Andrew Wilson, CEO of Senetas (ASX:SEN), discusses the company’s transformative FY25 results.
Senetas sold its Votiro business, allowing it to streamline operations around its core encryption division, which delivered revenue of $19.3m and profit before tax of $3.4m. Gross margins rose to 87%, and the balance sheet was strengthened with $11.6m in cash, no debt, and net tangible assets of $46.7m. Mr Wilson highlights that maintenance revenue now accounts for over half of total revenue, helping offset softer sales from distribution partner Thales.
A key outcome of the Votiro sale was Senetas acquiring a stake in Menlo Security, valued at about $17.1m. Mr Wilsons describes Menlo as a fast-growing US cybersecurity firm with rising recurring revenues, calling the holding a significant strategic asset with potential upside if Menlo pursues an IPO or sale.
Looking ahead, Senetas has its largest-ever sales pipeline, particularly in government and defence contracts across the Middle East, Asia, Latin America, and North America.
The company is also progressing its post-quantum encryption technology, having implemented new algorithms into its products to protect customers against future threats.
