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Senetas Corporation Limited (ASX:SEN)

ALERT: Price-sensitive ASX Announcement for SEN
Current share price for SEN : $2.150 -0.96 (-30.87%)+
Announcement
Release
28 Aug 2026 12:18PM
Price at Release
$3.110
Full Release
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Summary
Senetas Corporation Limited’s Appendix 4E and audited Consolidated Financial Report for the financial year ended 30 June 2026 report continued operations revenue of $20.16 million, up 4.73% from FY2025, while net profit after tax attributable to members from continuing operations fell to $429,475 and total profit attributable to members also fell sharply from the prior year because FY2025 included discontinued operations from the Votiro business sale; the Group recorded a consolidated loss after tax of $825,004, operating cash flow improved to $4.44 million, cash on hand increased to $18.58 million, net assets were $44.31 million, and no dividend was declared, while the company completed a $2.0 million capital return during FY2026 and a further $3.5 million capital return after year end, maintained strong gross margins despite a lower-margin sales mix, highlighted growth in product sales and regional momentum in the Middle East, ANZ and South America, continued investing in encryption product development, sovereign-grade capabilities and an enterprise AI governance platform, and disclosed that its indirect investment in Menlo Security through VGM was valued at $31.04 million; the financial report was audited by Grant Thornton Audit Pty Ltd with an unmodified opinion, with key audit matters focused on variable consideration revenue recognition under the Thales distribution agreement and valuation of the Menlo investment.
Key Points
  • Appendix 4E covers the financial year ended 30 June 2026 compared with the financial year ended 30 June 2025.
  • Revenue from ordinary activities from continuing operations was $20,164,783, up 4.73% from $19,254,115.
  • Net profit before tax attributable to members from continuing operations was $644,000, down 61.20%.
  • Net profit after tax attributable to members from continuing operations was $429,475, down 71.85%.
  • There was no profit from discontinued operations in FY2026, compared with $26,296,998 attributable to members in FY2025.
  • Net profit for the period attributable to members was $429,475, down 98.46% from FY2025 due to the prior year discontinued operations gain.
  • Other comprehensive loss attributable to members was $5,087 and total comprehensive income attributable to members was $424,389.
  • No interim or final dividend was declared.
  • Net tangible assets backing per ordinary share was $2.32 at 30 June 2026, down from $2.41 at 30 June 2025.
  • The company completed a capital return of approximately $2.0 million during FY2026 related to the prior reporting period and a supplementary capital return of approximately $3.5 million after year end.
  • The tax treatment of the capital returns remained subject to a binding ATO Class Ruling.
  • The report states the accounts were audited and an unmodified audit report was issued.
  • Senetas describes itself as a developer and manufacturer of certified, sovereign-grade, mission-critical network encryption solutions and advanced encrypted file sharing applications.
  • The Group’s principal activity during the year was the sale of IT security products providing network data security solutions to businesses and governments globally.
  • The Group employed 32 employees at 30 June 2026 compared with 34 in the prior year.
  • FY2026 gross margin from continuing operations was 82%, down from 87% in FY2025.
  • Operating cash flow was an inflow of $4.4 million, an improvement of about $8.0 million from FY2025.
  • The stronger Australian dollar negatively affected reported revenue and earnings because most revenue is earned in US dollars.
  • Product sales increased 22% over the prior year, while maintenance revenue was affected by contract timing and revenue recognition.
  • Revenue growth was reported in the Middle East, ANZ and South America, with additional opportunities developing in Asia.
  • Senetas continued R&D investment in next-generation hardware encryptors, sovereign encryption capabilities, certification upgrades and post-quantum features.
  • Senetas is developing a Governed Data Layer platform for enterprise AI governance based on SureDrop technology.
  • Consolidated net assets at 30 June 2026 were $44.3 million, or $2.67 per share.
  • Cash on hand at 30 June 2026 was $18.6 million and the Senetas operating business had no debt.
  • The financial asset at FVTPL representing VGM’s investment in Menlo Security was valued at $31.04 million.
  • Senetas’ equity and loan investment in VGM was valued at $21.0 million at 30 June 2026.
  • Total assets were $61.40 million and total liabilities were $17.09 million at 30 June 2026.
  • Contributed equity decreased to $113.55 million after the capital return.
  • A 100:1 share consolidation was completed in December 2025 after shareholder approval.
  • Subsequent to year end, shareholders approved a second capital return on 24 July 2026 with payment made on 7 August 2026.
  • A new wholly owned subsidiary, Sovrata LLC, was incorporated in Delaware on 14 August 2026 and remained dormant at the report date.
  • Grant Thornton’s independent auditor’s report gave an unqualified opinion on the financial report.
  • Key audit matters were revenue recognition for variable consideration under the Thales agreement and valuation of the Menlo investment.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.