Senetas Corporation Limited (ASX:SEN) Announces FY2025 Business Update and Sale of Votiro
Financial Performance
Senetas Corporation Limited expects FY2025 sales to be slightly below FY2024, due to softer sales from global distribution partner Thales. Sales were impacted by tighter customer budgets and management changes at Thales following its acquisition of Imperva, leading to delays in sales completions.
Sale of Votiro Business
Senetas completed the sale of its Votiro business to Menlo Security, selling Votiro Cybersec Limited and its subsidiaries. The transaction included 40% cash and 60% shares in Menlo, with part deferred up to 12 months. The first cash payment of US$3.0 million was received in June 2025, used to repay outstanding loans.
Potential Capital Management Activity
The cash proceeds from the Votiro sale, along with ongoing exposure to Menlo via shares, could deliver substantial future value to Senetas shareholders. The board will consider various capital management options to return value as proceeds are realised over time.
Executive Comments
CEO Andrew Wilson stated, “Our sales reported year to date from our global distribution partner Thales have been a little softer than expected. Tighter customer budgets and management changes made at Thales through its integration of the recently acquired Imperva business have affected the timing of sales completions though the second half of FY2025. As a result, some large customer opportunities are now expected to occur during the next financial year.
“Notwithstanding the softer sales closed up until the end of May 2025, we have continued to see good growth in the sales pipeline through the year and remain positive about a strong month of June to close out FY2025.
“Our longer-term engagements on technology projects such as autonomous vehicles (drones) and participation in the AUKUS submarine industrial base pilot program led by Honeywell also have the potential for longer term upside following further testing and the completion of successful trials.
“It is too early to predict a profit before tax range for Senetas in FY2025 at this stage until we have the final sales results for June 2025 from Thales, but cash flow through the year to date has remained strong with Senetas’s current cash balance at $10.5 million.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
