Tesserent records a profit in full year results

Tesserent Limited has released its annual results and preliminary final reports for Tesserent and its controlled entities (‘TNT’ or ‘The Group’) for the year ending on 30 June 2021, plus an update of its achievements and current business activities. The financial year ending on 30 June 2021 represented a year of growth for the Group as the Board successfully executed its strategy to strengthen its core Cyber 360 capabilities and acquire complementary businesses and expand the product offering to its clients. During the year ending on 30 June 2021, the Group reported total sales turnover of $96.7 million, statutory revenue of $67.4 million and normalised EBITDA of $9.6 million (excluding acquisition related costs and non-operating share based costs, 75% of which are non-cash costs).

TNT’s financial results have improved throughout the year, culminating in a fourth quarter turnover result of $38.2 million. This supports the businesses, exceeding its initial ambition of annualised turnover run rate of $150 million. The Group achieved a normalised net profit (NPAT) of $4.9 million, excluding acquisition related costs and non-operating share based costs. Once these costs are added back in, this equates to a stator reported net loss of $4.5 million for FY21. The normalised/operating net profit and EBITDA results for FY21 represent a significant turnaround from FY20 comparative results (FY20 normalised net loss of $5.1 million and FY20 normalised EBITDA loss of $2.8 million).

In FY21, the Group achieved exceptional growth, through its execution of the Cyber 360 go-to-market strategy and through successful completion and integration of six acquisitions — with the acquired businesses adding public and private sector consulting services, managed services, and specialised product expertise. The FY22 year has seen the Group delivering above budget performance that will provide a foundation for continued strong organic growth during the current year. The acquisition of Loop Secure will be completed in September and will also contribute to turnover.

There are also a number of potential acquisitions in review which, if completed, will further add to the inorganic earnings growth and deepen the Cyber 360 model. The strategic acquisition of Loop Secure will further enhance Tesserent’s capabilities in the areas of managed security services, GRC and offensive security. Loop Secure’s services and solution offering is a strategic addition to strengthen Tesserent’s Cyber 360 capabilities, with immediate synergies and opportunities to leverage its corporate relationships and skills within the Group. During the year, Tesserent Innovation was launched to establish strategic partnerships with other technology businesses, thereby providing access to key technology capabilities to bring to Tesserent’s customers. Under Tesserent Innovation, the Group acquired a 25% stake in each of TrustGrid and AttackBound, and entered into an investment agreement for a 7% stake in Daltrey Pty Ltd, completed in early July 2021.

The launch of Tesserent Academy, which is a Cyber Learning capability that is designed to promote industry cyber knowledge and develop industry talent, provides the Group with a leadership position in the Converged Security and Cyber Education markets.

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