LaserBond Limited
Unit 2, 57 Anderson Road
Smeaton Grange NSW 2567
Telephone 02 4631 4500
International +61 2 4631 4500
Fax 02 4631 4500
International +61 2 4631 4500
Email info@laserbond.com.au
LaserBond (SA)
112 Levels Road
Cavan SA 5094
Telephone 08 8262 2289
International +61 8 8262 2289
Fax 08 8260 2238
International +61 8 8260 2238
Email info@laserbond.com.au
www.laserbond.com.au
Quality
Environment Health & Safety
ASX:LBL
Over the past year LaserBond has developed IP and
applied for patents to a “game-changing” DTH hammer
for the drilling industry. Three times longer life, a highly
significant 7.5% reduction in total drilling costs for
mining and increased performance were key findings
from the independently supervised trial.
Shareholder’s Annual Report
Laserbond Limited
ABN 24 057 636 692
For year ended 30th June 2015
All comparisons to year ended 30th June 2014
Contents
About Laserbond ........................................................... 2
Financial Report ............................................................11
1
2015 Annual Report Corporate
Our vision is to be a recognized leader of innovative
advanced surface engineered products and services
LaserBond’s mission
is
to attract, develop, and
maintain long-term, successful satisfied customers
that reduce unit-operating costs of capital intensive
while optimizing the capacity and capability of our facilities
We will grow our business profitability and diversify
both domestically and internationally by building
on our core competency of surface engineering to improve
industries by significantly improving the performance and
and staff to deliver an expanding range of innovative
productivity, innovation and conservation outcomes for
wear life of equipment.
services and products.
our customers and ourselves.
Our product offering is focused on increasing the
productivity of our customers’ operations. Innovation
means delivering new and better performing wear-
is
reducing results for our customers. Conservation
achieving more from fewer resources to pursue new
methods and technology that will be better.
Services
Since its establishment in 1993 (initially as HVOF
Australia Pty Ltd), LaserBond has pioneered the
A dedication to research and commitment to the
implementation of
leading edge
technologies
We operate across a range of capital intensive
industries that rely on plant and equipment
Critical applications
properties
require optimised
surface
for particular abrasion, erosion or
research, development and implementation of advanced
has seen LaserBond acknowledged as a national and
performing at peak efficiency for longer periods. Industries
corrosion wear. LaserBond currently operates from sites
surface-engineering techniques to dramatically reduce
international leader in surface engineering and wear
such as agriculture, drilling, mining, manufacturing,
in Sydney and Adelaide to provide clients with high
the wear rates, maintenance and operating costs of
part protection that extends equipment and component
power generation, civil construction and many others
capability facilities set-up for specific manufacture, repair
production-vital components of industrial customers.
operating life.
acknowledge component wear as a fact of life.
and reclamation of components and assemblies.
Products
Corrosion, erosion and abrasion are all forms of surface
wear that most often determine component and
LaserBond’s new long-life designs set a new paradigm
in surface engineering exploiting innovative cladding
Our distribution strategy is to work with a range of
industry partners to firstly quantify the full extent
Advances in surface engineering technology have
delivered better component and equipment
machinery life. Our skill and experience in applying surface
materials and advanced mechanical component design.
of operational benefits that our products deliver. Once we
performance across a growing range of industries such
engineering as a service highlighted the opportunity to
They deliver better performance, longer operating life,
have proven a significant output unit cost saving across
as mining, drilling, power generation, transport, marine,
design and develop a range of long-wear life consumable
more profit with reduced maintenance costs, change-outs,
a range of customer sites, then LaserBond will either
manufacturing, fluid handling and agriculture. All of these
components that embedded our DNA into products.
downtime and overall cost.
establish strategic relationships with well positioned in
experience vital component wear daily.
market partner, or develop our own sales force.
Technology
LaserBond is making its unique surface engineering
technologies, hardware and training available for
The technology licensing package off ers licensees
an integrated package including LaserBond surface
A suite of operator training programs is designed
to develop competent and profi cient operators
LaserBond surface engineering
processes are proving industrial customers extended
technologies and
licensing in selected non-competitive international market
engineering research and technology, regular updates on
to successfully work with a range of LaserBond surface
wear life and signifi cantly reduced overall operating
segments. With some 25 years research, development
new and/or improved cladding materials and techniques,
engineered cladding processes. Each of the modules
costs. An extensive Research and Development program
and practical applications experience LaserBond wear-
specialised technology, hardware and equipment and full,
included in the Training Program is available in four skill
is developing new and innovative surface engineering
resistant process engineering technology is a strong and
on-site commissioning.
levels with competency based outcome
applications to maintain ongoing advantages to our
viable investment.
customers.
2015 Financial Report
2015 FINANCIAL REPORT
Contents
Page
Chairman’s Letter
Corporate Directory
Directors’ Report
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
12
14
15
21
22
24
25
26
27
28
29
51
LaserBond Ltd 2015 Annual Report | Page 11
11
2015 Annual Report
2015 Chairman’s Letter
2015 CHAIRMAN’S LETTER
Dear Shareholder,
As you may recognise from this report and a number of announcements over the past 12 months the refocusing of our business around
our core DNA of surface engineering is demonstrating success. While we are reporting reduced profits for FY2015 , we are also reporting
improvements to gross profit and early revenues from our new product development activities.
On behalf of the Board I am pleased to present the annual Financial Report to 30th June 2015. The underlying results from continuing
operations were as follows:
30 June 2015
30 June 2014
Revenues
$9,546,595
Down 1.3% from
$9,669,960
Underlying EBITDA
$881,106
Down 40.5% from
$1,481,805
Underlying NPAT
$366,766
Down 44.5% from
$660,944
Underlying earnings
per share (cents)
0.42c
Down 44.7% from
0.76c
Maintaining service revenues in the face of resource industry downturn confirms that our marketing focus of enhancing customer’s
‘Productivity’ is recognised and valued.
Improving productivity has also been an internal focus for the business, particularly with our Lean manufacturing program making big
gains; improving on time delivery and quality, while reducing our unit costs. As a result our reported gross profit improved from 50.1%
to 52.4%.
Our research and product development program has also delivered results. Indeed the team has registered two patent applications and
launched the “game-changing” LaserBond DTH Hammer product on 1 May 2015. This is a timely product for the mining industry as the
independently supervised trials demonstrated a 3.05 times life extension, (a component saving of over 50%), which delivers an overall
reduction in total drilling costs of 7.5%.
We now have a number of drilling companies in advanced field trials, one internationally. The results they are achieving are consistent
with the earlier trials and are expected to be converted into repeat sales throughout FY2016. There is also a number of other projects
progressing through the R&D programs that impact resource and other industry sectors.
Also arising from the success of our R&D program has been international interest in licensing LaserBond’s surface engineering
technologies. While the board does not forecast any significant revenue for FY2016, we will invest in a packaging and promoting our
technology offering, which targets non-competitive international markets.
To enable respective parts of the business to leverage our R&D in their own way, apply appropriate strategies and resources to best fit
their markets, the Board recently announced the establishment of three divisions; ‘Services’, ‘Products’ and ‘Technology’.
Supporting the above we have also invested in new skilled and experienced sales team, people who are well versed in communicating
the key technical and economic benefits that our surface engineering offers.
A new website and corporate identity is being launched within the next few days..
LaserBond has an enviable 23-year history of innovation and leadership in surface engineering. This converts to productivity gains for
our customers. Our new corporate image is designed to introduce the new divisions of the business by sharing success in what we offer,
what we make, our technology and our philosophy with all our stakeholders.
Conservation of resources and the wider environment is also a core mission of the company. In FY2016 more of our customers (and
potential customers) will recognise LaserBond for its contribution in Productivity, Innovation and Conservation.
12
LaserBond Ltd 2015 Annual Report | Page 12
2015 Annual Report
Looking to FY2016, in this Annual Report we are sharing some sales and profit targets we set as part of our strategic planning process. I
believe the changes we are making will firmly establish a new growth phase in LaserBond’s 23 years of surface engineering knowledge,
proficiency and capability.
Finally I would like to thank the management team and employees for their support and contributions to our future success.
2015 CHAIRMAN’S LETTER
Yours sincerely
Allan Morton
Executive Chairman
13
LaserBond Ltd 2015 Annual Report | Page 13
2015 Annual Report2015 Annual Report
CORPORATE DIRECTORY
Principal Activities
The Directors present their report on the consolidated entity for the financial year ended 30th June 2015.
DIRECTORS’ REPORT
Corporate Directory
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
In summary, compared to FY2014:
Principal Registered Office:
2 / 57 Anderson Road
SMEATON GRANGE NSW 2567
Phone: 02 4631 4500
Fax: 02 4631 4555
Website Address:
www.laserbond.com.au
Share Registry:
Auditor:
Solicitor:
Bankers:
Boardroom Pty Ltd
Grosvenor Place
Level 12, 225 George Street
SYDNEY NSW 2000
Phone: 1300 737 760
Lachlan Nielson Partners Pty Ltd
Level 11, 60 Castlereagh 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.
14
LaserBond Ltd 2015 Annual Report | Page 14
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
designs and manufacturing methods.
These services are currently provided from facilities in New South Wales and South Australia.
Review of Continuing Operations & Results
FY2015 was a year of investment in both research and development and other activities to direct and support future growth. This
investment has resulted in increased expenditure in a number of areas which has impacted reported profitability for the fiscal year.
Despite the challenging business environment surrounding LaserBond’s markets in the heavy industry sectors, revenue from
continuing operations exhibited only a small decline of 1.3%. The services LaserBond provides allow its customers to realise
cost reductions and productivity gains, so with targeted sales, marketing and development activities, the company is able to
obtain new customers even in a challenging market.
Through a focus on costs and efficiencies, particularly within the NSW division from our Lean Manufacturing project, the
company has increased gross margins within continuing operations from 50.1% to 52.4% of revenue. As a consequence, gross
profit in dollar terms was increased by 3.1%, despite the decline in revenue.
As investment to allow future growth, the company has increased expenses in certain areas, particularly research &
development, consultant fees supporting growth initiatives, advertising and promotional expenses, and human resources.
These form the major components of a total increase in expenses of $719,547.
EBITDA from continuing operations decreased by <40.5%>, essentially as a direct consequence of the above three points.
Profit before tax declined <59.6%>, in line with forecast in the most recent Market Update. However profit after tax from
continuing operations declined only <44.5%> due to the effect of the R&D Tax concession on the capitalised development
costs.
Revenue from Continuing Operations
The continuing operations of the business achieved $9.55 million revenue
for FY2015 compared to $9.67 million for FY2014. This represents a decrease
of <1.3%>. The small size of this decrease in revenue was pleasing given the
continuing challenging market conditions, particularly in the mining and
minerals processing sectors, and the more recent effect from the collapse of
the oil price and consequent declines in activities within the oil and gas
sector. The company has continued to successfully offset these declines
through growth of new customers and applications.
The graph provided on the left indicates the forecast for growing revenue for
each half year period moving forward. It is based on continuing growth of
new customers in the historical services provided as well as growing demand
for new products recently developed through the research and development
activities and being commercialised during FY2016.
Revenue results by location were:
NSW – this facility provides services relating to the long-standing surface engineering repair, manufacturing and contract
manufacturing business undertaken for a wide range of major industrial customers. NSW achieved revenue of $8.82 million for
FY2015, representing a <1.3%> decline in reported FY2014 revenue of $8.94 million.
SA - this facility was initially established to provide similar services as the NSW facility. During FY2015 there was considerable
investment in infrastructure and personnel to support the Research & Development activities which has resulted in two patent
applications and the recently launched LaserBond “Down-The-Hole” Hammer drilling industry product. As commercialisation
advances, this facility is expected to also become our advanced manufacturing facility and distribution centre for the
LaserBond Ltd 2015 Annual Report | Page 15
•
•
•
•
•
•
•
2015 Annual Report
Directors Report
DIRECTORS’ REPORT
The Directors present their report on the consolidated entity for the financial year ended 30th June 2015.
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
designs and manufacturing methods.
These services are currently provided from facilities in New South Wales and South Australia.
Review of Continuing Operations & Results
FY2015 was a year of investment in both research and development and other activities to direct and support future growth. This
investment has resulted in increased expenditure in a number of areas which has impacted reported profitability for the fiscal year.
In summary, compared to FY2014:
•
•
•
•
•
Despite the challenging business environment surrounding LaserBond’s markets in the heavy industry sectors, revenue from
continuing operations exhibited only a small decline of 1.3%. The services LaserBond provides allow its customers to realise
cost reductions and productivity gains, so with targeted sales, marketing and development activities, the company is able to
obtain new customers even in a challenging market.
Through a focus on costs and efficiencies, particularly within the NSW division from our Lean Manufacturing project, the
company has increased gross margins within continuing operations from 50.1% to 52.4% of revenue. As a consequence, gross
profit in dollar terms was increased by 3.1%, despite the decline in revenue.
As investment to allow future growth, the company has increased expenses in certain areas, particularly research &
development, consultant fees supporting growth initiatives, advertising and promotional expenses, and human resources.
These form the major components of a total increase in expenses of $719,547.
EBITDA from continuing operations decreased by <40.5%>, essentially as a direct consequence of the above three points.
Profit before tax declined <59.6%>, in line with forecast in the most recent Market Update. However profit after tax from
continuing operations declined only <44.5%> due to the effect of the R&D Tax concession on the capitalised development
costs.
Revenue from Continuing Operations
The continuing operations of the business achieved $9.55 million revenue
for FY2015 compared to $9.67 million for FY2014. This represents a decrease
of <1.3%>. The small size of this decrease in revenue was pleasing given the
continuing challenging market conditions, particularly in the mining and
minerals processing sectors, and the more recent effect from the collapse of
the oil price and consequent declines in activities within the oil and gas
sector. The company has continued to successfully offset these declines
through growth of new customers and applications.
The graph provided on the left indicates the forecast for growing revenue for
each half year period moving forward. It is based on continuing growth of
new customers in the historical services provided as well as growing demand
for new products recently developed through the research and development
activities and being commercialised during FY2016.
Revenue results by location were:
•
•
NSW – this facility provides services relating to the long-standing surface engineering repair, manufacturing and contract
manufacturing business undertaken for a wide range of major industrial customers. NSW achieved revenue of $8.82 million for
FY2015, representing a <1.3%> decline in reported FY2014 revenue of $8.94 million.
SA - this facility was initially established to provide similar services as the NSW facility. During FY2015 there was considerable
investment in infrastructure and personnel to support the Research & Development activities which has resulted in two patent
applications and the recently launched LaserBond “Down-The-Hole” Hammer drilling industry product. As commercialisation
advances, this facility is expected to also become our advanced manufacturing facility and distribution centre for the
15
LaserBond Ltd 2015 Annual Report | Page 15
2015 Annual Report2015 Annual Report
DIRECTORS’ REPORT
DIRECTORS’ REPORT
manufacture of an increasing range of LaserBond products; our base for the ‘Products’ division. SA achieved revenue of $0.73
million for FY2015, similar to FY2014. Revenue for FY2015 included $0.34 million from the sale of the new LaserBond products.
Services revenue was down on FY2014 due to the reduction in spending from one major client in the oil and gas sector.
However, with a focus on the growth of new service customers, our SA client base has increased three-fold in FY2015.
Profit Before Tax from Continuing Operations
The continuing operations of the business achieved a profit before tax of
$0.37 million for FY2015 compared to $0.95 million for FY2014. This decline
is a direct result of investment in research and development and other
activities to provide and support future growth.
The graph on the left forecasts the increased profitability of the company
based on the expected revenue achieved from the growth of new services
customers, and revenue expectations
for current, and continuing
development of, LaserBond products.
*Note: Figures to FY-15 as reported. HY-16 and beyond are strategic plan
forecasts based on assumptions that may change.
• NSW – this facility reports a profit before tax result of $0.85 million for FY2014, compared to $0.95 million for FY2015. Please refer
to Explanation of Results below for more details.
•
SA – this facility reports a loss before tax of <$0.47> million for FY2015, compared to essentially a breakeven result for FY2014.
Please refer to Explanation of Results below for more detail.
Explanation of Results for Continuing Operations
New South Wales
This facility has maintained revenue despite continuing challenging market conditions, and continued to improve gross profit results
from lean management and other shop floor efficiency improvements. The reduction in profits is directly related to the investment in
activities to direct and support growth, including the following:
• Human Resources – the appointment of a full-time Business Development Manager (who has directly provided new growth
opportunities with new clients and industry sectors), and the effect of the full fiscal year employment costs of two employees hired
late FY2014, namely the Material Scientist (assisting in LaserBond’s in-house laboratory used to carry out testing and examination,
including metallographic characterisation, hardness testing, and chemical analysis) and the Quality Control officer (to assist in
ensuring LaserBond maintains its strong reputation for supplying consistently high quality products and services).
• Human Resources – the recent employment of an experienced Product Development Manager, initially focusing on introducing
the LaserBond product range to end users in the mining and drilling industries and assistance from consultants in the
commercialisation and continuing development a range of LaserBond DTH parts. During FY2016 this team will work with R&D to
expand our product within and beyond the resources sector.
•
Research & Development – increase expense in continuing research of new products and / or applications, and continuing
development of LaserBond DTH parts.
LaserBond DTH product range.
• Depreciation & Amortisation – additional costs related to the amortisation of the costs related to the development of the
LaserBond recently announced the establishment of a divisional structure to better capitalise on the ongoing success of our R&D and
surface engineering activities. With a strategic focus on future growth, LaserBond has established three unique but integrated operating
divisions; Services, Products and Technology.
‘Services’ will continue to provide its long-standing surface engineering repair, remanufacturing and contract manufacturing business
for a wide range of industrial customers from both the NSW and SA facilities.
‘Products’ is being established out of the SA facilities, where it is close to our R&D activities, offers skilled manufacturing labour force
and is a central location for national distribution.
‘Technology’ is being set up in response to international interest in licencing our IP and market research activities undertaken during
Divisions
FY2015.
Outlook
LaserBond’s renewed focus throughout FY2015 on the proactive research of new technologies, techniques and applications has resulted
in additional revenue growth in the last quarter of FY2015. We expect a significant impact to revenue throughout FY2016 (particularly
the second half) and future fiscal years.
The improvement of efficiencies and margins within the NSW manufacturing facility has provided sustainable, ongoing positive results
throughout FY2015. The plan is for this project to roll into the reengineering of our sales and administration, as well as the SA facility
throughout FY2016, providing a sustainable environment for the intended development of our advanced manufacturing facility in SA.
The Half-Year Revenue graph provided on page 15 of this Report shows the clear growth in revenue expected as a result of business
development activities carried out throughout FY2015 on Services (particularly from the NSW facility), as well as feedback from new
clients that have obtained positive results from their initial trials of our LaserBond DTH Hammer product range.
The Half-Year Profit graph provided on page 16 of this Report shows the clear growth in profits expected from the second half of FY2016
as a result of the investment that has been incurred throughout FY2015, and expected to carry on throughout FY2016.
•
•
International Opportunities – the appointment of consultants to assist LaserBond in identifying and pursuing opportunities
internationally for our products and services. The company has established the ‘Technology’ division, for provision of licencing of
our technology in overseas markets that do not compete with LaserBond’s existing markets.
Directors
Business Certification under PAS 99 – the development and certification of an Integrated Management system that encompasses
ISO standard for Quality, Safety and the Environment.
the entire period unless otherwise stated):
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
• Non-Executive Directors – the addition on one non-executive director to add specific experience and skill to the Board, plus
consulting fees for non-executive directors to provide assistance in supporting the growth initiatives.
Further, as an unexpected consequence of our improved efficiencies resulting from our Lean Management project a small adjustment
occurred in FY2015, and a restatement of FY2014, of a number of inventory items to ensure compliance with current Australian
Accounting Standards, particularly AASB 102. Full detail of the FY2014 restatement can be found in Note 27 of the Financial Report on
page 45.
Director:
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Nigel de Veth
Position Held
Executive Director
Executive Director
In Office Since
21 April 1994
30 September 1992
Non-Executive Chairman
18 March 2014
Non-Executive Director
Non-Executive Director
6 May 2008
1 April 2015
24 August 2015
______________Ceased to Hold Office
All current executive directors of the group are considered the key management personnel for the management of its affairs.
South Australia
Remuneration Report
The ongoing business development activities has yielded a tripling of our ‘Services’ customer base. In addition there has been a heavy
focus on supporting the development and commercialisation of LaserBond ‘Products’ , specifically the LaserBond Down-the-Hole (DTH)
Hammers and associated parts, which were launched at the recent Drill & Blast 2015 conference. Independent testing of the LaserBond
DTH Hammer has revealed a three times life extension, up to 60% reduction in DTH hammer costs, and a significant reduction in total
drilling costs of 7.5%. This focus on development and commercialisation has incurred additional fixed costs for this facility, resulting in a
reported loss for FY2015 of <$0.47> million. The main areas of increased fixed costs include:
• Advertising & Promotion – costs for the commercialisation and branding of the LaserBond Product range, initially with the DTH
hammer.
16
LaserBond Ltd 2015 Annual Report | Page 16
LaserBond Ltd 2015 Annual Report | Page 17
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 on our website,
http://www.laserbond.com.au/investor-relations , for details.
Currently the Directors receive fixed remuneration in the form of salaries and / or fees which are not performance-based. From FY2015
the board has implemented performance based bonuses for executive directors and additional non-cash (equity based) payments for
non-executive directors who hold office for the full twelve months of a fiscal year. At 30 June 15 no performance based payments have
2015 Annual Report
DIRECTORS’ REPORT
• Human Resources – the recent employment of an experienced Product Development Manager, initially focusing on introducing
the LaserBond product range to end users in the mining and drilling industries and assistance from consultants in the
commercialisation and continuing development a range of LaserBond DTH parts. During FY2016 this team will work with R&D to
expand our product within and beyond the resources sector.
•
Research & Development – increase expense in continuing research of new products and / or applications, and continuing
development of LaserBond DTH parts.
• Depreciation & Amortisation – additional costs related to the amortisation of the costs related to the development of the
LaserBond DTH product range.
Divisions
LaserBond recently announced the establishment of a divisional structure to better capitalise on the ongoing success of our R&D and
surface engineering activities. With a strategic focus on future growth, LaserBond has established three unique but integrated operating
divisions; Services, Products and Technology.
‘Services’ will continue to provide its long-standing surface engineering repair, remanufacturing and contract manufacturing business
for a wide range of industrial customers from both the NSW and SA facilities.
‘Products’ is being established out of the SA facilities, where it is close to our R&D activities, offers skilled manufacturing labour force
and is a central location for national distribution.
‘Technology’ is being set up in response to international interest in licencing our IP and market research activities undertaken during
FY2015.
Outlook
LaserBond’s renewed focus throughout FY2015 on the proactive research of new technologies, techniques and applications has resulted
in additional revenue growth in the last quarter of FY2015. We expect a significant impact to revenue throughout FY2016 (particularly
the second half) and future fiscal years.
The improvement of efficiencies and margins within the NSW manufacturing facility has provided sustainable, ongoing positive results
throughout FY2015. The plan is for this project to roll into the reengineering of our sales and administration, as well as the SA facility
throughout FY2016, providing a sustainable environment for the intended development of our advanced manufacturing facility in SA.
The Half-Year Revenue graph provided on page 15 of this Report shows the clear growth in revenue expected as a result of business
development activities carried out throughout FY2015 on Services (particularly from the NSW facility), as well as feedback from new
clients that have obtained positive results from their initial trials of our LaserBond DTH Hammer product range.
The Half-Year Profit graph provided on page 16 of this Report shows the clear growth in profits expected from the second half of FY2016
as a result of the investment that has been incurred throughout FY2015, and expected to carry on throughout FY2016.
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
Nigel de Veth
Position Held
Executive Director
Executive Director
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
In Office Since
21 April 1994
30 September 1992
18 March 2014
6 May 2008
1 April 2015
24 August 2015
______________Ceased to Hold Office
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 on our website,
http://www.laserbond.com.au/investor-relations , for details.
Currently the Directors receive fixed remuneration in the form of salaries and / or fees which are not performance-based. From FY2015
the board has implemented performance based bonuses for executive directors and additional non-cash (equity based) payments for
non-executive directors who hold office for the full twelve months of a fiscal year. At 30 June 15 no performance based payments have
LaserBond Ltd 2015 Annual Report | Page 17
17
2015 Annual Report2015 Annual Report
been made to executive directors, however two non-executive directors are entitled to non-cash (equity based) payments based on
their full tenure for FY2015. A provision for this has been accounted for as a share based payment as at 30 June 15.
Gregory Hooper – Executive Director
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Director’s Remuneration
Amounts paid to directors during the financial year ending 30 June 15 were:
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Nigel de Veth
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
Salaries and fees
Superannuation
Long Service Leave
Accrual
151,860
138,952
280,995
284,676
30,000
17,000
25,000
25,000
6,250
-
494,105
465,628
14,201
13,749
23,433
-
-
-
-
-
-
-
7,665
6,745
3,417
-
-
-
-
-
-
-
37,634
13,749
11,082
6,745
Directors only received a fixed salary or fee in the year ended 30 June 2015. However Allan Morton and Philip Suriano are entitled to a
non-cash (equity based) payment of 150,000 shares at the share price at close of business 30 June 2015 based on their full twelve
months tenure during FY2015. A provision has been allowed as at 30 June 15 as a share based payment expense for this remuneration.
Director’s Shareholding
As at 30 June 2015, the number of shares held by directors was:
Information on Company Secretary
Matthew Twist
Wayne Hooper
Wayne Hooper
Gregory Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Nigel de Veth
Nigel de Veth
Information on Directors
Allan Morton – Non-Executive Chairman
Holdings Type
Direct
Indirect
Direct
Indirect
Indirect
Indirect
Direct
Indirect
Holdings
8,541,809
1,045,919
5,232,343
3,652,564
505,405
33,107
3,035,488
571,958
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.
Debt
Wayne Hooper – Executive Director
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. Wayne is responsible for
general management of all Company activities, managing the day-to-day operations and ensuring a smoothly functioning, efficient
organisation. He is involved in technology development, engineering and administration of the group.
Significant Changes in State of Affairs
the financial statements or notes thereto.
Gregory has a mechanical engineering background with extensive hands on and sales management experience in the engineering,
metallurgy, 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
main focus within the group is the research and development of applications and products that utilise LaserBond’s core competencies in
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 11 years Mr. Suriano has been
working in corporate finance. He is currently working with Lempriere Capital Partners as Director, Equity Capital Markets.
Nigel de Veth – Non-Executive Director
Nigel is an experienced senior executive business strategist and change agent with a demonstrated ability to deliver results. Having
been a director of various companies since 1993, Nigel is regarded as an industry expert offering more than 25 years experience within
the mining and civil industries. Nigel has a strong focus on practicality, process, planning and delivering quality outcomes. Nigel is
currently a founder and Managing Director of drilling companies Deveth Drilling Pty Ltd and Roc-Drill Pty Ltd. Previously, Nigel was a
founding partner and director of the drilling company Straitline Australia and project manager for 15 years at various mine and civil sites
in both open-cut and underground operations. Nigel holds diplomas in Business, Quality Auditing, Management, Project Management,
Drilling Management, Integrated Risk, and Health and Safety as related to the mining and drilling industries.
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 20 years financial management experience, encompassing financial and operational control
and systems development in manufacturing companies. Matthew has fulfilled the academic requirements to attain the Certificate in
Governance Practice from the Governance Institute of Australia, and is currently a certificated member.
Director’s Meetings
During the financial year ended 30th June 2015, the number of meetings held, and attended, by each Director were as follows:
Director
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Nigel de Veth
Number of Meetings
Number of Meetings
Eligible to Attend
Attended
11
11
11
11
3
11
10
11
11
3
The board have formal Audit, Risk and Remuneration committees. The audit committee met during this reporting period. Please refer to
the Corporate Governance Statement at http://www.laserbond.com.au/investor-relations for further information.
At the end of the financial year, the group maintains a strong Balance Sheet with minimal debt. The current ratio of the group is 4.7:1
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 to in
18
LaserBond Ltd 2015 Annual Report | Page 18
LaserBond Ltd 2015 Annual Report | Page 19
2015 Annual Report
DIRECTORS’ REPORT
Gregory Hooper – Executive Director
Gregory has a mechanical engineering background with extensive hands on and sales management experience in the engineering,
metallurgy, 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
main focus within the group is the research and development of applications and products that utilise LaserBond’s core competencies in
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 11 years Mr. Suriano has been
working in corporate finance. He is currently working with Lempriere Capital Partners as Director, Equity Capital Markets.
Nigel de Veth – Non-Executive Director
Nigel is an experienced senior executive business strategist and change agent with a demonstrated ability to deliver results. Having
been a director of various companies since 1993, Nigel is regarded as an industry expert offering more than 25 years experience within
the mining and civil industries. Nigel has a strong focus on practicality, process, planning and delivering quality outcomes. Nigel is
currently a founder and Managing Director of drilling companies Deveth Drilling Pty Ltd and Roc-Drill Pty Ltd. Previously, Nigel was a
founding partner and director of the drilling company Straitline Australia and project manager for 15 years at various mine and civil sites
in both open-cut and underground operations. Nigel holds diplomas in Business, Quality Auditing, Management, Project Management,
Drilling Management, Integrated Risk, and Health and Safety as related to the mining and drilling industries.
Information on Company Secretary
Matthew Twist
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 20 years financial management experience, encompassing financial and operational control
and systems development in manufacturing companies. Matthew has fulfilled the academic requirements to attain the Certificate in
Governance Practice from the Governance Institute of Australia, and is currently a certificated member.
Director’s Meetings
During the financial year ended 30th June 2015, the number of meetings held, and attended, by each Director were as follows:
Director
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Nigel de Veth
Number of Meetings
Eligible to Attend
Number of Meetings
Attended
11
11
11
11
3
11
10
11
11
3
The board have formal Audit, Risk and Remuneration committees. The audit committee met during this reporting period. Please refer to
the Corporate Governance Statement at http://www.laserbond.com.au/investor-relations for further information.
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 4.7:1
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.
LaserBond Ltd 2015 Annual Report | Page 19
19
2015 Annual Report2015 Annual Report
DIRECTORS’ REPORT
Matters Subsequent to the End of the Financial Year
The Board of LaserBond Limited advises that it has reluctantly accepted the resignation of Nigel de Veth as a Director of the company
due to the demands of a recent significant expansion of his business that have become too great for him to fulfil the requirements of his
Board position at LaserBond to the extent he desired.
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
2014 final dividends of 0.2 cents per share and 2015 interim dividends of 0.2 cents per share were paid during 2014-2015. In addition,
since year end the directors have recommended the payment of a final dividend of 0.2 cents per fully-paid ordinary share (2014: 0.2),
fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend is expected to be paid on 7th October 2015 out
of retained earnings at 30 June 2015.
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 at http://www.laserbond.com.au/investor-relations.
Directors’ and Auditors’ Information
Insurance premiums of $20,556 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 21.
Signed in accordance with a resolution of the Board of Directors.
Director
Wayne Hooper
Dated this 27th day of August 2015
26th
20
Director
Gregory Hooper
LaserBond Ltd 2015 Annual Report | Page 20
2015 Annual Report
Auditor’s Independence Declaration
21
2015 Annual Report2015 Annual Report Independent Audit Report
22
2015 Annual Report 23
2015 Annual Report2015 Annual Report Declaration by Director’s
DECLARATION BY DIRECTORS
The directors of the group declare that:
1. The financial statements and notes, as set out on pages 25 to 50 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 2015 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 27th day of August 2014
26th
24
LaserBond Ltd 2015 Annual Report | Page 24
2015 Annual Report
Consolidated Statement of Profits & Loss
2015 FINANCIAL REPORT
Consolidated Statement of Profits and Loss and Other Comprehensive Income
for the Year Ended 30th June 2015
2015
2014
Note
2
3
Revenue from continuing operations
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
Research & Development Expenses
Other Expenses
Profit / (Loss) before income tax expense
from continuing operations
Income tax expense
4
5
Profit / (Loss) from continuing operations
Profit / (Loss) from discontinued operations
6
Total comprehensive income for the period
Total comprehensive income / (loss) attributable to
members of LaserBond Limited
$
9,546,595
(4,547,348)
4,999,247
166,152
(122,441)
(449,939)
(1,802,466)
(621,209)
(1,115,518)
(106,045)
(128,271)
(100,950)
(108,694)
(225,110)
384,756
(17,990)
366,766
-
-
366,766
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
0.42
0.42
0.42
0.42
$
9,669,960
(4,823,352)
4,846,608
70,084
(42,067)
(427,998)
(1,246,831)
(625,387)
(1,040,474)
(148,135)
(173,230)
(146,878)
(46,497)
(67,531)
951,664
(290,720)
660,944
(102,663)
-
558,281
0.76
0.76
0.64
0.64
These Audited Financial Statements should be read in conjunction with the accompanying notes.
25
LaserBond Ltd 2015 Annual Report | Page 25
2015 Annual Report2015 Annual Report
Consolidated Statement of Financial Position
2015 FINANCIAL REPORT
2015 FINANCIAL REPORT
Consolidated Statement of Changes in Equity
for the Year Ended 30th June 2015
Consolidated Statement of Financial Position
As at 30th June 2015
Opening Balance at 1st July 2013
5,701,090
146,603
5,847,693
Note
Issued capital
Retained earnings
Total equity
$
2015
$
$
2014
Profit / (Loss) for the Period
CURRENT ASSETS
Issue of Share Capital
Cash and cash equivalents
Dividends paid during period
Trade and other receivables
Inventories
Closing Balance at 30th June 2014
Total current assets
Profit / (Loss) for the Period
Issue of Share Capital
NON-CURRENT ASSETS
Property, plant and equipment
Dividends Paid during period
Deferred tax assets
Closing Balance at 30th June 2015
Intangible assets
Assets Held for Sale
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
-
117,363
-
5,818,453
-
49,747
5,868,200
8
9
10
11
13
12
15
17
16
18
16
17
19
20
$
558,281
-
(339,922)
2,138,084
2,399,680
1,332,501
364,962
5,870,265
366,766
-
(352,108)
379,620
1,886,695
235,876
384,686
-
2,507,257
8,377,522
663,176
550,939
156,710
(112,149)
1,258,676
692,264
178,762
871,026
2,129,702
6,247,820
5,868,200
379,620
6,247,820
558,281
117,363
(339,922)
6,183,415
$
2,559,454
2,652,188
1,027,490
6,239,132
366,766
49,747
(352,108)
6,247,820
2,120,993
254,597
212,798
40,000
2,628,388
8,867,520
756,361
540,253
407,225
100,199
1,804,038
837,166
42,901
880,067
2,684,105
6,183,415
5,818,453
364,962
6,183,415
These Audited Financial Statements should be read in conjunction with the accompanying notes.
These Audited Financial Statements should be read in conjunction with the accompanying notes.
26
LaserBond Ltd 2015 Annual Report | Page 28
LaserBond Ltd 2015 Annual Report | Page 26
2015 Annual Report
Consolidated Statement of Cash Flows
2015 FINANCIAL REPORT
2015 FINANCIAL REPORT
Consolidated Statement of Profits and Loss and Other Comprehensive Income
for the Year Ended 30th June 2015
Consolidated Statement of Cash Flows
for the Year Ended 30th June 2015
2015
2015
$
9,546,595
(4,547,348)
$
2014
2014
$
$
9,669,960
(4,823,352)
Note
Note
26
2
3
4
5
6
Revenue from continuing operations
Cost of Sales
CASH FLOWS FROM OPERATING ACTIVITIES
Income taxes paid
Net proceeds from discontinued operations
Receipts from customers
Gross Profit from continuing operations
Payments to suppliers and employees
Interest paid
Other Income
Interest received
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Rental & Rates Expenses
Administration Expenses
Repairs & Maintenance Expenses
Operating Lease Expenses
Borrowing Costs
Net cash inflow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Research & Development Expenses
Payment for intangible assets
Other Expenses
Proceeds from sale of plant and equipment
Profit / (Loss) before income tax expense
from continuing operations
Repayments of loans to employees
Net cash inflow/(outflow) from investing
activities
Income tax expense
Profit / (Loss) from continuing operations
CASH FLOWS FROM FINANCING ACTIVITIES
Profit / (Loss) from discontinued operations
Payments for issue of Shares
Payments to lessors
Dividends paid
Total comprehensive income for the period
Net cash inflow/(outflow) from financing activities
Total comprehensive income / (loss) attributable to
members of LaserBond Limited
NET INCREASE/(DECREASE) IN CASH HELD
Net cash at beginning of period
4,999,247
10,886,169
(10,229,870)
(100,950)
54,539
98,178
-
708,066
166,152
(122,441)
(449,939)
(1,802,466)
(621,209)
(1,115,518)
(106,045)
(128,271)
(100,950)
(108,694)
(225,110)
(166,317)
(219,872)
717
384,756
3,732
(381,740)
(17,990)
366,766
-
-
(395,417)
(352,279)
-
(747,696)
366,766
(421,370)
2,559,454
Earnings per share for profit from continuing operations attributable to members:
NET CASH AT END OF PERIOD
8
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
2,138,084
0.42
0.42
0.42
0.42
These Audited Financial Statements should be read in conjunction with the accompanying notes.
These Audited Financial Statements should be read in conjunction with the accompanying notes.
4,846,608
10,063,124
(8,868,534)
(146,878)
70,084
44,734
(42,067)
202,743
(427,998)
(200,738)
(1,246,831)
(625,387)
(1,040,474)
(148,135)
(173,230)
(146,878)
(46,497)
1,094,451
(333,093)
(204,823)
902,044
(67,531)
951,664
-
364,128
(290,720)
660,944
(7,768)
(102,663)
(652,355)
(228,098)
-
(888,221)
558,281
570,358
1,989,096
2,559,454
0.76
0.76
0.64
0.64
LaserBond Ltd 2015 Annual Report | Page 25
27
LaserBond Ltd 2015 Annual Report | Page 27
2015 Annual Report2015 Annual Report
Consolidated Statement of Changes in Equity
2015 FINANCIAL REPORT
Consolidated Statement of Changes in Equity
for the Year Ended 30th June 2015
Consolidated Statement of Changes in Equity
for the Year Ended 30th June 2015
2015 FINANCIAL REPORT
Opening Balance at 1st July 2013
Opening Balance at 1st July 2013
Profit / (Loss) for the Period
Issue of Share Capital
Profit / (Loss) for the Period
Dividends paid during period
Issue of Share Capital
Dividends paid during period
Closing Balance at 30th June 2014
Closing Balance at 30th June 2014
Profit / (Loss) for the Period
Issue of Share Capital
Profit / (Loss) for the Period
Dividends Paid during period
Issue of Share Capital
Dividends Paid during period
Closing Balance at 30th June 2015
Closing Balance at 30th June 2015
Issued capital
Retained earnings
Total equity
Issued capital
Retained earnings
Total equity
$
$
$
$
5,701,090
$
146,603
$
5,847,693
5,701,090
-
117,363
-
-
117,363
-
5,818,453
5,818,453
-
49,747
-
49,747
5,868,200
5,868,200
146,603
558,281
-
558,281
(339,922)
-
(339,922)
364,962
364,962
366,766
-
366,766
(352,108)
-
(352,108)
379,620
5,847,693
558,281
117,363
558,281
(339,922)
117,363
(339,922)
6,183,415
6,183,415
366,766
49,747
366,766
(352,108)
49,747
(352,108)
6,247,820
379,620
6,247,820
These Audited Financial Statements should be read in conjunction with the accompanying notes.
These Audited Financial Statements should be read in conjunction with the accompanying notes.
28
LaserBond Ltd 2015 Annual Report | Page 28
LaserBond Ltd 2015 Annual Report | Page 28
2015 Annual Report
Notes to the Financial Statements
2015 FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report of LaserBond Limited for the year ended 30 June 2015 was authorised for issue in accordance with a resolution of
the directors on 26th August 2015 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
2014 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.
29
LaserBond Ltd 2015 Annual Report | Page 29
2015 Annual Report2015 Annual Report
2015 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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
Revenue from other income streams is 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.
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 loss.
30
LaserBond Ltd 2015 Annual Report | Page 30
2015 Annual Report
2015 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
31
LaserBond Ltd 2015 Annual Report | Page 31
2015 Annual Report2015 Annual Report
2015 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
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.
32
LaserBond Ltd 2015 Annual Report | Page 32
2015 Annual Report
2015 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
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.
LaserBond Ltd 2015 Annual Report | Page 33
33
2015 Annual Report2015 Annual Report
2015 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
(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 reviewed 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.
34
LaserBond Ltd 2015 Annual Report | Page 34
2015 Annual Report
2015 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 2015 annual financial report for the financial year ended 30 June 2014. 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 2015 reporting
periods and have not been early adopted by the group. The Board believes there will be no material impact to the financial
statements upon initial application.
(i) AASB 9 Financial Instruments
AASB 9 addressed the classification, measurement and de-recognition of financial assets and financial liabilities and introduces new
rules for hedge accounting. In December 2014, the AASB made further changes to the classification and measurement rules and also
introduced a new impairment model. These latest amendments now complete the new financial instruments standard.
(ii) AASB 15 Revenue from Contracts with Customers
The AASB has issued a new standard for the recognition of revenue. This will replace AASB 118 which covers contracts for goods and
services and AASB 111 which covers construction contracts. The new standard is based on the principle that the revenue is
recognised when control of a good or service transfers to a customer – so the notion of control replaces the existing notion of risks
and rewards.
The standard permits a modified retrospective approach for the adoption. Under this approach entities will recognise transitional
adjustments in retained earnings on the date of initial application (e.g. 1 July 2017), i.e. without restating the comparative period.
They will only need to apply the new rules to contracts that are not completed as of the date of initial application.
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.
(i)
Investments in subsidiaries, associates and joint venture entities
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 its 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.
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.
LaserBond Ltd 2015 Annual Report | Page 35
35
2015 Annual Report2015 Annual Report
2015 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
2015
$
2014
$
9,546,595
9,669,960
Profit / (Loss) before Income Tax from continuing operations includes the following specific expenses
NOTE 2: REVENUE (from continuing operations)
Sales Revenue
Sales of Goods & Services
NOTE 3: OTHER INCOME (from continuing operations)
Interest Revenue
Other
NOTE 4: EXPENSES (from continuing operations)
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% (2014: 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:
36
54,539
111,613
166,152
100,950
329,290
26,834
13,894
2,096
23,176
7,229
47,420
449,939
128,271
44,734
25,350
70,084
146,878
331,864
29,714
6,109
655
40,743
8,674
10,239
427,998
173,230
59,378
53,670
384,756
115,427
49,737
(147,854)
95,526
(94,846)
17,990
951,664
285,499
36,520
(48,080)
-
16,781
290,720
LaserBond Ltd 2015 Annual Report | Page 36
2015 Annual Report
NOTE 6: DISCONTINUED OPERATIONS
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.
2015 FINANCIAL REPORT
a) Financial Performance & Cash Flow Information
2015
Revenue
Expenses
(Loss) Before Income Tax
Income Tax Expense
(Loss) after income tax of discontinued operation
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash
b) Carrying Amounts of Assets & Liabilities
$
-
-
-
-
-
-
-
-
-
2014
$
1,243,829
(1,444,567)
(200,738)
98,075
(102,663)
284,369
852,345
(1,202,461)
(65,747)
As at 30 June 2015 and 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)
Diluted earnings per share (cents)
NOTE 7: EARNINGS PER SHARE
Basic earnings per share (cents)
Diluted earnings per share (cents)
2015
2014
-
-
(0.12)
(0.12)
0.42
0.42
0.64
0.64
There are no current options to affect diluted earnings per share.
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2014
Shares issued as at 15th Dec 2014
No. of Shares
87,397,357
Weighted
No.
87,397,357
211,109
97,168
Closing Balance as at 30th June 2015
87,608,466
87,300,189
NOTE 8: CASH AND CASH EQUIVALENTS
2015
2014
Cash on Hand
Cash at Bank
$
1,200
2,136,884
2,138,084
$
1,200
2,558,254
2,559,454
37
LaserBond Ltd 2015 Annual Report | Page 37
2015 Annual Report2015 Annual Report
NOTE 9: TRADE AND OTHER RECEIVABLES
2015
2014
2015 FINANCIAL REPORT
Trade Receivables
Provision – Impairment of Receivables
Loans – Key Management Personnel
Loans – Employees
Prepayments
Other Receivables
a) Movements in the provision for impairment of receivables
Opening Balance
Provision for impairment recognised during the year
Receivables written off during the year as uncollectable
Previously impaired receivables collected during the year
$
2,050,041
(19,175)
50,174
1,625
312,713
4,302
2,399,680
16,337
4,230
-
(1,392)
19,175
$
2,395,245
(16,337)
50,174
5,357
213,176
4,573
2,652,188
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.
2015
Trade and term
receivables
Other receivables
2014
Trade and term
receivables
Other receivables
Past due but not impaired
(days overdue)
Gross
Amount
$000
Past due and
impaired
$000
2,050
369
2,419
2,395
273
2,668
19
-
19
16
-
16
<30
$000
930
369
1,299
1,019
273
1,292
31-60
$000
61-90
$000
>90
$000
590
-
590
765
-
765
430
-
430
553
-
553
81
-
81
42
-
42
2015
2014
Within
initial
trade
terms
$000
1,520
369
1,889
1,784
185
1,969
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
$
669,525
582,255
80,721
1,332,501
3,565,867
(1,795,617)
1,770,250
322,021
(210,011)
112,010
$
465,359
342,289
219,842
1,027,490
3,513,524
(1,466,907)
2,044,617
258,876
(186,836)
72,040
38
LaserBond Ltd 2015 Annual Report | Page 38
2015 Annual Report
NOTE 11: PROPERTY, PLANT & EQUIPMENT (cont’d)
Research & Development Equipment
At Cost
Less Accumulated Depreciation
2015 FINANCIAL REPORT
2015
2014
$
30,382
(25,947)
4,435
$
28,187
(23,851)
4,336
TOTAL PLANT & EQUIPMENT
1,886,695
2,120,993
(a) Movements in Carrying Amounts
2015 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
2014 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
(b) Asset Additions financed
Plant &
Equipment,
Office
Equipment, etc
Motor
Vehicles
Research &
Development
Equipment
Total
$
2,044,617
100,977
-
(375,344)
1,770,250
$
2,549,686
441,722
(519,522)
(427,269)
2,044,617
$
72,040
63,145
1,340
(24,515)
112,010
$
125,450
-
(20,000)
(33,410)
72,040
$
4,336
2,195
-
(2,096)
4,435
$
831
4,160
-
(655)
4,336
$
2,120,993
166,317
1,340
(401,955)
1,886,695
$
2,675,967
445,882
(539,522)
(461,334)
2,120,993
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
2015 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Net Book Amount at 30th June 2015
2014 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Net Book Amount at 30th June 2014
2015
-
2014
112.789
Goodwill
Patents and
Trademarks
$
-
-
-
-
-
-
-
-
-
-
-
-
$
7,524
-
-
-
(564)
6,960
8,134
-
-
-
(610)
7,524
Other
Intangible
Assets
$
205,274
219,872
-
-
(47,420)
377,726
10,160
204,882
-
-
(9,768)
205,274
Total
$
212,798
219,872
-
-
(47,984)
384,686
18,294
204,882
-
-
(10,378)
212,798
Amortisation charges are included in depreciation and amortisation in the statement of profits and loss.
39
LaserBond Ltd 2015 Annual Report | Page 39
2015 Annual Report2015 Annual Report
NOTE 13: DEFERRED TAX ASSETS
Deferred tax assets comprise temporary differences attributable to:
Employee Benefits
Expense Accruals
Deferred tax assets expected to be recovered within 12 months
Deferred tax assets expected to be recovered after more than
12 months
2015 FINANCIAL REPORT
2015
$
184,929
50,947
235,876
110,957
124,919
235,876
2014
$
174,946
79,651
254,597
137,966
116,631
254,597
At June 2013
(Charged) / credited
- to profit or loss
- directly to equity
At June 2014
(Charged) / credited
- to profit or loss
- directly to equity
At June 2015
NOTE 14: ASSETS HELD FOR SALE
Assets Held for Sale
Employee
Benefits
Expense
Accruals
PAYG
Instalments
Total
184,418
-
(9,472)
174,946
9,983
184,929
47,105
-
32,546
79,651
(28,704)
50,947
2015
$
-
318,263
549,786
(318,263)
-
-
(318,263)
23,074
254,597
-
-
(18,721)
235,876
2014
$
40,000
The asset held for sale related to a final asset from our Gladstone, Queensland operations unsold upon closure. The overhead
cranes at one 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. Prior to 30 Jun 15 the final crane was sold for $50,000.
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: INTEREST BEARING LIABILITIES
CURRENT
Hire Purchase Liabilities (Secured)
NON-CURRENT
Hire Purchase Liabilities (Secured)
375,317
98,177
14,709
3,220
25,377
20,104
126,272
663,176
485,290
108,399
17,847
3,600
54,616
10,152
76,457
756,361
156,710
407,225
692,264
848,974
837,166
1,244,391
40
LaserBond Ltd 2015 Annual Report | Page 40
2015 Annual Report
NOTE 17 : PROVISIONS
CURRENT
Employee Benefits
NON-CURRENT
Employee Benefits
2015 FINANCIAL REPORT
2015
$
550,939
178,762
729,701
2014
$
540,253
42,901
583,154
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. Where employees have completed the required period of service, 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
384,704
404,242
NOTE 18: TAX LIABILITIES
CURRENT
Income Tax
NOTE 19: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Existing Shares
Issued Shares
Provision Unissued (Entitled) Shares
(a) Ordinary Shares
Date
Details
1st July 2013
21st October 2013
27th February 2014
10th April 2014
30th June 2014
Opening Balance
Dividend Reinvestment Plan
Employee Share Plan
Dividend Reinvestment Plan
Closing Balance
(112,149)
100,199
5,868,200
5,818,453
2015
2015
Shares
87,397,357
211,109
87,608,466
$
5,818,453
10,747
39,000
5,868,200
2014
Shares
86,090,776
1,306,581
2014
$
5,701,090
117,363
87,397,357
5,818,453
No. Shares
86,090,776
484,964
133,083
688,534
87,397,357
Issue Price
(Cents per
Share)
10.99
9.50
9.74
$
50,760
6,575
60,028
117,363
10,747
10,747
15th December 2014
Employee Share Plan
211,109
9.00
30th June 2015
Closing Balance
87,608,466
(b) Capital Risk Management
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.
LaserBond Ltd 2015 Annual Report | Page 41
41
2015 Annual Report2015 Annual Report
2015 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 29.
NOTE 20 : RETAINED EARNINGS
2015
2014
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
Total Hire Purchase / Finance Lease Liability
$
364,962
(352,108)
384,756
(17,990)
379,620
299,784
549,190
848,974
(19,527)
829,447
$
146,603
(339,922)
819,384
(261,103)
364,962
494,713
940,230
1,434,943
(190,552)
1,244,391
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 currently within 1 to 3 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
346,475
-
346,475
141,873
346,475
488,348
42
LaserBond Ltd 2015 Annual Report | Page 42
2015 Annual Report
2015 FINANCIAL REPORT
(c) Property Lease
The group has the following property leases:
112 Levels Road, Cavan SA 5094
2 / 57 Anderson Road, Smeaton Grange NSW 2567
Expiry
May 2018
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
2015
653,500
2,589,873
1,498,311
2014
566,842
2,889,549
2,009,661
NOTE 22: CONTINGENT ASSETS & LIABILITIES
The directors are not aware of any contingent assets or contingent liabilities that would have an effect on these financial
statements. (2014: Nil)
NOTE 23: RELATED PARTY TRANSACTIONS
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to
other parties unless otherwise stated.
(a) Other Related Parties
Labour Costs
Labour – Payroll Staff
Labour – Contract Staff
2015
$
325,629
9,041
334,670
2014
$
258,329
33,371
291,700
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 administration staff.
Superannuation
Contribution to superannuation funds on behalf of employees
297,505
248,442
Loans – Other Related Parties
Employee Loans
Employee Personal Expenses
1,625
1,572
3,197
5,357
1,846
7,203
The Employee Loans are receivable from two (2) 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
Hawkesdale Group
Sam Holdings (Aust.)
Deveth drilling Qld
21,650
100,625
61,250
191,025
23,100
-
-
23,100
Hawkesdale Group, a director related entity, provided consultancy services related to Sales support and strategy development.
Sam Holdings, a Director related entity, provided consultancy services related to Product Commercialisation support and Sales
support and strategy development.
Deveth Drilling. a Director related entity, provided consultancy services related to Product Commercialisation and continuing
development support.
Loans
Director Loan
50,174
50,174
All Loans are classified current, unsecured and interest free. The Director Loan is receivable from Mr Greg Hooper, a director of the
group.
LaserBond Ltd 2015 Annual Report | Page 43
43
2015 Annual Report2015 Annual Report
Superannuation
Contribution to superannuation funds on behalf of key management
personnel
NOTE 24: KEY MANAGEMENT PERSONNEL
2015 FINANCIAL REPORT
37,634
13,749
Key management personnel are those persons who have authority and responsibility for planning, directing and controlling the
activities of the group.
(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 18.
(c) Options Held
There were no options held at 30 June 2015 or 30 June 2014. There were no options issued during the financial year.
(d) Shares Held
Interest Shares Held as at
30th June 2014
Issued Purchased / (Sold)
Shares Held as at 30th
June 2015
Wayne Hooper Direct
Wayne Hooper In-Direct
Greg Hooper Direct
Greg Hooper In-Direct
Philip Suriano In-Direct
Allan Morton In-Direct
Nigel de Veth Direct
Nigel de Veth In-Direct
8,541,809
935,919
4,969,952
3,652,564
33,107
255,405
-
1,296,000
19,684,756
-
-
-
-
-
-
-
-
-
-
110,000
262,391
-
-
250,000
3,035,488
(724,042)
2,933,837
8,541,809
1,045,919
5,232,343
3,652,564
33,107
505,405
3,035,488
571,958
22,618,593
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
NOTE 25: DIVIDENDS
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
Declared 2015 fully franked interim ordinary dividend of 0.2 (2014: 0.2) cents per share
franked at the tax rate of 30% (2014: 30%)
Declared 2014 fully franked final ordinary dividend of 0.2 (2013: 0.2) cents per share franked
at the tax rate of 30% (2013: 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
44
2014
2013
$
$
175,217
172,130
174,795
173,418
0.4 cents
0.4 cents
350,012
-
350,012
228,566
116,982
345,548
LaserBond Ltd 2015 Annual Report | Page 44
2015 Annual Report
2015 FINANCIAL REPORT
a) Dividends not recognised during the reporting period
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 (2014: 0.2) fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend
expected to be paid on 7th October 2015 out of retained earnings at 30 June 2015, but not recognised as a liability at year end is
$175,217.
The debit expected to franking account arising from this dividend is $75,093.
b) Franking credits
Franking credits available for subsequent periods based on a tax
rate of 30% (2014: 30%)
NOTE 26: CASH FLOW INFORMATION
2015
$
2014
$
1,606,205
1,658,033
Reconciliation of profit after income tax to net cash flows from operating activities
Profit / (Loss) after Income Tax for the year
366,766
558,289
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
511,549
(9,223)
252,508
(305,011)
18,721
40,000
(500)
(93,185)
10,686
(212,348)
135,861
471,244
(362,522)
263,132
470,275
295,189
(40,000)
500
(631,279)
(24,619)
100,199
(5,949)
Net cash provided by operating activities
708,066
1,094,451
NOTE 27: RESTATEMENT IN ACCOUNTING FOR INVENTORIES
An unintended consequence of our improved productivity and lean manufacturing for the NSW division has resulted in a
revaluation of a number of inventory items to comply with the current Australian Accounting Standards, particularly AASB 102.
The restatement has affected financial statement line items for the previous corresponding period as follows:
Balance Sheet (extract)
Inventories
Deferred Tax Assets
Net Assets
Retained Earnings
Total Equity
Profit and Loss and Other Comprehensive Income (extract)
Administration expenses
Profit Before Income Tax from continuing operations
Income Tax Expense (continuing operations)
Profit / (Loss) from continuing operations
2014
Increase /
(Decrease)
2014 (Restated)
1,141,587
220,368
6,263,283
(444,830)
(6,263,283)
(926,377)
1,065,761
(324,949)
740,812
(114,097)
34,229
(79,868)
79,868
79,868
114,097
(114,097)
34,229
(79,868)
1,027,490
254,597
6,183,415
(364,962)
(6,183,415)
(1,040,474)
951,664
(290,720)
660,944
LaserBond Ltd 2015 Annual Report | Page 45
45
2015 Annual Report2015 Annual Report
Total comprehensive income / (loss) attributable to
members
638,149
(79,868)
558,281
Basic and diluted earnings per share for the prior year have also been restated. The amount of the correction for basic was 0.09
cents and diluted earnings was 0.10 cents per share.
2015 FINANCIAL REPORT
NOTE 28: FINANCIAL INSTRUMENTS
Financial Risk Management Policies
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.
Weighted
Average Effective
Interest Rate
Floating
Interest Rate
Fixed Interest Rate
Within 1 Year
1 to 5
Years
$
$
a) Interest rate risk
30th June 2015
Financial Assets:
Cash on Hand
Cash at Bank
Trade and other
receivables
Inventories
Total financial assets
Financial Liabilities
Trade and other
payables
Hire Purchase /
Finance Lease
Total financial liabilities
30th June 2014
Financial Assets:
Cash on Hand
Cash at Bank
Trade and other
receivables
Inventories
Total financial assets
Financial Liabilities
Trade and other
payables
Hire Purchase /
Finance Lease
Total financial liabilities
46
%
1.5
8.0
%
2.75
8.0
-
2,117,661
-
-
2,117,661
-
-
-
$
-
2,523,236
-
-
2,523,236
-
-
-
Non-
Interest
Bearing
Total
$
1,500
18,923
$
1,500
2,136,584
2,399,680
2,399,680
1,332,501
1,332,501
3,752,604
5,870,265
663,176
663,176
$
-
-
-
-
-
-
-
-
-
-
-
-
299,784
549,190
-
848,974
299,784
549,190
663,176
1,512,150
Fixed Interest Rate
Within 1 Year
1 to 5
Years
$
-
-
-
-
-
-
Non-
Interest
Bearing
Total
$
1,200
35,018
$
1,200
2,558,254
2,652,188
2,652,188
1,027,490
1,027,490
3,715,896
6,239,132
746,209
746,209
$
-
-
-
-
-
-
407,225
837,166
-
1,244,391
407,225
837,166
746,209
1,990,600
LaserBond Ltd 2015 Annual Report | Page 46
Weighted
Average Effective
Interest Rate
Floating
Interest Rate
2015 Annual Report
2015 FINANCIAL REPORT
b) Credit Risk Exposure
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognise 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 2015 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%
Foreign Currency Risk Sensitivity Analysis
2015
$
1,045
(1,045)
1,045
(1,045)
2014
$
895
(895)
895
(895)
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 2015, 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 18% (2014: 15%)
- Decline in AUD to International currencies by 18% (2014: 15%)
Change in equity
- Improvement in AUD to International currencies by 18% (2014:15%)
- Decline in AUD to International currencies by 18% (2014: 15%)
NOTE 29: SHARE BASED PAYMENTS
a)
Employee Share Plan
2015
$
61,508
(61,508)
61,508
(61,508)
2014
$
37,908
(37,908)
37,908
(37,908)
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.
LaserBond Ltd 2015 Annual Report | Page 47
47
2015 Annual Report2015 Annual Report
2015 FINANCIAL REPORT
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.
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)
b) Non-Executive Director Remuneration (Non-Cash)
2015
$
211,109
2014
$
133,083
From this current fiscal year, Non-Executive Directors will be paid remuneration through both cash fees and non-cash benefits in the
form of equity issues. The fees will be a fixed sum determined annually that reflects the time, commitment and responsibilities of
their role, financial forecasts and cash-flow position of the company.
Where the issue of shares results in the aggregate amount of fees to exceed the sum approved last by shareholders no shares will be
issued until shareholder approval is gained at the next Annual (or Extraordinary) General Meeting. The approval will be determined
by the Board at the time and may be either the seeking of an increase to the approved aggregate sum or the approval of the issue of
the shares.
Where the issue of shares results in a non-executive director’s total remuneration for a fiscal year to be in any way deemed
‘unreasonable remuneration’, shares will not be issued until shareholder approval is gained at the next Annual (or Extraordinary)
General Meeting. Unreasonable remuneration is defined as the aggregate amount of fees most recently approved by shareholders
divided by the total number of non-executive directors.
Eligibility loss of non-cash remuneration occurs if a non-executive director does not hold a position on the Board for the full twelve
months of each fiscal year.
No shares were issued during fiscal year 2015, however a Board meeting held in July has subsequently approved the issue of
150,000 shares each to two non-executive directors who held office for the full twelve months of fiscal year 2015. A provision for this
share based payment has been accounted for as at 30 June 15.
c)
Expense arising from share based payment transactions
Shares Issued under employee share plan
Provision Unissued (Entitled) Shares – Non-Executive Director Remuneration
NOTE 30: PARENT ENTITY FINANCIAL INFORMATION
a) Summary Financial Information
The individual financial statements for the parent entity shows the following aggregate amounts:
10,837
39,000
49,837
8,149
-
8,149
Balance Sheet
Assets:
Current Assets
Total Assets
Liabilities:
Current Liabilities
Total Liabilities
Shareholders’ Equity
Issued Capital
Retained Earnings
Profit before income tax expense
Profit after tax from continuing operations
Total comprehensive income attributable to members
48
5,870,265
8,377,522
1,258,676
2,129,702
5,868,200
379,620
6,247,820
384,756
366,766
366,766
6,239,132
8,867,520
1,804,038
2,684,105
5,818,453
365,133
6,183,415
951,664
660,944
558,281
LaserBond Ltd 2015 Annual Report | Page 48
2015 Annual Report
2015 FINANCIAL REPORT
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 $848,974 (2014: $1,244,391)
for subsidiaries with a balance outstanding of nil. (2014: nil)
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 $346,475 (2014: $488,348)
for subsidiaries with a balance outstanding of nil (2014: nil)
The parent entity has given unsecured guarantees in respect of Rental Bonds:
(i)
(ii)
for the parent entity with totaling of $181,885 (2014: $181,885)
for subsidiaries with a balance outstanding of nil. (2014: nil)
The parent entity has unsecured and unused finance facilities in place in respect of:
(i)
(ii)
Trade finance facility with unused limit of $2,568,350 (2014: $1,868,783).
Bank Guarantee Line unused with limit of $18,115 (2014: $18,115).
The trade finance facility is subject to annual review which last occurred February 2015.
The parent entity did not have any contingent liabilities as at 30 June 2015 or 30 June 2014.
The parent entity had no current contractual commitments for the acquisition of property plant or equipment as at 30 June 2015 or
30 June 2014.
NOTE 31: CONTROLLED ENTITIES
Subsidiaries of LaserBond Limited
Country of Incorporation
Percentage Owned
LaserBond (Qld) Pty Ltd
ABN 17 114 053 431 Pty Ltd
Canedice Investments Pty Ltd
Aust.
Aust.
Aust.
Note that LaserBond (Qld) Pty Ltd is a non trading entity.
NOTE 32: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
2015
100%
-
-
2014
100%
100%
100%
The Board of LaserBond Limited advises that it has reluctantly accepted the resignation of Nigel de Veth as a Director of the company
due to the demands of a recent significant expansion of his business that have become too great for him to fulfil the requirements of
his Board position at LaserBond to the extent he desired.
NOTE 33: 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.
49
LaserBond Ltd 2015 Annual Report | Page 49
2015 Annual Report2015 Annual Report
2015 FINANCIAL REPORT
LaserBond Limited (NSW
Division)
2015
8,816,612
2014
8,940,844
LaserBond Limited (SA
Division)
2015
729,982
2014
729,116
Total (for Continuing
Operations)
2015
9,546,595
2014
9,669,960
1,268,995
1,426,272
(387,889)
55,533
881,106
1,481,805
(46,411)
(368,120)
(102,143)
(374,794)
-
-
(81,819)
(53,204)
(46,411)
(449,939)
(102,143)
(427,998)
Revenue
EBITDA
Interest
Depreciation &
Amortisation
Profit Before Income
Tax
854,464
949,335
(469,708)
Income tax expense
(269,156)
(290,021)
251,166
Profit after Income Tax
585,308
659,314
(218,542)
2,329
(699)
1,630
384,756
951,664
(17,990)
(290,720)
366,766
660,944
Assets
Liabilities
7,285,837
8,050,015
1,091,685
817,505
8,377,522
8,867,520
2,054,273
2,576,851
75,429
107,254
2,129,702
2,684,105
Economic Dependency on a single Customer
Revenues of $3,942,465 (2014 - $4,176,919) are derived from a single external customer. These revenues are attributed to the NSW
segment.
NOTE 34: 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
50
LaserBond Ltd 2015 Annual Report | Page 50
2015 Annual Report
Shareholder Information
SHAREHOLDER INFORMATION
1.
Substantial Shareholders at 5th August 2015
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)
Mr Nigel Francis De Veth
Mr Nigel Francis De Veth (DeVeth Super Pty Ltd)
Mr Nigel Francis De Veth (Deveth Drilling Pty Ltd)
Mrs Loretta Mary Peachey
Mrs Loretta Mary Peachey & Mr Nathan Charles Peachey
2. Distribution of Shareholders as at 5th August 2015
Number of Ordinary
Fully Paid Shares Held
8,541,809
8,541,809
1,045,919
7,283,916
7,137,590
5,232,343
3,652,564
3,035,488
315,835
256,123
2,693,344
2,250,000
%
9.750
9.750
1.194
8.314
8.147
5.972
4.169
3.465
0.361
0.292
3.074
2.568
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
53
77
268
93
515
Total Units
4,428
191,189
614,746
9,883,282
76,914,821
87,608,466
%
0.005
0.218
0.702
11.281
87.794
100.000
Holdings less than a marketable parcel
50
71,625
0.082
3.
Twenty Largest Shareholders as at 5th August 2015
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)
Mr Nigel Francis De Veth
Mrs Loretta Mary Peachey
Mrs Loretta Mary Peachey & Mr Nathan Charles Peachey
Mr Keith Knowles
Parks Australia Pty Ltd
Mr James Gordon Moffatt
Fortitude Enterprises Pty Ltd
W&D Hooper Investments Pty Ltd
Myall Resources Pty Ltd
Wantune Pty Ltd
Dixson Trust Pty Limited
Mr William Ross Fenner
Fortitude Enterprises Pty Ltd
Mr Makram Hanna & Mrs Rita Hanna
Totals for Top 20
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
1,999,405
1,248,289
1,085,885
1,045,919
1,000,000
925,000
869,560
773,807
730,937
635,000
60,494,506
Security Totals
87,608,466
%
9.750
9.750
8.314
8.147
5.673
4.169
3.465
3.074
2.568
2.368
2.282
1.425
1.239
1.194
1.141
1.056
0.993
0.883
0.834
0.725
69.051
51
LaserBond Ltd 2015 Annual Report | Page 51
2015 Annual Report2015 Annual 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
SHAREHOLDER INFORMATION
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
30,100
112,272
211,109
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
5 Feb 2016 – 30,100 shares
14 Feb 2016 – 56,144 shares
15 Dec 2015 – 70,376 shares
14 Feb 2017 – 56,128 shares
15 Dec 2016 – 70,376 shares
15 Dec 2017 – 70,357 shares
52
LaserBond Ltd 2015 Annual Report | Page 52
2015 Annual Report
Notes
53
2015 Annual Report2015 Annual Report LaserBond Limited
Unit 2, 57 Anderson Road
Smeaton Grange NSW 2567
Telephone 02 4631 4500
International +61 2 4631 4500
Fax 02 4631 4500
International +61 2 4631 4500
Email info@laserbond.com.au
LaserBond (SA)
112 Levels Road
Cavan SA 5094
Telephone 08 8262 2289
International +61 8 8262 2289
Fax 08 8260 2238
International +61 8 8260 2238
Email info@laserbond.com.au
www.laserbond.com.au
Quality
Environment Health & Safety
ASX:LBL
Over the past year LaserBond has developed IP and
applied for patents to a “game-changing” DTH hammer
for the drilling industry. Three times longer life, a highly
significant 7.5% reduction in total drilling costs for
mining and increased performance were key findings
from the independently supervised trial.
Shareholder’s Annual Report
Laserbond Limited
ABN 24 057 636 692
For year ended 30th June 2015
All comparisons to year ended 30th June 2014