Board Report — Q1 2026
Meridian Group | Quarter ending 31 March 2026 | Prepared for the Board of Directors
This report covers financial performance, operational highlights, risk position, and strategic items requiring board resolution for the quarter ended 31 March 2026.
Items for Board Resolution
Three items require board decision at this meeting.
- Acquisition term sheet — Proposed acquisition of Thornfield Analytics. Term sheet attached at Appendix A. Indicative valuation $1.8M. Recommendation: approve entry into exclusivity period.
- Risk appetite statement — Annual review of enterprise risk appetite. Updated statement reflects expanded digital operations. Recommendation: adopt revised statement.
- Remuneration framework — Proposed changes to executive short-term incentive structure. Recommendation: approve revised KPI weightings effective FY2027.
Financial Performance
Revenue by Business Unit
Enterprise Services growth driven by two new enterprise contracts commencing February. Advisory decline reflects the planned wind-down of the legacy consulting practice. New advisory model launches Q3.
Cost Structure
Operating Costs — Q1 2026
| Category | Amount | vs Budget |
|---|---|---|
| Personnel | $2.1M | +2% |
| Platform & Infrastructure | $340K | -8% |
| Sales & Marketing | $280K | +12% |
| Professional Services | $190K | +5% |
| Facilities | $110K | On budget |
| Total | $3.02M | +1.4% |
Key Cost Movements
- Personnel increase reflects 2 new hires (Enterprise Sales, Data Engineering)
- Platform costs below budget — migration to new cloud provider completed under cost
- Sales overspend driven by attendance at industry conference (pre-approved)
- Professional Services: external legal costs for acquisition due diligence
Operational Highlights
Cloud infrastructure migration finalised 14 March. $47K under budget. No customer-facing downtime.
Two new enterprise contracts signed: Halcyon Industries (3-year, $1.1M TCV) and Westfield Group (2-year, $640K TCV).
Net Promoter Score increased from 42 to 61 following new client success programme launch.
Advisory pipeline is thin for Q2. Three proposals outstanding, win rate historically 40%. Revenue risk if none convert.
Lead Data Engineer sole owner of three critical system integrations. Succession plan not yet documented.
People
Staff retention remains strong. No departures this quarter. Two new hires onboarded and productive. Annual engagement survey scheduled for May — results to be presented at Q2 board meeting.
Risk Register — Top Items
Lead Data Engineer holds critical system knowledge. Document integrations and identify backup by end of Q2.
Advisory unit revenue declining. Single large client represents 60% of advisory revenue. Diversification required.
If Thornfield acquisition proceeds, integration will require management bandwidth. Capacity plan needed.
Annual penetration test scheduled for April. Previous test (2024) found 2 medium findings — both remediated.
New data handling requirements effective July 2026. Compliance gap assessment underway. Low impact expected.
Strategic Priorities — Status
| Priority | Owner | Status | On Track |
|---|---|---|---|
| Enterprise segment expansion | CEO | Two contracts won Q1. Pipeline strong. | ✓ |
| Advisory practice transformation | CCO | New model defined. Launch Q3 2026. | ✓ |
| Platform modernisation | CTO | Migration complete. Optimisation continues. | ✓ |
| Thornfield acquisition | CEO / CFO | Due diligence in progress. Term sheet this meeting. | ✓ |
| Engagement & retention programme | COO | Survey scheduled May. Framework approved. | ✓ |
| Rating | Label |
|---|---|
| strong | Quarter Summary |
A solid quarter. Revenue growth of 11% is ahead of the 8% full-year target, EBITDA margin has held despite planned investment in headcount and the platform migration. The advisory decline is managed and expected. Three items require board resolution — the Thornfield term sheet is the most time-sensitive, with exclusivity expiring 15 April. Recommend the board approve entry into exclusivity to preserve the opportunity while due diligence concludes.