LONDON (Alliance News) - Maestrano Group PLC said Wednesday it expects the closure of its business intelligence platform by a major US banking customer to have a "dramatic negative" impact on its revenue outlook.
Shares in Maestrano were 45% lower at 1.90 pence on Wednesday.
The banking software firm explained that the unnamed "major" US-based banking customer had decided to focus on other areas of its technology.
As a result, the US bank intends to close its business intelligence platform by the end of September. Maestrano had recently completed the delivery of the data visualisation and business intelligence platform for the customer as part of the first phase of the strategic project with the customer.
Maestrano explained that a "major part" of the revenue forecast at the firm was based on projected subscriber income from the platform. Consequently, Maestrano now expects its closure to have a "dramatic negative impact" on the revenue outlook for the company.
New functionality will continue to be added to the platform over the months ahead prior to closure in order to receive more user feedback.
"Whilst we are very disappointed with this development, we have built a strong working relationship with the bank which may lead to future projects with them," Maestrano Chair Ian Buddery said. "We are also fortunate in having adequate capital reserves to support the business as we look ahead."
Maestrano Chief Executive Officer Andrew Pearson said: "I am proud of the product we have developed. We will now focus on bringing forward new features from our roadmap, benefiting current customers and improving our sales proposition for future customers. We have two Australian clients going live with pilots during May and we continue to pursue opportunities with UK and Eurozone banks, which we believe will lead to new contracts in due course."
Buddery added: "We hope that shareholders will recognise our fundamental strengths and perceive the longer-term opportunities. Meanwhile we are seeing confirmation of our product strategy on a regular basis, as many banks express their intention to build digital customer engagement platforms."
