• Group revenue up 21.5% to $16.4 million
• Senetas segment profit before tax up 31% to $1.9 million
• Votiro business sold to Menlo Security Inc. for potential upside

Senetas Corporation Ltd (ASX: SEN) has reported its results for the half-year ended 31 December 2024 (HY2025), with the company achieving modest revenue growth but strong profit growth. The Senetas segment reported revenue of $9.5 million, up 2% over the prior period, while profit before tax was up 31% to $1.9 million. The Votiro segment also saw strong revenue growth of 66% to $6.9 million. However, Votiro reported a loss before tax of $5.6 million, which included non-cash items such as share-based payments and amortization. The key recent development for the company has been the completion of the Votiro transaction with Menlo Security Inc. (Menlo), a pioneer of secure enterprise browser solutions. The transaction is structured as a sale by Votiro Cybersec Global (the Australian-incorporated Votiro parent company) of its wholly owned operating subsidiary companies. Senetas holds a 57.8% shareholding in Votiro Cybersec Global, and the initial consideration expected to be received by Votiro Cybersec Global in April/May 2025 is 40% in cash and 60% as shares in Menlo. The transaction proceeds are expected to be used to part repay loans outstanding to Senetas and another major Votiro shareholder. The Senetas board will consider capital management options as the cash proceeds from the Votiro transaction are realised. Overall, the outlook for the Senetas operating business remains strong, with good profit and cash flow expected to continue.

Senetas expects good customer sales of its products to be maintained through the remainder of FY2025, with the customer sales pipeline growth providing solid momentum into the second half of the year. The company also expects ongoing investment in and opportunities relating to its work on embedding Senetas encryption on Autonomous Vehicles (Drones) and potential AUKUS projects.

The Senetas business remains strong, profitable and cash generative, and the company is confident in the outlook for its future. The cash proceeds from the Votiro transaction, plus Senetas's ongoing exposure to Menlo via the shares Votiro received as consideration, have the potential to deliver substantial value to both Votiro and Senetas shareholders in the future.