Geoff Lord (Tesserent)
Publicly listed cyber security provider Tesserent has seen its net profit losses almost double from $4.5 million to $8.8 million for the year ended 30 June 2022.
According to a financial report submitted to the Australian Securities Exchange (ASX), Tesserent’s increased loss stemmed from cash and non-cash one-off costs including costs related to the refinancing of its existing debt facility.
Additional costs also came from integrating its acquired companies in the last financial year, including Canberra-based IT services firms Pearson Corporation and Claricent, for which it paid $33 million, and Loop Secure, which it bought for $13.5 million in August.
However, Tesserent’s total sales turnover increased by 71 per cent to $166 million, while statutory revenue grew by $113 million, a rise of 50 per cent from 2021’s $67.4 million.
Meanwhile, EBITDA grew by 94 per cent from $9.6 million to $18.6 million. No dividends were paid for the 2022 year.
“Following the significant disruption and technological shifts brought about by COVID in 2020 and 2021, many organisations have been compelled to adapt their operating systems and IT security in order to protect supply chains and interconnected systems in the face of the increasingly sophisticated attacks,” executive chairman Geoff Lord told shareholders.
Tesserent kicked off the last financial year by consolidating its portfolio of acquired companies under its own brand name. These brands included Airloom, Pure Security, Rivium, Secure Logic, and iQ3.
Its New Zealand arm also incorporated the services of the NZ-based Lateral Security, although the company retained its branding.
Referring to the business re-organisation, Lord added Tesserent had “improved the level of engagement and cross selling opportunities across the business".
According to the shareholder report, Tesserent now provides products and services to over 1,200 clients. As well as its M&A activity, Tesserent has also made investments in cyber security start-ups TrustGrid and AttackBound, marking its first step in investing in globally applicable proprietary IP.
Following the end of the FY22, it was announced that former Tesserent CEO Julian Challingsworth had taken over the reins at telecommunications and IT service provider Spirit.
