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Recruitment firm Tempo Australia (TPP: ASX), specialising in recruitment in the mining, oil & gas, and construction sectors, reports increased revenue of AUD 6.9 million (USD 6.3 million) for the first half of 2013, compared with AUD 32,000 (USD 29,374) for the same period last year.
Net loss before tax for H1 2013 equated to AUD 877,000 (USD 805,042), compared with net loss before tax of AUD 1.3 million (USD 1.2 million) during H1 2012.
Nick Bowen, recently appointed chairman of Tempo, commented: “The Company’s ability in a tough market and without a track record to secure contracts with blue chip clients in a short time frame vindicates the Board’s investment in organic growth. Having now achieved exposure on site coupled with a reputation for delivering tendering opportunities and enquiries are growing rapidly.”
“The market experienced a downturn in demand for resource services in the June half year and this resulted in a significant reduction in the demand for traditional labour hire. Despite the challenging conditions, both the Construction and Maintenance business and the Personnel Management business made a positive contribution to the group’s results after direct overhead,” he added.
During the first half of the year the Board implemented an optimised management and operating structure. Changes implemented are intended to reduce overhead costs in the second half by -25% and will include the consolidation of the Construction and Maintenance business and Personnel Management business into one location under the management of a single general manager and a -20% reduction in directors’ fees.
Looking forward and based on the revised lower overhead structure and current tender margins, the company predicts that a ‘breakeven’ result can be achieved with half year revenues of approximately AUD 10 million (USD 9.2 million). With the current work in hand and expected tender win this ‘breakeven’ outcome would be a significant improvement on the first half performance.