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12 Aug 2019 | 13:45

Maestrano loses Australian contract; says revenue outlook impact minimal

Business analytics platform provider Maestrano said a client in Australia had decided to no longer use its services, though the impact on its revenue outlook would be 'minimal'.

Maestrano had recently completed delivery of a platform as part of a project for an Australian banking customer, which it did not identify.

The platform was designed for a specific vertical market, but the bank had now decided to change its approach, resulting in the platform being decommissioned by 30 August.

'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,' the company said.

'Maestrano will now concentrate its efforts on the developing solutions for clients in the distribution and accounting verticals.'

The company also announced that it was engaged in discussions regarding multiple M&A opportunities.

The talks, however, remained at a relatively early stage and no formal commitments had been entered into.

'The company has adequate cash reserves to support its business plan in 2020,' it added.

Chief executive Andrew Pearson said the Maestrano was seeing an established pattern across its industry of banks discontinuing so-called marketplace-as-a-service platforms, where third-party applications are offered to bank clients.

'We now believe that banks assumed a faster digitalization of small businesses than is happening in practice,' Pearson said.

'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.'

At 1:45pm: (LON:MNO) Maestrano Group Plc Ord 1p share price was 0p at 1.45p

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