CHAIRMAN LETTER TO SHAREHOLDERS
I am pleased to introduce myself as Tesserent’s new non-executive Chairman, following my recent appointment to
As Tesserent’s largest shareholder, I am looking forward to working closely with the Company’s Board and
Management team to achieve several important goals over the coming 12 months that will strengthen Tesserent’s
position as a leading cybersecurity provider in Australia.
Having completed acquisitions of PS&C Limited's security division and enterprise security specialist Rivium in recent
months, as well as announcing our pending acquisition of security consulting firm north BDT (subject to shareholder
approval), Tesserent has grown to be an increasingly diverse business spanning the cybersecurity sector with the
ability to offer a compressive suite of cyber security services to new and existing customers.
Through this broader approach, and as announced on 10 December 2019, we are expecting to deliver a forward
revenue run rate of $40 million by June 2020, upon completion of the acquisition of north BDT. This will be a
significant increase on our previous FY2019 revenue of $5m, however the strategy behind our acquisitions is very
solid and I am confident of significant organic growth by the business to enable us to achieve this. We will keep you
updated concerning progress on our strategy.
In addition to an uplift in our revenue run rate, Tesserent also has an objective to achieve cashflow positivity and
profitability on a monthly basis by end of FY2020. This is exciting for our Company and among key results I know our
team is working incredibly hard to achieve. We have made rapid progress over recent months as we continue to
integrate the technology and skills obtained through our acquisitions, and this will continue through the rest of
As we work towards these results, the Company is undergoing a cost reduction program to ensure we are operating
as efficiently and economically as possible. We are aiming to reduce our combined cost base by $1 million per year.
As part of this, we are instigating a policy of no directors’ fees for the next 12 months. We will also terminate
external consultancy services to keep our running costs as low as possible.
Achieving these goals will provide Tesserent with the strongest possible base on which we can build in FY2021 and
beyond. Tesserent has built a large base of 650+ customers and we expect to build on this number moving forward.
Cybersecurity continues to be incredibly important to businesses, particularly to mid-market enterprises that we
work with, and I believe this importance will continue to grow as increasingly technology and digital platforms
become the operating standard across business, government and education. Tesserent is well-placed to take
advantage of this growing demand, and we have expanded our capabilities at the right time.
Having built UXC, my former IT services business, into an $800 million revenue opportunity, I see potential for
Tesserent to copy that trajectory in today’s cybersecurity market. I have strongly invested in Tesserent directly, and
through my private company the Belgravia Group, for some time now and I am looking forward to lending my years
of business experience to help the Company achieve its potential, both in the short term and the years ahead.
We will regularly report our progress on achieving the targets stated above to our Shareholders over the coming
months, and I look forward to keeping you updated.
courtesy of Bell Direct
( DYOR )
i do not hold this share
is this worthy of watching ???
there may be some more directors leaving
the suspension of director's fees and consultancy services would hint otherwise
HOWEVER they might have a big bill due ( within the next 12 months ) and once over that things are much better ( or so the chairman hopes )
anything i might buy will be small , i am saving up to splash in the crash ( should be this year or the next ) once the market realizes the US-China deal has been 99% theatrics
i haven't researched this yet , i stopped buying new tech companies after 2014 ( GTK @ $1.97 ) after it was clear governments had silly dreams but no idea how to get there ... look at TNE for example a city council complained and bullied but had no idea what went wrong
there is new tech in the works ( several options ) and it looks like Asia ( China , Japan or Taiwan ) will be the dominant force ( especially if they move away from spinning rust ( which i think are awesome but are harder to improve )
but i need to research first then MAYBE dabble .
cyber-security borders on a protection racket you never know what you have bought until a talented cracker hits you
watch the T$ management fight spam , unless they can read the spammer's mind they can only react after the spammer's intrusion