TNT - Tesserent Limited

[MrChow]

They bought a lot of revenue but little profit given their market cap now.

 

[Dona Ferentes]

Tech - Latest Tech News & Expert Insights from Stockhead

Read the latest tech stock news with small cap stories from Australia's leading business journalists.

stockhead.com.au

Here’s a list of all ASX cybersecurity stocks and their performance in 2020

Code	Company	Price	%Yr	MktCap
TNT	Tesserent Limited	33.5	628	$324.2M
WHK	Whitehawk Limited	30	249	$63.4M
FZO	Family Zone Cyber	43	161	$169.6M
FFT	Future First Tech	4.2	148	$23.2M
AR9	Archtis Limited	31	138	$62.7M
5GN	5G Networks Limited	131.5	85	$150.2M
PRO	Prophecy Internation	67	34	$43.5M
ELS	Elsight Ltd	41	10	$57.3M
VOR	Vortiv Ltd	17	6	$23.9M
HWH	Houston We Have Ltd	4.4	5	$11.5M
SOV	Sovereign Cloud Hldg	97	0	$51.4M
PSC	Prospect Res Ltd	13	-10	$43.2M
SEN	Senetas Corporation	6	-12	$67.1M
CPT	Cipherpoint Limited	4.6	-28	$7.3M
SPA	Spacetalk Ltd	10.5	-64	$18.1M

 

[Telamelo]

Today we see yet another fresh all time high for TNT! That's four days in a row! Very happy holder here!

wow TNT big line wipe @ 0.36c! now trading @ 0.365c +7.35% already

DYOR .. Cheers tela

 

[Telamelo]

Tesserent TNT summary Q2 FY2021​

• With added turnover from its iQ3 business, Tesserent posted a record performance in the second quarter of financial 2021
• Sales for the period reached $21.4 million, representing a 41.7 per cent increase compared to the quarter before
• The company's annual turnover run-rate is now more than $110 million and expected to grow to $150 million by the end of the financial year
• As of December 31, the company had $7.9 million in cash and boasts a strong financial position

FY2021 Outlook​

• Provide Cyber 360 capabilities to a rising number of Australian businesses.
• Combine acquisitions to increase synergy efficiencies plus drive organic revenue growth via cross-selling.
• Capture market share in Government (including Defence), Critical Infrastructure and Banking & Finance sector.
• Drive its acquisition strategy to increase on Cyber 360 capabilities plus increase shareholder value via incremental EPS growth.
• Build out high-value recurring annuity revenue sources.
• Increase proprietary intellectual property to make high-margin product & service offerings.
• Look for Global expansion prospects.

How did the cybersecurity provider Tesserent (ASX:TNT) fare in Q2 FY2021? (kalkinemedia.com)

Tesserent (ASX:TNT) posts 41.7pc increase in sales for Q2 2021 - The Market Herald

TNT Share Technical Analysis | Tesserent Ltd | SwingTradeBot.com

DYOR .. Cheers tela

 

[Dona Ferentes]

5:10pm on last Friday of Reporting Month: (never a good look)

Tesserent Limited (ASX:TNT) refers to the non-audit reviewed Appendix 4D and Half Year Report lodged today and advises that it will utilise the extension of time granted by ASIC for lodgment of Half Year Reports for balance dates ending on or before 7 January 2021.

Future Focus:
Tesserent, through its Cyber 360 strategy, continues to focus on building out a one-stop-shop that provides a complete end-to-end cybersecurity solution for its clients. A primary objective is to maximise shareholder value by increasing earnings margins through the growth of high-margin annuity-based income and the inclusion of proprietary intellectual property in its solutions.

The Company’s previously stated goals for FY21 remain:
● Deliver our Cyber 360 capabilities to an increasing number of Australian organisations
● Integrate acquisitions to maximise synergy efficiencies and drive organic revenue growth through cross-selling
● Focus on capturing market share in three key markets: Government (including Defence), Critical Infrastructure and Banking & Finance
● Continuing to drive the Company’s acquisition strategy to expand on Cyber 360 capabilities and increase shareholder value through incremental EPS growth
● Building out high-value recurring annuity revenue streams
● Expand proprietary intellectual property to drive high-margin product and service offerings
● Explore International expansion opportunities with a focus on Australia’s key Five Eyes allies, which consists of the USA, UK, NZ and Canada

 

[wabullfrog]

4C out with a day to spare this qtr, so that should please @Dona Ferentes


Like AR9 & WHK the TNT share price has dropped back to be in the $0.20s for the last few months. TNT share price did get a little bump after the release this afternoon.


To achieve the annualised run rate of $150M I think they still need to grow the monthly revenue from the $9.1M they achieved in March to $12.5M by June 2021. Please correct me if I've read or interpreted that wrong. These figures wouldn't include the April acquisition of Seer Logic so that should make it a little easier.

More acquisitions it seems

the underlying core philosophy is to acquire quality cybersecurity assets that are complementary to the Cyber 360 strategy and incrementally Earnings Per Share (EPS) accretive. TNT sees this as an important element in continuing to deliver future value to our shareholders.

With this in mind, the Company completed the strategic acquisitions of Lateral Security (February 2021) and Secure Logic (April 2021)
.TNT looks forward to updating the market on additional future acquisitions, a number of which are at an advanced stage.

Looking forward

FUTURE FOCUS

As per our recent Investor Update (13 April 2021), the Company’s stated goals for FY21 are:
●Continue to drive the Company’s acquisition strategy to expand on Cyber 360 capabilities and market share, increasing shareholder value through incremental EPS growth
●Foster innovation and expand proprietary intellectual property to drive high-margin product and service offerings
●Help drive an industry-wide capability uplift and reduce the skill shortage gap through the Tesserent Academy
●Focus on capturing further market share in three key markets: Government (including Defence), Critical Infrastructure and Industry and Financial Services
●Drive growth through deeper customer engagements and increasing our average services per customer
●Integrate acquisitions to maximise synergy efficiencies and drive organic revenue growth through cross-selling
●Build out high-value recurring annuity revenue streams
●Explore International expansion opportunities with a focus on Australia’s key Five Eyes allies, which consists of the USA, UK, NZ and Canada
●Build leadership position in the Converged Security market and Cyber Education

 

[greggles]

Cybersecurity continues to be a growth sector and while Tesserent has had a rocky road in the last 12 months, the company appears to be set for continued growth from strong demand for its services. I think the share price will continue to reflect that in the coming months.

Announced today:

Tesserent Limited (ASX:TNT, the Company) is pleased to advise that that the Company will comfortably exceed its prior ambition of annualized turnover run rate of $150m (based on turnover for the month of June 2021 annualised). It is now expected that the annualized turnover based on June will be approximately $180m.

I like TNT as a strategic long term play in a world where cybersecurity is increasingly becoming more critical than ever, with the number of cyber attacks on businesses and government continuing to increase: https://www.insurancejournal.com/news/international/2021/04/19/610514.htm

TNT up 21.95% today.

 

[Dona Ferentes]

A bit of a move up today , to 32c, as it announces:

TNT INVESTS IN GROUNDBREAKING BIOMETRIC SECURITY FIRM DALTREY

• Tesserent Innovation has acquired a stake in Daltrey Pty Ltd, a leading sovereign biometric company
• Initial investment of $600K with a future investment of $1.1M subject to key KPIs being achieved, giving an initial 7% holding in the company
• Additional options secured to invest up to $10M in growth funds to support global expansion ambitions
• Daltrey is a potential global leader in the multibillion dollar cybersecurity industry.
• Tesserent Innovation continued investment into globally applicable proprietary cyber IP with the potential to support a future in specie distribution to Tesserent shareholders

 

[Dona Ferentes]

and another groundbreaking acquisition of another leading firm


Acquisition of Loop Secure with the signing of a Share Purchase Agreement executed between both parties on the 18 August 2021.

Headquartered in Sydney with offices in Melbourne and Brisbane, Loop Secure is a leading Australian cybersecurity firm providing Managed Security Services, GRC and Offensive Security services. The firm operates a Security Operations Centre located in Melbourne, working predominantly with a range of international and domestic enterprises

• Acquisition delivering unaudited $18M revenue and $2.25M sustainable EBITDA
• Loop Secure’s Offensive Security, GRC and Managed Security Services strengthens TNT’s Cyber 360 capabilities with significant synergy benefits and cross-sell opportunities
• Acquisition is immediately earnings, cash flow and EPS accretive whilst delivering significant locked-in recurring revenue

"...new opportunities ... will allow us to continue our strong growth in the key cybersecurity domains of monitoring, consulting and solutions."

Prevention?

 

[wabullfrog]

Preliminary Report was released a few days ago.

https://tesserent.com/site/PDF/1178a64d-d8c2-49d8-89d5-ebfa78478c7b/PreliminaryFinalReportandUpdate

Headline

Normalised EBITDA of $9.6m up from FY20 result of negative $2.8m and Turnover increased to $96.7m, up 372% from FY20 result of $20.5m

When you include acquisition costs

The Group has achieved a normalised net profit (NPAT) of $4.9m, excluding acquisition related costs and non-operating share based costs. Once these costs are added back in, this equates to a statutory reported net loss of $4.5m for FY21.

With all the Acquisition SOI have gone from 511,834,114 to 1,063,018,657.


Markets reaction in red

Guess they need to show they can grow organically & not just via acquisitions???

I do hold

 

[Dona Ferentes]

been a bit quiet and unspectacular on the TNT front for a while. I guess it is hard to actually get down and perform

and now, a trading halt is requested pending release of an announcement concerning a capital raising to support pending acquisitions.

 

[galumay]

Have a look at the share count, SH value being diluted to zero on this pathway! Not an investible business IMO.

Share count 2016-2021, will no doubt pass a billion shares after this one!

 

[Dona Ferentes]

and now, a trading halt is requested pending release of an announcement concerning a capital raising [for] acquisitions.

$20M @ 21c a share

 

[Dona Ferentes]

Cyber Security firms are everywhere. .... thriving in the "we've gotta do something" environment. Whether they deliver the goods is moot, as there is no answer to "Why is the dog not barking?"

There is an article in the AFR about the merger of 4 players

A quartet of Australian consulting firms has negotiated a merger to form a new company that plans to take on the growing cyber security practices of the big four consulting firms, and go public on the Australian Securities Exchange next year.
The new company will be called Sekuro and combines the formerly separate firms Privasec, Solista, CXO Security and Naviro in a deal that the founders said involved no typical M&A buyouts and represented a tactical alliance that would make the combined entity stronger than the individual parts.

.... the separate companies specialised in different aspects of cyber security strategy, and the merger would mean it could offer a so-called “end-to-end solution,” ranging from assessment of an organisation’s security posture to building new capabilities, monitoring networks and augmenting in-house skills.

The chief proponent goes on to say:

Sekuro enters a competitive sector where the likes of EY, PwC, Deloitte, KPMG and Accenture are all positioning themselves as cyber experts, while global business advisory firm Ankura set up shop locally in 2020 and private equity backed roll-up machine CyberCX has acquired almost 20 Australian cyber firms since launching in 2019 following the acquisition of 12 separate niche firms. Last month ASX-listed cyber security firm Tesserent also kicked off plans to buy up smaller operators.

... he believed Sekuro trumped the model of all these competitors, which he positioned as financially motivated roll-ups and acquisitions as opposed to strategic mergers.
“CyberCX is at its core a cyber security acquisitions machine, when a company is bought by it, it is absorbed into the CyberCX identity and the staff must adapt,” he said. “CyberCX is primarily a financial instrument run by fund managers to make profit. While this works for them, it doesn’t work for Sekuro.
“The big four consultancies are acquiring smaller well-established but uncompetitive, or market-tired, cyber security businesses to bolster their capability in terms of people and processes; while Tesserent is specialising in acquiring established –and sometimes stagnant –businesses, with a focus on giving their founders a fast and easy exit.”

Ouch !!

 

[galumay]

LOL! Its not getting any better for TNT is it? The ticker is an appropriate one, this is going to blow up one day.

 

[peter2]

TNT appeared in my HVBB scans (daily x2, weekly). No news announced. I'm leaving it at "interesting".

 

[galumay]

Be careful if you decide to play with TNT, @peter2. A serial destroyer of shareholder capital!

 

[dvnsh1994]

TNT appeared in my HVBB scans (daily x2, weekly). No news announced. I'm leaving it at "interesting".

View attachment 140778

hey man, what scanner you use for scanning cause this thing is a beauty

 

[Dona Ferentes]

good work if you can get it

One-off costs of Refinancing It is noted that the refinancing and early repayment of the PAM facilities will incur a one-time prepayment/exit fee of $1.75m.

Refinancing has resulted in a replacement of the existing debt facilities of $35m, previously provided by Pure Asset Management (PAM), with a new Market Rate Loan provided by the Commonwealth Bank of Australia

 

[debtfree]

TNT - One of my tips for the 2023 CY Comp.

TNT had a good month in December with increasing Volume, I know it needs to climb above it's MA and towards the top of the BB but it has all year to do that. Time will tell.