Maestrano Group Plc (LON:MNO) has warned that its full-year revenue and adjusted loss will be “materially behind market expectations” after taking a much more cautious approach to the ramp-up of end-user subscription revenue for 2019.
The AIM-listed cloud business integration platform, with cross-app data synchronization, said the more cautious approach follows detailed planning discussions with its major USA bank client.
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However, the group added: “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.”
The comments came as Maestrano reported its unaudited results for the six months ending 31 December 2018, which saw underlying losses (LBITDA) increase to £1.296mln, up from a £415,000 loss a year earlier, although revenue increased by 35% at constant currency to £444,000, up from £345,000.
The firm said the moderate uplift in revenue reflected the implementation effort for key clients, including the major US bank.
Meanwhile, the increased underlying losses reflected an 88% jump in total expenses increased by 88% - a 93% increase at constant currency - as the company increased headcount in order to deliver major client projects and support future growth.