Q3 Cash Receipts Drop to $7.2M as 5G Networks Acquires 89.7% of AUCyber
AUCyber Limited reported a decline in Q3 FY25 cash receipts amid strategic rationalisation and a completed takeover by 5G Networks Limited, which now controls nearly 90% of shares. The company also refreshed its leadership and raised $2.75 million through an entitlement offer.
- Customer cash receipts fell to $7.2 million in Q3 FY25
- Net operating cash outflows increased to $3.3 million due to takeover-related one-off costs
- 5G Networks Limited acquired 89.685% ownership following takeover bid
- Complete board and executive team refresh implemented
- Entitlement offer raised $2.75 million post-quarter
Q3 Financial Performance and Revenue Trends
AUCyber Limited (ASX: CYB) disclosed a notable decline in customer cash receipts for the quarter ending 31 March 2025, registering $7.2 million compared to $8.6 million in the previous quarter. This downward trend, reflected in a year-to-date total of $29.4 million, aligns with the company’s ongoing rationalisation of unprofitable services and the previously announced loss of government contracts.
The company anticipates that revenue will stabilise over the next two quarters as new client retention initiatives are fully rolled out, aiming to arrest the decline and restore growth momentum.
Impact of Takeover Bid on Cash Flows
Operating cash outflows surged to $3.3 million in Q3, up $2.1 million from the prior quarter. This increase was largely driven by one-off expenses tied to the takeover bid by 5G Networks Limited, including $0.7 million in advisory fees, $0.75 million in run-off insurance payments, $0.3 million in consulting services, and $0.125 million in staff bonuses. Despite these costs, the company achieved reductions in administrative and corporate expenses through decreased contractor engagement and lower insurance costs linked to the takeover process.
Takeover Completion and Leadership Changes
The takeover bid initiated in December 2024 culminated in 5G Networks Limited acquiring an 89.685% stake in AUCyber. This majority ownership has precipitated a comprehensive refresh of the board and executive leadership team, signaling a strategic reset under new control.
Notably, payments to related parties included $0.309 million to NEXTDC Limited, associated with former director Craig Scroggie, who resigned in February 2025, and $0.065 million to non-executive directors.
Capital Raising and Outlook
Post-quarter, AUCyber successfully completed an entitlement offer, raising $2.75 million before costs. This capital injection, combined with ongoing cost rationalisation efforts, is expected to improve cash flow dynamics in subsequent quarters.
The company projects that the elevated operating cash outflows experienced this quarter are largely one-off in nature and anticipates a normalization of cash burn as takeover-related expenses subside. With the fresh capital and streamlined cost structure, AUCyber aims to sustain operations and pursue its business objectives under the new ownership framework.
Bottom Line?
As AUCyber transitions under 5G Networks’ control, the market will watch closely for revenue stabilisation and integration progress in coming quarters.
Questions in the middle?
- How will 5G Networks’ majority ownership influence AUCyber’s strategic direction and service offerings?
- Will the new board and executive team successfully reverse the revenue decline and secure new contracts?
- What are the long-term implications of the loss of government work on AUCyber’s financial health?
