Tempo shares slump 20% on 2018 results

Shares in Tempo Australia have closed the day’s trade at 10 cents each, a fall of 20 per cent, after the contractor announced it was $4.5 million in the red for the year to December.

For 2018, Tempo made a cash loss of $1.4 million, with an additional $3.1 million non-cash loss.

Tempo said the results included approximately $1.3 million of non-recurring structuring costs that relate to overhead reductions and structural changes.

It also included around $700,000 of non-recurring overhead expenditure related to resource construction activities that will not be continued in 2019.

The company had revenue of $40 million for the year, up 200 per cent on 2017.

In July, the West Perth-based contractor acquired Comsite Services, a telecommunications maintenance services company that operates across regional NSW, ACT and southern Queensland.

Tempo made a loss of $1 million in 2017, and for the first half of 2018 it made a profit of around $100,000.

Tempo managing director Ian Lynass said the results were less than satisfactory, but the company went into 2019 with a refreshed board, lower overhead costs and a strong pipeline of opportunities.

In December, just one month after resigning as a director, Guido Belgiorno-Nettis rejoined Tempo as chair, replacing Charlie Bontempo.

Mr Bontempo left the chairman role in November, after co-founding the company in 2011