Maestrano Group PLC (LON: MNO), the cloud business integration platform with cross-app data synchronization announced its unaudited results for the six months ending 31 December 2018.
|
GDP 000’s |
Six months to December 2018 |
Six months to December 2017 |
% Change |
% Change Constant Currency* |
|
|
|
|
|
|
|
Total Revenue |
444 |
345 |
29% |
35% |
|
Cost of Sales |
158 |
78 |
103% |
114% |
|
Total Expenses |
1,958 |
1,043 |
88% |
93% |
|
Other Income |
376 |
361 |
4% |
9% |
|
EBITDA |
(1,296) |
(415) |
212% |
218% |
* Constant currency reflects the results had the underlying transactional currencies, (i.e. USD, AUD and GBP) remained constant across the full financial year.
Key Financial Highlights
• Total revenue up 29% in reported currency and 35% at constant currency. The moderate uplift reflects the implementation effort for key clients including a major US bank.
• Total expenses increased by 88% (93% at constant currency) as the company increased headcount in order to deliver major client projects and support future growth.
• Underlying EBITDA before exceptional one-off items was a loss of £1,296K, a 212% decline driven by the
investment in resources noted above.
· Cash balance at 31/12/18 was £3,764,770, Net Assets £3,872,876.
Key Operational Highlights
· Successful launch of first phase of Maestrano platform with a large and well known USA based bank.
· Launch of a platform for a multinational value-add technology distributor – the rollout is scheduled for Asia Pacific and Europe in 2019.
· Contract with a major Australia based bank for testing and pilot phases of a solution for its small to medium sized customer base has commenced – this will target the legal sector initially.
· Maestrano continues to focus on increasing the depth and breadth of functionality of its platform.
· Additional headcount recruited in areas of engineering, customer support and specialist sales to augment future growth.
Maestrano Group plc
Directors’ report
31 December 2018
Trading Update and Outlook
After detailed planning discussions with our major USA bank client, we have taken a much more cautious approach to the ramp up of end-user subscription revenue for 2019 and have revised our outlook accordingly. This cautious approach is expected to result in revenue and the adjusted loss for the 2019 financial year being materially behind market expectations. Notwithstanding end-user uptake taking longer than anticipated, the Company’s business model remains the same and the Board remains extremely confident that the bank will achieve its planned end-user targets over the next three years.
