Provider of software for master data management and business analytics Maestrano Group (AIM: MNO) has seen its share price dip following news that the platform it had delivered to an Australian banking client was to be decommissioned, as a result of ‘a change customer priorities’.
As opposed to being a purely banking platform, the platform they designed offered applications for a ‘specific vertical market’. Following the implementation of the platform, the Australian banking client decided to change its approach to the vertical market. Based on this strategic shift, the custom shift will be decommissioned on 30 August 2019.
Maestrano said the projected subscriber income for the platform wasn’t significant and thus the impact on its revenue forecast would be minimal. The Company said it will concentrate on developing solutions for clients in the distribution and accounting verticals, and is discussing meger and acquisition opportunities.
Andrew Pearson, company CEO, 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.”
The Company’s shares dipped 13.79% to 1.30p a share at market close 12/08/19. The Group’s market cap is currently £1.00 million.