Monday 02 December 2019

Troubled Maestrano gambles on transport to delight

LogoMaster data management and business analytics platform specialist Maestrano Group plc faces an uncertain future. The decision at the back end of its last financial year (the twelve months to 31st June 2019) by the its largest customer, a US bank to cease investment in the company’s product was followed soon after by the end of Maestrano's other major contract held with an Australian bank. Together, these two clients generated 90% of FY19 revenues.

A fundamental strategic reassessment of the AIM-listed business ensued. This led to the closure of its New York and London offices leaving only the company’s Sydney operations intact. It also produced the decision to shift Maestrano’s vertical industry focus from the banking arena to the transport sector through the acquisition in September of Airsight Holdings Pty Ltd, an Australian provider of engineering surveying services with digital recording devices for transport corridors, such as rail and road networks.

As for the full year results themselves, not surprisingly they did not make for happy reading. Turnover for FY19 was down 7% yoy to £905K and losses before tax increased sharply by 39% to £2.68m (£1.93m in FY18). On a more positive note, the company ended the year with cash and receivables totalling £2.74m.

The level of corporate reinvention being attempted by Maestrano, as it seeks to establish itself as the artificial intelligence platform for transport corridor analytics, is both massive and risky. The announcement last week of a new contract with the Australian Government Department of the Environment and Energy, won by Airsight, provided some early encouraging news. The company’s road to recovery, however, is likely to prove both long and difficult to navigate.

Posted by: Duncan Aitchison

Tags: results   transport   platform   AI   MDM  

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