Tempo Australia : Quarterly Activities Report and Appendix 4C - December 2021

For personal use only

31st January 2022

December 2021 Quarterly Activities Report

The quarter produced a cash result that reflected the slower trading conditions due to Covid impacts.

The Cash Result for the 4th quarter reflects the reality of the Pandemic era, with the client base generally not back at the office. Cash on hand at the end of the quarter was $3,971K, decreasing from $5,105K last quarter.

Overall, the Revenue for the December 2021 quarter (again) was impacted by NSW and VIC COVID 19 lock down. The revenue was $3,825K, a 9.43% increase compared to the September 2021 quarter.

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 - which will hopefully come to fruition despite the Covid persistence.

As noted last quarter Tempo Construction & Maintenance (TCM) continues working on several Tenders and Early Contractor Involvement proposals, which should come to fruition in this calendar and financial year. Revenues in the construction business has been minimal.

Tempo Renewables development, referred to in previous updates, 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 quarter. 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 do 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 focussed resources for Hydrogen Storage Technology development and targeted branding of the Technology and future Business.

As per ASX list rule 4.7C.1, please see attached summary of expenditure incurred on business activities below.

	Current Quarter
	$A'000
Product manufacturing and operating costs	2,131
Leased assets	109
Staff costs	2,279
Administration and corporate costs	336
Interest and other costs of finance paid	21
Total	4,876

The main elements of cash flow for the quarter were:

• Debtor days are 52 days in December.
• Receipts from customers was $3,813K, increased 2.67% compared to last quarter.

c/o Company Matters Pty Limited	[phone]
Level 12, 680 George Street	[e-mail]
Sydney NSW 2000
	www.tempoaust.com

For personal use only

• Receipt of $316K from NSW Job Saver Programme.
• Payment to Related Parties was $95K, comprising salaries and director fees paid to all executive and non-executive directors.

William Howard

Executive Director, Chief Financial Officer & Company Secretary

Tempo Australia Ltd

This announcement had been authorised for release by the board.

FOR FURTHER INFORMATION PLEASE CONTACT:

Paul Dalgleish	William Howard
Chief Executive Officer	Executive Director, CFO & COMPANY SECRETARY
[phone]	[phone]

ABOUT TEMPO

Tempo Australia Ltd (ASX: TPP) is one of Australia's leading innovators in the delivery of engineering, construction, maintenance, asset management and telecommunication infrastructure services. The company was established in 2011 and has specific expertise in structural, mechanical, piping, electrical, telecommunication and data communication.

c/o Company Matters Pty Limited	[phone]
Level 12, 680 George Street	[e-mail]
Sydney NSW 2000
	www.tempoaust.com

Rule 4.7B

			Appendix 4C
only			Quarterly cash flow report for entities
		subject to Listing Rule 4.7B
51 000 689 725	31 December 2021
	Name of entity
	Tempo Australia Limited
	ABN			Quarter ended ("current quarter")
use
Consolidated statement of cash flows			Current		Year to date
						quarter		(12 months)
						$A'000		$A'000
	1		Cash flows from operating activities
	1.1		Receipts from customers			3,813		16,971
personal	1.2		Payments for
		(a) research and development
			(b) product manufacturing and operating costs			(2,131)		(8,218)
			(c) advertising and marketing
			(d) leased assets			(109)		(519)
			(e) staff costs			(2,279)		(9,646)
			(f) administration and corporate costs			(336)		(2,010)
	1.3		Dividends received (see note 3)
	1.4		Interest received					10
	1.5		Interest and other costs of finance paid			(21)		(108)
	1.6		Income taxes paid
	1.7		Government grants and tax incentives			316		1,274
	1.8		Other (provide details if material)
	1.9		Net cash from / (used in) operating activities		(747)		(2,246)
For
2		Cash flows from investing activities
	2.1		Payments to acquire:
			(a) entities
			(b) businesses
			(c) property, plant and equipment			(24)		(24)
			(d) investments
			(e) intellectual property
			(f) other non-current assets

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated Statement of Cash flows	Current	Year to date
	quarter	(12 months)
	$A'000	$A'000

only
2.2	Proceeds from disposal of:
		(a) entities
		(b) businesses
		(c) property, plant and equipment	81	831
		(d) investments
		(e) intellectual property
use		(f) other non-current assets
2.3	Cash flows from loans to other entities
	2.4	Dividends received (see note 3)
	2.5	Other (provide details if material)
	2.6	Net cash from / (used in) investing activities	57	807
personal	3	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
		(excluding convertible debt securities)
	3.2	Proceeds from issue of convertible debt
		securities
	3.3	Proceeds from exercise of options
	3.4	Transaction costs related to issues of equity
		securities or convertible debt securities
	3.5	Proceeds from borrowings			862
	3.6	Repayment of borrowings	(444)		(2,089)
	3.7	Transaction costs related to loans and
		borrowings
	3.8	Dividends paid
	3.9	Other (provide details if material)
	3.10	Net cash from / (used in) financing activities	(444)		(1,227)
For
4	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	5,105	6,637
	period
4.2	Net cash from / (used in) operating activities	(747)		(2,246)
	(item 1.9 above)
4.3	Net cash from / (used in) investing activities	57	807
		(item 2.6 above)
	4.4	Net cash from / (used in) financing activities	(444)		(1,227)
		(item 3.10 above)
	4.5	Effect of movement in exchange rates on cash
		held
	4.6	Cash and cash equivalents at end of period	3,971	3,971

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

	5	Reconciliation of cash and cash	Current	Previous quarter
only		equivalents	quarter	$A'000
	at the end of the quarter (as shown in the	$A'000
	consolidated statement of cash flows) to the
		related items in the accounts
	5.1	Bank balances	3,971	5,105
	5.2	Call deposits
	5.3	Bank overdrafts
	5.4	Other (provide details)
	5.5	Cash and cash equivalents at end of quarter
use	3,971	5,105
	(should equal item 4.6 above)
6	Payments to related parties of the entity		Current quarter
		and their associates
			$A'000
	6.1	Aggregate amount of payments to related parties and their	95
		associates included in item 1
personal	6.2	Aggregate amount of payments to related parties and their
	associates included in item 2
Note: 6.1 - $95K is the payment to Director fees
	7	Financing facilities available	Total facility	Amount drawn at
		Note: the term "facility' includes all forms of financing	amount at	quarter end
		arrangements available to the entity.	quarter	$A'000
		Add notes as necessary for an understanding of the sources
		of finance available to the entity.	end
			$A'000
	7.1	Loan facilities
	1,000
	7.2	Credit standby arrangements
	7.3	Other (AMEX credit Card)
	200	187
	7.4	Total financing facilities
	1,200	187
For
7.5	Unused financing facilities available at quarter end
1,013
	7.6	Include in the box below a description of each facility above, including the lender, interest
		rate, maturity date and whether it is secured or unsecured. If any additional financing
		facilities have been entered into or are proposed to be entered into after quarter end, include
		a note providing details of those facilities as well.
	Loan Facilities $1M is NAB draw down facility. At balance date the above amount was available for
	draw down, but not utilised. The interest rate is 1.30%
	Other - AMEX credit card $200k is unsecured. Company always pay on time and there is no
	interest charge.

ASX Listing Rules Appendix 4C (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.