessed that there is no ultimate controlling party

Events after the reporting period

On 6 October 2026 the Group agreed a £5.0m revolving credit facility with Barclays Bank PLC, available until October 2028. The facility was undrawn at the date of approval of these financial statements.

On 12 October 2026 the Group entered into a Simple Agreement for Future Equity (SAFE) with Algoriphi, Inc. (trading as OmniPhi), as part of a strategic partnership to deliver OmniPhi's AI trading platform on the Group's infrastructure. The Group will invest up to US$1.0m (c.£0.75m) in tranches, with the majority payable on OmniPhi achieving specified milestones. The SAFE converts into equity on OmniPhi's next priced funding round and will be measured at fair value through profit or loss. It has no effect on the financial statements for the year ended 30 June 2026.