®
Shareholder’s Annual Report
Laserbond Limited
ABN 24 057 636 692
For year ended 30th June 2014
All comparisons to year ended 30th June 2013
Contents
About Laserbond
Financial Report
5
12
Laserbond Ltd 2014 Annual Report | 1
2 | Laserbond Ltd 2014 Annual Report
LaserBond® specialises in the
manufacture and reclamation
of components and assemblies
for a broad range of capital
intensive industries, often for
critical applications which require
optimised surface properties.
Laserbond Ltd 2014 Annual Report | 3
About LaserBond Ltd
LaserBond® is a long established innovative company that has developed and implemented advanced surface
engineering techniques to dramatically reduce the maintenance and operating costs of industrial customers. It
operates from sites in Sydney NSW and Adelaide SA. LaserBond® specialises in the manufacture and reclamation
of components and assemblies for a broad range of capital intensive industries, often for critical applications
which require optimised surface properties.
LaserBond® commenced trading as HVOF Australia Pty Ltd in September 1992 with a vision of reducing maintenance costs and extending
machinery life across a range of industries through the adoption of leading edge technologies. The formation of the Company coincided
with a significant technology development in thermal spraying known as High Pressure High Velocity Oxy Fuel (HP HVOF). HP HVOF
considerably increased the quality and performance of thermally sprayed coatings and, as a consequence, greatly broadened the range of
potential coating applications. By initially concentrating on these new applications and supporting their development with an extensive
in-house metallographic laboratory, the Company quickly established itself as a technical leader in the thermal spray market. In 2001,
after significant research, LaserBond® commissioned its first laser cladding system, to further broaden its capabilities, and to provide its
customers with access to coatings and overlays with a full metallurgical bond. This technology permits the deposition of precision layers
of material, with minimal heat input, and no unfavorable metallurgical side effects.
This portfolio of technologies allows LaserBond® to reclaim almost any industrial component, often improving its inherent properties.
Alternatively LaserBond® manufactures new components, incorporating surface enhancing technologies where appropriate to
dramatically increase the service life.
Laserbond Ltd 2014 Annual Report | 5
Reclamation and Surface Engineering
The low carbon alternative
LaserBond® can reclaim fatigued and worn industrial parts at a fraction
of the cost of a replacement part, whilst improving resistance to wear
and corrosion, increasing reliability and service life. New components and
replacement parts can also be surface engineered to provide extended
service life in a range of challenging environments and applications.
With the issues concerning carbon emissions, the abilities of LaserBond®
to increase the service life of industrial components provide significant
opportunities. The steel industry estimates that around 30gigajoules of
energy is required to produce one tonne of steel. Through utilisation of its
surfacing technologies, LaserBond® can dramatically extend the useful
life of wearing industrial components without the need for replacement. A
component originally manufactured from one tonne of steel may typically
be reclaimed and placed back into service with only 1gigajoules of energy
consumed, thereby dramatically reducing total carbon emissions.
Some of the industries we serve include:
• mining equipment
• slurry pumps
• valves and fluid handling
• alumina refining
• aluminium smelting
• natural gas extraction and processing
• steel making & processing
• oilfield drilling and exploration
• paper making & conversion
• timber and chipboard
• materials screening and handling
• road and rail equipment
• power generation
• water and waste water treatment
• aluminium manufacture and rolling
• printing and packaging
• plastic and film manufacturing
• blades and toolmaking
• glass manufacturing
• automotive and motorsport
• concrete and building products
• aerospace and gas turbines
• food production and processing
• merchant and defence marine
• chrome plate alternatives
• agriculture
6 | Laserbond Ltd 2014 Annual Report
LaserBond®
The LaserBond® process produces deposits with a full metallurgical
bond utilising a precisely focused laser beam, providing infinite control of
the energy and heat transfer to the base material. Temperature sensitive
components and materials, such as hardened shafts, gears etc, can be
repaired with minimal risk of distortion or other undesirable heat effects.
The metallurgical bond allows LaserBond® applied layers to be used in
high impact, heavily loaded situations with no risk of spalling or separation
of the overlay. The infinite controllability of the laser energy allows
minimisation of undesirable thermal decomposition of hard phases such
as carbides, resulting in optimum wear resistance.
Due to the extremely low dilution with the substrate, thin layers of high
performance corrosion and wear resistant materials can be applied. High
performance layers from 0.3mm are possible. Thick overlays for significant
repairs of up to 20mm can also be applied in multiple passes. Heat affected
zones are minimised and the stress related cracking inherent in welded or
Plasma Transferred Arc applied hard facing is generally eliminated.
Standard LaserBond® overlay options include Tungsten Carbide, Stainless
Steels, Nickel alloys such as Inconel, and Cobalt alloys such as Stellite1.
Other materials can be applied on request.
Thermal Spraying
Thermal Spraying processes produce high performance surfaces with a
mechanical bond. There is absolutely no risk of distortion or metallurgical
changes as component temperatures are kept low, generally below 200oC.
HP HVOF
The High Pressure High Velocity Oxy Fuel process applies coating material
at supersonic velocities, resulting in surfaces of the highest possible
quality and performance. HP HVOF coatings are very dense, very well
bonded, and free of the oxides and tensile stresses typically found in
coatings produced with other thermal spray processes. Consequently,
they perform better in most service environments.
HP HVOF wear resistant coatings are being adopted globally as an
environmentally friendly, and technically superior, alternative to Chrome
plating on components such as aircraft landing gears.
Surfaces combining resistance to corrosion and wear are also routinely
applied by HP HVOF.
LaserBond® approved HP HVOF coatings include Tungsten Carbide,
Chrome Carbide, Nickel based alloys (e.g. Inconel 625 and 718), Cobalt
alloys such as Stellite1, Stainless Steels and Copper based alloys.
Plasma Spray
Plasma thermal spray is used to apply higher melting point materials
such as ceramics. Applications include high temperature thermal barrier
coatings and wear resistant coatings where thermal and electrical
resistance are also desired. LaserBond® approved Plasma coatings
include Chrome Oxide, Zirconia, Aluminium Oxide and several other
ceramic blends.
Other Thermal Spray Systems
For economical dimensional restoration, Arc Wire and Combustion metal
spraying systems are used as appropriate to meet the technical and
economic needs of specific applications. The most commonly applied
materials include Stainless and Carbon Steels, Nickel alloys, Bronzes and
Copper. This technology can also be used to apply coatings for resistance
to corrosion (Zinc/Aluminium) and hard, rough coatings for traction
applications.
Laserbond Ltd 2014 Annual Report | 7
Machine Shops
A comprehensive range of modern large capacity CNC lathes, mills and
borers, in addition to a variety of conventional manual lathes, mills and
borers, cylindrical, surface and internal grinders etc are installed. These are
used to manufacture new components (from one offs to large batches) in a
wide range of sizes, weights and geometries. Additionally, this equipment
is utilised to restore and reclaim worn and damaged components to
precise tolerances and required surface finishes.
A full capacity and capabilities list is available on our website.
Grinding and Superfinishing
Using semi-automated and manual equipment in conjunction with
precision ceramic and diamond abrasives, we can finish any coating
or component materials to the highest specifications, including mirror
finishes. Typical applications processed include hydraulic rods and material
processing rolls.
8 | Laserbond Ltd 2014 Annual Report
Major Projects
LaserBond’s unique combination of expertise, experience and resources,
in addition to our client needs based focus, makes us ideal for taking
on complex projects that may involve some or all of the various core
competencies offered. Projects are fully supported by our engineering
staff with quality procedures, supporting documentation and drawings as
required to meet our clients’ many and varied needs.
Fitting and Assembly Services
As appropriate to the needs of our clients we also offer a complete
component/system/equipment overhaul service. This
is particularly
appropriate where our range of other services allow for a reduction in the
turnaround, maintenance or rebuilding time, or for the trial fitting of newly
manufactured or reclaimed component parts.
Site Work
The workshops are set up for maximum flexibility to handle a large range
of component sizes, geometries and weights. However, if your equipment
is too big to economically dismantle and transport, we usually can bring
our technology to site using our trained and qualified operators. We have
successfully completed site jobs for a range of industries all over Australia.
Laserbond Ltd 2014 Annual Report | 9
Metallographic Laboratory
Due to the many and varied applications and materials that are processed
by the LaserBond® workshops, an in house laboratory is utilised to carry
out testing and examination, including metallographic characterisation,
hardness testing, and chemical analysis.
Among the tools required for this work is a Scanning Electron Microscope
(SEM) allowing for investigation of coatings and metallurgy down to the
nano scale. The SEM allows for examination of microstructures and surface
topography at magnifications up to 200,000 times, along with analysis
of material chemistry, location or migration of specific elements within a
structure etc.
The laboratory is routinely used for the optimisation of coatings and
overlays, quality control of incoming materials, reports to clients on new
applications and materials, and failure analysis as required. Examination of
the effects on substrate metallurgy of the coating or cladding operation
is done routinely to ensure component integrity or properties are not
compromised. This facility is a formidable tool, and further differentiates
the LaserBond® approach to total customer support.
10 | Laserbond Ltd 2014 Annual Report
Quality
All LaserBond® workshops are quality certified to ISO 9001:2008, proving
our commitment to continuous improvement, the quality of our products
and services, and the ongoing satisfaction of our customers. Since our
inception, we have gained a strong reputation for supplying consistently
high quality products and services. As a result our customers can expect
only the highest quality standards in all business relations. Quality of
workmanship has always been, and will continue to be a hallmark of
LaserBond®. We welcome customer audits of our Quality Management
System.
Technology, Leadership and Strength
In today’s ever shrinking and increasingly competitive world, industry must
minimise the cost of wear in industrial processes. LaserBond® remains at
the forefront of developments to assist industry in these endeavors. Our
customers are reaping the benefits of longer component life, reduced
down-time, lower costs and access to the broadest range of machining,
surfacing, and fabricating technologies available from a single company
anywhere in Australia.
Laserbond Ltd 2014 Annual Report | 11
2014 Financial Report
Contents
Page
Chairman’s Letter
Corporate Directory
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Independent Audit Report
Declaration by Directors
Consolidated Statement of Profits &
Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Shareholder Information
13
14
15
21
27
28
30
31
32
33
34
35
57
12 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 12
2
2014 Chairman’s Letter
Dear Shareholder,
Since I assumed the role of Chairman in March 2014 the company has been firmly on a strategy to restore its focus on the core
‘DNA’ that is the foundation of its success. Your Board looks to ensuring our continuing operations are strong, as well as
continuing the development of our unique surface engineering capabilities.
On behalf of the Board I am pleased to present the annual Financial Report to 30th June 2014. The underlying results from
continuing operations were as follows:
30 June 2014
30 June 2013
Revenues
$9,669,960
Up 3.0% from
$9,392,657
Underlying EBITDA
$1,595,902
Up 161.1% from
$611,247*
Underlying NPAT
$740,812
Up 433.8% from
$138,779*
Underlying earnings per share (cents)
0.9c
Up 350% from
0.2c
*The underlying results above for FY2013 exclude a significant one off item related to an impairment loss for the goodwill in consideration for the
purchase of our Queensland division ($3,598,927).
Within the capital-intensive industries we serve there is a growing focus on operational productivity, rather than new investment.
Our customers are seeking “efficiencies”, which in turn offers LaserBond opportunities to work with them to extend the life of
components, reduce unit costs and improve performance using our capabilities in materials technology and surface engineering.
The company expects the current business environment of low capital investment and high focus on operational efficiency to
continue. This offers LaserBond challenges and opportunities. Our strong financial position, together with the stabilised and
improving performance of continuing operations, enables us to undertake a number of internal process improvement and
product development projects with confidence.
Early this calendar year the Board undertook an intensive strategic review where it recognised a number of challenges including
ensuring we had the right internal processes to succeed in order to reach the growth that we aspire. Part of this includes the
implementation of ‘Lean Manufacturing’ which is generating positive results.
Getting our innovation and commercialisation process right enables geographic expansions, like our new SA division, to be
successful. Further, deeper industry research is exposing areas where we can leverage our materials application DNA into new
industries. To that end our Executive Directors’ roles have been restructured to ensure our R&D effort, with subsequent
commercialisation, gets appropriate focus.
The Board has also made improvements to governance of the company. In recent months we have established specific
committees to provide oversight on Audit, Remuneration and Risk.
I believe the strategic changes which the company has undertaken will continue to improve the operational and financial
performance.
Considering the need for funding of growth, we have taken a view that retaining some profits is both prudent and supportive of
our current strategy. The Board is pleased to issue a final 0.2 cents per share dividend providing total fully franked dividends of
0.4 cents per share for the fiscal year. The Board has resolved to not offer the DRP for this final dividend. We are well placed to
continue with our dividends and intend to grow them with profits.
I would like to thank the management team and employees for their support and contributions to our recent success.
Yours sincerely
Allan Morton
Chairman
LaserBond Limited
LaserBond Ltd 2014 Annual Report – Page 13
Laserbond Ltd 2014 Annual Report | 13
Corporate Directory
Directors’ Report 2014 Financial Report
2
Directors:
Mr. Allan Morton
Chairman / Non-Executive Director
Mr. Wayne Hooper
Executive Director
Mr. Gregory Hooper
Executive Director
Mr. Philip Suriano
Non-Executive Director
Company Secretary:
Mr. Matthew Twist
Principal Registered Office:
2 / 57 Anderson Road
SMEATON GRANGE NSW 2567
Phone: 02 4631 4500
02 4631 4555
Fax:
Website Address:
www.laserbond.com.au
significantly.
Share Registry:
Auditor:
Solicitor:
Bankers:
Boardroom Pty Ltd
Level 7, 207 Kent Street
SYDNEY NSW 2000
Phone: 1300 737 760
Lachlan Nielson Partners Pty Ltd
Level 18, 201 Kent Street
SYDNEY NSW 2000
Equius Legal Pty Ltd
Level 57, MLC Centre
19-29 Martin Place
SYDNEY NSW 2000
Commonwealth Bank of Australia
Corporate Financial Services
Sydney South-West
Suite 2.01 Centric Park Central
CAMPBELLTOWN NSW 2560
Stock Exchange Listing: LaserBond Ltd shares are listed on the Australian Securities Exchange (ASX) under LBL.
The Directors present their report on the consolidated entity for the financial year ended 30th June 2014.
Principal Activities
LaserBond specialises in the manufacture, reclamation and surface engineering of industrial components and assemblies used
in a broad range of capital intensive industries and environments, including mining, minerals processing, primary metals,
manufacturing, construction and transport. Typically the components are for critical applications where LaserBond’s focus is to
reduce costs for its customers. The specialised and unique technologies employed by LaserBond allow it to reclaim almost any
industrial component, whilst improving critical surface properties for longer service life. LaserBond also manufactures new
replacement components incorporating its surface enhancing technologies to provide a multiple increase in the service life of
the part over what could be achieved with traditional manufacturing methods.
These services are currently provided from facilities in New South Wales and South Australia.
Review of Operations & Results
Significant achievements were made during the year that reflect well in the reported results and will provide improved results in
the future. In summary, compared to FY2013:
• Revenue from continuing operations was increased despite the challenging business environment.
Through a focus on costs and efficiencies, Gross Margins within continuing operations have been increased
The “green fields” South Australian operations returned a profit in the first year of operations.
• Underlying EBIT from continuing operations was increased by 363%.
The company successfully limited losses from the Gladstone (Qld) operations prior to their closure.
The company developed new applications for its technology that are expected to yield substantial increases in revenue
and profit in FY2015 and beyond.
LaserBond recently announced expected FY2014 results for continuing operations of $9.8 million revenue and net profits before
tax in the range of $1.05 to $1.1 million. Actual results for continuing operations were $9.67 million revenue (after an offset of
$136,935 income against capitalised development costs) and net profit before tax of $1.06 million.
After the final reported loss for the closed Gladstone Qld division, the consolidated group achieved net profit before tax of
The following information reviews operational results and outlook for the continuing operations in Smeaton Grange, New South
$865,023.
Wales and Cavan, South Australia.
Revenue from Continuing Operations
The continuing operations of the business achieved $9.67 million
revenue for FY2014 compared to $9.39 million for FY2013. This
represents an increase of 3%. Whilst it is a limited increase it is
pleasing given the challenging market conditions, particularly in the
mining and minerals processing sectors. Several of LaserBond’s
largest customers are original equipment manufacturers for these
industries and have reported significant declines in revenue as capital
works have plateaued and maintenance activities have been curtailed.
This has been reflected in a decline in their purchases from
LaserBond. However, the company has successfully offset these
declines through growth of new customers and applications.
FY2011
FY2012
FY2013
FY2014
Revenue results by division were:
• NSW - $8.94 million revenue for FY2014 compared to $9.37 million for FY2013. Whilst this is a reported decline, the
underlying result was flat because one long term customer of the NSW division based in Adelaide was transferred to
the new South Australian division.
• SA - $729,116 revenue for FY2014 compared to only $26,044 for FY2013 due to this division only becoming
operational during June 2013. This reported revenue is after the discounting of revenue from recouped development
costs. SA revenue for the second half of FY2014 was nearly double (183%) the revenue reported for the December
2014 half year.
•
•
•
•
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
14 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 14
LaserBond Ltd 2014 Annual Report – Page 15
Directors’ Report 2014 Financial Report
The Directors present their report on the consolidated entity for the financial year ended 30th June 2014.
Principal Activities
LaserBond specialises in the manufacture, reclamation and surface engineering of industrial components and assemblies used
in a broad range of capital intensive industries and environments, including mining, minerals processing, primary metals,
manufacturing, construction and transport. Typically the components are for critical applications where LaserBond’s focus is to
reduce costs for its customers. The specialised and unique technologies employed by LaserBond allow it to reclaim almost any
industrial component, whilst improving critical surface properties for longer service life. LaserBond also manufactures new
replacement components incorporating its surface enhancing technologies to provide a multiple increase in the service life of
the part over what could be achieved with traditional manufacturing methods.
These services are currently provided from facilities in New South Wales and South Australia.
Review of Operations & Results
Significant achievements were made during the year that reflect well in the reported results and will provide improved results in
the future. In summary, compared to FY2013:
• Revenue from continuing operations was increased despite the challenging business environment.
•
Through a focus on costs and efficiencies, Gross Margins within continuing operations have been increased
significantly.
The “green fields” South Australian operations returned a profit in the first year of operations.
•
• Underlying EBIT from continuing operations was increased by 363%.
•
•
The company successfully limited losses from the Gladstone (Qld) operations prior to their closure.
The company developed new applications for its technology that are expected to yield substantial increases in revenue
and profit in FY2015 and beyond.
LaserBond recently announced expected FY2014 results for continuing operations of $9.8 million revenue and net profits before
tax in the range of $1.05 to $1.1 million. Actual results for continuing operations were $9.67 million revenue (after an offset of
$136,935 income against capitalised development costs) and net profit before tax of $1.06 million.
After the final reported loss for the closed Gladstone Qld division, the consolidated group achieved net profit before tax of
$865,023.
The following information reviews operational results and outlook for the continuing operations in Smeaton Grange, New South
Wales and Cavan, South Australia.
Revenue from Continuing Operations
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
The continuing operations of the business achieved $9.67 million
revenue for FY2014 compared to $9.39 million for FY2013. This
represents an increase of 3%. Whilst it is a limited increase it is
pleasing given the challenging market conditions, particularly in the
mining and minerals processing sectors. Several of LaserBond’s
largest customers are original equipment manufacturers for these
industries and have reported significant declines in revenue as capital
works have plateaued and maintenance activities have been curtailed.
This has been reflected in a decline in their purchases from
LaserBond. However, the company has successfully offset these
declines through growth of new customers and applications.
FY2011
FY2012
FY2013
FY2014
Revenue results by division were:
• NSW - $8.94 million revenue for FY2014 compared to $9.37 million for FY2013. Whilst this is a reported decline, the
underlying result was flat because one long term customer of the NSW division based in Adelaide was transferred to
the new South Australian division.
• SA - $729,116 revenue for FY2014 compared to only $26,044 for FY2013 due to this division only becoming
operational during June 2013. This reported revenue is after the discounting of revenue from recouped development
costs. SA revenue for the second half of FY2014 was nearly double (183%) the revenue reported for the December
2014 half year.
LaserBond Ltd 2014 Annual Report – Page 15
Laserbond Ltd 2014 Annual Report | 15
Directors’ Report 2014 Financial Report
Earnings Before Interest & Tax (EBIT) from Continuing Operations
Continuing operations achieved an EBIT result of $1.17 million for FY2014 compared to $276,006 for FY2013. (Ignoring the
significant one-off impairment loss in FY2013 related to the Queensland Division). Results by division were:
• NSW – FY2014 EBIT of $1.17 million compared to $333,833 for FY2013, representing an increase 252%. Please refer
to Explanation of Results below for more detail.
• SA – FY2014 EBIT of $2,329 after reporting a loss of <$89,293> for the December 2014 half year. Please refer to
Explanation of Results below for more detail.
Explanation of Results for Continuing Operations
New South Wales
The division has focussed on developing new customers whilst improving efficiencies at its new operations in Smeaton Grange.
• Gross Margin – NSW achieved a gross margin result for FY2014 of 49.3% of revenue compared to 46.9% in FY2013,
representing a 5.1% improvement to margins and efficiencies. Further, based on continuing application of Lean
Manufacturing principles the April to June 14 quarter achieved gross margin results of 51.6%.
• Profit before tax – NSW achieved a net profit before tax of $1.06 million compared to $305,877 in FY2013,
representing an increase of 247%. Net profit before tax for NSW reported for July to December 13 half year was
$483,447 therefore NSW achieved an increase in net profit before tax of 20% during the second half of FY2014,
despite the small decline in revenue in that period.
South Australia
The December half year provided a loss for the SA division of <$89,293> which was in line with expectations for this new
'greenfield’ operation. It was expected the SA division would be profitable for the balance of FY2014 based on the growing
demand for our specialised services in the area.
• Revenue – January to June 2014 revenue of $471,772 compared to $257,344 for July to December 2013, representing
an 83% increase.
• Profit before tax – SA achieved a net profit before tax for the January to June 14 period of $91,622, providing a final
FY2014 net profit before tax of $2,329.
Outlook
Despite the recent challenges faced by LaserBond’s larger OEM customers, the outlook for the company remains very positive.
LaserBond’s core business activity is the study and implementation of practices to improve wear resistance (known as tribology)
to reduce the total cost of ownership and operation of equipment in capital intensive industries. The economic implications of
wear are severe and experts believe that at least 1% of the GDP of an industrialised country could be saved with minimal
investment into the research and application of wear resistant materials. LaserBond is at the forefront for this challenge and is
well positioned to take full advantage of its technologies and the many years of accumulated knowledge and experience it has
within its management, sales and workshop personnel.
Whilst much of the growth of the company over the last 5 years has been the result of what is generally referred to as the
“mining boom”, stimulating demand for LaserBond’s services in wearing components of new equipment, the plateauing of
mining investment activities does not limit LaserBond’s opportunities. Industries are more than ever focusing on improving
operational efficiencies and reducing costs associated with maintenance and downtime. Within mining, the equipment base is
still there and needs to be maintained. Further, there are many other industries that benefit from LaserBond’s services. The
primary challenges revolve around communicating and proving the performance of these technologies to individuals responsible
for maintenance and operation. To that end, LaserBond is undertaking focused marketing and sales activities, and has recently
increased resources dedicated to achieving sales to new industries. This is expected to continue to increase revenue.
LaserBond has had a strong history of sales growth due to the proactive engagement by management in the research of new
technologies, techniques and applications. These activities are continuing with renewed focus, especially now that the
distractions with the discontinued Queensland operations have been removed. Recent research and development activities are
showing positive results in early field trials. Should the further development and testing yield the results expected, these new
applications will result in additional revenue growth in the latter part of FY2015 and continuing in future years.
The improvement of efficiencies and margins will continue with the implementation of Lean Manufacturing techniques through
the organisation. Further, the culture change that accompanies the implementation of Lean is expected to yield sustainable
ongoing benefits.
16 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 16
Directors’ Report 2014 Financial Report
Based on the protection and retention of existing clients, development of new business and improving margins, the company is
expected to see continuing growth in profits, as shown during the second half of FY2014.
Directors
Details of the group’s Directors during the financial year and up to the date of the report are as follows (Directors have been in
office for the entire period unless otherwise stated):
Director:
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Timothy McCauley
Position Held
Executive Director
Executive Director
Non-Executive Chairman
Non-Executive Director
Non-Executive Chairman
In Office Since ______________Ceased to Hold Office
21 April 1994
30 September 1992
18th March 2014
6 May 2008
28 August 2007
17th March 2014
All current executive directors of the group are considered the key management personnel for the management of its affairs.
Remuneration Report
Remuneration levels for directors of the group are competitively set to attract, motivate and retain appropriately qualified and
experienced directors. Remuneration levels are reviewed annually by the Board through the Remuneration Committee using a
process that considers the overall performance of the group. The remuneration policy attempts to align reward with the
achievement of strategic objectives and the creation of value for shareholders. Please refer to the Corporate Governance
Statement in this report for details.
Currently the Directors receive fixed remuneration in the form of salaries and / or fees which are not performance-based,
however the board is considering performance based bonuses for all directors (salary based for executive and equity based for
non-executive directors).
Director’s Remuneration
Amounts paid to directors during the financial year ending 30 June 14 were:
Salaries and fees
Superannuation
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Timothy McCauley
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
138,952
124,401
284,676
275,467
17,000
-
25,000
25,000
22,500
30,000
488,128
454,868
Long Service Leave
Accrual
6,745
9,754
-
-
-
-
-
-
-
-
13,749
24,992
-
-
-
-
-
-
-
-
13,749
24,992
6,745
9,754
Directors only received a fixed salary or fee in the year ended 30 June 2014.
Director’s Shareholding
As at 30th July 2014, the number of shares held by directors was:
Wayne Hooper
Wayne Hooper
Gregory Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Holdings Type
Direct
Indirect
Direct
Indirect
Indirect
Indirect
Holdings
8,541,809
935,919
4,969,952
3,652,564
255,405
33,107
LaserBond Ltd 2014 Annual Report – Page 17
Laserbond Ltd 2014 Annual Report | 17
Directors’ Report 2014 Financial Report
Directors’ Report 2014 Financial Report
Information on Directors
Allan Morton – Non-Executive Chairman
Allan is a well-qualified, experienced professional engineer and business leader. He holds degrees in engineering (B.E. Mech
1st Class Hons) and business management (Operations), and is also a graduate of Harvard Business School (Exec. MBA
(PMD)). His career commenced with sixteen years with CSR Limited, working within their sugar division throughout Australia
and New Zealand. In 1990 he founded a media replication and distribution company, which was later public listed. Through his
consultancy group, Allan works with a number of small-to-medium enterprises to effect successful business turnarounds and
strategic growth initiatives. He is an experienced director and chairman.
Wayne Hooper – Executive Director
Significant Changes in State of Affairs
to in the financial statements or notes thereto.
Matters Subsequent to the End of the Financial Year
Wayne is a professional engineer with significant experience within the engineering and manufacturing industries. His
engineering experience includes design, maintenance and project management. He started his career within the electricity
generation industry, and branched into high volume manufacturing. Prior to joining the company in 1994, Wayne also held
senior roles in marketing within the building products industry. Wayne holds degrees in Science and Engineering (Honours
Class 1) and an MBA. He is involved in technology development, engineering and administration of the group.
years.
Future Developments
Debt
At the end of the financial year, the group maintains a strong Balance Sheet with minimal debt. The current ratio of the group is
3.5:1 indicating a high financial strength. With our cash flow projections for the next fiscal year, the group is in a very sound
position to capitalise on market opportunities as they become available.
During the financial year there was no significant change in the state of affairs of the consolidated entity other than that referred
There has not been any matter or circumstance other than that referred to in the financial statements or notes thereto, that has
arisen since the end of the financial year that has significantly affected, or may significantly affect, the operations of the
consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in subsequent financial
Gregory Hooper – Executive Director
Gregory has a mechanical engineering background with extensive hands on and sales experience in the engineering, welding
and thermal spray industries. With his knowledge of, and passion for these industries, and seeing the potential applications for
coating technology, Gregory founded the Company assisted by other members of the Hooper family in late 1992. Gregory,
utilising the in-house laboratory, developed the application parameters for the H.V.O.F. and LaserBond® processes. Gregory’s
focus within the group includes sales and marketing, production, training, and the ongoing research and development of
applications for Laser materials processing and Thermal spray technology.
.
Philip Suriano – Non-Executive Director
Mr. Suriano has been a Director since 2008. Mr. Suriano began his career in corporate banking with the State Bank of Victoria
(Commonwealth Bank). He holds a degree in banking & finance (B.Bus. (Bkg & Fin)). Mr. Suriano spent 16 years in senior
positions within the Australian Media Industry. Mr. Suriano has gained wide knowledge & experience to give him a strong
background in operations, sales and marketing in such roles as National Sales Director, MCN (Austar and Foxtel TV sales JV)
and Group Sales Manager at Network Ten. Prior to joining MCN, Mr. Suriano was employed within the Victor Smorgon Group of
Companies. He was also a former Director of BBX Minerals Limited, Adavale Resources Limited and Resources & Energy
Group Limited. For the past 10 years Mr. Suriano has been working in corporate finance. He is currently working with Lempriere
Capital Partners as Director, Equity Capital Markets.
.
Information on Company Secretary
Matthew Twist
Disclosure of information regarding likely developments in the operations of the consolidated entity in future financial years and
the expected results of those operations is likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this
information has not been disclosed in this report.
Environmental Regulation
state or territory.
Dividends
The group’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a
2013 final dividends of 0.2 cents per share and 2014 interim dividends of 0.2 cents per share were paid during 2013-2014. In
addition, since year end the directors have recommended the payment of a final dividend of 0.2 cents per fully-paid ordinary
share (2013: 0.2), fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend is expected to be
paid on 26th September 2014 out of retained earnings at 30 June 2014.
Subject to continued growth as per expectations, the Board expects to continue to maintain future dividends.
Corporate Governance
The directors of the group support and adhere to the principles of corporate governance, recognising the need for the highest
standard of corporate behaviour and accountability. A review of the group’s corporate governance practices was undertaken
during the year. As a result new practices were adopted and existing practices optimised to reflect industry best practice.
Please refer to the Corporate Governance Statement in this report.
Matthew Twist was appointed Company Secretary on 30 March 2009. Matthew also holds the position of Chief Financial Officer
of the group (since March 2007), providing over 19 years financial management experience, encompassing financial and
operational control and systems development in manufacturing companies.
Directors’ and Auditors’ Information
Director’s Meetings
Insurance premiums of $20,161 have been paid to insure a Director’s legal liability to third parties for alleged breach of duty
arising out of a claim for which the Director is not indemnified by the corporation.
During the financial year ended 30th June 2014, the number of meetings held, and attended, by each Director were as follows:
No insurance premiums have been paid in respect of Auditors.
Director
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Tim McCauley
Number of Meetings
Eligible to Attend
Number of Meetings
Attended
Non-Audit Fees paid to Auditor
10
10
4
10
6
10
10
4
9
4
During the financial year, there have been no fees paid to Lachlan Nielson Partners Pty Ltd for non-audit services.
Proceedings on behalf of the Group
No person has applied for leave of Court to bring proceedings on behalf of the group or intervene in any proceedings to which
the group is a party for the purpose of taking responsibility on behalf of the group for all or any part of these proceedings.
During the later months of FY2014, the board have agreed on the formation of Audit, Risk and Remuneration committees. The
remuneration and audit committees met during this reporting period. Please refer to the Corporate Governance Statement on
pages 21 to 26 for further information.
The group was not party to any such proceedings during the year.
Auditors’ Independence Declaration
LaserBond Ltd 2014 Annual Report – Page 18
LaserBond Ltd 2014 Annual Report – Page 19
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on
page 27.
18 | Laserbond Ltd 2014 Annual Report
Directors’ Report 2014 Financial Report
Debt
At the end of the financial year, the group maintains a strong Balance Sheet with minimal debt. The current ratio of the group is
3.5:1 indicating a high financial strength. With our cash flow projections for the next fiscal year, the group is in a very sound
position to capitalise on market opportunities as they become available.
Significant Changes in State of Affairs
During the financial year there was no significant change in the state of affairs of the consolidated entity other than that referred
to in the financial statements or notes thereto.
Matters Subsequent to the End of the Financial Year
There has not been any matter or circumstance other than that referred to in the financial statements or notes thereto, that has
arisen since the end of the financial year that has significantly affected, or may significantly affect, the operations of the
consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in subsequent financial
years.
Future Developments
Disclosure of information regarding likely developments in the operations of the consolidated entity in future financial years and
the expected results of those operations is likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this
information has not been disclosed in this report.
Environmental Regulation
The group’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a
state or territory.
Dividends
2013 final dividends of 0.2 cents per share and 2014 interim dividends of 0.2 cents per share were paid during 2013-2014. In
addition, since year end the directors have recommended the payment of a final dividend of 0.2 cents per fully-paid ordinary
share (2013: 0.2), fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend is expected to be
paid on 26th September 2014 out of retained earnings at 30 June 2014.
Subject to continued growth as per expectations, the Board expects to continue to maintain future dividends.
Corporate Governance
The directors of the group support and adhere to the principles of corporate governance, recognising the need for the highest
standard of corporate behaviour and accountability. A review of the group’s corporate governance practices was undertaken
during the year. As a result new practices were adopted and existing practices optimised to reflect industry best practice.
Please refer to the Corporate Governance Statement in this report.
Directors’ and Auditors’ Information
Insurance premiums of $20,161 have been paid to insure a Director’s legal liability to third parties for alleged breach of duty
arising out of a claim for which the Director is not indemnified by the corporation.
No insurance premiums have been paid in respect of Auditors.
Non-Audit Fees paid to Auditor
During the financial year, there have been no fees paid to Lachlan Nielson Partners Pty Ltd for non-audit services.
Proceedings on behalf of the Group
No person has applied for leave of Court to bring proceedings on behalf of the group or intervene in any proceedings to which
the group is a party for the purpose of taking responsibility on behalf of the group for all or any part of these proceedings.
The group was not party to any such proceedings during the year.
Auditors’ Independence Declaration
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on
page 27.
LaserBond Ltd 2014 Annual Report – Page 19
Laserbond Ltd 2014 Annual Report | 19
Signed in accordance with a resolution of the Board of Directors.
Directors’ Report 2014 Financial Report
Director
Wayne Hooper
Dated this 22nd day of August 2014
Director
Gregory Hooper
20 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 20
Corporate Governance Statement
Unless disclosed below, all the best practice recommendations of the ASX Corporate Governance Council have been applied for the entire
financial year ended 30th June 2014.
Principle 1: Lay Solid Foundations for Management and Oversight
A listed entity should establish and disclose the respective roles and responsibilities of its board and management and how their performance is
monitored and evaluated.
1.1 A listed entity should disclose
a)
b)
the respective roles and responsibilities of its board and management; and
those matters expressly reserved to the board and those delegated to management.
The group’s Board is responsible for corporate governance of the group. The Board develops strategies for the group’s business, reviews
strategic objectives and monitors performance against those objectives. The goals of the corporate governance processes are to:
a)
b)
c)
Maintain and increase Shareholder value;
Ensure a prudential and ethical basis for the group’s conduct and activities; and
To ensure compliance with the group’s legal and statutory objectives.
Consistent with these goals, the Board assumes the following responsibilities:
a)
b)
c)
d)
Developing initiatives for profit and asset growth;
Reviewing the corporate, commercial and financial performance for the group on a regular basis;
Acting on behalf of, and being accountable to, the Shareholders; and
Identifying business risks and implementing actions to manage those risks and corporate systems to assure quality.
The company in general meetings is responsible for the appointment of the external auditors of the group, and the board from time to time will
review the scope, performance and fees of those external auditors
Roles and responsibilities of Senior Executives are agreed to by the Board and are based on Strategic plans, Financial Budgets, and the available
skills and experience of Senior Executives.
The Board expects all senior executives to meet all targets as required by strategic plans, financial budgets, key performance indicators and
formal job descriptions. Performance is evaluated annually at Performance Reviews.
1.2 A listed entity should
a) Undertake appropriate checks before appointing a person, or putting forward to security holders a candidate for election, as a
director; and
b) Provide security holders with all material information in its possession relevant to a decision on whether or not to elect or re-elect a
director.
Election of Board members is substantially the province of the Shareholders in general meeting. However, subject thereto, the group is committed
to the following principles:
a) The board is to comprise Directors with a blend of skills, experience and attributes appropriate for the group and its business; and
b) The principal criterion for the appointment of new Directors is their ability to add value to the group
1.3 A listed entity should have a written agreement with each director and senior executive setting out the terms of their appointment
All directors and senior executives have written agreements in the form of Employment Agreements, Letter of Employment and / or Job
Descriptions.
1.4 The Company Secretary of a listed entity should be accountable directly to the board, through the chair, on all matters to do with proper
functioning of the board.
The Company Secretary is accountable directly to the board through the chair, on all matters to do with proper functioning of the board.
1.5 A listed entity should
a) Have a diversity policy which includes requirements for the board or a relevant committee of the board to set measurable
objectives for achieving gender diversity and to assess annually both the objectives and the entity’s progress in achieving them;
b) Disclose that policy or a summary of it; and
c) Disclose as at the end of each reporting period the measurable objectives for achieving gender diversity set by the board in
accordance with the entity’s diversity policy and its progress towards achieving them and the respective proportions of men and
women on the board, in senior executive positions and across the whole organisation.
LaserBond Ltd is an equal employment opportunity employer that values and promotes diversity. Diversity encompasses age, gender, ethnicity,
physical abilities, religious beliefs, language, political beliefs, sexual orientations, etc.
The group believes that by bringing together men and women from diverse backgrounds who contribute based on their skills, experiences and
perspectives, we can deliver the best value and sustainability for LaserBond and its shareholders.
LaserBond’s approach to ensuring diversity in the group is based on the following actions:
LaserBond Ltd 2014 Annual Report – Page 21
Laserbond Ltd 2014 Annual Report | 21
Corporate Governance Statement
a) Promotion of a culture of diversity amongst employees.
b) Elimination of any barriers to achieving a diverse workplace.
c) Ensuring all recruitment and selection processes are based on merit alone.
d) Providing opportunities for development to all employees in order to enhance productivity and build teams with a balance of skills,
experience and perspectives.
e) Rewarding and remunerating fairly.
f)
Promotion of flexible work practices that balance each employee’s personal situation or needs with the needs of the group.
The Board reviews these objectives and the performance against them annually. Individual divisions may also set measurable objectives relevant
their particular operating contexts.
One of the challenges for gender diversity stems from the fact that almost LaserBond’s entire workforce is employed in skilled metals engineering
positions (including apprenticeships for those positions). Unfortunately, these positions rarely attract female applicants. The group will continue
to encourage position applications from females to redress this situation, and diversity throughout the group (including gender diversity) will
remain a focus.
The representation of female employees as at 30 June 2014 was as follows:
a) Total workforce – 11% (5 of 47)
b) Executive and senior management – 0% (0 of 3)
c) Board – 0% (0 of 4)
1.6 A listed entity should
a) Have and disclose a process for periodically evaluating the performance of the board, its committees and individual directors; and
b) Disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in
accordance with that process.
An annual performance evaluation of the board and all board members is undertaken on the anniversary of the first listing of the group. No formal
performance evaluation of board members has taken place during the reporting period; however the remuneration committee is currently in the
process of completing this evaluation of all executive directors.
1.7 A listed entity should
a) Have and disclose a process for periodically evaluating the performance of its senior executives; and
b) Disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in
accordance with that process.
An annual performance evaluation of all employees, including senior executives, is undertaken formally at the end of each calendar year. A formal
performance evaluation of each employee has taken place during the reporting period.
Principle 2: Structure the Board to Add Value
A listed entity should have a board of an appropriate size, composition, skills and commitment to enable it to discharge its duties effectively.
2.1 A listed entity should
a)
b)
Have a nomination committee which has at least three members, a majority of whom are independent directors and is chaired by an
independent director; and
Disclose the charter of the committee, the members of the committee and as at the end of each reporting period, the number of
times the committee met throughout the period and the individual attendances of the members at those meetings.
No formal nomination committee or procedures have been adopted for the identification, appointment and review of the board membership. An
informal assessment process facilitated by the Chairman in consultation with the group’s professional advisors has been committed to by the
board.
2.2 A listed entity should have and disclose a board skills matrix setting out the mix of skills and diversity that the board currently has or is
looking to achieve in its membership
The board is to committed to comprising Directors with a blend of skills, experience and attributes appropriate for the group and its business The
skills, experience and expertise relevant to the position of each Director who is in office at the date of this annual report and their term of office are
detailed in the Director’s report.
2.3 A listed entity should disclose
a) The names of the directors considered by the board to be independent directors;
b)
If a director has an interest, position, association or relationship that might cause doubts about the independence of a director but the
board is of the opinion that it does not compromise the independence of the director; the nature of the interest, position, association
or relationship in question and an explanation of why the board is of that opinion; and
c) The length of service of each director
Details of the board including their terms of office are set out in the Directors’ Report under the heading “Directors”
The board assesses the independence of directors annually. For this process, the directors must provide all information relevant to this
assessment. In order to assess the independence of each director, a director must be a non-executive and the board considers whether the
director:
a)
is a substantial shareholder, or associated directly with a substantial shareholder.
22 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 22
Corporate Governance Statement
Corporate Governance Statement
a) Promotion of a culture of diversity amongst employees.
b) Elimination of any barriers to achieving a diverse workplace.
c) Ensuring all recruitment and selection processes are based on merit alone.
experience and perspectives.
e) Rewarding and remunerating fairly.
d) Providing opportunities for development to all employees in order to enhance productivity and build teams with a balance of skills,
b)
c)
is or has been a principal of a material customer, supplier, subcontractor, professional adviser or consultant to the group, or has an
indirect association with same.
is free from any business or other relationship which could (or be perceived to) interfere with their independence.
Existing non-executive directors based on this assessment continue to be deemed independent.
f)
Promotion of flexible work practices that balance each employee’s personal situation or needs with the needs of the group.
2.4 A majority of the board of a listed entity should be independent directors
The Board reviews these objectives and the performance against them annually. Individual divisions may also set measurable objectives relevant
their particular operating contexts.
One of the challenges for gender diversity stems from the fact that almost LaserBond’s entire workforce is employed in skilled metals engineering
The Board comprises a balance of independent Directors with the overall number of Directors appropriate for the size and complexity of the
business. Importantly, the composition provides two representatives on the Board who have specialised experience and knowledge of the
business.
positions (including apprenticeships for those positions). Unfortunately, these positions rarely attract female applicants. The group will continue
2.5 The chair of the board of a listed entity should be an independent director and, in particular, should not be the same person as the CEO of
to encourage position applications from females to redress this situation, and diversity throughout the group (including gender diversity) will
the entity.
remain a focus.
The representation of female employees as at 30 June 2014 was as follows:
a) Total workforce – 11% (5 of 47)
b) Executive and senior management – 0% (0 of 3)
c) Board – 0% (0 of 4)
1.6 A listed entity should
a) Have and disclose a process for periodically evaluating the performance of the board, its committees and individual directors; and
b) Disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in
accordance with that process.
An annual performance evaluation of the board and all board members is undertaken on the anniversary of the first listing of the group. No formal
performance evaluation of board members has taken place during the reporting period; however the remuneration committee is currently in the
process of completing this evaluation of all executive directors.
1.7 A listed entity should
The chairperson, Mr. Allan Morton, is an independent, non-executive, Director, and does not hold the position of Chief Executive Officer.
Principle 3: Act Ethically and Responsibly
A listed entity should act ethically and responsibly.
3.1 A listed entity should
a) Have a code of conduct for its directors, senior executives and employees; and
b) Disclose that code or a summary of it
It is the Board’s responsibility to ensure an effective internal control framework exists. This includes internal controls to deal with the effectiveness
and efficiency of significant business processes, the safeguarding of assets, the maintenance of proper accounting records, and the reliability of
financial information as well as non-financial considerations such as the benchmarking of operational key performance indicators.
The Board assumes the responsibility for the establishment and maintenance of a framework of internal control and ethical standards for the
management of the consolidated entity.
a) Have and disclose a process for periodically evaluating the performance of its senior executives; and
b) Disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in
accordance with that process.
The Board seeks independent professional advice prior to making any business decisions that may affect the performance of the group or its
securities. Also, subject to the Chairman’s approval (not to be unreasonably withheld), the Directors, at the group’s expense, may obtain
independent professional advice on issues arising in the course of their duties.
An annual performance evaluation of all employees, including senior executives, is undertaken formally at the end of each calendar year. A formal
All directors, senior executives and employees will:
performance evaluation of each employee has taken place during the reporting period.
Principle 2: Structure the Board to Add Value
A listed entity should have a board of an appropriate size, composition, skills and commitment to enable it to discharge its duties effectively.
2.1 A listed entity should
independent director; and
a)
Have a nomination committee which has at least three members, a majority of whom are independent directors and is chaired by an
a) Act in the best interests of the entity;
b) Act honestly and with high standards of personal integrity;
c) Comply with the laws and regulations that apply to the entity and its operations;
d) Not knowingly participate in any illegal or unethical activity;
e) Not enter into any arrangement or participate in any activity that would conflict with the entity’s best interests or that would be likely to
negatively affect the entity’s reputation;
f) Not take advantage of the property or information of the entity or its customers for personal gain or to cause detriment to the entity or its
b)
Disclose the charter of the committee, the members of the committee and as at the end of each reporting period, the number of
customers; and
times the committee met throughout the period and the individual attendances of the members at those meetings.
g) Not take advantage of their position or the opportunities arising there from for personal gain.
No formal nomination committee or procedures have been adopted for the identification, appointment and review of the board membership. An
informal assessment process facilitated by the Chairman in consultation with the group’s professional advisors has been committed to by the
Principle 4: Safeguard Integrity in Corporate Reporting
A listed entity should have formal and rigorous processes that independently verify and safeguard the integrity of its corporate reporting.
2.2 A listed entity should have and disclose a board skills matrix setting out the mix of skills and diversity that the board currently has or is
4.1 The board of a listed entity should
a) Have an audit committee which has at least three members (all of whom are non-executive directors and a majority of whom are
independent directors) and is chaired by an independent director who is not the chair of the board; and
b) disclose the charter of the committee, the relevant qualifications and experience of the members of the committee and the number
of times the committee met throughout the reporting period including the individual attendances of the members at those meetings.
The Audit Committee members consist of the two independent directors, (Allan Morton and Philip Suriano), and is chaired by the chair of the
board due to his experience in relation to audits and committees.
Whilst not in accordance with the best practice recommendation, the group is of the view that such an approach is appropriate given the size of
the existing board. Further, the Board does not consider that the group is of sufficient size to justify the appointment of additional Directors, and to
do so for the sole purpose of satisfying this requirement would be cost prohibitive.
board.
looking to achieve in its membership
detailed in the Director’s report.
2.3 A listed entity should disclose
The board is to committed to comprising Directors with a blend of skills, experience and attributes appropriate for the group and its business The
skills, experience and expertise relevant to the position of each Director who is in office at the date of this annual report and their term of office are
a) The names of the directors considered by the board to be independent directors;
b)
If a director has an interest, position, association or relationship that might cause doubts about the independence of a director but the
board is of the opinion that it does not compromise the independence of the director; the nature of the interest, position, association
or relationship in question and an explanation of why the board is of that opinion; and
c) The length of service of each director
The functions of the Committee are to review and make recommendations to the Board in respect of:
Details of the board including their terms of office are set out in the Directors’ Report under the heading “Directors”
The board assesses the independence of directors annually. For this process, the directors must provide all information relevant to this
assessment. In order to assess the independence of each director, a director must be a non-executive and the board considers whether the
director:
a)
is a substantial shareholder, or associated directly with a substantial shareholder.
a)
b)
c)
d)
e)
f)
g)
The adequacy of accounting control systems, and application of administrative, operating and accounting policies.
The financial statements complying with appropriate accounting standards and presenting a true and fair view of the financial position
and performance.
The appropriateness of accounting judgments or choices exercised in preparing the financial statements.
The review and approval of half-yearly and annual financial reports before release to the market.
The appointment or removal of the external auditor.
The rotation of the audit engagement partner.
The scope and adequacy of the external audit.
LaserBond Ltd 2014 Annual Report – Page 22
LaserBond Ltd 2014 Annual Report – Page 23
Laserbond Ltd 2014 Annual Report | 23
Corporate Governance Statement
h)
i)
j)
The independence and performance of the external auditor.
The approval of the payment of external auditor’s fees.
Proposals for the external auditor to provide non-audit services, and ensuring no compromise of their independence.
The audit committee has been recently established and met once, with 100% attendance of members, in conjunction with the preparation of this
report.
4.2 The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive from its CEO and CFO a
declaration that, in their opinion, the financial records of the entity have been properly maintained and that the financial statements comply
with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the
opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
The board has received the appropriate declarations from its CEO and CFO related to this reporting period.
4.3 A listed entity that has an AGM should ensure that its external auditor attends its AGM and is available to answer questions from security
holders relevant to the audit.
The Board ensures a representative of its external auditor is available prior to announcing the date of each AGM.
Principle 5: Make Timely and Balance Disclosure
A listed entity should make timely and balanced disclosure of all matters concerning it that a reasonable person would expect to have a material
effect on the price or value of its securities.
5.1 A listed entity should have a written policy for complying with its continuous disclosure obligations under the listing rules and disclose that
policy or a summary of it
Both the Chief Executive Officer (or equivalent) and Company Secretary (or equivalent) are responsible in ensuring that all disclosure
requirements and full compliance is met, after review and approval of information to be disclosed by each board member.
Principle 6: Respect the Rights of Security Holders
A listed entity should respect the rights of its security holders by providing them with appropriate information and facilities to allow them to
exercise those rights effectively.
6.1 A listed entity should provide information about itself and its governance to investors via its website
The Company’s website includes detailed information about itself and an investor’s relation link providing access pertinent to investors.
6.2 A listed entity should design and implement an investor relations program to facilitate effective two-way communication with investors
The board aims to ensure that shareholders are informed of all major developments affecting the group’s state of affairs by issuing
announcements to ASX, thereby complying with its continuous disclosure obligations. These announcements are made subsequent to any
pertinent information being made aware to the board or the Company. All announcements are reviewed and approved by each board member to
ensure the information is disclosed accurately.
6.3 A listed entity should disclose the policies and processes it has in place to facilitate and encourage participation at meetings of security
holders
The Board recommends and requests the participation of all shareholders at general meetings by formal, written notice of meetings. Where a
shareholder is unable to attend a general meeting to exercise their right to ask questions about, or make comments on, the management of the
entity the board encourages these shareholders to provide these questions to the Chief Executive Officer or Company Secretary in advance of the
meeting to allow these questions and comments to be reviewed and added to the Chairman (or other directors) address at the general meeting.
6.4 A listed entity should give security holders the option to receive communications from, and send communications to, the entity and its
security registry electronically
The Company provides an email address of info@laserbond.com.au for all shareholders to communicate directly. Shareholders may also direct
our registry to provide materials via email.
Principle 7: Recognise and Manage Risk
A listed entity should establish a sound risk management framework and periodically review the effectiveness of that framework.
7.1 A listed entity should have a committee or committees to oversee risk which has at least three members, a majority of whom are
independent directors and is chaired by an independent director. The listed entity shall disclose the charter of the committee, the members
of the committee and as at the end of each reporting period the number of times the committee met throughout the period, including the
individual attendances at those meetings.
The Risk Committee members consist of two directors, one independent (Allan Morton) and one executive (Wayne Hooper), and is chaired by the
chair of the board due to his experience in relation to risk management and committees.
Whilst not in accordance with the best practice recommendation, the group is of the view that such an approach is appropriate given the size of
the existing board. Further, the Board does not consider that the group is of sufficient size to justify the appointment of additional Directors, and to
do so for the sole purpose of satisfying this requirement would be cost prohibitive.
24 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 24
Corporate Governance Statement
Corporate Governance Statement
The independence and performance of the external auditor.
The approval of the payment of external auditor’s fees.
Proposals for the external auditor to provide non-audit services, and ensuring no compromise of their independence.
The audit committee has been recently established and met once, with 100% attendance of members, in conjunction with the preparation of this
h)
i)
j)
report.
4.2 The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive from its CEO and CFO a
declaration that, in their opinion, the financial records of the entity have been properly maintained and that the financial statements comply
with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the
opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
The board has received the appropriate declarations from its CEO and CFO related to this reporting period.
The functions of the Committee are to review and make recommendations to the Board in respect of:
a)
b)
c)
d)
e)
The design and implementation of a structured risk management framework that provides management and the Board with comfort
risks are being identified and managed effectively.
The monitoring and evaluation of the risk management framework, and its effectiveness on minimizing risk that may adversely impact
on the business objectives or strategies.
Ensuring the management of risk is integrated into the development of strategic and business plans, and the achievement of the
Company’s vision and values.
The Corporate Governance Statement in the Annual Report
The compliance with legal, regulatory and statutory obligations.
The risk committee has not met during the reporting period.
7.2 The board or a committee of the board should
4.3 A listed entity that has an AGM should ensure that its external auditor attends its AGM and is available to answer questions from security
holders relevant to the audit.
a) Review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound; and
b) Disclose, in relation to each reporting period, whether such a review has taken place.
The Board ensures a representative of its external auditor is available prior to announcing the date of each AGM.
Principle 5: Make Timely and Balance Disclosure
The risk committee determines the group’s “risk profile” and is responsible for overseeing and approving risk management strategy and policies,
internal compliance and internal control. The committee’s collective experience will enable accurate identification of the principal risks that may
affect the group’s business. Key operational risks and their management are recurring items for consideration at Board meetings. A risk review
has taken place during this reporting period.
A listed entity should make timely and balanced disclosure of all matters concerning it that a reasonable person would expect to have a material
effect on the price or value of its securities.
7.3 A listed entity should disclose if it has an internal audit function, how the function is structured and what role it performs
5.1 A listed entity should have a written policy for complying with its continuous disclosure obligations under the listing rules and disclose that
policy or a summary of it
Both the Chief Executive Officer (or equivalent) and Company Secretary (or equivalent) are responsible in ensuring that all disclosure
The Company has no formal internal audit function due to both the size of the board and the business. However the risk committee’s role includes
the requirement to ensure a systematic, disciplined approach to evaluating and continually improving the effectiveness of its risk management and
internal control processes.
requirements and full compliance is met, after review and approval of information to be disclosed by each board member.
7.4 A listed entity should disclose whether it has any material exposure to economic, environmental and social sustainability risks and, if it does,
Principle 6: Respect the Rights of Security Holders
how it manages or intends to manage those risks.
The Company has no material exposure economic, environmental and social sustainability risks.
A listed entity should respect the rights of its security holders by providing them with appropriate information and facilities to allow them to
exercise those rights effectively.
Principle 8: Remunerate Fairly and Responsibly
6.1 A listed entity should provide information about itself and its governance to investors via its website
The Company’s website includes detailed information about itself and an investor’s relation link providing access pertinent to investors.
6.2 A listed entity should design and implement an investor relations program to facilitate effective two-way communication with investors
The board aims to ensure that shareholders are informed of all major developments affecting the group’s state of affairs by issuing
announcements to ASX, thereby complying with its continuous disclosure obligations. These announcements are made subsequent to any
pertinent information being made aware to the board or the Company. All announcements are reviewed and approved by each board member to
ensure the information is disclosed accurately.
6.3 A listed entity should disclose the policies and processes it has in place to facilitate and encourage participation at meetings of security
holders
A listed entity should pay director remuneration sufficient to attract and retain high quality directors and design its executive remuneration to
attract, retain and motivate high quality senior executives and to align their interests with the creation of value for security holders.
8.1 The board of a listed entity should have a remuneration committee, which has at least three members, a majority of whom are independent
directors and is chaired by an independent director. The listed entity will also disclose the charter of the committee, the members of the
committee and as at the end of each reporting period the number of times the committee met throughout the period, including the original
attendances at those meetings.
The remuneration committee members consist of two independent directors, (Allan Morton and Philip Suriano), and is chaired by the chair of the
board due to his experience in relation to remuneration and committees.
Whilst not in accordance with the best practice recommendation, the group is of the view that such an approach is appropriate given the size of
the existing board. Further, the Board does not consider that the group is of sufficient size to justify the appointment of additional Directors, and to
do so for the sole purpose of satisfying this requirement would be cost prohibitive.
The Board recommends and requests the participation of all shareholders at general meetings by formal, written notice of meetings. Where a
shareholder is unable to attend a general meeting to exercise their right to ask questions about, or make comments on, the management of the
The functions of the Committee are to review and make recommendations to the Board in respect of:
7.1 A listed entity should have a committee or committees to oversee risk which has at least three members, a majority of whom are
remuneration of executive directors and other senior executives.
a) Remuneration of the Executive Directors, within the terms of the employment contract, annually to the board.
b) The Executive Director’s recommendations regarding remuneration for staff, ensuring alignment with market trends.
c) The Executive Director’s performance and key performance indicators for the determination of bonus components.
d) Any incentive plans or ex-gratia payments to the Executive Directors or other employees.
e) Any grievances or complaints about remuneration.
f) Gender diversity issues identified.
g) The alignment of remuneration and incentive policies, practices and performance indicators with the board’s vision, values and overall
business objectives.
The remuneration committee met two (2) times during the reporting period, with attendance by all committee members at all meetings.
8.2 A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive director and the
Currently the non-executive Directors do not receive performance-based bonuses, however the board is considering a performance based equity
plan for non-executive directors. They will not be entitled to retirement allowances.
The group’s constitution provides that the remuneration of non-executive Directors will be no more than the aggregate fixed sum determined by a
general meeting. The current limit, which may only be varied by Shareholders in general meeting, is an aggregate amount of $150,000 per
annum.
Remuneration of executive directors and other senior executives is reviewed and determined by the remuneration committee. When establishing
and reviewing the remuneration of Directors and Senior Management the group will apply the broad principles of a fair and equitable standard of
LaserBond Ltd 2014 Annual Report – Page 25
Laserbond Ltd 2014 Annual Report | 25
entity the board encourages these shareholders to provide these questions to the Chief Executive Officer or Company Secretary in advance of the
meeting to allow these questions and comments to be reviewed and added to the Chairman (or other directors) address at the general meeting.
6.4 A listed entity should give security holders the option to receive communications from, and send communications to, the entity and its
The Company provides an email address of info@laserbond.com.au for all shareholders to communicate directly. Shareholders may also direct
security registry electronically
our registry to provide materials via email.
Principle 7: Recognise and Manage Risk
A listed entity should establish a sound risk management framework and periodically review the effectiveness of that framework.
independent directors and is chaired by an independent director. The listed entity shall disclose the charter of the committee, the members
of the committee and as at the end of each reporting period the number of times the committee met throughout the period, including the
individual attendances at those meetings.
The Risk Committee members consist of two directors, one independent (Allan Morton) and one executive (Wayne Hooper), and is chaired by the
chair of the board due to his experience in relation to risk management and committees.
Whilst not in accordance with the best practice recommendation, the group is of the view that such an approach is appropriate given the size of
the existing board. Further, the Board does not consider that the group is of sufficient size to justify the appointment of additional Directors, and to
do so for the sole purpose of satisfying this requirement would be cost prohibitive.
LaserBond Ltd 2014 Annual Report – Page 24
Corporate Governance Statement
remuneration commensurate with the qualifications and experience each member brings to the group. Remuneration committee members that
have a direct or vested interest in the establishment and review of remuneration will not be included in the process.
8.3 A listed entity which has an equity-based remuneration scheme should have a policy on whether participants are permitted to enter into
transactions which limit the economic risk of participating in the scheme. The listed entity shall also disclose that policy.
The Company has one equity-based remuneration scheme in the form of a tax-exempt employee share plan. This is to recognise our employee
efforts by awarding up to $1,000 tax free shares. An employee becomes entitled to take part in the scheme after three years of full-time
employment. The shares are issued at the closing price on the ASX on the day any issue is formally approved by the board. No employee is
permitted to enter into any agreement which limits their economic risk on shares issued through this scheme.
26 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 26
Laserbond Ltd 2014 Annual Report | 27
Lachlan Nielson Partners
Audit and Assurance
Lachlan Nielson Partners Pty Limited
Lachlan Nielson Partners
ABN 65 155 188 837
Level 18, 201 Kent Street
Audit and Assurance
Sydney NSW 2000
Australia
Lachlan Nielson Partners Pty Limited
ABN 65 155 188 837
T +61 2 9291 2800
Level 18, 201 Kent Street
Sydney NSW 2000
Australia
INDEPENDENT AUDIT REPORT
TO THE MEMBERS OF LASERBOND LIMITED
T +61 2 9291 2800
In conducting our audit, we have complied with the independence requirements of the Corporations
Scope
INDEPENDENT AUDIT REPORT
TO THE MEMBERS OF LASERBOND LIMITED
Report on the Financial Report
Scope
We have audited the accompanying financial report of Laserbond Limited (“the company”)
comprising the consolidated statement of financial position as at 30 June 2014, the consolidated
Report on the Financial Report
statement of comprehensive income, consolidated statement of changes in equity, consolidated
statement of cash flows for the year ended, notes comprising a summary of significant accounting
We have audited the accompanying financial report of Laserbond Limited (“the company”)
policies and other explanatory notes and the directors’ declaration of the company and the
comprising the consolidated statement of financial position as at 30 June 2014, the consolidated
consolidated entity comprising the company and the entities it controlled at the year’s end or from
statement of comprehensive income, consolidated statement of changes in equity, consolidated
time to time during the financial year.
statement of cash flows for the year ended, notes comprising a summary of significant accounting
policies and other explanatory notes and the directors’ declaration of the company and the
Directors’ responsibility for the Financial Report
consolidated entity comprising the company and the entities it controlled at the year’s end or from
time to time during the financial year.
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
Directors’ responsibility for the Financial Report
2001 and for such relevant internal control as the directors determine is necessary to enable the
preparation of the financial report that is free from material misstatement, whether due to fraud or
The directors of the company are responsible for the preparation of the financial report that gives a
error. In Note 1 the directors also state, in accordance with Accounting Standard AASB 101;
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
Presentation of Financial Statements that the financial statements comply with the International
2001 and for such relevant internal control as the directors determine is necessary to enable the
Financial Reporting Standards.
preparation of the financial report that is free from material misstatement, whether due to fraud or
error. In Note 1 the directors also state, in accordance with Accounting Standard AASB 101;
Auditor’s Responsibility
Presentation of Financial Statements that the financial statements comply with the International
Financial Reporting Standards.
Our responsibility is to express an opinion on the financial report based on our audit. We have
conducted our audit in accordance with Australian Auditing Standards. These standards require
Auditor’s Responsibility
that we comply with relevant ethical requirements relating to audit engagements and plan and
perform the audit to obtain reasonable assurance whether the financial report is free from material
Our responsibility is to express an opinion on the financial report based on our audit. We have
misstatement.
conducted our audit in accordance with Australian Auditing Standards. These standards require
that we comply with relevant ethical requirements relating to audit engagements and plan and
An audit involves performing procedures to obtain audit evidence about the amounts and
perform the audit to obtain reasonable assurance whether the financial report is free from material
disclosures in the financial report. The procedures selected depend on the auditor’s judgement,
misstatement.
including the assessment of the risks of material misstatement of the financial report, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant
An audit involves performing procedures to obtain audit evidence about the amounts and
to the entity’s preparation and fair presentation of the financial report in order to design audit
disclosures in the financial report. The procedures selected depend on the auditor’s judgement,
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
including the assessment of the risks of material misstatement of the financial report, whether due
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluation the
to fraud or error. In making those risk assessments, the auditor considers internal control relevant
appropriateness of accounting policies used and the reasonableness of accounting estimates made
to the entity’s preparation and fair presentation of the financial report in order to design audit
by the directors, as well as evaluating the overall presentation of the financial report.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluation the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
appropriateness of accounting policies used and the reasonableness of accounting estimates made
for our audit opinion.
by the directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
MELBOURNE SYDNEY
Liability limited by a scheme approved under Professional Standards Legislation
28 | Laserbond Ltd 2014 Annual Report
MELBOURNE SYDNEY
Liability limited by a scheme approved under Professional Standards Legislation
Lachlan Nielson Partners
Audit and Assurance
Independence
Act 2001.
Audit Opinion
In our opinion,
including:
2001;
(a)
the financial report of Laserbond Limited is in accordance with the Corporations Act 2001,
(i) giving a true and fair view of the company’s and the consolidated entity’s financial
position as at 30 June 2014 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and with the Corporations Regulations
(b)
the consolidated financial report also complies with International Financial Reporting
Standards as disclosed in Note 1.
Report on Remuneration Report
We have audited the Remuneration Report included in page 17 of the directors’ report for the year
ended 30 June 2014. The Directors of the company are responsible for the preparation and
presentation of the Remuneration Report in accordance with s 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
Opinion
In our opinion the Remuneration Report of Laserbond Limited for the year ended 30 June 2014,
complies with s 300A of the Corporations Act 2001.
Lachlan Nielson Partners Pty Limited
Robert Nielson
Director
Sydney, 22 August 2014
Lachlan Nielson Partners
Audit and Assurance
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
Audit Opinion
In our opinion,
(a)
the financial report of Laserbond Limited is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the company’s and the consolidated entity’s financial
position as at 30 June 2014 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and with the Corporations Regulations
2001;
(b)
the consolidated financial report also complies with International Financial Reporting
Standards as disclosed in Note 1.
Report on Remuneration Report
We have audited the Remuneration Report included in page 17 of the directors’ report for the year
ended 30 June 2014. The Directors of the company are responsible for the preparation and
presentation of the Remuneration Report in accordance with s 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
Opinion
In our opinion the Remuneration Report of Laserbond Limited for the year ended 30 June 2014,
complies with s 300A of the Corporations Act 2001.
Lachlan Nielson Partners Pty Limited
Robert Nielson
Director
Sydney, 22 August 2014
Laserbond Ltd 2014 Annual Report | 29
The directors of the group declare that:
Consolidated Statement of Profits and Loss and Other Comprehensive Income
for the Year Ended 30th June 2014
Declaration by Directors
2014 Financial Report
1. The financial statements and notes, as set out on pages 31 to 56 are in accordance with the Corporations Act 2001
and:
a. Comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
b. Give a true and fair view of the financial position as at 30th June 2014 and of the performance for the financial
year ended on that date of the company and consolidated group.
2. In the directors’ opinion there are reasonable grounds to believe that the group will be able to pay its debts as and
when they become due and payable.
Note 1 confirms that the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The directors have been given the declarations by the chief executive officer and chief financial officer required by Section 295A
of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Director
Wayne Hooper
Director
Gregory Hooper
Dated this 22nd day of August 2014
740,812
(3,460,148)
Note
Revenue from continuing operations
2
Cost of Sales
Gross Profit from continuing operations
Other Income
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Rental & Rates Expenses
Administration Expenses
Repairs & Maintenance Expenses
Operating Lease Expenses
Borrowing Costs
Impairment of Goodwill
Research & Development Costs
Other Expenses
Profit / (Loss) before income tax expense
from continuing operations
Income tax expense
Profit / (Loss) from continuing
operations
Profit / (Loss) from discontinued
operations
3
4
4
5
6
Total comprehensive income for the period
Total comprehensive income / (loss) attributable to
members of LaserBond Limited
Earnings per share for profit from continuing operations attributable to members:
Earnings per share (cents)
Diluted earnings per share (cents)
Earnings per share for profit attributable to members:
Earnings per share (cents)
Diluted earnings per share (cents)
7
7
2014
2013
$
9,669,960
(4,823,352)
4,846,608
70,084
(42,067)
(427,998)
(1,246,831)
(625,387)
(926,377)
(148,135)
(173,230)
(146,878)
-
(46,497)
(67,531)
1,065,761
(324,949)
(102,663)
-
638,149
0.85
0.86
0.73
0.74
$
9,392,657
(4,986,133)
4,406,524
139,606
(39,939)
(335,241)
(1,322,122)
(637,574)
(1,162,051)
(84,333)
(200,194)
(122,766)
(3,598,927)
-
(390,860)
(3,347,877)
(112,271)
(862,555)
-
(4,322,703)
0.16
0.16
(5.07)
(5.02)
30 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 30
LaserBond Ltd 2014 Annual Report – Page 31
These Audited Financial Statements should be read in conjunction with the accompanying notes.
2014 Financial Report
Consolidated Statement of Profits and Loss and Other Comprehensive Income
for the Year Ended 30th June 2014
2014
2013
Note
Revenue from continuing operations
2
Cost of Sales
Gross Profit from continuing operations
Other Income
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Rental & Rates Expenses
Administration Expenses
Repairs & Maintenance Expenses
Operating Lease Expenses
Borrowing Costs
Impairment of Goodwill
Research & Development Costs
Other Expenses
Profit / (Loss) before income tax expense
from continuing operations
Income tax expense
Profit / (Loss) from continuing
operations
Profit / (Loss) from discontinued
operations
3
4
4
5
6
Total comprehensive income for the period
Total comprehensive income / (loss) attributable to
members of LaserBond Limited
Earnings per share for profit from continuing operations attributable to members:
Earnings per share (cents)
Diluted earnings per share (cents)
Earnings per share for profit attributable to members:
Earnings per share (cents)
Diluted earnings per share (cents)
7
7
0.85
0.86
0.73
0.74
These Audited Financial Statements should be read in conjunction with the accompanying notes.
$
9,669,960
(4,823,352)
4,846,608
70,084
(42,067)
(427,998)
(1,246,831)
(625,387)
(926,377)
(148,135)
(173,230)
(146,878)
-
(46,497)
(67,531)
1,065,761
(324,949)
$
9,392,657
(4,986,133)
4,406,524
139,606
(39,939)
(335,241)
(1,322,122)
(637,574)
(1,162,051)
(84,333)
(200,194)
(122,766)
(3,598,927)
-
(390,860)
(3,347,877)
(112,271)
740,812
(3,460,148)
(102,663)
-
638,149
(862,555)
-
(4,322,703)
0.16
0.16
(5.07)
(5.02)
LaserBond Ltd 2014 Annual Report – Page 31
Laserbond Ltd 2014 Annual Report | 31
Consolidated Statement of Financial Position
As at 30th June 2014
2014 Financial Report
2014
2013
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Deferred tax assets
Intangible assets
Assets Held for Sale
Prepayments
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Interest-bearing liabilities
Current tax liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Interest-bearing liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Retained earnings
TOTAL EQUITY
Note
8
9
10
11
13
12
14
15
17
16
18
16
17
19
20
$
2,559,454
2,652,188
1,141,587
6,353,229
2,120,993
220,368
212,798
40,000
-
2,594,159
8,947,388
756,361
540,253
407,225
100,199
1,804,038
837,166
42,901
880,067
2,684,105
6,263,283
5,818,453
444,830
6,263,283
$
1,989,096
2,915,320
1,497,765
6,402,181
2,675,967
549,786
18,294
-
500
3,244,547
9,646,728
1,387,640
564,872
518,420
-
2,470,932
1,279,252
48,851
1,328,103
3,799,035
5,847,693
5,701,090
146,603
5,847,693
These Audited Financial Statements should be read in conjunction with the accompanying notes.
LaserBond Ltd 2014 Annual Report – Page 32
32 | Laserbond Ltd 2014 Annual Report
Consolidated Statement of Cash Flows
for the Year Ended 30th June 2014
2014 Financial Report
2014
2013
Note
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income taxes paid
Net proceeds from discontinued operations
Net cash inflow from operating activities
26
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payment of development costs
Proceeds from sale of plant and equipment
Net cash inflow/(outflow) from investing
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for issue of Shares
Payments to lessors
Dividends paid
Net cash inflow/(outflow) from financing activities
NET INCREASE/(DECREASE) IN CASH HELD
Net cash at beginning of period
NET CASH AT END OF PERIOD 8
10,063,124
(8,868,534)
(146,878)
44,734
202,743
(200,738)
1,094,451
(333,093)
(204,823)
902,044
364,128
(7,768)
(652,355)
(228,098)
(888,221)
570,358
1,989,096
2,559,454
14,265,503
(13,786,764)
(182,426)
97,810
(281,477)
-
112,646
(1,272,545)
-
35,000
(1,237,545)
(10,500)
485,551
(144,005)
331,046
(793,853)
2,782,949
1,989,096
These Audited Financial Statements should be read in conjunction with the accompanying notes.
LaserBond Ltd 2014 Annual Report – Page 33
Laserbond Ltd 2014 Annual Report | 33
2014 Financial Report
Consolidated Statement of Changes in Equity
for the Year Ended 30th June 2014
Issued capital
$
Retained earnings
$
Total equity
$
Opening Balance at 1st July 2012
5,410,011
4,815,015
10,225,026
Profit / (Loss) for the Period
-
(4,322,703)
(4,322,703)
Issue of Share Capital
291,079
-
291,079
Dividends paid during period
-
(345,709)
(345,709)
Closing Balance at 30th June 2013
5,701,090
146,603
5,847,693
Profit / (Loss) for the Period
Issue of Share Capital
Dividends Paid during period
-
117,363
638,149
-
638,149
117,363
-
(339,922)
(339,922)
Closing Balance at 30th June 2014
5,818,453
444,830
6,263,283
These Audited Financial Statements should be read in conjunction with the accompanying notes.
34 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 34
2014 Financial Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report of LaserBond Limited for the year ended 30 June 2014 was authorised for issue in accordance with a
resolution of the directors on 22nd August 2014 as required by the Corporations Act 2001.
This financial report includes the consolidated financial statements and notes of LaserBond Limited and controlled entities.
LaserBond Limited and its subsidiaries are together referred to in this financial report as the group or consolidated entity.
LaserBond Limited is a company limited by shares, incorporated and domiciled in Australia.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. LaserBond Limited is a
for-profit entity for the purpose of preparing financial statements.
The consolidated financial statements of the LaserBond Ltd group also comply with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The financial report has also been prepared on an accruals basis and is based on historical cost.
None of the new standards and amendments to standards that are mandatory for the first time for the financial year
beginning 1 July 2013 affected any of the amounts recognised in the current period or any prior period and are not likely to
affect future periods.
a) Comparative Information
Where necessary, comparative amounts have been reclassified and repositioned for consistency with current year
accounting policy and disclosures. Further details on the nature and reason for the amounts that have been reclassified and
repositioned for consistency with current year accounting policy and disclosures, where considered material, are referred to
separately in the financial statements or notes thereto.
b) Principles of Consolidation
The consolidated financial report is prepared by combining the financial statements of all the entities that comprise the
consolidated entity, being LaserBond Limited (the parent entity) and its subsidiaries as defined in Accounting Standard AASB
127 – Consolidated and Separate Financial Statements. Consistent accounting policies are employed in the preparation and
presentation of the consolidated financial statements. On acquisition, the assets, liabilities and contingent liabilities of a
subsidiary are measured at fair value at the date of acquisition. Any excess of the cost of acquisition over the fair value of the
identifiable net assets acquired is recognised as goodwill. If the cost of acquisition is less than the Group’s share of the fair
value of the identifiable net assets of the subsidiary acquired, the difference is recognised directly in the income statement,
but only after a reassessment of the identification and measurement of the net assets acquired.
The consolidated financial report includes the information and results of each subsidiary from the date on which the group
obtains control and until such time as the group ceases to control such entity. In preparing the consolidated financial report,
all intercompany balances and transactions, and unrealised profits arising within the consolidated entity are eliminated in full.
c) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
makers. The chief operating decision makers, who are responsible for allocating resources and assessing performance of the
operating segments, have been identified as the executive directors.
d) Foreign Currency Translation
The functional and presentation currency of the group is Australian dollars.
Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling
at the balance sheet date. Foreign exchange gains and losses resulting from settling foreign currency transactions, as well as
from restating foreign currency denominated monetary assets and liabilities, are recognised in the income statement, except
for differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when
fair value was determined.
LaserBond Ltd 2014 Annual Report – Page 35
Laserbond Ltd 2014 Annual Report | 35
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2014 Financial Report
2014 Financial Report
e) Revenue Recognition
Revenue is recognised in the following manner:
Sale of Goods and Services
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks
and rewards of ownership of the goods and the cessation of all involvement in those goods.
Interest
Revenue from interest is recognised on the date the interest is received as shown on bank statements. Where revenue from
interest is receivable but not shown on bank statements the interest is recognised on an accrual basis.
Other Income
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
Revenue from other income streams are recognised at the date of receipt of the income.
f) Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the
national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction does not affect either accounting or taxable profit or loss. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets
are recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction.
Exceptions are made for certain temporary differences arising on initial recognition of an asset or a liability if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or
taxable profit.
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
j) Impairment of Assets
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and
settle the liability simultaneously
Current and deferred tax balances relating to amounts recognised directly in equity are also recognised directly in equity.
g) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment. Trade receivables are generally due for settlement within 30 days from end of
month. They are presented as current assets unless collection is not expected for more than 12 months after the reporting
date.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off
by reducing the carrying amount directly. An allowance accounts (provision for impairment of trade receivables) is used when
there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the
receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial
reorganisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The
amount of the impairment allowance is the difference between the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short term receivables are
not discounted if the effect of discounting is immaterial.
The amount of the impairment loss is recognised in profit or loss within administration expenses. When a trade receivable for
which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against
the allowance account. Subsequent recoveries of amounts previously written off are credited against other income in profit or
Raw materials, finished goods and work in progress are stated at the lower of cost and net realisable value. Cost of work in
progress comprises direct materials, direct labour and any external sub-contract costs. Net realisable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to
loss.
h) Inventories
make the sale.
i) Property, Plant and Equipment
depreciation and impairment losses.
Plant and equipment
Plant and Equipment are measured on the cost basis less depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the asset’s employment and subsequent disposal. An asset’s carrying amount is written down immediately to
its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Depreciation on property, plant and equipment is calculated on a reducing balance basis using the following rates:
Depreciation
- Plant and equipment 4.5% - 65%
- Motor Vehicles 18.75% - 30%
- Research & Development Equipment 20% - 40%
If an asset’s value is adjusted to meet any deemed recoverable amount, the difference is accounted for in the Asset
Revaluation Reserve account on the Balance Sheet. All other gains and losses are included in the Income Statement
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-
financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
Intangible assets with indefinite life are assessed for impairment annually.
k) Leases
Leases of plant and equipment, where the group as lessee has substantially all the risks and rewards of ownership, are
classified as hire purchase liabilities. Hire purchase assets are capitalised at their inception at the fair value of the leased
equipment or, if lower, the present value of the minimum lease payments. Each lease payment is allocated between the
liability and finance cost. The finance cost is charged to the income statement over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period. The equipment acquired under hire
purchase agreements is depreciated over the shorter of the asset’s useful life and the lease term.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the group as lessee are
classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-
line basis over the period of the lease.
36 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 36
LaserBond Ltd 2014 Annual Report – Page 37
2014 Financial Report
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The amount of the impairment loss is recognised in profit or loss within administration expenses. When a trade receivable for
which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against
the allowance account. Subsequent recoveries of amounts previously written off are credited against other income in profit or
loss.
h) Inventories
Raw materials, finished goods and work in progress are stated at the lower of cost and net realisable value. Cost of work in
progress comprises direct materials, direct labour and any external sub-contract costs. Net realisable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to
make the sale.
i) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and impairment losses.
Plant and equipment
Plant and Equipment are measured on the cost basis less depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the asset’s employment and subsequent disposal. An asset’s carrying amount is written down immediately to
its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Depreciation
Depreciation on property, plant and equipment is calculated on a reducing balance basis using the following rates:
- Plant and equipment 4.5% - 65%
- Motor Vehicles 18.75% - 30%
- Research & Development Equipment 20% - 40%
If an asset’s value is adjusted to meet any deemed recoverable amount, the difference is accounted for in the Asset
Revaluation Reserve account on the Balance Sheet. All other gains and losses are included in the Income Statement
j) Impairment of Assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-
financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
Intangible assets with indefinite life are assessed for impairment annually.
k) Leases
Leases of plant and equipment, where the group as lessee has substantially all the risks and rewards of ownership, are
classified as hire purchase liabilities. Hire purchase assets are capitalised at their inception at the fair value of the leased
equipment or, if lower, the present value of the minimum lease payments. Each lease payment is allocated between the
liability and finance cost. The finance cost is charged to the income statement over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period. The equipment acquired under hire
purchase agreements is depreciated over the shorter of the asset’s useful life and the lease term.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the group as lessee are
classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-
line basis over the period of the lease.
LaserBond Ltd 2014 Annual Report – Page 37
Laserbond Ltd 2014 Annual Report | 37
2014 Financial Report
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
l) Financial Instruments
Classification
The group classifies its investments in the following categories: financial assets at fair value through profit or loss, and loans
and receivables. The classification depends on the purpose for which the investments were acquired. Management
determines the classification of its investments at initial recognition
(i)
Financial assets at fair value through profit and loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this
category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless
they are designated as hedges. Assets in this category are classified as current assets.
(ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are included in current assets, except for those with maturities greater than 12 months after the balance
sheet date which are classified as non-current assets. Loans and receivables are included in trade and other receivables in
the balance sheet
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the
instrument. For financial assets, this is equivalent to the date that the group commits itself to either the purchase or sale of
the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified “at
fair value through profit or loss”, in which case transaction costs are expensed to profit or loss immediately.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to
another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated
with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The
difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of
consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
Subsequent Measurement
Loans and receivables are carried at amortised cost using the effective interest method or cost.
Financial assets at fair value through profit and loss are subsequently carried at fair value. Gains or losses arising from
changes in the fair value of the 'financial assets at fair value through profit or loss' category are presented in the statement of
comprehensive income within other income or other expenses in the period in which they arise.
Impairment
The group assesses at each balance date whether there is objective evidence that a financial asset or group of financial
assets is impaired. Impairment loss recognised as profit or loss.
m) Intangibles
Research and development
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the
design and testing of new or improved products) have a finite life and are recognised as intangible assets when it is probable
that the project will, after considering its commercial and technical feasibility, be completed and generate future economic
benefits and its costs can be measured reliably.
38 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 38
2014 Financial Report
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The expenditure capitalised comprises all directly attributable costs, including costs of material, services, direct labour and an
appropriate proportion of overheads. Other development expenditures that do not meet these criteria are recognised as an
expense as incurred.
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Capitalised
development costs are recorded as intangible assets and amortised from the point at which the asset is ready for us.
n) Non-current Assets Held for Sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of
their carrying amount and fair value less costs to sell.
An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is
recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative
impairment loss previously recognised, A gain or loss not previously recognised by the date of the sale of the non-current
asset is recognised at the date of de-recognition.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Non-current assets classified
as held for sale are presented separately from the other assets in the balance sheet.
o) Cash and Cash Equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.
p) Trade and Other Payables
Trade and other payables represent liabilities for goods and services provided to the group prior to the year end and which
are unpaid. These amounts are unsecured and are usually paid within 30 to 60 days of recognition. They are recognised as
current liabilities unless payment is not due within 12 months from the reporting date.
q) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
the income statement over the period of the borrowings using the effective interest method.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
other income or other expenses.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for
at least 12 months after the balance sheet date.
Borrowing costs are recognised as expenses as they are incurred.
r) Issued Capital
Ordinary shares are classified as equity. Mandatorily redeemable preference shares (if any) are classified as liabilities.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
s) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or
as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the Australian Taxation Office is included with other receivables or payables in the balance
sheet.
LaserBond Ltd 2014 Annual Report – Page 39
Laserbond Ltd 2014 Annual Report | 39
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
2014 Financial Report
t) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave long service leave expected to be settled
within 12 months after the end of the period in which the employees render the related service are recognised in respect of
employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liability for annual leave and long service leave is recognised in the provision for employee benefits.
All other short-term employee benefit obligations are presented as payables.
(ii) Other long-term employee benefit obligations
The liability for long service leave which is not expected to be settled within 12 months after the end of the period in which
employees render the related service is recognised in the provision for employee benefits and measured as the present value
of expected future payments to be made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to
defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to
occur.
(iii) Sick Leave
Liabilities for sick leave are accrued however no provisions are made as sick leave entitlements are not payable to an
employee upon termination.
(iv) Share-based payments
Share-based compensation benefits are provided to employees via an employee share scheme. Information relating to this
scheme is set out in the accompanying notes to the financial statements. The fair value of options granted under the
employee share scheme is recognised as an employee benefits expense with a corresponding increase in equity. The total
amount to be expensed is determined by reference to the fair value of the shares granted, including the impact of any vesting
conditions.
Vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is
recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At
the end of each period, the entity revises its estimates of the numbers of shares that are expected to vest based on the
vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding
adjustment to equity.
(v) Termination Benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee
accepts voluntary redundancy in exchange for those benefits. The group recognises termination benefits when it is
demonstrably committed to either terminating the employment of current employees according to a detailed formal plan
without possibility of withdrawal or to providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
u) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of
the entity, on or before the end of the financial year but not distributed at balance date.
v) Earnings per share
(i) Basic Earnings per share
Basic earnings per share is calculated by dividing:
-
-
The profit attributable to members of the group, excluding any costs of servicing equity other than ordinary shares.
By the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year.
LaserBond Ltd 2014 Annual Report – Page 40
40 | Laserbond Ltd 2014 Annual Report
2014 Financial Report
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(ii) Diluted Earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
-
-
The after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares;
and
The weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
w) Government Grants
Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all
grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match
the grant to the costs they are compensating. Government grants relating to assets are initially taken to deferred income and
then offset against the carrying amount of the asset when construction of the asset has been completed.
x) Critical Accounting Estimates and Judgements
Estimates and judgements are continually estimated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the
circumstances.
y) Changes in Accounting Policies
The accounting policies and methods of computation adopted in the preparation of this financial report are consistent with
those adopted and disclosed in the group’s 2014 annual financial report for the financial year ended 30 June 2013. These
accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting
Standards.
z) Impact of Standards Issued but not yet applied by the Entity
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2014
reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new
standards and interpretations is set out below.
(i) AASB 9 Financial Instruments
AASB 9: Financial Instruments addresses the classification, measurement and de-recognition of financial assets and financial
liabilities. The standard is not applicable until 1 January 2015 but is available for early adoption. When adopted, the standard
will affect in particular the group’s accounting for its available for sale financial assets, since AASB 9 only permits the
recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held
for trading. Fair value gains and losses on available-for-sale debt investments, for example, will therefore have to be
recognised directly in profit or loss. In the current reporting period, the group recognised no such gains in other
comprehensive income.
There will be no impact on the group’s accounting for financial liabilities, as the new requirements only affect the accounting
for financial liabilities that are designated at fair value through profit or loss and the group does not have any such liabilities.
The de-recognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and
have not been changed. The group has not yet decided when to adopt AASB 9.
(ii) AASB 2013-3: Amendments to AASB 136 – Recoverable Amount Disclosures for Non-financial Assets (applicable for
reporting periods commencing on or after 1 January 2014.
This Standard amends the disclosure requirement in AASB 136: Impairment of Assets pertaining to the use of fair value in
impairment assessment and is not expected to significantly impact the group’s financial statements.
aa) Parent entity financial information
The financial information for the parent entity, LaserBond Ltd, disclosed in the accompanying notes has been prepared on
the same basis as the consolidated financial statements except as set out below.
LaserBond Ltd 2014 Annual Report – Page 41
Laserbond Ltd 2014 Annual Report | 41
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 4: EXPENSES (from continuing operations)
(i) Investments in subsidiaries, associates and joint venture entities
Profit / (Loss) before Income Tax from continuing operations includes the following specific expenses
2014 Financial Report
2014 Financial Report
Investments in subsidiaries, associates and joint venture entities are accounted for at costs in the financial statements of
LaserBond Ltd. Dividends received from associates are recognised in the parent entity’s profit or loss when its right to receive
the dividend is established.
(ii) Tax consolidation legislation
LaserBond Ltd and it wholly owned Australian controlled entities have implemented the tax consolidation legislation.
The head entity, LaserBond Ltd, and the controlled entities in the tax consolidated group account for their current and
deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a
standalone tax payer in its own right.
In addition to its own current and deferred tax amounts, LaserBond Ltd also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controller entities in the
consolidated group.
The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate
LaserBond Ltd for any current tax payable assumed and are compensated by LaserBond Ltd for any current tax receivable or
deferred tax assets relating to unused tax losses or unused tax credits that are transferred to LaserBond Ltd under the tax
consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned
entities’ financial statements.
The amounts receivable / payable under the tax funding agreement are due upon receipt of the funding advice from the head
entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment
of interim funding amounts to assist with its obligations to pay tax instalments.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts
receivable from or payable to other entities in the group.
NOTE 5: INCOME TAX (from continuing operations)
Reconciliation of Income Tax Expense from continuing operations
Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are
recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.
Profit / (Loss) before Income Tax expense
(iii) Financial guarantees
Where the parent entity has provided financial guarantees in relation to loans and payables of subsidiaries for no
compensation, the fair values of these guarantees are accounted for as contributions and recognised as part of the cost of
the investment.
(iv) Share-based payments
The grant by the group of options over its equity instruments to the employees of subsidiary undertakings in the group is
treated as a capital contribution to that subsidiary undertaking. The fair value of the employee services received, measured
by reference to the grant date fair value, is recognised over the vesting period as an increase to investment in subsidiary
undertakings, with a corresponding credit to equity.
NOTE 2: REVENUE (from continuing operations)
2014
$
2013
$
Sales Revenue
Sales of Goods & Services
NOTE 3: OTHER INCOME (from continuing operations)
Interest Revenue
Other
9,669,960
9,392,657
a) Financial Performance & Cash Flow Information
2014
44,734
25,350
70,084
97,811
41,795
139,606
(Loss) Before Income Tax
Income Tax Expense
(200,738)
(1,293,089)
(Loss) after income tax of discontinued operation
42 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 42
LaserBond Ltd 2014 Annual Report – Page 43
- Audit Services – audit and review of Financial Reports
53,670
43,700
Borrowing Costs:
Interest Paid
Depreciation & Amortisation:
- Plant & Equipment
- Fixtures & Fittings
- Office Equipment
- R&D Equipment
- Motor Vehicles
- Leasehold Improvements
- Intangible Assets
Rental Expenses relating to Operating Leases
- Minimum Lease Payments
Auditors Remuneration
a) Lachlan Nielson Partners Pty Ltd
Prima Facie Tax at the Australian tax rate of 30% (2013:
30%)
Less Deferred Tax Asset adjustments for employee
entitlements and expense provisions
Less R&D Tax Concession
Less non-deductible expense
Total Income Tax Expense:
Less Adjustment to Prior Year Income Tax Provisions
NOTE 6: DISCONTINUED OPERATIONS
other means.
Revenue
Expenses
2014
$
146,878
331,864
29,714
6,109
655
40,743
8,674
10,239
427,998
173,230
1,065,761
319,728
36,520
(48,080)
-
16,781
324,949
$
1,243,829
(1,444,567)
98,075
(102,663)
2013
$
122,766
267,937
1,016
22,515
464
33,110
24
10,175
335,241
200,194
(3,347,877)
(1,004,363)
36,956
1,079,678
-
-
112,271
2013
$
4,281,190
(5,574,279)
430,534
(862,555)
Discontinued operations relates to the Gladstone, Queensland subsidiary, Peachey’s Engineering Pty Ltd. Trading
formally ceased in October 2013 after the signing of an Asset Sale Agreement for part of the assets. Since cessation of
operations all remaining assets were incorporated into the New South Wales and South Australian operations or sold by
NOTE 4: EXPENSES (from continuing operations)
Profit / (Loss) before Income Tax from continuing operations includes the following specific expenses
2014 Financial Report
Borrowing Costs:
Interest Paid
Depreciation & Amortisation:
- Plant & Equipment
- Fixtures & Fittings
- Office Equipment
- R&D Equipment
- Motor Vehicles
- Leasehold Improvements
- Intangible Assets
Rental Expenses relating to Operating Leases
- Minimum Lease Payments
Auditors Remuneration
a) Lachlan Nielson Partners Pty Ltd
- Audit Services – audit and review of Financial Reports
NOTE 5: INCOME TAX (from continuing operations)
Reconciliation of Income Tax Expense from continuing operations
Profit / (Loss) before Income Tax expense
Prima Facie Tax at the Australian tax rate of 30% (2013:
30%)
Less Deferred Tax Asset adjustments for employee
entitlements and expense provisions
Less R&D Tax Concession
Less non-deductible expense
Less Adjustment to Prior Year Income Tax Provisions
Total Income Tax Expense:
NOTE 6: DISCONTINUED OPERATIONS
2014
$
146,878
331,864
29,714
6,109
655
40,743
8,674
10,239
427,998
173,230
2013
$
122,766
267,937
1,016
22,515
464
33,110
24
10,175
335,241
200,194
53,670
43,700
1,065,761
319,728
36,520
(48,080)
-
16,781
324,949
(3,347,877)
(1,004,363)
36,956
-
1,079,678
-
112,271
Discontinued operations relates to the Gladstone, Queensland subsidiary, Peachey’s Engineering Pty Ltd. Trading
formally ceased in October 2013 after the signing of an Asset Sale Agreement for part of the assets. Since cessation of
operations all remaining assets were incorporated into the New South Wales and South Australian operations or sold by
other means.
a) Financial Performance & Cash Flow Information
2014
Revenue
Expenses
(Loss) Before Income Tax
Income Tax Expense
(Loss) after income tax of discontinued operation
$
1,243,829
(1,444,567)
2013
$
4,281,190
(5,574,279)
(200,738)
(1,293,089)
98,075
(102,663)
430,534
(862,555)
LaserBond Ltd 2014 Annual Report – Page 43
Laserbond Ltd 2014 Annual Report | 43
2014 Financial Report
2014 Financial Report
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
2014
$
284,369
852,345
Net cash provided by (used in) financing activities
(1,202,461)
2013
$
(939,335)
(14,115)
781,689
Net increase (decrease) in cash
(65,747)
(171,761)
b) Carrying Amounts of Assets & Liabilities
As at 30 June 2014 the discontinued operations has no carrying amounts of assets or liabilities
c) Earnings per Share from Discontinued Operations
Basic earnings per share (cents)
2014
2013
(0.12)
(1.05)
Diluted earnings per share (cents)
(0.12)
(1.06)
NOTE 7: EARNINGS PER SHARE
Basic earnings per share (cents)
Diluted earnings per share (cents)
There are no current options to affect diluted earnings per share.
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2013
Shares issued as at 21st October 2013
Shares issued as at 27th February 2014
Shares issued as at 10th April 2014
Closing Balance as at 30th June 2014
0.73
(5.07)
0.74
(5.02)
No. of
Shares
Weighted
No.
86,090,776
484,964
86,090,776
334,824
133,083
688,534
44,847
152,798
87,397,357
86,623,245
NOTE 8: CASH AND CASH EQUIVALENTS
2014
2013
Cash on Hand
Cash at Bank
NOTE 9: TRADE AND OTHER RECEIVABLES
Trade Receivables
Provision – Impairment of Receivables
Loans – Key Management Personnel
Loans – Employees
Prepayments
Other Receivables
44 | Laserbond Ltd 2014 Annual Report
$
1,200
2,558,254
2,559,454
2,395,245
(16,337)
50,174
5,357
213,176
4,573
2,652,188
$
1,700
1,987,396
1,989,096
2,755,062
(25,132)
50,174
662
117,289
17,265
2,915,320
LaserBond Ltd 2014 Annual Report – Page 44
LaserBond Ltd 2014 Annual Report – Page 45
a) Movements in the provision for impairment of receivables
2014
2013
Opening Balance
Provision for impairment recognised during the year
Receivables written off during the year as uncollectable
Previously impaired receivables collected during the year
$
25,132
14,945
(6,345)
(17,395)
16,337
The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties.
The balances of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high
credit quality.
Gross
Amount
$000
Past due and
impaired
$000
2014
Trade and term
receivables
Other receivables
2013
Trade and term
receivables
Other receivables
2,395
273
2,668
2,755
185
2,940
NOTE 10: INVENTORIES
Stock on Hand – Raw Materials
Stock on Hand – Finished Goods
Work in Progress
NOTE 11: PROPERTY, PLANT & EQUIPMENT
Plant & Equipment, Office Equipment, etc
At Cost
Less Accumulated Depreciation
Motor Vehicles
At Cost
Less Accumulated Depreciation
Research & Development Equipment
At Cost
Less Accumulated Depreciation
Past due but not impaired
(days overdue)
<30
$000
1,019
273
1,292
1,143
185
1,328
16
-
16
25
-
25
31-60
$000
61-90
$000
>90
$000
765
553
-
-
765
553
42
-
42
913
529
145
-
-
-
913
529
145
2014
2013
$
465,359
456,386
219,842
1,141,587
2014
$
3,513,524
(1,466,907)
2,044,617
258,876
(186,836)
72,040
28,187
(23,851)
4,336
$
-
-
-
25,132
25,132
Within
initial
trade
terms
$000
1,784
185
1,969
2,056
185
2,241
$
578,484
592,452
326,829
1,497,765
2013
$
4,028,820
(1,479,134)
2,549,686
297,555
(172,105)
125,450
24,027
(23,196)
831
TOTAL PLANT & EQUIPMENT
2,120,993
2,675,967
2014 Financial Report
a) Movements in the provision for impairment of receivables
2014
2013
Opening Balance
Provision for impairment recognised during the year
Receivables written off during the year as uncollectable
Previously impaired receivables collected during the year
$
25,132
14,945
(6,345)
(17,395)
16,337
$
-
25,132
-
-
25,132
The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties.
The balances of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high
credit quality.
2014
Trade and term
receivables
Other receivables
2013
Trade and term
receivables
Other receivables
Gross
Amount
$000
Past due and
impaired
$000
2,395
273
2,668
2,755
185
2,940
16
-
16
25
-
25
NOTE 10: INVENTORIES
Stock on Hand – Raw Materials
Stock on Hand – Finished Goods
Work in Progress
NOTE 11: PROPERTY, PLANT & EQUIPMENT
Plant & Equipment, Office Equipment, etc
At Cost
Less Accumulated Depreciation
Motor Vehicles
At Cost
Less Accumulated Depreciation
Research & Development Equipment
At Cost
Less Accumulated Depreciation
Past due but not impaired
(days overdue)
<30
$000
1,019
273
1,292
1,143
185
1,328
31-60
$000
61-90
$000
>90
$000
553
-
553
529
-
529
42
-
42
145
-
145
2013
765
-
765
913
-
913
$
2014
Within
initial
trade
terms
$000
1,784
185
1,969
2,056
185
2,241
$
465,359
456,386
219,842
1,141,587
2014
$
3,513,524
(1,466,907)
2,044,617
258,876
(186,836)
72,040
28,187
(23,851)
4,336
578,484
592,452
326,829
1,497,765
2013
$
4,028,820
(1,479,134)
2,549,686
297,555
(172,105)
125,450
24,027
(23,196)
831
TOTAL PLANT & EQUIPMENT
2,120,993
2,675,967
LaserBond Ltd 2014 Annual Report – Page 45
Laserbond Ltd 2014 Annual Report | 45
(a) Movements in Carrying Amounts
2014 Financial Report
Plant &
Equipment,
Office
Equipment, etc
Motor
Vehicles
Research &
Development
Equipment
Total
2014 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
$
2,549,686
441,722
(519,522)
(427,269)
$
125,450
-
(20,000)
(33,410)
$
831
4,160
-
(655)
$
2,675,967
445,882
(539,522)
(461,334)
Carrying Amount at the end of the year
2,044,617
72,040
4,336
2,120,993
2013 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
$
1,653,531
1,165,318
(35,000)
(234,163)
$
149,763
16,685
(80)
(40,918)
$
1,296
-
-
(465)
$
1,804,590
1,182,003
(35,080)
(275,546)
Carrying Amount at the end of the year
2,549,686
125,450
831
2,675,967
(b) Asset Additions financed
The above values for asset additions include some assets purchased utilising finance leases or hire purchase agreements.
The values of these are:
Financed assets
NOTE 12: INTANGIBLES
2014 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Net Book Amount at 30th June 2014
2013 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Net Book Amount at 30th June 2013
2014
112,789
Goodwill
2013
788,199
Patents and
Trademarks
$
-
-
-
-
-
-
$
3,598,927
-
-
(3,598,927)
-
-
$
8,134
-
-
-
(610)
7,524
$
8,794
-
-
-
(660)
8,134
Other
Intangible
Assets
$
10,160
204,882
-
-
(9,768)
205,274
$
3,293
16,522
-
-
(9,655)
10,160
Total
$
18,294
204,882
-
-
(10,378)
212,798
$
3,611,014
16,522
-
(3,598,927)
(10,315)
18,294
Amortisation charges are included in depreciation and amortisation in the statement of profits and loss.
46 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 46
NOTE 13: DEFERRED TAX ASSETS
Deferred tax assets comprise temporary differences attributable to:
Employee Benefits
Expense Accruals
PAYG Instalment
Deferred tax assets expected to be recovered within 12
months
Deferred tax assets expected to be recovered after more
than 12 months
2014 Financial Report
2014
$
174,946
45,422
-
220,368
103,737
116,631
220,368
2013
$
184,418
47,105
318,263
549,786
426,840
122,946
549,786
At July 2012
(Charged) / credited
- to profit or loss
- directly to equity
At June 2013
(Charged) / credited
- to profit or loss
- directly to equity
At June 2014
Employee
Benefits
Expense
Accruals
PAYG
Instalments
Total
181,431
-
2,987
184,418
-
(9,472)
174,946
55,743
-
(8,638)
47,105
-
(1,683)
45,422
-
318,263
-
318,263
(318,263)
-
-
237,174
318,263
(5,651)
549,786
(318,263)
(11,155)
220,368
NOTE 14: ASSETS HELD FOR SALE
2014
2013
Assets Held for Sale
$
40,000
$
-
The asset held for sale relates to a final asset from our Gladstone, Queensland operations unsold upon closure. The
company had two facilities in Gladstone which included overhead cranes owned by LaserBond (two at each site). The
overhead cranes at the Blain Drive site were sold to the lessor however the overhead cranes at the George Mamalis Place
site were unable to be sold at the time. These two cranes were transferred to our NSW division for sale. Prior to 30 June
14 one crane was sold for $46,500. The $40,000 balance for assets held for sale represents the final overhead crane
expected to be sold during FY2015.
NOTE 15: TRADE AND OTHER PAYABLES
Trade Payables
BAS Statement (GST & PAYG Withheld)
Payroll Tax
Fringe Benefits Tax
Superannuation
Dividends Payable
Accrued Expenses
NOTE 16: BORROWINGS
CURRENT
Hire Purchase Liabilities (Secured)
NON-CURRENT
Hire Purchase Liabilities (Secured)
2014
$
485,290
108,399
17,847
3,600
54,616
10,152
76,457
756,361
2013
$
794,427
364,140
33,888
18,280
99,940
9,684
67,281
1,387,640
407,225
518,420
837,166
1,244,391
1,279,252
1,797,672
LaserBond Ltd 2014 Annual Report – Page 47
Laserbond Ltd 2014 Annual Report | 47
2014 Financial Report
2014 Financial Report
NOTE 17 : PROVISIONS
CURRENT
Employee Benefits
NON-CURRENT
Employee Benefits
2014
$
540,253
42,901
583,154
2013
$
564,872
48,851
613,723
The current provision for employee benefits includes accrued annual leave and long service leave. For long service leave
it covers all unconditional entitlements where employees have completed the required period of service and also those
where employees are entitled to pro-rata payments in certain circumstances. This entire amount is presented as current,
since the group does not have an unconditional right to defer settlement for any of these obligations. However, based on
past experiences, the group does not expect all employees to take the full amount of accrued leave or require payment
within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12
months:
Leave obligations expected to be settled after 12 months
404,242
425,432
NOTE 18: TAX LIABILITIES
CURRENT
Income Tax
NOTE 19: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Existing Shares
Issued Shares
(a) Ordinary Shares
Date
Details
100,199
-
Balance 1 July
Dividends
Profit / (Loss) before Tax
Income Tax
5,818,453
5,701,090
2014
Shares
86,090,776
1,306,581
2014
2013
2013
$
Shares
$
5,701,090
117,363
84,059,543
2,031,233
5,410,011
291,079
87,397,357
5,818,453
86,090,776
5,701,090
1st July 2012
6th July 2012
12th October 2012
19th February 2013
26th April 2013
30th June 2013
21st October 2013
27th February 2014
10th April 2014
30th June 2014
Opening Balance
Conversion of Convertible Notes
Dividend Reinvestment Plan
Employee Share Plan
Dividend Reinvestment Plan
Closing Balance
Dividend Reinvestment Plan
Employee Share Plan
Dividend Reinvestment Plan
Closing Balance
(b) Capital Risk Management
No. Shares
84,059,543
666,667
571,451
55,050
738,065
86,090,776
484,964
133,083
688,534
87,397,357
Issue Price
(Cents per
Share)
15.0
16.77
15.5
13.3
10.99
9.50
9.74
$
94,000
94,331
6,090
96,658
291,079
50,760
6,575
60,028
117,363
Management effectively manages the group’s capital by assessing the group’s financial risks and adjusting its financial
structure in response to those risks. These responses include the management of debt levels and distributions to
shareholders. The group has no borrowings and no externally imposed capital requirements. In order to maintain or adjust
the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders,
issue new shares or sell assets to reduce debt.
48 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 48
LaserBond Ltd 2014 Annual Report – Page 49
(c) Ordinary Shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the group in proportion to
the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the group does not have a limited amount of authorised capital.
(d) Dividend Reinvestment Plan
The group has established a dividend reinvestment plan under which holders of ordinary shares may elect to have all or
part of their dividend entitlements satisfied by the issue of new ordinary shares rather than by being paid in cash. Shares
are issued under the plan at a 5% discount to the market price.
(e) Employee Share Plan
Information relating to the employee share scheme is set out in note 28.
NOTE 20 : RETAINED EARNINGS
2014
2013
$
146,603
(339,922)
865,023
(226,874)
444,830
494,713
940,230
1,434,943
(190,552)
$
4,815,015
(340,059)
(4,640,966)
312,613
146,603
518,420
1,279,252
1,797,672
(199,299)
141,873
346,475
488,348
328,693
531,452
860,145
NOTE 21 : CAPITAL AND LEASING COMMITMENTS
(a) Hire Purchase / Finance Lease Commitments
Payable:
Within one (1) year
Later than one (1) year but not later than five (5) years
Minimum Hire Purchase / Finance Lease payments:
Less future finance charges
(b) Operating Lease Commitments
Payable:
Within one (1) year
Later than one (1) year but not later than five (5) years
(c) Property Lease
The group has the following property leases:
Total Hire Purchase / Finance Lease Liability
1,244,391
1,598,373
The group’s Hire Purchase and Finance Lease commitments are in relation to Plant & Equipment and Motor Vehicles
essential to the operations of the business. These are under agreements expiring within 1 to 5 years. Under the Terms of
Agreements, the group has the option to acquire the financed assets by payment of the final instalment. This option lapses
in the event of a default to the agreed Terms and Conditions to the agreements.
2014 Financial Report
(c) Ordinary Shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the group in proportion to
the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the group does not have a limited amount of authorised capital.
(d) Dividend Reinvestment Plan
The group has established a dividend reinvestment plan under which holders of ordinary shares may elect to have all or
part of their dividend entitlements satisfied by the issue of new ordinary shares rather than by being paid in cash. Shares
are issued under the plan at a 5% discount to the market price.
(e) Employee Share Plan
Information relating to the employee share scheme is set out in note 28.
NOTE 20 : RETAINED EARNINGS
2014
2013
Balance 1 July
Dividends
Profit / (Loss) before Tax
Income Tax
NOTE 21 : CAPITAL AND LEASING COMMITMENTS
(a) Hire Purchase / Finance Lease Commitments
Payable:
Within one (1) year
Later than one (1) year but not later than five (5) years
Minimum Hire Purchase / Finance Lease payments:
Less future finance charges
$
146,603
(339,922)
865,023
(226,874)
444,830
494,713
940,230
1,434,943
(190,552)
$
4,815,015
(340,059)
(4,640,966)
312,613
146,603
518,420
1,279,252
1,797,672
(199,299)
Total Hire Purchase / Finance Lease Liability
1,244,391
1,598,373
The group’s Hire Purchase and Finance Lease commitments are in relation to Plant & Equipment and Motor Vehicles
essential to the operations of the business. These are under agreements expiring within 1 to 5 years. Under the Terms of
Agreements, the group has the option to acquire the financed assets by payment of the final instalment. This option lapses
in the event of a default to the agreed Terms and Conditions to the agreements.
(b) Operating Lease Commitments
Payable:
Within one (1) year
Later than one (1) year but not later than five (5) years
(c) Property Lease
The group has the following property leases:
141,873
346,475
488,348
328,693
531,452
860,145
LaserBond Ltd 2014 Annual Report – Page 49
Laserbond Ltd 2014 Annual Report | 49
2014 Financial Report
2014 Financial Report
112 Levels Road, Cavan SA 5094
2 / 57 Anderson Road, Smeaton Grange NSW 2567
Expiry
May 2015
August 2022
Payable:
Within one (1) year
Later than one (1) year but not later than five (5) years
Later than five (5) years but not later than five (10) years
2014
566,842
2013
878,212
2,889,549 2,165,833
2,009,661 2,362,500
NOTE 22: CONTINGENT ASSETS & LIABILITIES
The key management personnel of the group for management of its affairs are all current Directors.
Details in relation to the remuneration of the key management personnel of the group for management of its affairs are
(a) Key Management Personnel
(b) Remuneration
included in the Directors’ Report on page 17.
(c) Options Held
The directors are not aware of any contingent assets or contingent liabilities that would have an effect on these financial
statements. (2013: Nil)
There were no options held at 30 June 2014 or 30 June 2013. There were no options issued during the financial year.
NOTE 23: RELATED PARTY TRANSACTIONS
(d) Shares Held
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available
to other parties unless otherwise stated.
Interest Shares Held as at
Issued
Purchased /
30th June 2013
(Sold)
Shares Held as at
30th June 2014
(a) Other Related Parties
Labour Costs
Labour – Payroll Staff
Labour – Contract Staff
2014
$
258,329
33,371
291,700
2013
$
241,690
89,425
331,115
Wayne Hooper Direct
Wayne Hooper In-Direct
Greg Hooper Direct
Greg Hooper In-Direct
Philip Suriano In-Direct
Allan Morton In-Direct
Payroll staff relates to costs for salaries and superannuation through payroll for any persons related to the Executive
Directors. Contract staff relates to Basin Enterprises, a director related entity, providing casual shop floor staff throughout
FY2013 and casual administration staff throughout FY2014.
Superannuation
Contribution to superannuation funds on behalf of employees
248,442
420,633
Loans – Other Related Parties
Employee Loans
Employee Personal Expenses
5,357
1,846
7,203
662
3,045
3,707
The Employee Loans are receivable from four (4) employees.
The Employee Personal Expenses are receivable from employee’s who have used, at the approval of director’s, a group’s
supplier expense account for purchases of a personal use. These loans are repaid as an after tax deduction from the
employee’s salary or wage.
(b) Key Management Personnel Transactions
Consultants
Sales support
23,100
-
Hawkesdale Group, a director related entity, provided consultancy services related to Sales support and strategy
development.
Loans
Director Loan
50,174
50,174
a) Dividends not recognised during the reporting period
All Loans are classified current, unsecured and interest free. The Director Loan is receivable from Mr Greg Hooper, a
director of the group.
Superannuation
Contribution to superannuation funds on behalf of key management
personnel
NOTE 24: KEY MANAGEMENT PERSONNEL
13,749
24,992
The debit expected to franking account arising from this dividend is $74,912.
Key management personnel are those persons who have authority and responsibility for planning, directing and controlling
the activities of the group.
LaserBond Ltd 2014 Annual Report – Page 50
50 | Laserbond Ltd 2014 Annual Report
Interest Shares Held as at
Issued
Purchased /
30th June 2012
Shares Held as at
30th June 2013
8,329,710
899,736
4,969,952
3,652,564
31,827
-
17,883,789
8,109,591
861,136
4,838,617
3,556,043
30,986
-
212,099
36,183
-
-
1,280
5,405
254,967
220,119
23,600
131,335
96,521
841
-
-
-
-
-
-
-
-
-
-
-
250,000
250,000
(Sold)
15,000
17,396,373
472,416
15,000
17,883,789
Wayne Hooper Direct
Wayne Hooper In-Direct
Greg Hooper Direct
Greg Hooper In-Direct
Philip Suriano In-Direct
Allan Morton In-Direct
NOTE 25: DIVIDENDS
Declared 2014 fully franked interim ordinary dividend of 0.2 (2013: 0.2) cents per share
franked at the tax rate of 30% (2013: 30%)
Declared 2013 fully franked final ordinary dividend of 0.2 (2012: 0.2) cents per share
franked at the tax rate of 30% (2011: 30%)
Total dividends per share for the period
Dividends paid in cash or satisfied by the issues of shares under the dividend
reinvestment plan during the year were as follows:
Paid in cash
Satisfied by the issue of shares
8,541,809
935,919
4,969,952
3,652,564
33,107
255,405
18,388,756
8,329,710
899,736
4,969,952
3,652,564
31,827
-
$
2014
2013
$
172,130
170,706
173,418
169,452
0.4 cents
0.4 cents
228,566
116,982
345,548
146,169
193,989
340,158
In addition to the above dividends, since year end the directors have recommended the payment of a final dividend of 0.2
cents per fully-paid ordinary share (2013: 0.2) fully franked based on tax paid at 30%. The aggregate amount of the
proposed dividend expected to be paid on 26 September 2014 out of retained earnings at 30 June 2014, but not
recognised as a liability at year end is $174,795.
b) Franking credits
Franking credits available for subsequent periods based on a
tax rate of 30% (2013: 30%)
1,658,033
2,014,494
LaserBond Ltd 2014 Annual Report – Page 51
2014 Financial Report
(a) Key Management Personnel
The key management personnel of the group for management of its affairs are all current Directors.
(b) Remuneration
Details in relation to the remuneration of the key management personnel of the group for management of its affairs are
included in the Directors’ Report on page 17.
(c) Options Held
There were no options held at 30 June 2014 or 30 June 2013. There were no options issued during the financial year.
(d) Shares Held
Interest Shares Held as at
30th June 2013
Issued
Purchased /
(Sold)
Shares Held as at
30th June 2014
Wayne Hooper Direct
Wayne Hooper In-Direct
Greg Hooper Direct
Greg Hooper In-Direct
Philip Suriano In-Direct
Allan Morton In-Direct
8,329,710
899,736
4,969,952
3,652,564
31,827
-
17,883,789
212,099
36,183
-
-
1,280
5,405
254,967
-
-
-
-
-
250,000
250,000
8,541,809
935,919
4,969,952
3,652,564
33,107
255,405
18,388,756
Interest Shares Held as at
30th June 2012
Issued
Purchased /
(Sold)
Shares Held as at
30th June 2013
Wayne Hooper Direct
Wayne Hooper In-Direct
Greg Hooper Direct
Greg Hooper In-Direct
Philip Suriano In-Direct
Allan Morton In-Direct
NOTE 25: DIVIDENDS
8,109,591
861,136
4,838,617
3,556,043
30,986
-
17,396,373
220,119
23,600
131,335
96,521
841
-
472,416
-
15,000
-
-
-
-
15,000
8,329,710
899,736
4,969,952
3,652,564
31,827
-
17,883,789
Declared 2014 fully franked interim ordinary dividend of 0.2 (2013: 0.2) cents per share
franked at the tax rate of 30% (2013: 30%)
Declared 2013 fully franked final ordinary dividend of 0.2 (2012: 0.2) cents per share
franked at the tax rate of 30% (2011: 30%)
Total dividends per share for the period
Dividends paid in cash or satisfied by the issues of shares under the dividend
reinvestment plan during the year were as follows:
Paid in cash
Satisfied by the issue of shares
a) Dividends not recognised during the reporting period
2014
2013
$
$
172,130
170,706
173,418
169,452
0.4 cents
0.4 cents
228,566
116,982
345,548
146,169
193,989
340,158
In addition to the above dividends, since year end the directors have recommended the payment of a final dividend of 0.2
cents per fully-paid ordinary share (2013: 0.2) fully franked based on tax paid at 30%. The aggregate amount of the
proposed dividend expected to be paid on 26 September 2014 out of retained earnings at 30 June 2014, but not
recognised as a liability at year end is $174,795.
The debit expected to franking account arising from this dividend is $74,912.
b) Franking credits
Franking credits available for subsequent periods based on a
tax rate of 30% (2013: 30%)
1,658,033
2,014,494
LaserBond Ltd 2014 Annual Report – Page 51
Laserbond Ltd 2014 Annual Report | 51
NOTE 26: CASH FLOW INFORMATION
Reconciliation of profit after income tax to net cash flows from operating activities
Profit / (Loss) after Income Tax for the year
Non-cash flows in operating surplus
Depreciation, Amortisation & Impairment
(Profit) / loss on disposal of property, plant & equipment
Changes in assets and liabilities
(Increase) / Decrease in trade and other receivables
(Increase) / Decrease in inventories
(Increase) / Decrease in deferred tax assets
(Increase) / Decrease in assets held for sale
(Increase) / Decrease in non-current prepayments
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in current provisions
Increase / (Decrease) in current tax liabilities
Increase / (Decrease) in non-current provisions
Net cash provided by operating activities
NOTE 27: FINANCIAL INSTRUMENTS
Financial Risk Management Policies
2014 Financial Report
2014
$
2013
$
638,149
(4,322,703)
471,244
(362,522)
263,132
356,178
329,418
(40,000)
500
(631,279)
(24,619)
100,199
(5,949)
1,094,451
3,958,888
-
699,111
272,796
(312,612)
-
-
(120,920)
-
-
(61,914)
112,646
The Board of Directors monitors and manages financial risk exposures of the Group. The Board reviews the
effectiveness of internal controls relating to counterparty credit risk, currency risk, financing risk and interest rate risk.
The overall risk management strategy seeks to assist the consolidated group in meeting its financial targets, while
minimising potential adverse effects on financial performance, including the review of credit risk policies and future cash
flow requirements. Activities undertaken by the group may expose the group to price risk, credit risk, liquidity risk and
cash flow interest rate risk. The group’s risk management policies and objectives are therefore reviewed to minimise the
potential impacts of these risks on the results of the group.
2014 Financial Report
Weighted
Average
Effective Interest
Floating
Rate
Interest Rate
Fixed Interest Rate
Total
Non-
Interest
Bearing
Within 1 Year
1 to 5
Years
2.75
1,787,179
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
$
$
1,700
200,217
1,700
1,987,396
- 2,915,320
2,915,320
- 1,497,765
1,497,765
- 1,377,956
1,377,956
518,420
1,279,252
-
1,797,672
518,420
1,279,252 1,377,956
3,172,628
Total financial assets
1,787,179
- 4,615,002
6,402,181
30th June 2013
%
Financial Assets:
Cash on Hand
Cash at Bank
Trade and other
receivables
Inventories
Financial Liabilities
Trade and other
payables
Hire Purchase /
Finance Lease
Total financial liabilities
8.0
b) Credit Risk Exposure
to the financial statements.
c) Liquidity Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognize
financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the balance sheet and notes
Liquidity risk is the risk that the group may encounter difficulties raising funds to meet commitments. The group manages this
risk by monetary forecast cash flows.
d) Net fair value of financial assets and liabilities
The carrying amount of cash, cash equivalents and non-interest bearing monetary financial assets and liabilities (e.g.
accounts receivable and payable) are at approximate net fair value.
risks.
follows:
Change in profit
- Increase in interest rate by 2.0%
- Decrease in interest rate by 2.0%
Change in equity
- Increase in interest rate by 2.0%
- Decrease in interest rate by 2.0%
The group as 30th June 2014 held a quantity of cash on hand in an Interest Bearing bank account. The effect on profit and
equity as a result of changes in the interest rate on Cash on Hand, with all other variables remaining constant would be as
2014
$
895
(895)
895
(895)
2013
$
454
(454)
454
(454)
LaserBond Ltd 2014 Annual Report – Page 53
$
-
-
$
$
The group has performed a sensitivity analysis relating to its exposure to interest rate risk and foreign currency risk. This
sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these
1,200
35,018
1,200
2,558,254
Interest Rate Sensitivity Analysis
- 2,652,188
2,652,188
- 1,141,587
1,141,587
- 3,829,993
6,353,229
-
746,209
746,209
-
-
-
-
-
-
407,225
837,166
-
1,244,391
407,225
837,166
746,209
1,990,600
LaserBond Ltd 2014 Annual Report – Page 52
Weighted
Average
Effective Interest
Rate
Floating
Interest Rate
Fixed Interest Rate
Non-
Interest
Bearing
Total
Within 1 Year
1 to 5
Years
e) Price Risk
The group is not exposed to any material price risk.
f) Sensitivity Analysis
%
$
$
a) Interest rate risk
30th June 2014
Financial Assets:
Cash on Hand
Cash at Bank
Trade and other
receivables
Inventories
2.75
-
2,523,236
-
-
Total financial assets
2,523,236
Financial Liabilities
Trade and other
payables
Hire Purchase /
Finance Lease
Total financial liabilities
8.0
-
-
-
52 | Laserbond Ltd 2014 Annual Report
Weighted
Average
Effective Interest
Rate
Floating
Interest Rate
30th June 2013
%
$
Financial Assets:
Cash on Hand
Cash at Bank
Trade and other
receivables
Inventories
2.75
-
1,787,179
-
-
Total financial assets
1,787,179
Financial Liabilities
Trade and other
payables
Hire Purchase /
Finance Lease
Total financial liabilities
8.0
b) Credit Risk Exposure
-
-
-
2014 Financial Report
Fixed Interest Rate
Within 1 Year
1 to 5
Years
$
-
-
-
-
-
-
Non-
Interest
Bearing
Total
$
-
-
$
$
1,700
200,217
1,700
1,987,396
- 2,915,320
2,915,320
- 1,497,765
1,497,765
- 4,615,002
6,402,181
- 1,377,956
1,377,956
518,420
1,279,252
-
1,797,672
518,420
1,279,252 1,377,956
3,172,628
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognize
financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the balance sheet and notes
to the financial statements.
c) Liquidity Risk
Liquidity risk is the risk that the group may encounter difficulties raising funds to meet commitments. The group manages this
risk by monetary forecast cash flows.
d) Net fair value of financial assets and liabilities
The carrying amount of cash, cash equivalents and non-interest bearing monetary financial assets and liabilities (e.g.
accounts receivable and payable) are at approximate net fair value.
e) Price Risk
The group is not exposed to any material price risk.
f) Sensitivity Analysis
The group has performed a sensitivity analysis relating to its exposure to interest rate risk and foreign currency risk. This
sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these
risks.
Interest Rate Sensitivity Analysis
The group as 30th June 2014 held a quantity of cash on hand in an Interest Bearing bank account. The effect on profit and
equity as a result of changes in the interest rate on Cash on Hand, with all other variables remaining constant would be as
follows:
Change in profit
- Increase in interest rate by 2.0%
- Decrease in interest rate by 2.0%
Change in equity
- Increase in interest rate by 2.0%
- Decrease in interest rate by 2.0%
2014
$
895
(895)
895
(895)
2013
$
454
(454)
454
(454)
LaserBond Ltd 2014 Annual Report – Page 53
Laserbond Ltd 2014 Annual Report | 53
Foreign Currency Risk Sensitivity Analysis
Profit after tax from continuing operations
763,420
(3,423,191)
2014 Financial Report
2014 Financial Report
The group purchases certain raw material from overseas due to non-availability in Australia or savings due to bulk buying
power overseas. The group continues to expand its operation and has some overseas customers. At 30th June 2014, the
effect on profit and equity as a result of changes in the Australian Dollar to other International currencies, with all other
variables remaining constant would be as follows:
Change in profit
- Improvement in AUD to International currencies by 15%
- Decline in AUD to International currencies by %
Change in equity
- Improvement in AUD to International currencies by %
- Decline in AUD to International currencies by %
NOTE 28: SHARE BASED PAYMENTS
a) Employee Share Plan
2014
$
37,908
(37,908)
37,908
(37,908)
2013
$
34,946
(34,946)
34,946
(34,946)
A scheme under which shares may be issued by the group to employees for no cash consideration was approved by
shareholders through the prospectus. All Australian resident full-time employees (excluding directors and their related
parties) who have been continuously employed by the group (including any 100% owned subsidiaries) for a period of at
least three years are eligible to participate.
Eligibility to participate is based on an employee being a full-time employee of the group (or any of its 100% owned
subsidiaries), the employee is an Australian resident for income tax purposes and the employees has been directly
employed by the group (or any of its 100% owned subsidiaries) for at least as period of 36 continuous months in a
permanent position.
Total comprehensive income attributable to members
763,420
(3,423,191)
b) Finance Facilities of the Parent Entity
The parent entity has given secured guarantees in respect of finance leases and hire purchase agreements:
for the parent entity with a balance outstanding of $1,244,391 (2013: $1,414,626)
for subsidiaries with a balance outstanding of nil. (2013: $383,046)
A liability has been recognised in relation to these liabilities as per Note 16 of this financial report.
The parent entity has given secured guarantees in respect of operating lease agreements:
for the parent entity with a balance outstanding of $488,348 (2013: $769,435)
for subsidiaries with a balance outstanding of nil (2013: $90,410)
The parent entity has given unsecured guarantees in respect of Rental Bonds:
for the parent entity with totaling of $181,885 (2013: $181,885)
for subsidiaries with a balance outstanding of nil. (2013: $78,925)
The parent entity has unsecured and unused finance facilities in place in respect of:
Trade finance facility with unused limit of $868,783 (2013: $470,000).
Bank Guarantee Line unused with limit of $18,115 (2013: $18,115).
Each eligible employee will be entitled to a maximum of $1,000 of fully-paid ordinary shares annually, with the number of
shares calculated based on the closing price of the group’s on the day each issue is formally passed by the Board. Offers
under the scheme are at the discretion of the Board.
The trade finance facility is subject to annual review which last occurred February 2014.
The parent entity did not have any contingent liabilities as at 30 June 2014 or 30 June 2013.
Shares issued are vested for a period of three years from date of issue, with one third released annually on each
anniversary date of the Board approved issue date. If employment is ceased for any reason any shares still currently vested
and not released will be forfeited by the employee. Shares are issued as fully-paid ordinary shares and rank equally with
existing shares on issue.
Number of shares issued under the plan to participating employees: (refer
to Note 19 a) for detail of date of issue and issue price)
133,083
55,050
b) Expense arising from share based payment transactions
Shares Issued under employee share plan
8,149
7,590
NOTE 29: PARENT ENTITY FINANCIAL INFORMATION
a) Summary Financial Information
The individual financial statements for the parent entity shows the following aggregate amounts:
The parent entity had no current contractual commitments for the acquisition of property plant or equipment as at 30 June
2014 or 30 June 2013.
NOTE 30: CONTROLLED ENTITIES
Subsidiaries of LaserBond Limited
Peachey’s Engineering Pty Ltd
Canedice Investments Pty Ltd
LaserBond (Qld) Pty Ltd
Aust.
Aust.
Aust.
2014
100%
100%
100%
2013
100%
100%
100%
Country of Incorporation
Percentage Owned
Note that Peachey’s Engineering Pty Ltd, Canedice Investments Pty Ltd and LaserBond (Qld) Pty Ltd are all non trading
NOTE 31: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
There are no matters to report subsequent to the end of the financial year that have not been detailed elsewhere in this
Balance Sheet
Assets:
Current Assets
Total Assets
Liabilities:
Current Liabilities
Total Liabilities
Shareholders’ Equity
Issued Capital
Retained Earnings
Profit before income tax expense
54 | Laserbond Ltd 2014 Annual Report
6,353,229
8,947,388
8,008,818
10,236,423
1,804,038
2,684,105
2,709,380
2,791,408
5,818,453
444,830
6,263,283
5,701,090
1,743,925
7,445,015
1,061,369
(3,347,877)
NOTE 32: SEGMENT REPORTING
The group operates entirely within Australia.
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of
Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group
is managed primarily on the basis of location.
Discontinued operations relates to the Gladstone, Queensland subsidiary, Peachey’s Engineering Pty Ltd. Trading formally
ceased in October 2013 after the signing of an Asset Sale Agreement for part of the assets. Since cessation of operations all
remaining assets were incorporated into the New South Wales and South Australian operations or sold by other means.
LaserBond Ltd 2014 Annual Report – Page 54
LaserBond Ltd 2014 Annual Report – Page 55
(i)
(ii)
(i)
(ii)
(i)
(ii)
(i)
(ii)
entities.
report.
2014 Financial Report
Profit after tax from continuing operations
763,420
(3,423,191)
Total comprehensive income attributable to members
763,420
(3,423,191)
b) Finance Facilities of the Parent Entity
The parent entity has given secured guarantees in respect of finance leases and hire purchase agreements:
(i)
(ii)
for the parent entity with a balance outstanding of $1,244,391 (2013: $1,414,626)
for subsidiaries with a balance outstanding of nil. (2013: $383,046)
A liability has been recognised in relation to these liabilities as per Note 16 of this financial report.
The parent entity has given secured guarantees in respect of operating lease agreements:
(i)
(ii)
for the parent entity with a balance outstanding of $488,348 (2013: $769,435)
for subsidiaries with a balance outstanding of nil (2013: $90,410)
The parent entity has given unsecured guarantees in respect of Rental Bonds:
(i)
(ii)
for the parent entity with totaling of $181,885 (2013: $181,885)
for subsidiaries with a balance outstanding of nil. (2013: $78,925)
The parent entity has unsecured and unused finance facilities in place in respect of:
(i)
(ii)
Trade finance facility with unused limit of $868,783 (2013: $470,000).
Bank Guarantee Line unused with limit of $18,115 (2013: $18,115).
The trade finance facility is subject to annual review which last occurred February 2014.
The parent entity did not have any contingent liabilities as at 30 June 2014 or 30 June 2013.
The parent entity had no current contractual commitments for the acquisition of property plant or equipment as at 30 June
2014 or 30 June 2013.
NOTE 30: CONTROLLED ENTITIES
Subsidiaries of LaserBond Limited
Peachey’s Engineering Pty Ltd
Canedice Investments Pty Ltd
LaserBond (Qld) Pty Ltd
Aust.
Aust.
Aust.
2014
100%
100%
100%
2013
100%
100%
100%
Country of Incorporation
Percentage Owned
Note that Peachey’s Engineering Pty Ltd, Canedice Investments Pty Ltd and LaserBond (Qld) Pty Ltd are all non trading
entities.
NOTE 31: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
There are no matters to report subsequent to the end of the financial year that have not been detailed elsewhere in this
report.
NOTE 32: SEGMENT REPORTING
The group operates entirely within Australia.
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of
Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group
is managed primarily on the basis of location.
Discontinued operations relates to the Gladstone, Queensland subsidiary, Peachey’s Engineering Pty Ltd. Trading formally
ceased in October 2013 after the signing of an Asset Sale Agreement for part of the assets. Since cessation of operations all
remaining assets were incorporated into the New South Wales and South Australian operations or sold by other means.
LaserBond Ltd 2014 Annual Report – Page 55
Laserbond Ltd 2014 Annual Report | 55
2014 Financial Report
LaserBond Limited
(NSW Division)
2014
2013
LaserBond Limited
(SA Division)
2014
2013
Total (for Continuing
Operations)
2014
2013
8,940,844
9,366,613
729,116
26,044
9,669,960
9,392,657
1,540,369
660,696
55,533
(49,449)
1,595,902
611,247
(102,143)
-
(24,956)
(3,598,927)
-
-
-
-
(102,143)
-
(24,956)
(3,598,927)
(374,794)
(329,863)
(53,204)
(5,378)
(427,998)
(335,241)
1,063,432
(3,293,050)
2,329
(54,827)
1,065,761
(3,347,877)
Revenue
EBITDA
Interest
Goodwill Impairment
Depreciation &
Amortisation
Profit Before Income
Tax
Income tax expense
(324,250)
(128,719)
(699)
16,448
(324,949)
(112,271)
Profit after Income
Tax
Assets
Liabilities
739,182
(3,421,769)
1,630
(38,379)
740,812
(3,460,148)
8,129,883
10,058,511
817,505
177,913
8,947,388
10,236,424
2,576,851
2,729,674
107,254
61,734
2,684,105
2,791,408
Revenues of $4,176,919 (2013 - $4,017,297) are derived from a single external customer. These revenues are attributed to
the NSW segment.
NOTE 33: COMPANY DETAILS
Registered Office and Principal Place of Business:
LaserBond Ltd
NSW Division
2 / 57 Anderson Road
SMEATON GRANGE NSW 2567
Phone: 02 4631 4500
Fax:
02 4631 4555
www.laserbond.com.au
Divisions of Head Office:
SA Division
112 Levels Road
CAVAN SA 5094
Phone: 08 8262 2289
Phone: 08 8260 2238
56 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 56
Shareholder Information 2014 Financial Report
1. Substantial Shareholders at 6th August 2014
Holder LaserBond Limited
Ms Diane Constance Hooper
Mr Wayne Edward Hooper
Mr Wayne Edward Hooper (W&D Hooper Investments Pty Ltd)
Mr Rex Hooper
Ms Lillian Hooper
Mr Gregory John Hooper
Mr Gregory John Hooper (Grendy Super Fund A/C)
Mrs Loretta Mary Peachey
Mrs Loretta Mary Peachey & Mr Nathan Charles Peachey
2. Distribution of Shareholders as at 6th August 2014
Number of Ordinary
Fully Paid Shares Held
8,541,809
8,541,809
935,919
7,283,916
7,137,590
4,969,952
3,652,564
2,693,344
%
9.774
9.774
1.071
8.334
8.167
5.687
4.179
3.082
2,250,000
2.574
Holdings Ranges
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-9,999,999,999
Totals
Holders
24
51
75
281
88
519
Total Units
4,630
179,992
597,958
9,872,944
76,741,833
87,397,357
%
0.005
0.206
0.684
11.297
87.808
100.000
Holdings less than a marketable parcel
19 662
0.0008
3. Twenty Largest Shareholders as at 6th August 2014
Holder LaserBond Limited
Ms Diane Constance Hooper
Mr Wayne Edward Hooper
Ms Rex Hooper
Mr Lillian Hooper
Mr Gregory John Hooper
Mr Gregory John Hooper (Grendy Super Fund A/C)
Deveth Drilling Pty Ltd
Mrs Loretta Mary Peachey
Mrs Loretta Mary Peachey & Mr Nathan Charles Peachey
Mr Keith Knowles
Wantune Pty Ltd
Parks Australia Pty Ltd
Mr James Gordon Moffatt
Fortitude Enterprises Pty Ltd
Alliance Business Group Pty Limited
Myall Resources Pty Ltd
W&D Hooper Investments Pty Ltd
Dixson Trust Pty Limited
Mr Andrew James Shannon
UBS Wealth Management Australia Nominees Pty Ltd
Number of Ordinary
Fully Paid Shares Held
8,541,809
8,541,809
7,283,916
7,137,590
4,969,952
3,652,564
3,035,488
2,693,344
2,250,000
2,074,232
1,831,427
1,786,666
1,248,289
1,050,000
1,032,578
1,000,000
935,919
869,560
868,488
652,170
%
9.774
9.774
8.334
8.167
5.687
4.179
3.473
3.082
2.574
2.373
2.096
2.044
1.428
1.201
1.181
1.144
1.071
0.995
0.994
0.747
Totals for Top 20
61,455,801
70.318
Security Totals
87,397,357
LaserBond Ltd 2014 Annual Report – Page 57
Laserbond Ltd 2014 Annual Report | 57
Shareholder Information 2014 Financial Report
4. Voting Rights
The voting rights attached to each class of equity securities are:
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one vote
and upon a poll each share shall have one vote.
b) Options – No voting rights.
5. Restricted Securities
The group has no restricted securities.
6. Securities subject to voluntary escrow
Total number of shares
held in escrow
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
17,468 23 Nov 2014 – 17,468 shares
60,214
5 Feb 2015 – 30,114 shares
168,416
5 Feb 2016 – 30,100 shares
14 Feb 2015 – 56,144 shares 14 Feb 2016 – 56,144 shares 14 Feb 2017 – 56,128 shares
58 | Laserbond Ltd 2014 Annual Report
LaserBond Ltd 2014 Annual Report – Page 58
Notes
58 | Laserbond Ltd 2014 Annual Report
Laserbond Ltd 2014 Annual Report | 59
Notes
60 | Laserbond Ltd 2014 Annual Report
Laserbond Ltd 2014 Annual Report | 61
®
I S TED
L
AS X
LaserBond Limited
Unit 2, 57 Anderson Road
Smeaton Grange NSW 2567
Telephone
International
Fax
International
Email
02 4631 4500
+612 4631 4500
02 4631 4555
+612 4631 4555
info@laserbond.com.au
LaserBond (SA)
112 Levels Road
Cavan SA 5094
08 8262 2289
+618 8262 2289
08 8260 2238
Telephone:
International:
Fax:
International: +618 8260 2238
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