In an update for the year to 30 June 2021, Maestrano Group (MNO ) said its transition to operate within the international markets had proved successful with revenue nearly doubling.
The Group, which operates as an artificial Intelligence platform for transport corridor analytics, reported a revenue rise of £1.7m from £0.872m in 2020 which Maestrano said reflected its successful move to international markets, together with strong demand for its artificial intelligence capabilities in processing railway light detection, or LiDAR, and ranging data.
In particular, and despite the challenges of the pandemic, customer support for the Cordel products saw total revenue up 92% in reported currency and up 94% in constant currency.
Maestrano said Cordel, after conducting extensive market feedback, has confirmed that there is ‘a significant market opportunity’ for the subsidiary’s technology in all market segments.
While revenue rose during the year, the Company also reported a widened pre tax loss for FY21 after expenses increased 445 from £1.95m in FY20 to £2.8m as additional hardware and software engineers, and market development staff were employed during the period.
The Group secured several major contracts over the period including its first US Contract with Union Pacific Railroad, the second largest Class 1 Railroad in the US, as well as a 12-month gauging automation contract awarded from the UK’s not-for-profit Network Rail.
In particular, the US market, which represents over 38% of global expenditure on rail asset management, has been a core focus for Cordel over the past year. In response to its first US contract, Maestrano noted that it had moved from the proving to the early revenue stage.
As at 30 June 2021, cash balance and receivables stood at £2.16m. Maestrano said it will continue to invest in R&D to maintain the Group’s lead in end-to-end LiDAR+AI solutions.
Commenting on the results, Nick Smith, CEO of Maestrano Group, said "The success of our move to international markets is reflected in the near-doubling of year-on-year revenue and strong demand for our unique AI capabilities for processing railway LiDAR data.
He added, “As collected data grows, our AI training models become even more precise and our competitive advantage increases. With our pipeline of new opportunities and the recent breakthrough in the USA, we are confident of continuing growth in FY22."
Ian Buddery, Chairman of Maestrano Group, commented: "The board is delighted to see these excellent results and the underlying growth trajectory. Our team of AI scientists, computer engineers, surveyors, mathematicians, LiDAR technicians and railroad engineers will be working hard to expand this lead as we address further international markets."
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