Maestrano Group PLC (LON:MNO), the open platform for master data management and business analytics, today announced a trading update resulting from a change in customer priorities.
Maestrano has recently completed delivery of a platform as part of a project for an Australian banking customer. This platform was designed for a specific vertical market, offering applications for that market, rather than being a pure banking platform.
The bank has taken a decision to change its approach to this vertical market and accordingly will not proceed with the custom platform, which will be decommissioned by 30 August 2019. The projected subscriber income from the platform was not a significant part of Maestrano’s revenue forecast and accordingly this change will have a minimal impact on revenue outlook for the current financial year.
Maestrano will now concentrate its efforts on the developing solutions for clients in the distribution and accounting verticals.
In addition, the Company is now engaged in discussions regarding multiple M&A opportunities, although these remain at a relatively early stage and no formal commitments have been entered into. The Company has adequate cash reserves to support its business plan in 2020.
Andrew Pearson, CEO of Maestrano, commented:
“We are seeing an established pattern across our industry of banks discontinuing what are termed “Marketplace as a Service” platforms, where 3rd party applications are offered to bank clients. We now believe that banks assumed a faster digitalization of small businesses than is happening in practice. There remains no doubt in our mind that this digitalization will eventually occur, but we are now taking a conservative view of the timing and focusing on established markets where our technology can add value today.”
Ian Buddery, Chairman of the Board, said:
“This development confirms the decision made in May to explore opportunities to acquire complimentary products and teams, where clear opportunities existed to accelerate shareholder value. We have identified some interesting opportunities and will make further announcements when possible.”