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#Bull Case
Added a week ago

Update for investors by TNT. A very ambitious $150M turnover target might require further acquisitions. However, the share price has suffered - perhaps due to fund managers taking profits (there might be more of it near the EOFY) or perhaps due to some investors' fears that the mergers have left company exposed to weakness. This update shows that there is less to worry and the turnover from loss to profit is pretty much on track - see attached chart and full report can be found here:

Disclosure: Holding and accumulating

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#Bull Case
Added 2 months ago

Probably the best exposure to cyber security on the ASX market, Company is growing fast and I personally believe it's a buy here at 0.23c~ for a long term hold.

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#H1 FY2021 Report
Added 2 months ago

26-Feb-2021 (after market close):  Half Year Report - commentary   plus   Half Year Report and Accounts - not audit reviewed   and   ASIC extension to lodge Half Year Report

  • Turnover increases YoY by 500% to $36.5M
  • Operational EBITDA increases by $4.6M to $2.9M
  • Net assets increase from $16.5M to $65M
  • Cash at bank increases from $4M to $8M

Tesserent Limited (ASX:TNT) is pleased to provide the Company’s Half Yearly Report (Appendix 4D) for the half-year ended 31 December 2020. The Board notes the following points regarding the progress of the Company’s strategy and performance during and after the reporting period.

Key Highlights for H1 FY21

  • Financial achievements:
    • $36.5M Turnover* achieved (in excess of 500% growth on same period last FY)
    • $2.9M Operational EBITDA** achieved against a prior period loss of $1.7M
  • Acquisitions:
    • Seer Security (completed August 2020)
    • Airloom (completed September 2020)
    • Ludus Cybersecurity (completed September 2020)
    • iQ3 (completed November 2020)
    • Lateral Security NZ (completed February 2021)
  • Joint Ventures:
    • Optic TNT Security Pty. Ltd. JV with NZ-based Secure Optic (announced November 2020)
  • Listed on ASX All Tech Index (S&P/ASX All Technology Index)
  • Entered NZ market with acquisition of Lateral Security


  1. (*) Turnover includes gross income on certain third-party software licence sales - treated on a net basis for statutory reporting
  2. (**) Before One-off acquisition costs and Share option expense

The H2 FY21 Results will benefit from:

  • The inclusion of 5 months results from Lateral Security which completed in February 21
  • The inclusion of the full 6 months revenue and earnings for the following acquisitions :
    • Seer Security (5 months in H1 results)
    • Airloom (4 months in H1 results)
    • Ludus Cybersecurity (4 months in H1 results)
    • iQ3 (2 months in H1 results)
  • Strong organic growth with significant uplift across our Government projects.

--- for the remainder of this announcement, and the other two announcements released by TNT after market close on Friday, click on the links at the top ---


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#1/4ly Report & Update 29/1/21
Added 3 months ago


The Company is also pleased to announce that it continues to build its quarter on quarter operating profitability, increasing operational EBITDA to $1.41M for the quarter, up 248% from the previous quarter’s $405K. The Company expects to continue this growth trend for the foreseeable future.

DISC:I hold

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#ASX Announcement 19/1/21
Added 3 months ago


Her current board appointments include:

RMIT University ~Council member, Chair-Audit & Risk Management Committee

Development Victoria ~ Director, Audit & Risk Committee Member

Note Printing Australia ~ Audit Committee

Member University of Melbourne Academic Centre of Cyber Excellence Advisory Board Member

Handdii ~ Director

Suburban Rail Loop ~ Advisory Board Member, Chair Audit & Risk Committee (under formation)

Disc: I hold


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#Bear Case
Last edited 3 months ago

Not for me - too expensive for a consulting company.

I was excited to look at this when I first heard about it in July.

This is a 'roll-up' strategy buying smaller operators with the goal of buying at a lower multiple than what TNT gets on the ASX.

They offer IT security consulting services.

What I really like is that there is a really strong tailwind in their market with people hard to get and high prices on offer.

What I don't like is that they are a consulting company and they don't make a profit. They also have a huge amount of goodwill and intangibles on their balance sheet (at June20). In fact if you take those out their liabilities are higher than their assets!

Why don't I like it that they don't make a profit? My experience of IT consulting was that the rule of thumb was that the charge out rate of the consultant was made made up of 1/3 was paid in wages, 1/3 in costs and 1/3 in profit. Now their P&L for FY 20 shows $13M of employee expense of $20M in revenue. That's 2/3 so there are a lot of people not contributing to the bottom line.

What troubles me here is that this isn't a SaaS business where the costs are relatively fixed for each widget sold. In a consulting business the costs are variable and there only way to increase profit for a fixed head count is to increase prices or increase utilisation. So there is no SaaS inflection point for this business where all the new sales go to the bottom line.

A good point is the last 4C showed increase in revenue with a small reduction in exployee expense.

This might be ok with a reasonable valuation, but the market cap @ $0.40 is $400M. Their Q1 4C showed a cash profit of $0.4M on $15M revenue. They need a profit after tax of $10M to have a P/E of 40.

It's nice that the management is predicting a run-rate of $150M/year by end of FY21. It's off-putting that they don't project the profit.

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#Lateral Security Acquisition
Added 4 months ago

17-Dec-2020:  Tesserent acquires NZ based Lateral Security


  • Acquires strategic NZ-based cybersecurity firm, Lateral Security
  • Delivering NZ$4.2M turnover and NZ$850K of sustainable EBITDA
  • Strong brand and reputation in the New Zealand Central Government
  • Acquisition is immediately earnings, cash flow and EPS accretive
  • Provides a steppingstone for existing Tesserent businesses to enter the NZ market
  • Significant synergy benefits and cross-sell opportunities with existing TNT Optic Security

--- click on the link above for the full announcement ---

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#Enters ASX All Tech Index
Added 4 months ago

14-Dec-2020:  Update/Tesserent listed on ASX All Tech Index


  • TNT added to S&P/ASX All Technology Index
  • Recognised as one of Australia’s fastest-growing technology firms
  • Tesserent continues to experience strong organic growth from group cross-sales

Tesserent Limited (ASX:TNT) is pleased to announce its listing on the S&P/ASX All Technology Index (All Tech Index) as announced on 11 December 2020. This comes as a result of our strong overall market performance during 2020, with continued significant organic growth across existing Group companies.

Tesserent listed on the All Tech Index

The All Tech Index represents the ASX’s fastest-growing sector, shining the spotlight on Australia’s leading technology companies. With TNT’s addition to the All Tech Index, the Company joins firms including Afterpay (ASX:APT), REA Group (ASX:REA) and Xero (ASX:XRO).

This achievement is a significant milestone for Tesserent and validates the Company’s growth strategy, highlighting the sustained, exponential growth TNT has realised in the past 12 months.

Julian Challingsworth, TNT’s Co-CEO, commented; “We’re delighted with the ongoing recognition of Tesserent’s continued growth. Being added to the All Tech Index is a real acknowledgement of the success of our growth strategy and opens TNT up to new investors and funds that follow and invest in indices”.

Synergies & Growth Update

In addition to the 135% YoY EBITDA growth in our Federal Government division as announced on 9 December 2020, the Company is also pleased to report continued strong organic cross-sell growth across its entire group of companies.

Major wins so far this quarter include 12 services agreements across Federal, State and Local Governments, as well as Financial Services Groups and Property Developers.

Kurt Hansen, TNT’s Co-CEO, commented; “We’re delighted with the continuing collaboration and significant cross-sell opportunities that are being realised within the group. We’ve already seen significant success, and expect this trend to continue into 2021 as we expand locally and abroad”.

The Company looks forward to keeping the market updated on the progress of our growth strategy, together with our next full quarterly report at the conclusion of Q2 FY21.

--- ends ---

ABOUT TESSERENT:  Tesserent provides full service, enterprise-grade Cyber Security and networking solutions targeted at midmarket, enterprise and government customers across Australia. The Company’s Cyber 360 strategy delivers integrated solutions covering identification, protection and 24/7 monitoring against Cyber Security threats. With in excess of 220 security engineers, Tesserent has the capability to support organisations defend their digital assets against increasing risks and cyber-attacks.

Tesserent has been transformed via the acquisition of several high-quality Cyber Security businesses including Pure Security, Rivium, North Security, Seer Security, Airloom, Ludus Security and iQ3, making it Australia’s largest listed dedicated Cyber Security firm.

Learn more at


[I no longer hold TNT, having sold out on valuation grounds to lock in substantial profits, however they are still on my scorecard.  If I had more more capital to invest, TNT is a company I would like to still be holding in at least one of my real life portfolios.]

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#Fed Gov work drives growth
Last edited 4 months ago

09-Dec-2020:  Significant earnings growth for North earn out


  • Tesserent’s Federal Government division achieves significant earnings growth
  • North drives 135% YoY earnings growth with $1.8M in FY20 compared to $766K in FY19
  • Growth trend expected to continue into FY21

Tesserent Limited (ASX:TNT) is pleased to announce that North Security, our Federal Government team, has exceeded Company expectations, increasing earnings from $766K in FY19 to $1.8M in FY20 which represents in excess of 135% YoY growth.

The Company expects this growth trend to continue across the entire Federal Government division in FY21. This growth is being driven by a combination of increased Federal Government cybersecurity spending as announced by PM Scott Morrison on 6 August 2020 together with Tesserent’s increasingly strong reputation in the Canberra market.

Tesserent’s Co-CEO, Julian Challingsworth, commented; “We are extremely pleased to announce that our Canberra team, headed up by George Katavic, has been a significant contributor to Tesserent’s overall market performance. 2020 has seen the Company’s enterprise value and share price increase exponentially, resulting in George and his team deservedly achieving their FY20 earnout, significantly exceeding their revenue and earnings targets”.

As previously announced on 23 March 2020, Tesserent acquired North Security for $5.3M consisting of a $1.25M cash payment, 20M fully paid ordinary shares at 10c on completion, plus four deferred sixmonthly payments of $512K over a two-year period. The North Security earnout payment is 2 x the difference between FY19 and FY20 audited earnings, resulting in a $2.2M earnout figure. The earnout is to be paid one-third cash and two-thirds shares (based on a 60-day VWAP ending 30 June 2020).

Whilst this now concludes North’s earnout period, George and his team as significant shareholders remain focused on continuing to drive Tesserent’s Canberra operation and increasing shareholder value.

--- ends ---

I was a TNT shareholder, but have sold out recently on valuation grounds.  The company is still on my scorecard however - and showing a gain over over +350% at this point.  Just because a company looks overvalued by the market doesn't mean their share price won't just keep heading north.  So I'm not saying they are a sell here, just that I see better risk/reward scenarios/opportunities elsewhere.  For example, AVA have more than doubled from my buy price, but I see plenty of further upside with AVA as well as catalysts that can drive their SP higher, so I still hold AVA.  If I had more investable capital, I would likely still hold TNT as well.  I like the saying, "Let your winners run," although in my case I tend to lock in profits when I think they've run too hard.  If TNT had been a larger position, I would have trimmed the position instead of selling out.  That's what I've done with AVA and MAQ - and Codan (CDA) which is not even on my scorecard but has been one of my biggest winners over the past couple of years - I've trimmed those positions back to a desired weighting every now and then.  However I never held enough TNT to make that strategy worthwhile.  I've done it on my scorecard (trimmed TNT) but not in real life because my real-life position in TNT just wasn't large enough to start with - unfortunately!!  They've done VERY well!

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#ASX Announcements
Added 5 months ago

Tesserent Limited (ASX:TNT) is pleased to announce the launch of a Joint Venture Company jointly owned (50%/50%) with New Zealand-headquartered security firm, Optic Security Group, as well as the completion of the acquisition of Secure Cloud Services provider, iQ3 (announced 24 September 2020).

This joint venture, requiring no initial upfront investment, represents the first step of Tesserent’s planned expansion into New Zealand’s lucrative cybersecurity market. Optic Security Group has annual turnover in excess of $100M delivered from 10 locations in NZ and Australia and is focused on the convergence of physical and cybersecurity.

Tesserent will provide its Cyber 360 security capabilities to support Optic’s customers achieve their converged security outcomes. Conversley, Optics deep expertise in protecting assets and physical infrastructure will be extended into the Tesserent portfolio of services.


Tesserent is also pleased to announce the completion of the acquisition of Secure Cloud Services firm, iQ3. With the addition of iQ3’s $25M turnover run rate and $3M in earnings recognised from 1 November 2020, the Company now has a gross revenue run rate on an annualised monthly basis of circa $100M. As previously stated, Tesserent has the ambition to grow to in excess of $150M in FY21 through continued organic growth and the completion of planned future acquisitions.


I do hold a small position of TNT, although some have pointed out the risks associated with companies going on rampant acquisition sprees, hence the small position. 

View Attachment

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#Quarterly Reports
Added 6 months ago

30-Oct-2020:  Appendix 4C - TNT Quarterly Report

This announcement has been uploaded directly from TNT's website:

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#Synergies Update
Last edited 7 months ago

06-Oct-2020:  Integration synergies update


  • New CFO appointed to help drive integration
  • Head of Synergies appointed to drive cross-organisational synergy activities
  • First cross-organisational sales and synergy wins
  • $6M in new government contract wins across the Group in the September Quarter
  • New enterprise contract wins in excess of $4M during the month of September
  • 100% of existing Federal Government clients retained

Tesserent Limited (ASX:TNT), having now acquired several high-value cybersecurity businesses in recent months is pleased to update the market on a number of key appointments and its activities to accelerate organic revenue growth through cross-selling synergies and the integration of brands, people, systems and processes.

New Appointments

The Company is pleased to announce the appointment of two key executives in senior roles to help drive integration and synergies across the Group.

Peter Fearns, has been appointed as the new Group CFO (starting November 2020). Peter has extensive back-office integration experience from previous executive roles at UXC and ANZ Banking Group. During his time at UXC, Peter oversaw the integration of 35+ separate businesses under the UXC corporate umbrella and is a welcome addition to the TNT Executive Team.

In addition, the Company has also recently appointed a Head of Synergies, Nathan Knox, to ensure a coordinated approach to understanding Group capabilities and appropriate processes are in place to educate and drive cross-selling opportunities. With a background in similar roles at ASX100 Companies and Government agencies including NBN Co, Coles and Woolworths, Nathan is well suited to spearhead the Company’s synergies strategy.

Sales and Synergy Wins - Update

Processes around cross-organisational cooperation, ensuring Group collaboration on responses to RFIs and sharing panels are now in place. Processes are also now in place to ensure core offerings such as iQ3s Cloud Security and Airloom’s leading Cloud Security Architecture, as well as Pure Security’s SOC services are made available to support North Security’s Federal Government bids.

There have been a number of significant wins resulting from co-selling strategies between business units over the last quarter, underpinning the achieved target of $100m gross revenue annualised run rate. Some of the more notable Group wins include:

  1. New Federal, State and Local Government contract wins across the Group in excess of $6M in the September quarter
  2. The Group retained 100% of existing Federal Government clients with most contracts extended through to the end of the calendar year and beyond
  3. Significant enterprise contract wins in aggregate in excess of $4M in the month of September with large Financial Services, Insurance, Advertising and Media organisations
  4. Continued growth of the firm’s annual recurring revenue streams from new and existing locked-in annuity contracts now in excess of $30M per annum

Brands Strategy

The core objective of the Company’s acquisition strategy is to fill key capabilities in the firm’s Cyber 360 end-to-end cybersecurity offering. With a broad cybersecurity offering with clearly defined market segments now in place, the Company is focused on unlocking synergies to maximise organic revenue growth.

Tesserent Limited, the parent company and corporate-facing brand has two primary customer-facing go-to-market brands:

  • Federal Government
    • North Security will (from 1 October 2020) absorb Seer Security (Canberra) and Ludus Cybersecurity, and will remain focused on serving the Federal Government, Law enforcement and Defence; and
  • Private Enterprise and State & Local Government
    • Pure Security with the recently absorbed Rivium business and the more recently acquired;
    • Airloom business, will remain focused on supporting private enterprise and State & Local Government.

Future Cyber 360 capabilities that are required, such as iQ3's Secure Cloud Services and other potential proprietary solutions, will be strategically positioned to complement the above strategy.

Systems And Processes Integration

As previously announced, at a Group level, the Company has completed a significant milestone toward back-office integration with the financial integration of all business units onto one system, Oracle NetSuite. This single integrated financial management system now enables integration of new acquisitions onto a common core financial platform that optimises and lowers transaction processing costs across an expanding Group.

The new financial year also saw Tesserent’s original Managed Security Services Provider (MSSP) business and Rivium absorbed into the Pure Security business. The MSSP business now operates under a single Pure Security brand.

The Company looks forward to providing the market with additional information and guidance on our synergy strategy in future updates and the upcoming 4C Commentary.



Tesserent provides full service, enterprise-grade Cyber Security and networking solutions targeted at midmarket, enterprise and government customers across Australia. The Company’s Cyber 360 strategy delivers integrated solutions covering identification, protection and 24/7 monitoring against Cyber Security threats. With in excess of 220 security engineers, Tesserent has the capability to support organisations defend their digital assets against increasing risks and cyber-attacks.

Tesserent has been transformed via the acquisition of several high-quality Cyber Security businesses including Pure Security, Rivium, North Security, Seer Security, Airloom, Ludus Security and IQ3, making it Australia’s largest listed dedicated Cyber Security firm.

Learn more at:

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#Acquires iQ3
Last edited 7 months ago

24-Sep-2020:  TNT Acquires iQ3


  • Secure Cloud Services provider with $25M turnover delivering sustainable EBITDA of $3M
  • Significant synergy benefits and cross-sell opportunities
  • TNT achieves $100M gross revenue annualised run rate well before December target
  • Acquisition is immediately earnings, cash flow and EPS accretive

Tesserent Limited (ASX:TNT) is pleased to announce the strategic acquisition of iQ3 with the signing of a Share Purchase Agreement executed between both parties on the 23 September 2020.

This acquisition sees the Company expeditiously achieve its goal of $100M turnover on an annualised basis, marking an increase of in excess of one thousand percent since the refresh of the Tesserent board in January 2020.

iQ3 Acquisition

iQ3 is a Secure Cloud Services firm headquartered in Sydney with facilities in Melbourne and Brisbane, and a sales office in Singapore. The firm’s services and solution offering materially complements Tesserent’s Cyber 360 strategy and represents a significant step forward in the Company’s ability to provide a full end-to-end cyber service.

Geoff Lord, TNT’s Chairman, commented; “the addition of Secure Cloud Services to our Solution portfolio is a strategic piece to our Cyber 360 offering that takes us one step closer to executing our strategic go-to-market vision”.

iQ3 provides services to Internationally established brands in Australia and Singapore, with particularly strong ties to NSW State and Local governments.  The firm has been delivering secure cloud infrastructure and related services to a long list of government agencies including 25 NSW Government departments, both directly out of GovDC and the NSW Government’s official procurement program, ‘buy.nsw’ since 2010.

The firm has an excellent operating record, with FY20 turnover in excess of $25M, delivering $3M EBITDA (subject to audit) and is immediately earnings, cash flow and EPS accretive to the TNT Group. Strong revenue and earnings are expected to continue into FY21. Importantly, more than 70% of iQ3’s revenue comes from multiple recurring multi-year annuity-based contracts. The TNT Group now has in excess of $30M annual recurring revenue from multiple locked-in multi-year contracts.

The consideration for the acquisition of iQ3 is a mix of cash and TNT shares, being $8.6M in cash and 34.6M shares issued at $0.2496 per share. The cash component is fully funded from existing cash reserves being $4.3M on completion and four deferred quarterly payments of $1.07M over a 12-month period.

Mr. Lord added; “We’re extremely pleased to welcome iQ3 into the Group, Craig Humphreys, iQ3’s Managing Director, has proven to be a talented operator. It’s also particularly pleasing to have achieved our $100M turnover run rate well before December which now gives us a solid base for material future growth”.

Synergy Benefits and Opportunities

By introducing iQ3 into the Group, there are considerable Cyber 360 cross-sell and up-sell opportunities at a customer, geographic and solution level. Tesserent envisages significant sales opportunities for iQ3 Secure Cloud Services to existing TNT Group customers, whilst selling the Group’s core services to iQ3 customers in Australia and Singapore.

There are also notable benefits associated with iQ3’s ISO-certified Network Operations Centre (NOC) and TNT’s existing ISO-certified Security Operations Centre (SOC) in relation to the delivery of associated Cloud, Connectivity and new Managed Security Services capabilities.

In addition, the Company sees an immediate opportunity to leverage State and Federal Government relationships and capabilities within the Group, particularly North, Seer, Ludus and iQ3.

Mr Humphreys commented; “Joining Tesserent is a natural strategic evolution for iQ3. The delivery of cloud services is becoming more and more security-centric and we now have the ability to significantly grow the business by providing our clients with that end-to-end secure cloud and cybersecurity solution they’re looking for”.

Julian Challingsworth, TNT’s CEO, commented; “The addition of Secure Cloud Services into our Cyber 360 strategy creates substantial opportunities, particularly as organisations transition to mobile and remote workforces as a result of COVID-19. We have already been providing tactical advice to our clients in this area, so enabling these services is a natural next-step for Tesserent.”

Mr Challingsworth added; “The models deployed by Cloud and Data Management firms like Megaport who are realising multi-billion dollar market caps through the deployment of smart technology with comparative annual recurring revenue to TNT are very interesting to us”.

The Company looks forward to keeping the market updated on the progress of further acquisitions in the near future.



Tesserent provides full service, enterprise-grade Cyber Security and networking solutions targeted at midmarket, enterprise and government customers across Australia. The Company’s Cyber 360 strategy delivers integrated solutions covering identification, protection and 24/7 monitoring against Cyber Security threats. With in excess of 180 security engineers, Tesserent has the capability to support organisations defend their digital assets against increasing risks and cyber-attacks.

Tesserent has been transformed via the acquisition of several high-quality Cyber Security businesses including Pure Security, Rivium, North Security, Seer Security, Airloom and Ludus Security, making it Australia’s largest listed dedicated Cyber Security firm.

Learn more at

--- click on link above for the full announcement ---

[I hold TNT shares.]

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#ASX Announcements
Added 7 months ago


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#Bull Case
Added 7 months ago

UK intends to regulate cybersecurity of consumer IoT products

The UK government was consulting until 6 September 2020 on a proposal to regulate the cybersecurity of consumer internet of things (IoT) products sold in the UK. The aim of this initiative is to ensure that security requirements are built into such devices already at the design stage.

If the proposal is adopted, consumer IoT devices will not be allowed to be made available in the UK, unless they comply with the security requirements outlined in the proposal.

The proposal would capture any product supplied to the consumer and that has one or more network interfaces capable of receiving and/or transmitting digital data.

The government has not provided a timeline for the adoption of the proposal.

Despite the previous adoption of a code of practice for consumer IoT security, the government observes that poor security standards are still common among IoT consumer devices in the UK.

The voluntary code of practice, adopted in 2018, contained 13 principles providing manufacturers of IoT products and other stakeholders with the flexibility in developing and implementing security solutions appropriate to their products.

The proposed security obligations would make mandatory some of the principles already found in the code of practice. The proposed mandatory security obligations would require:

  • passwords to be unique or user defined for all IoT consumer devices;
  • device manufacturers to implement a clear and transparent disclosure policy to report vulnerabilities in the devices; and
  • device manufacturers or distributors to inform consumers about the minimum length of time for which the device will receive security updates.

The code of practice for consumer IoT security identified these three requirements as the main priority as they bring the largest security benefits in the short term.

The proposal explains that more than 70% of purchases are done online nowadays, thus also distributors acting as online marketplaces or consumer sales platforms would be captured by the rules.

The devices intended to be in the scope of the regulation are:

  • connected children’s toys and baby monitors;
  • connected safety-relevant products such as smoke detectors and door locks;
  • IoT base stations and hubs to which multiply devices connect;
  • smart cameras, TVs and speakers;
  • wearable health trackers;
  • connected home automation and alarm systems, especially their gateways and hubs;
  • connected appliances such as washing machines and fridges;
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#Business Model/Strategy
Added 8 months ago

I am not sure how to value the company. However, I can say it is worth a lot more than the market is valuing it at now; because not many people understand the acquisition strategy they are implementing.

When I invested some time ago I noticed Geoff Lord has taken over the board. He has a reputation and history of good management. He also knows tech companies and made me money previously with UXC. I anticipated the same - good management, investment in technologies, building up the brand and then selling to a large cap at a big premium.

However, things are different - the company has accumulated cash from investors and started taking over other companies in the cybersecurity area. They use a combination of cash and scrip, but the cash is at the minimum. The effect is that the company is growing hugely and the size and potential is not reflected in the price! They have absorbed several businesses with essential contracts with the Federal government, yet spent very little money. In a few years this will materialise in revenues and profits.

I would not actually dare to put on a valuation, and most likely a professional in the area of company valuations and M&A would also find it challenging...

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#Prelim FY20 Report
Added 8 months ago

31-Aug-2020:  After Market Close:  Preliminary Final Report

  • Revenue from ordinary activities: $20,579,789 (Up 291%).
  • Loss after tax from ordinary activities attributable to members: ($7,854,426) (Down 80%).
  • Net loss attributable to members: ($7,854,426) (Down 80%).
  • Dividends paid and proposed: No dividend has been proposed to be paid or is payable for the year ended 30 June 2020, nor for the comparative period.
  • Net tangible assets per share 2020: $0.01/share (2019: $0.01/share) (no change)

--- click on the link above for more ---

I don't actually hold TNT shares - although I wish I did - I wouldn't be buying them up here though.  I do hold MAQ shares, which is my preferred ASX-listed cybersecurity exposure.  They've also has a good year, except MAQ actually are already consistently profitable.  Again, I wouldn't be buying MAQ up at current levels either.  TNT and MAQ are both on my scorecard.  I reckon TNT is probably the best performer on my scorecard, or would be close to it.

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#ASX Announcements
Added 8 months ago

- Tesserent strengthens position as Canberra’s largest pure cybersecurity provider with significant talent acquisition
- Industry-renowned cybersecurity expert and his team join TNT’s Canberra operation
- Ludus is the second acquisition in phase 2 following on from Airloom announced on the
26?th? of August 2020
- Tesserent now one of only three suppliers delivering full-service capability targeting
$1.67B Federal Government cybersecurity funding package
- Acquisition immediately earnings and cash flow accretive

I hold Tesserent shares

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#ASX Announcements
Added 8 months ago

     - Acquires Airloom kicking off Phase 2 of acquisition strategy
- Airloom achieved unaudited FY20 gross revenue of $27M and $2.7M EBITDA
- Significant synergies for Security Operations Centre adding advanced security managed services
- Acquisition is immediately earnings, cash flow and EPS accretive
- Group gross revenue now $80M+ run rate post-completion*


I hold Tesserent shares

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#ASX Announcements
Added 9 months ago

Note: I hold Tesserent shares

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#Bull Case
Last edited 9 months ago

Company seems to be delivering on its promises in a field that is increasing in its relevance and value for its customers. My valuation is around where the current price is (20c). I think you buy the management and its abilty to make sensible acquisitions over anything else here, as that seems to have been critical to their growth. My question is, how big is the T.A.M for this business? Is it just local or is there international scope? If there are international opportunities they're a small fish in a very large pond so what is their sustainable USP? 

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#ASX Announcements
Added 9 months ago
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#Bull Case
Last edited 9 months ago

Nice update this morning sparking plenty of intertest in TNT

Being a fairly large position for me I have continued to dig into this one. I am by no means an expert on Cyber security but have manged to get in contact and chat with a few people who are and the concensus feedback I got was amongst the listed plays, TNT is by far the best option.

Check out this Gov report. Cleary the think TNT has the capabilities across the board.

Pure security = TNT

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#Achieves Financial Objectives
Added 9 months ago

20-7-2020:  Tesserent (TNT) Achieves FY20 Financial Objective and secures debt facility

Tesserent Limited (ASX: TNT) is pleased to announce that it has achieved two significant milestones.

Firstly, the previously announced FY20 financial objectives have been met:

  • $40M rev run rate achieved (being revenue during the June 2020 quarter annualised).
  • EBITDA positive in June (unaudited, subject to audit)
  • Cash flow positive from operations in June (unaudited, subject to audit)

The Company will provide a comprehensive Business Update and Commentary later this month accompanying the ASX Appendix 4C.

The Company has also signed an agreement with its existing debt provider, PURE Asset Management (PURE), for a new $15M Facility. The new Facility replaces the Company’s existing $5m loan and has been struck on improved terms of 8.9% per annum, well below the current interest rate of up to 11.5%. The funds will be drawn down as required to support earnings-accretive acquisitions (three of which are well progressed), as previously set out in TNT’s Cyber-360 Strategy. The primary terms of the debt facility are provided in the table below and include new warrants with an exercise price of 12 cents.

Geoff Lord, TNT Chairman, commented; “we’re extremely pleased to be working with PURE Asset Management who continue to support the firm’s vision and strategy. This new facility provides the funding cornerstone to continue to drive the Company’s acquisition strategy with minimal dilutionary impact on our existing shareholders”.

Nick Berry, PURE Director, commented: “We are pleased to further our support of Tesserent as it continues to add scale and capability to the business. Cyber Security is a leading agenda item for all Australian company boards, and as a trusted Australian provider to a range of government agencies and leading corporates, Tesserent is well positioned for success. Recent news flow from the Morrison Government only strengthens the likelihood of the industry continuing to deliver structural growth materially in excess of GDP”.

Mr. Challingsworth added; “securing this syndicated debt facility lead by PURE, which was significantly oversubscribed, was a result of Tesserent delivering on its FY20 financial objectives and an ability to identify high quality assets contributing to the Company’s strategy. This transaction provides capacity and certainty around the funding of future acquisitions”.

The Company looks forward to updating shareholders on the progress of new acquisitions that are currently under consideration.

--- click on link above for more ---

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#Bull Case
Added 11 months ago

After noticing a few small cap investors and Funds all over this one, I took a look and by coincidence really like it on the chart. I respect the analysis of those I followed into this one and think it is at a nice level.

That being said I will treat this as more of a trade and if things turn down I will be getting out not topping up.

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#Quarterly Reports
Last edited 12 months ago

28-Apr-2020:  Appendix 4C - quarterly

This is straw #1 (of 2):


  • Q3 Revenue $8.3m - Exceeds Budget - up 137% from previous QTR 
  • On target to achieve $40m Revenue per annum run rate by 30 June 2020 (being revenue during the June 2020 quarter annualised) 
  • Q3 Customer Receipts of $7.1m up 214% from previous QTR 
  • $5.19m Available Cash as at 31 March 2020, up 39% from last QTR  
  • Over $2.89m received in Q3 from conversion of options 
  • north BDT Acquisition completed 
  • On target to achieve Monthly Profitability in Q4 
  • On target to achieve Cash Flow Positivity in Q4 on a monthly basis 


The Company is pleased to announce that its actual Q3 revenue of $8.3m exceeded its budgeted revenue of $7.4m by $900k (or 12%). 


  • The strong quarterly revenue growth trend is projected to continue into Q4 FY20 and beyond with a full quarter contribution from north BDT.
  • The Company expects to meet its FY20 full year revenue budget of $22m and achieve a $40m revenue run rate by 30 June 2020.  
  • The $22m projection includes four months revenue contribution from north BDT and 6 months revenue contribution from Pure Security.
  • The company remains on track to achieve profitability on a monthly basis from 30 June 2020.


  • Receipts from customers of $7.1m for Q3 FY20, up 214% from the previous quarter.
  • The company had $5.19m cash as at 31 March (post-completion of the north BDT acquisition) and remains in a strong cash position going into Q4 and beyond.
  • Shareholders have demonstrated continuing support in the company’s strategy by exercising options which raised $2.9m in new capital during the March QTR.
  • The company projects that it will become cashflow positive on a monthly basis during Q4 2020.    


Strong organic growth has seen the group’s customer base continue to grow to in excess of 800 customers, supported over the last three years including 15 Federal Government departments and agencies as a result of the north BDT acquisition. This has translated to significant sales wins during the quarter across key products of firewall, SIEM and security consulting. Most notably, the Company secured $3m Federal Government, multi-year contracts.


Tesserent’s transformation to Australia's #1 ASX-listed end-to-end Cyber Security company in FY20 continues with the north BDT acquisition being completed in March 2020.

north BDT is a Canberra-based security consulting firm specialising in providing Cyber Security, digital strategy and governance, end-to-end application development to Federal Government clients. The acquisition provides the Company with the opportunity to leverage north’s existing customer relationships for cross sales into Tesserent’s cyber offerings.  north BDT has a strong operating record, having delivered $8.3m revenue to 31 March 2020 and is projected to exceed $12m in their current financial year.  The Company is continuing to explore additional acquisitions and will keep the market updated as these initiatives progress.


As per the Company’s COVID-19 Update to the market on 16 April 2020, the Company has recently secured new business wins of more than $5 million. This, in addition to significant existing lockedin, long-term contracts with multiple Federal Government departments and agencies and multiyear managed security services income means the Company expects minimal negative impact on its financial performance in the June quarter.

The Company’s strong cash position, new business wins and existing contracted revenue sees the business well placed to weather the current economic conditions over the short to medium term. Should this situation change, the Company will keep the market informed.


The Board and Management team are focused on continuing to build Tesserent’s position as Australia’s #1 ASX-listed Cyber Security provider by achieving several important goals over the coming months:  

  • Achieve forward revenue run-rate of $40m by 30 June 2020.
  • Achieve profitability and cashflow positivity on a monthly basis by 30 June 2020.
  • Continued integration of recently acquired business into TNT, including the expertise of staff and the development of cross-sell initiatives between business units in-line with Tesserent’s Cyber 360 strategy. 
  • Continued strong organic growth across all business units.
  • Potential strategic acquisitions where they make sense. on link above for more...


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#Quarterly Reports
Added 12 months ago

This is Straw #2 (of 2) concerning TNT's March 2020 Quarterly Report [it wouldn't fit in straw #1]


Virgin is a significant customer for our leading Splunk practice, Rivium.  As a result of Virgin being placed into VA, there is a potential reduction of Rivium’s FY20 revenue of up to $1.5m.  This includes a limited exposure to invoices that are currently with the administrator (<$100k) the more significant impact is the work that was scheduled and or expected to be delivered in Q4 of FY20.  We look forward to Virgin coming out of VA quickly and in a stronger position and look forward to working with them in the future.

The potential loss of revenue does not impact Tesserent’s expectation of $10m revenue in Q4 2020.

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