2nd Dec 2019 13:51
(Alliance News) - Maestrano Group PLC on Monday posted a widened annual loss due to expenses, and employee benefits expense in particular.
For its financial year ended June 30, the data management and business analytics platform provider reported a pretax loss of GBP2.7 million, widened from GBP1.9 million the year before.
A major contributor to this widened loss was employee benefits expense, which jumped 56% to GBP2.5 million from GBP1.6 million the year before. On top of which, hosting fees & other direct costs doubled to GBP376,637 from GBP183,608, occupancy expense rose 27% to GBP235,721 from GBP184,920 and other expenses almost doubled to GBP808,470 from GBP422,521.
"The majority of the revenue for year emanated from the major USA bank contract, with revenues also being gained from a contract with an Australian bank, which, as announced, also ended subsequently to the end of the financial year. Revenues from the company's two other active contracts were less than 10% of revenue during the year," explained Chief Executive Andrew Pearson.
"The company recruited for sales, engineering and customer support specialists to service these contracts, incurring the expected significant expenses as a result," he added.
Revenue from customer contracts fell 7.4% to GBP905,400 from GBP977,455, though this was offset by a 14% rise in other income to GBP425,317 from GBP372,304 and a jump in interest income to GBP29,286 from GBP6,570.
Pearson said: "The company spent significant time and effort from May 2019 onwards and into the subsequent financial period assessing its strategy and generating various options, as well as seeking to conserve cash, and accordingly investors should note that the revenue and profit outlook for the year to 30 June 2020 is largely subject to events occurring after the end of the year to 30 June 2019 and in particular the acquisition of Airsight that was approved by shareholders on 31 October 2019. It is noted that revenue from the US bank continued beyond 30 June 2019 but will cease during the year ending 30 June 2020."
Maestrano agreed in September to buy engineering surveying services provider Airsight Holdings Pty Ltd for GBP1.2 million in shares.
Shares in Maestrano were up 6.6% at 1.60 pence in London on Monday afternoon.
By Anna Farley; [email protected]
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