12 August 2019
Maestrano Group PLC ("Maestrano" or the "Company" or the "Group")
Update on Australia Banking Project
Maestrano Group PLC (AIM: MNO), the open platform for master data management and business analytics, announces 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."
Maestrano Group plc
Ian Buddery, Chairman
Andrew Pearson, CEO
Grant Thornton (Nominated Adviser)
Colin Aaronson / Jamie Barklem
+44 (0)20 7383 5100
Arden Partners (Broker)
Ruari McGirr / Ciaran Walsh / Alex Penney
+44 (0)20 7614 5900
IFC Advisory Limited (Financial PR & IR)
Graham Herring / Miles Nolan / Zach Cohen
+44 (0)20 3934 6630
Maestrano develops and deploys a patented cloud-based Platform as a Service that serves the needs of Small to Medium Businesses (SMBs) and large Enterprises to access real time, automated management data efficiently on an integrated platform. This technology is called Master Data Management (MDM).
Further information on the Group is available at www.maestrano.com
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.
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