Tesserent Limited has provided its quarterly cash report and business update of its activities for the quarter ended 31 December 2021
FINANCIAL UPDATE
OVERVIEW – Key Highlights
Tesserent announced its growth for the first six months, with the Group performing ahead of budget at both the turnover (+62% vs. PCP) and operating EBITDA lines (+166% vs. PCP).
In Q2 FY22, Tesserent also completed all three acquisitions (Loop Secure, Claricent and Pearson) which were planned and formed the basis of the capital raise in late September 2021.
Management highlights earnings within the business are highly seasonal (with operating EBITDA in H1/H2 FY21 reported at 23% / 77%). The Group also expects similar seasonality within the current year.
SECOND QUARTER
Continued strong growth in turnover and earnings
Tesserent also reported in the second quarter, a year-on-year growth of 51% against the prior year comparative quarter.
Operating EBITDA has continued to grow with an increase in Operating EBITDA for Q2 of 101% from the prior comparative period.
This overall EBITDA growth is made up of both organic growth (versus prior year comparative period of 30%) plus growth from acquired EBITDA.
Overall growth in EBITDAC (earnings before corporate costs) was 101% for the current quarter and 116% for H1 FY22 vs. prior year comparative period.
Operating Cashflow
Tesserent also reported strong operating cash flow in the second quarter FY22 of $4.2m. Overall, EBITDA to cash conversion for the half was 105% of EBITDA – comprising a Q1 conversation rate of 30% and a Q2 conversion of 163%.
