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Tempo Australiaâs stock plunged 20% after the company announced unaudited net loss after tax of $1.4 million for the 12-months ended 31 December 2018.
On Thursday, 7 February 2019, a multidisciplinary provider of maintenance and construction services, Tempo Australia Ltd (ASX:TPP) announced the unaudited results for the full year 2018. The company is expecting FY18 net loss after tax of $4.5 million after including the non-cash impairment of approximately $3.1 million. This unaudited loss represents a substantial amount of one-off expenses compared to the audited net loss after tax of $1.0 million for the 12 months to 31 December 2017. As on top-line front, the company has flagged over 200% Year-on-Year growth to the unaudited revenue of approximately $40.0 million in FY18. Â
Tempo Managing Director, Mr Ian Lynass stated that while these results are less than satisfactory, Tempo goes into 2019 with a refreshed board of directors, a restructured lower cost overhead and a strong pipeline of opportunities.
As per the report, the 2018 results included non-recurring costs of approximately $1.3 million relating to overhead reductions and structural changes undertaken by the company to pursue asset services and maintenance contracts. It also included around $0.7 million of non-recurring overhead expenditure with respect to resource construction activities that will reportedly not be continued in 2019.
In July 2018, the company entered into an agreement to acquire the business and business assets from telecommunications maintenance services company, Comsite Services Pty Ltd. The takeover was undertaken with the companyâs objective to offer end-to-end services on the mobile network infrastructure. Whereas, in 2017, Tempo Australia acquired a leading national electrical services provider, KP Electric (Australia) Pty Ltd at a cash consideration of $6,650,870.
As at 30 June 2018, Tempo Australiaâs Net asset backing per ordinary share stood at $0.12, compared to $0.13 in the previous corresponding period. Its net tangible asset backing per share was $0.05 at the end of the first half of FY2018.
Moreover, the half-yearly results revealed that Profit after tax turned to negative, i.e. from an H1 FY17âs profit of $255 to a loss of $789,156 for the six months ended 30 June 2018. During the six months ended 30 June 2018, the group acquired assets with a cost of $1,072,858, compared to the six months ended 30 June 2017 $230,603. These acquisitions during the period were reportedly related to the purchase of piling rigs.
Tempo Australia Ltd is a multidisciplinary provider of professional services in Structural, Mechanical and Piping (SMP) segment including maintenance and construction services to the resources, mining, and oil and gas sector. It also offers productivity tools and consultancy services to its clients.
In todayâs trading, TPP stock declined by 0.025 points (20%) to last trade at $0.100 on 7 February 2019. The market capitalization of the company stood at $30.1 million. Over the past 12 months, TPP stock witnessed a negative price change of 41.86% including a plunge of 30.56% over the past three months.
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