19th Feb 2020 13:00
(Alliance News) - Maestrano Group PLC on Wednesday said revenue in the first half of its current financial year fell sharply due to the ending of a contract by an unnamed US bank.
However, the banking software firm said its pretax loss narrowed year-on-year, as it said it achieved a "significant" new contract in November 2019.
The stock was trading 10% down at 2.20 pence each on Wednesday afternoon in London
For the six-months ended December 31, Maestrano posted a pretax loss of GBP385,000 compared to a loss of GBP1.3 million for the same period the prior year. Revenue stood at GBP319,000, reflecting a 28% decrease from GBP444,000 in the comparable period in 2018.
The company said interim revenue was dependent on one large contract from "one large US bank customer" which ended during the period. As such, no further revenue will be generated, it added.
Operating expenses decreased by GBP1.0 million, attributed to a reduction in staff costs and property rent, resulting from the company's decision to reduce headcount and expenses to conserve cash.
The London-based company said that post-period end, it secured two further "major" contracts.
Looking ahead, Maestrano said its recently-acquired Airsight business gives it new technologies and new markets in infrastructure and transportation. Maestrano agreed in September to buy engineering surveying services provider Airsight Holdings Pty Ltd for GBP1.2 million in shares.
"The company has spent significant time integrating operations and preparing for future opportunities and is now looking forward to progressing these in 2020 and beyond. Although the company is not currently generating revenues from its banking, accounting and distribution verticals, it is looking at a number of options to rebuild its activities in these segments," said Chief Executive Andrew Pearson.
As at the end of 2019, Maestrano's cash balance stood at GBP1.9 million with net assets recorded at GBP3.0 million.
By Ife Taiwo; [email protected]
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