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Costs dent Tesserent net profit

Costs dent Tesserent net profit

Acquisition and restructuring costs, as well as loss on carrying value of innovation investments impact net profit.

Kurt Hansen (Tesserent)

Kurt Hansen (Tesserent)

Credit: Tesserent

Publicly listed cyber security provider, Tesserent has seen total sales turnover rise 12 per cent to $186 million while statutory revenue increased 15 per cent to $185 million for the financial year ending June 30. 

Net profit tumbled 43 per cent from $9.9 million to $5.5 million for FY23, which was brought down by acquisition ($2 million) and restructuring ($2.65 million) costs, as well as loss on carrying value of innovation investments ($4.6 million).

The one-off restructuring costs were associated with the operational restructuring of the group to consolidate the commercial segments into a single A/NZ commercial division and re-base the SOC into a sustainable operating model, including a write-off of $1.7 million of impaired SOC software assets.

There was also a $3.3 million investment write-off related to Daltrey, which was placed in liquidation.  

Normalised EBITDA was down from $18.6 million to $17.6 million while operating EBITDA was down 14 per cent to $14 million. 

Depreciation and amortisation costs increased during FY23 by 21 per cent due to the increase in amortisation of customer contracts associated with acquisitions and amortisation of the right-of-use assets. 

FY23 proved to be a year of continued integration and operational consolidation following three years of targeted strategic acquisitions, Tesserent highlighted. Thales Australia made an offer in June to acquire Tesserent in a deal worth $176 million.

The company also introduced a number of additional service lines and client offerings such as its Incident Response business and new sales channels for software sales to government clients. 

During the year, Tesserent completed the acquisition of cyber security training business ALC Group, integrating it into the Tesserent Academy and has already introduced a new certified CyberSec First Responder training course to the market. 

Key goals for FY24 include fostering innovation across the group and driving high-margin product and service offerings, building out high-value recurring annuity revenue streams via managed SOC and managed MDR, and investing in advanced threat intelligence, and education.

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