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New Tesserent (ASX: TNT) Chairman pledges to cut losses
  • Cybersecurity company Tesserent's (TNT) new non-executive Chairman, Geoff Lord, has given his insight on the year ahead
  • The company is undergoing a cost reduction program to ensure it is operating as efficiently and economically as possible
  • Geoff is aiming to reduce the combined cost base by $1 million per year
  • Tesserent is expecting to deliver a forward revenue rate of $40 million by June 2020
  • This will be a significant increase from its previous financial year 2019 revenue of $5 million
  • Tesserent is down 3.90 per cent on the Australian Securities Exchange and is trading at 7.4¢

Cybersecurity company, Tesserent (TNT) new non-executive Chairman has introduced himself to shareholders and has given his insight on the year ahead.

Geoff Lord is the company's largest shareholder and is looking forward to working closely with Tesserent's Board and management team to achieve 2020 goals.

The company is undergoing a cost reduction program to ensure it is operating as efficiently and economically as possible. Geoff said it is aiming to reduce the combined cost base by $1 million per year.

"As part of this, we are instigating a policy of no directors’ fees for the next 12 months. We will also terminate external consultancy services to keep our running costs as low as possible," Geoff said.

He believes the company has grown to be an increasingly diverse business spanning the cybersecurity sector.

Tesserent is expecting to deliver a forward revenue rate of $40 million by June 2020 (upon the completion of North BDT purchase).

"This will be a significant increase on our previous financial year 2019 revenue of $5 million, however, the strategy behind our acquisitions is very solid and I am confident of significant organic growth by the business to enable us to achieve this," Geoff said.

"Achieving these goals will provide Tesserent with the strongest possible base on which we can build in FY2021 and beyond," he added.

The company has a large base of over 650 customers and is expecting to grow this number this year.

Cybersecurity will remain the focus on the business as Geoff believes this will continue to grow as technology and digital platforms become the operating standard across the business, government and education.

"Tesserent is well-placed to take advantage of this growing demand, and we have expanded our capabilities at the right time," Geoff believes.

Geoff has built his former IT service business, UXC, into an $800 million revenue opportunity and plans to do the same with Tesserent.

"I have strongly invested in Tesserent directly, and through my private company the Belgravia Group, for some time now and I am looking forward to lending my years of business experience to help the company achieve its potential, both in the short term and the years ahead," he said.

Tesserent is down 3.90 per cent on the Australian Securities Exchange and is trading at 7.4¢ at 12:27pm AEDT.


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