Tempo Australia : Preliminary Final Report and Appendix 4E

For personal use only

FINANCIAL INFORMATION

FOR THE YEAR ENDED

31 DECEMBER 2021

PROVIDED TO THE ASX

UNDER LISTING RULE 4.3a

FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021

For personal use only

APPENDIX 4E

PRELIMINARY FINAL REPORT

Name of entity

TEMPO AUSTRALIA LIMITED AND CONTROLLED ENTITIES
ABN or equivalent company reference:			51 000 689 725
1.	Reporting period
Report for the financial year ended			31 December 2021
Previous corresponding period is the financial year ended			31 December 2020
2.	Results for announcement to the market
	Revenue and other income	Down	-51%	to	$15,025,000
	Loss from ordinary activities after tax attributable to members	from profit $229K FY20 to loss ($4,219K) FY21
	Net Loss for the period attributable to members	from profit $229K FY20 to loss ($4,219K) FY21
	Dividends	Amount per security	Franked amount per
		security
	Interim dividend			Nil		Nil
	Final dividend			Nil		Nil
	Record date for determining entitlements to the dividend			NA

3. Net tangible assets per security

	Current period	Previous
	corresponding period
Net tangible asset backing per ordinary security	1.4c	2.7c

COMMENTARY ON THE RESULTS FOR THE PERIOD

The net loss after tax for this year was $4,219K, decrease from the profit $229K last year. Full year revenue in FY2021 was $14,981K down from $30,124K last year, which was impacted by the COVID-19 pandemic and the completion of construction projects.

The group had a Net Assets value of $6,111K at the year end, with a cash balance of $3,971K.

The Business is running with minimal overhead, with some further redundancies in January 2022.

Tempo Asset Management Services (TAMS) - the electrical maintenance business - continues to manage its cash flow well in difficult times due to the continuing effect of Covid 19. TAMS is continuing to submit several EOI's and Tenders which are predominately for quality Corporate Businesses, and Government Agencies. We are expecting notification of the successful proponents in the first quarter which will hopefully come to fruition despite the Covid persistence. The TAMS business has been difficult to grow due to Covid lockdowns throughout FY21 and existing clients remain conservative with regard to spending.

Tempo Construction & Maintenance (TCM) continues working on several Tenders and Early Contractor Involvement proposals, again we are expecting notification of successful tenderers in the first half of this financial year. Revenues in the construction business have been minimal for FY22.

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For personal use only

FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021

Tempo Renewables development is continuing and appears to be gathering pace particularly in the Hydrogen Storage area. The company hopes to be able to provide further updates on the next stage of developments in the coming months. Given our focus on Hydrogen storage and its major potential the Board may reassess the fit of other business such as maintenance or EPC that does not include Hydrogen technology.

FUTURE DEVELOPMENTS AND EVENTS AFTER THE REPORT PERIOD

Hydrogen

Trials of Hydrogen Storage Technology, encompassing Solar Energy coupled with Hydrogen Storage, are anticipated to commence in the month of March 2022. We further anticipate that a new wholly owned vehicle will be registered in which to complete the development and house new contracts and any associated risk. This will include projects similar to our previous Solar EPC, such as Cohuna solar farm, which was successfully completed for ENEL. Also, we will deliver OEM type projects as envisioned for Hydrogen Storage Technology and Hybrid Standalone Power supplies which may be a combination of Solar, Wind or other renewable generation, coupled with Storage such as Lithium batteries and Hydrogen Storage. The new entity, should our trials show promising results, will have more focused resources for Hydrogen Storage Technology development and targeted branding of the Technology and future Business.

General

The Board of Tempo has and will continue to address the effects of the Corona Virus on the business. We have implemented a program of ongoing WHS initiatives, procedures and protocols to maximize the safety of our staff, customers, and members of the public.

We are in regular contact with our key clients to see if there are any additional services, we can deliver given that our people are already at their sites.

The Board and Management review business levels consistently and will continue to address costs and reductions in working capital where possible.

We continue to fulfill our continuous disclosure obligation and provide updates if and when necessary.

AUDIT

The annual financial report is in the process of being audited by PKF. The financial report is not likely to be the subject of dispute or qualification.

4. Details of entities over which control has been gained or lost during the period:

There were no entities where there was a change in control in 2021.

5. Rounding

The parent entity is a Company of the kind specified in ASIC Corporation Legislative Instrument 2016/191. In accordance with that class order, amounts contained in the consolidated financial statements have been rounded to the nearest thousand dollars ($'000) unless specifically stated otherwise.

Signature:

Full Name: William Herbert Howard

Title: Executive Director, Chief Financial Officer & Company Secretary

Date: 28 February 2022

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FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021

For personal use only

TEMPO AUSTRALIA LTD AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2021
		Consolidated entity
		2021	2020
	Note	$'000	$'000
Revenue	4	14,981	30,124
Other income	4	44	304
Revenue and other income		15,025	30,428
Employee and director benefits expense	6	9,434	10,423
Administration costs		1,097	1,026
Occupancy costs		519	320
Depreciation and amortisation	12	847	1,160
Other expenses	5	14	73
Project material costs		3,405	5,013
Equipment and other subcontractor costs		3,420	11,521
Listing and other statutory charges		102	97
Interest and finance charges		98	164
Other professional expenses		312	355
Impairment expense / (Write Back)	12	(4)	47
Total expenses		19,244	30,199
Profit/(Loss) before income tax expense		(4,219)	229
Income tax (credit) / expense	7	-	-
Profit/(Loss) attributable to the members of the parent		(4,219)	229
Other comprehensive income		-	-
Total comprehensive Profit/(Loss)		(4,219)	229
Net Profit/(Loss) attributable to members of the parent entity		(4,219)	229
Profit/(Loss) per share
Basic Profit/(Loss) - cents per share	19	(1.16)	0.06
Diluted Profit/(Loss) - cents per share	19	(1.16)	0.06

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FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021

For personal use only

TEMPO AUSTRALIA LTD AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 DECEMBER 2021
			Consolidated entity
			2021	2020
		Note	$'000	$'000
CURRENT ASSETS
Cash and cash equivalents		8	3,971	6,637
Trade and other receivables		9	2,578	2,754
Contract assets		10	716	2,163
Inventories		11	166	166
Other assets			677	424
Total current assets			8,108	12,144
NON-CURRENT ASSETS
Plant and equipment		12	935	2,459
Intangible Assets		13	983	-
Other assets (non current)			804	804
Total non-current assets			2,722	3,263
Total assets			10,830	15,407
CURRENT LIABILITIES
Trade and other payables		14	2,515	2,533
Interest bearing loans and borrowings ©	15	854	1,034
Provisions		16	949	942
Total current liabilities			4,318	4,509
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings (nc)	15	204	1,250
Provisions	(nc)	16	197	79
Total non-current liabilities			401	1,329
Total liabilities			4,719	5,838
Net assets			6,111	9,569
EQUITY
Contributed equity		17	84,949	84,842
Share option reserve		17	2,220	1,634
Accumulated losses			(81,058)	(76,907)
Total equity			6,111	9,569

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