Shareholder’s Annual Report
Laserbond Limited
ABN 24 057 636 692
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For year ended 30th June 2016
All comparisons to year ended 30th June 2015
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Contents
About Laserbond ........................................................... 2
Financial Report ............................................................11
1
2016 Annual Report 2
2017 is LaserBond’s 25th year of researching, developing and applying
innovative surface engineering technologies to extend plant and
machinery life, improve resistance to wear and corrosion, increase
reliability and reduce maintenance and replacement costs. We focus on
heavy industry sectors that embrace the productivity, innovation and
sustainability benefi ts delivered by our products, services and technology.
Y
R
A
E R S
1
9
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2 • 2017 • A N N I V
Surface engineering is in our DNA
3
2016 Annual Report
2017 is LaserBond’s 25th year of researching, developing and applying
innovative surface engineering technologies to extend plant and
machinery life, improve resistance to wear and corrosion, increase
reliability and reduce maintenance and replacement costs. We focus on
heavy industry sectors that embrace the productivity, innovation and
sustainability benefi ts delivered by our products, services and technology.
Y
R
A
E R S
1
9
9
2 • 2017 • A N N I V
Surface engineering is in our DNA
3
3
2016 Annual Report2016 Annual Report
Our vision is to be a global leader in the research, design and
implementation of advanced surface engineering technologies and
Our mission is to optimise the capacity and capability of our
facilities and staff to deliver innovative services and products and
LaserBond
is a classic grass roots family-founded business.
the forefront of the development of the HP HVOF thermal spray
Gregory Hooper, whilst working as a leading technical specialist in
process. It relocated to larger premises in Smeaton Grange, NSW
innovations that tangibly reduce unit operating costs and impact
build on our core competency of surface engineering to diversify
welding applications and metallurgy, foresaw a services company
in 2012. Cavan SA was established in 2013. It was ASX listed as
on the environment, by extending the wear and operational life of
and grow our business.
production-vital equipment.
that could embrace new metal spray deposition technology. With
LaserBond Limited (ASX:LBL) in 2007. Innovation in laser cladding
family support, Greg founded the company as HVOF Australia P/L in
dates from 1999 when we built one of the world’s first high-
1992, working from a small workshop in Ingleburn, NSW. His
powered cladding systems using a 6kW CO2 laser. Introduction of
brother, Wayne, joined the business in 1994. The company was at
energy efficient 8kW diode laser and 6-axis robot control followed.
Vision and Mission
4
4
A history of innovation
5
2016 Annual Report Our vision is to be a global leader in the research, design and
Our mission is to optimise the capacity and capability of our
LaserBond
is a classic grass roots family-founded business.
the forefront of the development of the HP HVOF thermal spray
implementation of advanced surface engineering technologies and
facilities and staff to deliver innovative services and products and
Gregory Hooper, whilst working as a leading technical specialist in
process. It relocated to larger premises in Smeaton Grange, NSW
innovations that tangibly reduce unit operating costs and impact
build on our core competency of surface engineering to diversify
welding applications and metallurgy, foresaw a services company
in 2012. Cavan SA was established in 2013. It was ASX listed as
on the environment, by extending the wear and operational life of
and grow our business.
production-vital equipment.
that could embrace new metal spray deposition technology. With
LaserBond Limited (ASX:LBL) in 2007. Innovation in laser cladding
family support, Greg founded the company as HVOF Australia P/L in
dates from 1999 when we built one of the world’s first high-
1992, working from a small workshop in Ingleburn, NSW. His
powered cladding systems using a 6kW CO2 laser. Introduction of
brother, Wayne, joined the business in 1994. The company was at
energy efficient 8kW diode laser and 6-axis robot control followed.
Vision and Mission
4
A history of innovation
5
5
2016 Annual Report2016 Annual Report LaserBond’s R&D team is backed by more than 30 years’ experience in industrial
that enables extremely thin layers of metallurgically bonded cladding to be
The company designs and builds its own integrated robotic laser
technology license tailored to specific industry applications. A suite of
tribology and the impacts and effects of abrasion, erosion and corrosion. Our
laid down efficiently at low heat thereby avoiding debilitating intermetallic
cladding and component handling systems to enable it to work with
gas-quenched vacuum heat treatment furnaces was commissioned in
material scientists work with customers and research institutes, like Australian
dilution or porosity. A well-equipped in-house metallographic laboratory
components from our heavy industry customers. We have three
2016 which brought this capability in-house for current work and now
Synchrotron, to develop solutions for specific surface engineering needs. We
supports our R&D in NSW. In 2016 a formal R&D collaboration commenced
systems in operation. In late 2016 we will be doubling capacity with
enables us to begin work in developing post-coat fused alloy claddings.
have developed an extensive range of technologies that apply claddings to
with UniSA – Future Industries Institute to accelerate and expand industry
a new 16kW diode laser. It will form the foundation of an advanced
Being a pioneer in cladding technology and working across a wide
a wide range of metallic and non-metallic materials. In 2014 our team lodged
led development of laser cladding materials and application technology to
robotic additive manufacturing cell for production of specialised wear
range of demanding Australian industries keeps LaserBond investing in
patent applications for a revolutionary new ‘LaserBond deposition method’
increase productivity of wear components used in resource industries.
resistant components. We are also packaging our unique solution as a
new technical capabilities to fulfill our customer’s needs.
Continued R&D leadership
Investment in capability
6
6
7
2016 Annual Report LaserBond’s R&D team is backed by more than 30 years’ experience in industrial
that enables extremely thin layers of metallurgically bonded cladding to be
The company designs and builds its own integrated robotic laser
technology license tailored to specific industry applications. A suite of
tribology and the impacts and effects of abrasion, erosion and corrosion. Our
laid down efficiently at low heat thereby avoiding debilitating intermetallic
cladding and component handling systems to enable it to work with
gas-quenched vacuum heat treatment furnaces was commissioned in
material scientists work with customers and research institutes, like Australian
dilution or porosity. A well-equipped in-house metallographic laboratory
components from our heavy industry customers. We have three
2016 which brought this capability in-house for current work and now
Synchrotron, to develop solutions for specific surface engineering needs. We
supports our R&D in NSW. In 2016 a formal R&D collaboration commenced
systems in operation. In late 2016 we will be doubling capacity with
enables us to begin work in developing post-coat fused alloy claddings.
have developed an extensive range of technologies that apply claddings to
with UniSA – Future Industries Institute to accelerate and expand industry
a new 16kW diode laser. It will form the foundation of an advanced
Being a pioneer in cladding technology and working across a wide
a wide range of metallic and non-metallic materials. In 2014 our team lodged
led development of laser cladding materials and application technology to
robotic additive manufacturing cell for production of specialised wear
range of demanding Australian industries keeps LaserBond investing in
patent applications for a revolutionary new ‘LaserBond deposition method’
increase productivity of wear components used in resource industries.
resistant components. We are also packaging our unique solution as a
new technical capabilities to fulfill our customer’s needs.
Continued R&D leadership
Investment in capability
6
7
7
2016 Annual Report2016 Annual Report LaserBond surface engineering technology continues to deliver game-changing
reduced ongoing maintenance costs, less breakdown and extended service
LaserBond truly believes that one of the keys to our success is attracting
suppliers and customers who share our passion for innovation. Our team
component and equipment performance across a wide range of customers
intervals. We apply our knowledge to designing and manufacturing a range of
and retaining a talented and diverse workforce. We strive to provide
know the core values and behaviours that make us a better company
seeking improved wear and corrosion performance with lower maintenance
specialist products for OEM customers that embeds our wear life extending IP in
an environment for our employees which encourages innovation and
and community contributor. It’s a significant part of our corporate culture.
costs. Repair, refurbishment and remanufacturing of worn or damaged
metallurgy and fused alloy cladding application technology. Achieving extended
creativity, and that rewards success and effective teamwork. Maintaining
And we believe those values and behaviours combine to create a culture
components gives better performance and cost outcomes. Capital-intensive
life also lessens employee exposure to safety hazards and reduces environmental
a training and learning environment is essential to industry and
in which employees can thrive, doing their best to deliver high quality
equipment goes back into service faster, at less cost and often with better than
waste. Our commitment to the philosophy of Lean 5S has realised measurable
technology leadership. Our people develop longstanding friendships
services, products and technology for our customers. There’s more to
OEM specification. This delivers a significant positive bottom line impact with
improvements in quality, on-time delivery, waste and organisation culture.
through working with others within our facilities, and externally with
LaserBond than operating a successful, profitable business for 25 years
Increasing productivity
Empowering people
8
8
9
2016 Annual Report LaserBond surface engineering technology continues to deliver game-changing
reduced ongoing maintenance costs, less breakdown and extended service
LaserBond truly believes that one of the keys to our success is attracting
suppliers and customers who share our passion for innovation. Our team
component and equipment performance across a wide range of customers
intervals. We apply our knowledge to designing and manufacturing a range of
and retaining a talented and diverse workforce. We strive to provide
know the core values and behaviours that make us a better company
seeking improved wear and corrosion performance with lower maintenance
specialist products for OEM customers that embeds our wear life extending IP in
an environment for our employees which encourages innovation and
and community contributor. It’s a significant part of our corporate culture.
costs. Repair, refurbishment and remanufacturing of worn or damaged
metallurgy and fused alloy cladding application technology. Achieving extended
creativity, and that rewards success and effective teamwork. Maintaining
And we believe those values and behaviours combine to create a culture
components gives better performance and cost outcomes. Capital-intensive
life also lessens employee exposure to safety hazards and reduces environmental
a training and learning environment is essential to industry and
in which employees can thrive, doing their best to deliver high quality
equipment goes back into service faster, at less cost and often with better than
waste. Our commitment to the philosophy of Lean 5S has realised measurable
technology leadership. Our people develop longstanding friendships
services, products and technology for our customers. There’s more to
OEM specification. This delivers a significant positive bottom line impact with
improvements in quality, on-time delivery, waste and organisation culture.
through working with others within our facilities, and externally with
LaserBond than operating a successful, profitable business for 25 years
Increasing productivity
Empowering people
8
9
9
2016 Annual Report2016 Annual Report 2016 Financial Report
11
2016 Annual Report LaserBond Ltd 2016 Annual Report | Page 11 2016 FINANCIAL REPORT Contents Page Chairman’s Letter 12 Corporate Directory 14 Directors’ Report 15 Declaration by Directors 22 Auditor’s Independence Declaration 23 Independent Audit Report 24 Consolidated Statement of Profits & Loss and Other Comprehensive Income 26 Consolidated Statement of Financial Position 27 Consolidated Statement of Cash Flows 28 Consolidated Statement of Changes in Equity 29 Notes to the Financial Statements 30 Shareholder Information 47 2016 Chairman’s Letter
12
2016 Annual Report LaserBond Ltd 2016 Annual Report | Page 12 2016 CHAIRMAN’S LETTER Dear Shareholder, This year LaserBond enters its 25th year. The company has grown from a classic family founded business with a passion for surface engineering in the early days of high performance surface engineering technologies. It is now a recognised leader developing technologies and product applications for global markets. The two halves of the past year reflect a transitioning process, where the increased focus on R&D activities are translating into new business opportunities and commercial success. The financial loss reported for the December half-year has been reversed in the second half, as new products moved into manufacture, resulting in a modest profit after tax for the full year. On behalf of the Board I am pleased to present the annual Financial Report to 30th June 2016; results are as follows: 30 June 2016 30 June 2015 Revenues $10,515,581 Up 10.2% from $9,546,595 Underlying EBITDA $634,948 Down 27.9 % from $881,106 Underlying NPAT $78,745 Down 78.5% from $366,766 Underlying earnings per share (cents) 0.09c Down 78.6% from 0.42c Research and development activities form both the foundation and future of the company. The past year has demonstrated the market opportunities that flow from our strategic intent for industry collaboration and investment in innovation. • Services revenues have again been maintained against a background of resource industry challenges. We are now seeing increased interest in the repair, and remanufacture of customer components or capital equipment as our services offer the significant cost reductions and productivity gains being pursued. • Product manufacturing of specialised long wear life components is a strong growth market for LaserBond. Our developments are consistently offering OEM customers’ significant wear-life gains, which are translating into increased demand. Over the last quarter our Cavan, SA facility has been running to capacity, reporting 137% uplift in sales revenue. • Our technology has been recognised with a recently signed MOU for a license to manufacture and supply an integrated laser system with training and ongoing support fees to an international partner. Converting this into new revenue during FY2017 represents a significant step for LaserBond to become an international supplier of tailored surface engineering solutions. Forecast sales of our DTH Hammer product have not been realised in FY2016. As a new entrant, accessing an established and well-defended market with a game-changing innovation, is taking more time and effort than expected. It has necessitated an investment in inventory to support customers and development. However as ongoing field trials consistently demonstrate 3 times life of competitive products, the DTH product is gaining traction with a small, but growing, customer base. Over the past year, ‘‘innovation’’ has become the leading strategy for improving productivity and reducing costs in resources and other heavy industry sectors. LaserBond has been elevated to the forefront of this process through our R&D collaboration with industry partners and research institutions, like University of SA --- Future Industries Institute. . Our sales strategy is to leverage these innovation activities to develop more Tier 1 customers. This enhances our bottom line results and reduces our economic dependency on market segments or customers. Working with global players brings the opportunity for LaserBond to enhance its management capabilities and market readiness. Since February 2016 we have utilized a SA Resources and Engineering Skills Alliance initiative to upskill our management team and business processes to capitalise on the international market opportunities we are generating. LaserBond has also recently earned the support of government grant programs, firstly with an Commonwealth Innovations Connections grant in conjunction with UniSA, and further with a SA State Development Centre of Excellence innovations initiative to work with a global exploration services partner for further development work on our DTH percussive drilling tools. These collaborations enable LaserBond to accelerate and expand our business faster than being reliant on self-generated funds. We expect these opportunities and activities to continue, with positive impact on the FY2017 results. 2016 CHAIRMAN’S LETTER
Our recent commitment to purchase, of what will be the most powerful laser cladding system in the Southern Hemisphere,
forms the basis of an advanced robotic additive manufacturing cell to support new innovations in surface engineered
products. These developments have the capacity to transform industry’s expectation of wear-life and operating performance.
Automation and (3D) additive manufacturing offers LaserBond an exciting future. [*See Note Below]
Over our 25 years, LaserBond has maintained a culture of innovation. With the development of our three divisions we are
now better able to identify and exploit local and international market opportunities for the products we manufacture and
the technology we have developed in Australia.
The Board has considered the need for cash to fund aforementioned growth opportunities, but recognise that maintenance
of dividends will be appreciated by many shareholders; a final 2016 dividend of 0.2 cents per share.
Finally I would like to thank the management team and employees for their support and contributions to our future success.
Yours sincerely
Allan Morton
Executive Chairman
LaserBond Limited
* Note:
Coinciding with the approval of this report, the Board has received advice that LaserBond’s application for a $1.07M
grant under the Commonwealth’s Next Generation Manufacturing Investment Program (Round 2) has been successful.
The company will issue more details by separate announcement.
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LaserBond Ltd 2016 Annual Report | Page 13
2016 Annual Report2016 Annual Report
Corporate Directory
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
Registered Office,
Principal place of business:
2 / 57 Anderson Road
South Australia Division
SMEATON GRANGE
NSW 2567
Phone: 02 4631 4500
Fax: 02 4631 4555
112 Levels Road
CAVAN
SA 5094
Phone: 08 8262 2289
Phone: 08 8260 2238
Website:
www.laserbond.com.au
Share Registry:
Boardroom Pty Ltd
Grosvenor Place
Level 12, 225 George Street
SYDNEY NSW 2000
Phone: 1300 737 760
Auditor:
LNP Audit and Assurance
Level 14, 309 Kent Street
SYDNEY NSW 2000
Solicitor:
Equius Legal Pty Ltd
Level 57, MLC Centre
19-29 Martin Place
SYDNEY NSW 2000
Bankers:
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.
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LaserBond Ltd 2016 Annual Report | Page 14
2016 Annual Report2016 Annual Report
Directors’ Report
DIRECTORS’ REPORT
The Directors present their report on the consolidated entity for the financial year ended 30th June 2016.
Principal Activity
LaserBond specialises in developing technologies and implementing surface-engineered solutions to provide enhanced service
life for equipment used in a broad range of capital intensive industries, including mining, drilling, minerals processing,
manufacturing, construction, transport and power generation. It manufactures, repairs and reclaims wearing parts and
assemblies incorporating advanced surface engineering technologies.
LaserBond® cladding and thermal spraying technologies developed by our R&D team form the core of the business. Our IP is
deployed within repair and remanufacture of customer equipment, embedded into specialised products we manufacture for
OEM and direct customers, and we license to technology partners. Precision machining and fabrication facilities, and a well-
equipped metallographic laboratory support the research, development and manufacturing functions.
Our customers are typically internationally recognised Original Equipment Manufacturers (OEMs) and heavy industry businesses
that endure high costs whenever their equipment is out of production for maintenance. They are seeking enhanced service life
and higher productivity of capital equipment, thereby allowing dramatic reduction in the cost of maintenance, downtime and
replacement parts. In industries subject to commodity prices (e.g. mining) there have been major reductions in capital
expenditure but increased emphasis on reducing costs and increasing productivity from existing equipment. This has resulted in
major challenges for some of LaserBond’s traditional customers, but provides tremendous opportunities for LaserBond to
exploit.
LaserBond operates from facilities in New South Wales and South Australia.
Review of Operations & Results
In summary, compared to FY2015:
• Despite the continuing challenging business environment surrounding LaserBond’s markets in the heavy industry
sectors, revenue increased by 10.2%.
• Gross profit was 49.1% of revenue. Whilst this is less than the 52.4% achieved in FY2015, it reflects some increased costs
due to imported speciality materials, as well as increased investment in shop floor training and tooling costs,
particularly related to the recently commissioned heat treatment facilities throughout the second half of FY2016.
• Operating expenses have increased $583,791, essentially due to the continuing investment in growth-orientated
activities to capitalise on the opportunities for the company. The main areas of increase include research &
development, consultant fees supporting growth initiatives, marketing expenses, and human resources.
•
EBITDA decreased by <27.9%> for the year, a total of $246,158; after the second half providing a turnaround in the loss
reported for the half year to 31 December 2015.
• NPAT for FY2016 was $78,745, in comparison to $366,766 for FY2015. This represents a turnaround for the NPAT loss
reported in the first half of this year of <$150,934>.
•
The current ration of the group is 2.9:1 indicating financial strength. Cash flow from our core ‘Services’ divisions
continues to support our ‘Products’ and ‘Technology’ divisions, both of which are expected to generate positive results
in the next fiscal year.
Revenue from Operations*
The continuing operations of the business achieved $10.52
million revenue for FY2016 compared to $9.55 million for FY2015.
This represents an increase of 10.2%.
Please refer to Explanation of Results below for details by division.
*Note: Figures to FY16 as reported. HY17 and beyond are strategic
plan forecasts based on assumptions that may change
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LaserBond Ltd 2016 Annual Report | Page 15
2016 Annual Report2016 Annual Report2016 Annual Report
DIRECTORS’ REPORT
The overall business activities achieved a loss before tax adjustments
for the year of <$36,840> after reporting a first half loss of
<$299,466>, in comparison to a $384,756 profit for FY2015.
The graph on the left forecasts the increased profitability of the
company based on the expected revenue to be achieved from the
growth of new services customers, and revenue expectations for
current, and expanding development and manufacture of specialised
wear-life products.
Please refer to Explanation of Results below for details by division.
*Note: Figures to FY16 as reported. HY17 and beyond are strategic plan
forecasts based on assumptions that may change.
Profit Before Tax*
Explanation of Results
Services
To date our results have included contract manufacturing activities for OEMs as well as surface engineering repair and
remanufacturing services for end-users. These activities are undertaken at both Smeaton Grange, NSW and Cavan, SA facilities.
Revenues increased by 11.2% for FY2016, with the breakdown of revenue being:
•
•
Product Manufacture for OEMs & End Users - $5.2 million or 51% of total services revenue was generated by the group
manufacturing products for OEMs and major end users. The majority of these OEM products manufactured
incorporate LaserBond’s advanced surface engineering applications and technologies to provide the final customers
with enhanced service life, increased productivity and reduced operating costs.
Surface Engineering repair & remanufacturing - $4.4 million or 43% of total services revenue was generated by the
group repairing or remanufacturing worn components for both end users and OEMs.
• Other General Engineering and Heat Treating - $0.62 million or 6% of total services revenue was generated from
general engineering services that did not incorporate the group’s advanced surface engineering applications and
technologies.
The breakdown of revenue by facility for services were:
•
•
Smeaton Grange, NSW - $8.8 million or 85.9% of total revenue.
Cavan, SA - $1.5 million of total revenue, which is an increase of 265.0% on FY2015. This increase is the result of
LaserBond providing a manufacturing solution for a global OEM wear consumable application which utilises our
recently developed patent pending Laser deposition process. Sales for this initial stock order from the OEM were
generated in the second half, which resulted in the turnaround in profitability. Initial performance reports from the
customer are very positive, with an expectation of increasing demand over the next 12 to 24 months.
The division provided a profit before tax of $172,747 with the breakdown by facility for services:
•
•
Smeaton Grange, NSW - $454,903, being a decline on FY2015 services profit of $939,675. This decline in profitability is
directly relative to investment in shop floor training and tooling subsequent to the heat treatment equipment
commissioning and continuing expenses required to assist with future growth opportunities including advertising and
consultant’s fees.
Cavan, SA - <$416,796>, a decline on the FY2015 services loss of <$166,826>. This increased loss is directly related to
planned increases in fixed expenditure to enable future growth, particularly human resources, advertising and
consultant’s fees.
Products
Over the past year the Products division has developed, proven, manufactured and marketed specialised long wear-life
components and equipment embedded with our surface engineering technology for improved performance.
The first of our products is the range of Down the Hole Hammers (DTH) for the drilling industry with associated consumables,
proven by independent trials to provide 3 times the life over existing market leading products, and major reductions in total
drilling costs. Another development was a wear component used in the pump industry that provides 4 times life. Through our
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LaserBond Ltd 2016 Annual Report | Page 16
2016 Annual Report
DIRECTORS’ REPORT
R&D collaborations with industry partners we expect this offers strong and secure growth opportunities, as we are less reliant on
orders from end-users.
Direct DTH product sales were significantly less than expected for FY2016. It has necessitated a significant investment in
inventory to service customer needs and we face some selling and distribution challenges associated with breaking into an
entrenched and well-defended market enduring tough times at the bottom of the commodity price cycle. Nevertheless, through
strategic distribution alliances, we are confident of success and are underway in a project to expand an advanced manufacturing
facility to support current and future LaserBond product development.
Revenue for DTH products was $257,735 in FY2016. However over recent months, up to the date of lodgement of this report,
LaserBond has a growing client base of customers with their first or continuing purchases on our LaserBond DTH product range.
It is expected this to continue to grow throughout FY2017.
Technology Licensing
As announced, the group has recently signed a Memorandum of Understanding to design, manufacture, train and support a
custom designed LaserBond® cladding system tailored to specific industrial applications in an international market. Negotiations
remain underway in regards to specific conditions on the sales contract, and if successful this project exceeds $1.4 million plus
ongoing service licence revenue for 5 years.
Upon successful completion of this first licensing project the group expects to be able to develop further interest in other
international markets and / or industrial applications.
Research & Development
Our R&D activities and collaborative work with customers has created new customers and sales revenue, particularly for our
Cavan SA facilities. We are working closely with a number of OEM customers to develop and manufacture specialised wear
resistant components for export markets.
The recently announced collaboration with University of SA-Future Industries Institute will assist us accelerate and expand our
R&D activities. We also have strategic collaborations with industry customers to develop new product applications for our long
wear life surface engineering. These collaboration initiatives are recognised and supported by government innovation programs.
Outlook
While LaserBond works with many heavy industry sectors, much of the sales revenue is associated with the resource sector,
particularly the ongoing operations. The total extraction volume from mining continues to increase, so does the need for our
services in repair and refurbishment of wearing equipment. This is steadily growing business, dependent on our proximity to
markets and relationship with customers.
The significant growth potential we are pursuing lies in our unique capability to design and manufacture superior and
specialised long wear life components for global OEM customers. Utilising our experience and technology internally developed
over the last 25 years we are able to produce and deliver key components into their established global market, through their
distribution channels.
Increased customer focus on innovation led cost savings via productivity, operating performance and wear life extension will
continue to provide new sales opportunities.
Our R&D collaboration with UniSA and industry (OEM) partners will consolidate and expand current sales revenue from product
manufacturing. We have committed to a multi-year project to install new advanced manufacturing facilities in Cavan SA
designed to double its capacity and enable further development of exciting new product applications our Research and
Development team have been working on.
The group expects the first half of FY2017 to provide some revenue and profit growth to that reported in the second half of
FY2016.
Capabilities and capacity initiatives outlined above will progressively have effect during the second half of FY2017. The Half-Year
Revenue graph provided on page 15 of this report reflects the clear growth in revenue and profits expected from this
development in Services, growing Products sales and developing applications and / or products from research & development
activities.
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LaserBond Ltd 2016 Annual Report | Page 17
2016 Annual Report2016 Annual Report
Directors and Company Secretary
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):
DIRECTORS’ REPORT
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
Matthew Twist
Company Secretary
30 March 2009
Information on Directors and Company Secretary (currently holding office)
Allan Morton --- Non-Executive Chairman
Allan is a well-qualified, experienced professional engineer and business leader. He holds degrees in engineering (B.E. Mech 1st
Class Hons) and business management (Operations), and is also a graduate of Harvard Business School (Exec. MBA (PMD)). He has
graduate qualifications from AICD 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, executive mentoring and strategic growth initiatives. He is an experienced director and
chairman.
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.
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
Philip has been a Director since 2008. He 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)). He spent 16 years in senior positions within the Australian
Media Industry. Philip 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, Philip was employed within the Victor Smorgon Group. He was also a former Director of BBX Minerals
Limited, Adavale Resources Limited and Resources & Energy Group Limited. For the past 12 years he has been working in
corporate finance.
Matthew Twist --- Company Secretary
Matthew Twist has over 20 years financial management experience, encompassing financial and operational control and systems
development in manufacturing companies. Matthew has been the group’s Chief financial Officer since March 2007, and was
appointed Company Secretary on 30 March 2009. Matthew has a Certificate in Governance Practice, and is a certified member of
the Governance Institute of Australia.
Remuneration Report
The directors present the LaserBond Limited 2016 remuneration report, outlining key aspects of our remuneration policy and
framework, and remuneration awarded this year.
The report is structured as follows:
(a) Key management personnel (KMP) covered in this report.
(b) Remuneration policy and link to performance
(c) Link between remuneration and performance
18
LaserBond Ltd 2016 Annual Report | Page 18
2016 Annual Report
DIRECTORS’ REPORT
(d) KMP remuneration
(e) Contractual arrangements for executive KMP’s
(f) Non-executive director arrangements
(a) Key management personnel (KMP) covered in this report
All executive directors of the group, and the Company Secretary are considered the key management personnel (KMP’s) for
the management of its affairs, and are covered by this report.
(b) Remuneration policy and link to performance
Remuneration levels for KMP’s are competitively set to attract, motivate and retain appropriately qualified and experienced
personnel. Remuneration levels are reviewed annually by the Board through the Remuneration Committee reference to the
Group’s performance.
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/governance-statement.html , for details.
(c) Link between remuneration and performance
From FY2015 the board 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 2016 no
performance based payments have been made to executive directors, however two non-executive directors received non-
cash (equity based) payments based on their full tenure for FY2015.
Executive Director’s performance based bonuses are subject to the achievement of set key performance indicators, reviewed
annually by the Remuneration Committee.
Non-cash (equity based) payments for non-executive directors are reviewed annually by the Board and are subject to
shareholder approval prior to issue at the next Annual (or Extraordinary) General Meeting. Further detail can be found under
Note 21 b) on Page 44.
The following table shows the gross revenue, profits and dividends for the last five years for the Group, as well as the share
prices at the end of the respective financial years.
Revenue
Net Profit after Tax
Share price at year end
(Cents)
Dividends paid (Cents)
2016
$
10,515,581
78,745
8.10
0.4
2015
$
9,546,595
366,766
13.00
0.4
2014
$
9,669,960
660,944
8.70
0.4
2013
$
13,526,724
(423,472)
9.80
0.4
2012
$
14,253,624
1,119,439
19.00
0.4
(d) KMP Remuneration
The following table shows details of the remuneration expense recognised for the Group Key Management Personnel for the
current and previous financial year.
KMP’s received a fixed remuneration in the year ended 30 June 2015 and 30 June 2016
Salaries and fees
Superannuation
Share based
payments
Long Service
Leave
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Nigel de Veth
2016
2015
2016
2015
2016
2015
2016
2015
2016
155,206
151,860
301,538
280,995
30,000
30,000
25,000
25,000
4,167
14,511
14,201
28,206
23,433
-
-
-
-
-
-
-
-
-
19,500
-
19,500
-
-
-
-
4,731
-
-
-
-
-
-
LaserBond Ltd 2016 Annual Report | Page 19
19
2016 Annual Report2016 Annual Report
DIRECTORS’ REPORT
Matthew Twist
Totals
2015
2016
2015
2016
2015
6,250
135,037
133,683
650,948
627,788
-
12,667
12,516
55,384
50,150
-
1,000
1,000
40,000
1,000
-
-
-
4,731
-
(e)
(f)
Contractual arrangements for executive KMP’s
KMP’s who are active employees of the group are hired following current human resources policies and procedures, and
each are required to have employment contracts, job descriptions and key performance indicators relevant to their roles and
responsibilities.
Non-executive director arrangements
Non-executive directors are employed based on the group’s commitment to develop a Board with a blend of skills,
experience and attributes appropriate for the business’ goals and strategic plans. Each non-executive is required to have an
appointment letter and remuneration agreement prior to commencement.
Allan Morton and Philip Suriano during FY2016 were 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.
End of remuneration report.
Director’s Shareholdings
As at 30 June 2016, the number of shares held by directors was:
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Director’s Meetings
Holdings
Type
Direct
Indirect
Direct
Indirect
Indirect
Indirect
Holdings
8,839,454
1,094,648
5,232,343
3,652,564
679,397
184,649
During the financial year ended 30th June 2016, the number of meetings held, and attended, by each Director were as follows:
Director
Board Meetings
Eligible
Attended
Audit and Risk
Committee Meetings
Eligible
Attended
Remuneration Committee
Meetings
Eligible
Attended
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Nigel de Veth
12
12
12
12
2
12
9
12
11
1
1
-
3
2
-
1
-
3
2
-
-
-
1
1
-
-
-
1
1
-
Please refer to the Corporate Governance Statement at http://www.laserbond.com.au/investor-relations/governance-
statement.html for further information.
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.
Future Developments
Any future developments required to be disclosed as per ASX Listings Rules have either been disclosed previously or are
included in commentary or notes to this report. Any future items requiring to be disclosed will be disclosed according to recent
listing rules.
20
LaserBond Ltd 2016 Annual Report | Page 20
2016 Annual 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.
DIRECTORS’ REPORT
Matters Subsequent to the End of the Financial Year
The final dividend has been recommended and will be paid as detailed below.
Dividends
2015 final dividends of 0.2 cents per share and 2016 interim dividends of 0.2 cents per share were paid during the year. The
directors have recommended the payment of a final dividend of 0.2 cents per fully-paid ordinary share (2015: 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 2016.
Subject to the group continuing to develop in accordance with future plans, the Board expects to continue to maintain future
dividends.
Directors’ and Auditors’ Information
Insurance premiums of $18,910 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 LNP Audit and Assurance for non-audit services.
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
23.
Signed in accordance with a resolution of the Board of Directors.
Director
Wayne Hooper
Dated this 29th day of August 2016
Director
Gregory Hooper
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/governance-
statement.html
LaserBond Ltd 2016 Annual Report | Page 21
21
2016 Annual Report2016 Annual Report
Director’s Declaration
DIRECTORS DECLARATION
The directors of the group declare that:
1. The financial statements and notes, as set out on pages 26 to 46 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 2016 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 29th day of August 2016
22
LaserBond Ltd 2016 Annual Report | Page 22
2016 Annual Report
Auditor’s Independence Declaration
ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
T +61 3 8658 5928
www.lnpaudit.com
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF LASERBOND LIMITED
As lead auditor of Laserbond Limited for the year ended 30 June 2016, I declare that, to the best of my
knowledge and belief, there have been:
1.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
2.
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Laserbond Limited and the entities it controlled during the period.
Lachlan Nielson Partners Pty Limited
Tony Rose
Director
Sydney, 29 August 2016
23
Liability limited by a scheme approved under Professional Standards Legislation
2016 Annual Report2016 Annual Report
Independent Audit Report
ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
T +61 3 8658 5928
www.lnpaudit.com
INDEPENDENT AUDIT REPORT
TO THE MEMBERS OF LASERBOND LIMITED
Report on the Financial Report
We have audited the accompanying financial report of Laserbond Limited (“the Company”)
comprising the consolidated statement of financial position as at 30 June 2016, the consolidated
statement of profits and loss and other comprehensive income, consolidated statement of
changes in equity, consolidated statement of cash flows for the year ended, notes comprising a
summary of significant accounting policies and other explanatory notes and the Directors’
declaration of the Company and the consolidated entity comprising the Company and the entities
it controlled at the year’s end or from time to time during the financial year.
Directors’ responsibility for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such relevant internal control as the Directors determine is necessary to enable the
preparation of the financial report that is free from material misstatement, whether due to fraud
or error. In Note 1, the Directors also state, in accordance with Accounting Standard AASB 101:
Presentation of Financial Statements that the financial statements comply with the International
Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We have
conducted our audit in accordance with Australian Auditing Standards. These standards require
that we comply with relevant ethical requirements relating to audit engagements and plan and
perform the audit to obtain reasonable assurance whether the financial report is free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the financial report, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial report in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluation
the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the Directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
24
Liability limited by a scheme approved under Professional Standards Legislation
In conducting our audit, we have complied with the independence requirements of the
Independence
Corporations Act 2001.
Audit Opinion
In our opinion,
including:
and
2001;
(a)
the financial report of Laserbond Limited is in accordance with the Corporations Act 2001,
(i) giving a true and fair view of the Company’s and the consolidated entity’s financial
position as at 30 June 2016 and of its performance for the year ended on that date;
(ii) complying with Australian Accounting Standards and with the Corporations Regulations
(b)
the consolidated financial report also complies with International Financial Reporting
Standards as disclosed in Note 1.
Report on Remuneration Report
We have audited the Remuneration Report included in page 18 of the Directors’ report for the
year ended 30 June 2016. The Directors of the Company are responsible for the preparation and
presentation of the Remuneration Report in accordance with s 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
Audit Opinion
In our opinion the Remuneration Report of Laserbond Limited for the year ended 30 June 2016,
complies with s 300A of the Corporations Act 2001.
LNP Audit and Assurance
Tony Rose
Director
Sydney, 29 August 2016
2016 Annual Report Liability limited by a scheme approved under Professional Standards Legislation INDEPENDENT AUDIT REPORT TO THE MEMBERS OF LASERBOND LIMITED Report on the Financial Report We have audited the accompanying financial report of Laserbond Limited (“the Company”) comprising the consolidated statement of financial position as at 30 June 2016, the consolidated statement of profits and loss and other comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows for the year ended, notes comprising a summary of significant accounting policies and other explanatory notes and the Directors’ declaration of the Company and the consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ responsibility for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such relevant internal control as the Directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 1, the Directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements that the financial statements comply with the International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We have conducted our audit in accordance with Australian Auditing Standards. These standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluation the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. ABN 65 155 188 837 L14 309 Kent St Sydney NSW 2000 T +61 2 9290 8515 L24 570 Bourke Street Melbourne VIC 3000 T +61 3 8658 5928 www.lnpaudit.com
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
Audit Opinion
In our opinion,
(a)
the financial report of Laserbond Limited is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Company’s and the consolidated entity’s financial
position as at 30 June 2016 and of its performance for the year ended on that date;
and
(ii) complying with Australian Accounting Standards and with the Corporations Regulations
2001;
(b)
the consolidated financial report also complies with International Financial Reporting
Standards as disclosed in Note 1.
Report on Remuneration Report
We have audited the Remuneration Report included in page 18 of the Directors’ report for the
year ended 30 June 2016. The Directors of the Company are responsible for the preparation and
presentation of the Remuneration Report in accordance with s 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
Audit Opinion
In our opinion the Remuneration Report of Laserbond Limited for the year ended 30 June 2016,
complies with s 300A of the Corporations Act 2001.
LNP Audit and Assurance
Tony Rose
Director
Sydney, 29 August 2016
25
2016 Annual Report2016 Annual Report
2016 Financial Report
for the Year Ended 30th June 2016
Loss and Other Comprehensive Income
2016
2015
Revenue from continuing operations
Cost of Sales
Gross
operations
Other Income
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Expenses
Administration Expenses
Repairs & Maintenance
Operating Lease Expenses
Borrowing Costs
Research & Development
Other Expenses
(Loss
expense from continuing operations
Inc
Note
3
4
5
$
10,515,581
(5,354,139)
5,161,442
108,746
(269,741)
(612,904)
(1,977,924)
(642,030)
(1,280,906)
(191,108)
(116,750)
(80,145)
(81,662)
(53,858)
(36,840)
115,585
$
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)
Other comprehensive income
-
-
Total comprehensive income attributable to
members of LaserBond Limited
78,745
366,766
tributable to members:
Basic and diluted earnings per share
(cents)
6
0.09
0.42
This Consoli
with the accompanying notes.
Loss and Other Comprehensive Income should be read in conjunction
26
LaserBond Ltd 2016 Annual Report | Page 26
2016 Annual Report
Consolidated Statement of Financial Position
As at 30th June 2016
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Current Tax Assets
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Deferred tax assets
Intangible assets
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee Benefits
Hire Purchase and Finance Lease liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Interest-bearing liabilities
Employee Benefits
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Retained earnings
TOTAL EQUITY
Note
7
8
9
11
10
12
2016
$
768,041
2,976,108
1,857,953
170,763
5,772,865
2,376,727
224,562
242,503
2,843,792
8,616,657
881,752
533,091
578,284
1,993,127
392,406
140,046
532,452
2015
$
2,138,084
2,399,680
1,332,501
112,149
5,982,414
1,886,695
235,876
384,686
2,507,257
8,489,671
663,176
550,939
156,710
1,370,825
692,264
178,762
871,026
2,525,579
2,241,851
6,091,078
6,247,820
13
5,985,756
105,322
6,091,078
5,868,200
379,620
6,247,820
This Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
27
LaserBond Ltd 2016 Annual Report | Page 27
2016 Annual Report2016 Annual Report
Consolidated Statement of Cash Flows
for the Year Ended 30th June 2016
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income taxes paid
Net cash (outflow) / inflow from
operating activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Payments for plant and equipment
Payment for intangible assets
Proceeds from sale of plant and
equipment
Repayments of loans to employees
Net cash (outflow) from investing
activities
CASH FLOWS FROM FINANCING
ACTIVITIES
Payments for issue of Shares
Payments to lessors
Dividends paid
Net cash (outflow) from financing
activities
DECREASE) IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at beginning of
period
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
Note
19
2016
2015
$
$
10,715,480
(11,032,253)
(80,145)
21,232
25,813
(349,873)
(325,252)
-
30,909
9,586
(284,757)
(10,528)
(489,608)
(235,277)
(735,413)
(1,370,043)
2,138,084
10,886,169
(10,229,870)
(100,950)
54,539
98,178
708,066
(166,317)
(219,872)
717
3,732
(381,740)
-
(395,417)
(352,279)
(747,696)
(421,370)
2,559,454
768,041
2,138,084
This Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
28
LaserBond Ltd 2016 Annual Report | Page 28
2016 Annual Report
Consolidated Statement of Changes in Equity
for the Year Ended 30th June 2016
Issued
capital
$
Retained
earnings
$
Total equity
$
Opening Balance at 1st July 2014
5,818,453
364,962
6,183,415
Profit / (Loss) for the Period
Issue of Share Capital
Dividends paid during period
-
49,747
-
366,766
-
(352,108)
366,766
49,747
(352,108)
Closing Balance at 30th June 2015
5,868,200
379,620
6,247,820
Profit / (Loss) for the Period
Issue of Share Capital
Dividends Paid during period
-
117,556
-
78,745
-
(353,043)
78,745
117,556
(353,043)
Closing Balance at 30th June 2016
5,985,756
105,322
6,091,078
This Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
29
LaserBond Ltd 2016 Annual Report | Page 29
2016 Annual Report2016 Annual Report
2016 FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation
LaserBond Limited is a for-profit company limited by shares, incorporated and domiciled in Australia. The financial report was
authorised for issue in accordance with a resolution of the directors on 26th August 2016. These general purpose financial
statements have been prepared in accordance with Australian Accounting Standards and Interpretations and the Corporations
Act 2001, and comply with International Financial Reporting Standards as issued by the International Accounting Standards
Board (IASB). This financial report includes the consolidated financial information relating to LaserBond Limited and controlled
entities. LaserBond Limited and its controlled entities are together referred to in this financial report as the group or consolidated
entity.
The financial report has been prepared on an accruals basis.
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 controlled entities. 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.
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) Revenue Recognition
Revenue is recognised in the following manner:
Sale of Goods
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 in an accrual basis.
Other Income
Revenue from other income streams is recognised when the group receives it or as an accrual if the group are aware of the
entitlement to the other income. .
d) 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 Board.
e) 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 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 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. Deferred 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 tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
30
LaserBond Ltd 2016 Annual Report | Page 30
2016 Annual Report
2016 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
f) 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 reporting 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 Statement of Profit and Loss and Other Comprehensive Income, 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.
g) Comparative Information
Where necessary, comparative amounts have been reclassified and repositioned for consistency with current year accounting
policy and disclosures. If there are any such changes, details on the nature and reason for the amounts that may 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.
h) 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.
i) Financial Instruments
Financial assets
The group classifies its financial assets 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.
Financial liabilities
Financial liabilities are recognised when the group becomes a party to the contractual agreements of the instrument. All
interest-related charges and, if applicable, changes in an instrument's fair value that are reported in profit or loss are included in
the income statement line items "finance costs" or "finance income". Financial liabilities are classified as either financial liabilities
‘at fair value through profit or loss’ or other financial liabilities depending on the purpose for which the liability was acquired
The group‘s financial liabilities include borrowings, trade and other payables including finance lease liabilities, which are
measured at amortised cost using the effective interest rate method. 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.
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.
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 reporting date
which are classified as non-current assets. They 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.
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.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Subsequent Measurement
Loans and receivables are carried at amortised cost using the effective interest method or cost.
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 losses are recognised as profit or loss.
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 account (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, the probability that the debtor will enter bankruptcy or financial reorganisation,
and default or delinquency in payments are considered indicators that the trade receivable maybe 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 any 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.
j)
Inventory
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.
k) Property, Plant and Equipment
Property plant and Equipment are measured at cost less depreciation and any impairment losses.
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%
- Development equipment 20% - 50%
l) Intangible assets
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 use.
Development expenditures are amortised at rates between 20% - 50% per annum.
Patents
Patents in progress are recognised as a prepayment until verification of the success of the application. If an application is
unsuccessful the costs are expensed in the fiscal year the application is formally closed as unsuccessful. Where an application is
successful the costs are recorded as intangible assets and amortised from the point at which the patent application was formally
advised of its success. Patent expenditures are amortised at 7.5% per annum.
Software
Where software is deemed a long term investment, such as the current enterprise resource planning software used by the group,
the software costs are recorded as intangible assets and amortised from the point at which the software is installed for use.
Software expenditures are amortised at 40% - 70% per annum.
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2016 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
m) 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.
n) 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 Statement of Profit and Loss and Other
Comprehensive Income on a straight-line basis over the period of the lease.
o) Issued Capital
Ordinary shares are classified as equity. 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.
p) 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.
q) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave long service leave expected to be wholly 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 employee entitlements which are 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. Discount rates are based on the market yield on Commonwealth Government
Securities with maturity dates close to the expected date the employee will reach 10 years of service.
The obligations are presented as current liabilities in the Statement of Financial Position 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.
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2016 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
(i) Share-based payments
Share-based compensation benefits are provided to employees via an employee share scheme. 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.
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.
r) 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 reporting date.
s) 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
There are no outstanding ordinary shares therefore diluted earnings per share is the same as basic earnings per share.
t) 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.
u) 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.
v)
Investments in controlled entities
Investments in controlled entities are accounted for at cost in the parent entities financial statements. Dividends received are
recognised in the parent entity’s profit or loss when its right to receive the dividend is established.
w) 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.
34
LaserBond Ltd 2016 Annual Report | Page 34
2016 Annual Report
2016 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
x) 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.
y) Impact of Standards Issued but not yet applied by the Entity
(i) AASB 9 Financial Instruments (Effective Date: 1 January 2018)
Significant revisions to the classification and measurement of financial assets, reducing the number of categories and simplifying
the measurement choices, including the removal of impairment testing of assets measured at fair value. The amortised cost
model is available for debt assets meeting both business model and cash flow characteristics tests. All investments in equity
instruments using AASB 9 are to be measured at fair value. LaserBond has not yet decided when to adopt AASB 9.
(ii) AASB 15 Revenue from Contracts with Customers (Effective Date: 1 January 2018
AASB 15 introduces a five step process for revenue recognition with the core principle of the new standard being for entities to
recognise revenue to depict the transfer of goods and services to customers in amounts that reflect the consideration to which
the entity expects to be entitled in exchange for those goods or service.
The changes in revenue recognition requirements in AASB 15 may cause changes to the timing and amount of revenue recorded
in the financial statements as well as additional disclosures. LaserBond has not yet decided when to adopt AASB 15.
(iii) AASB 117 Leases (Effective Date: 1 January 2019)
AASB 117 introduces a new model requiring lessees to recognise all leases on the balance sheet, except for short term leases and
leases of low value assets. A short term lease is defined as a lease which has a term of twelve months or less at the
commencement date. The assessment of low value asset is based on the absolute value of the leased asset when new. However,
in the basis of conclusions which accompanies the standard, IASB notes that leases of assets with a value when new around $US
5,000 or less. The changes in AASB 117 will lead to recognition of increased lease liabilities on the balance sheet.
NOTE 2: Critical Accounting Estimates and Judgements
(i) Provision for impairment of receivables
The value of the provision for impairment of receivables is estimated considering the aging of receivables, communication with
debtors and prior history. The value of the provision and credit quality of receivables are monitored on a monthly basis.
(ii) Provision for inventories
The inventory held is reviewed on a monthly basis to determine whether there is any old, damaged or obsolete stock, or any
other stock items which need to be written down to net realisable value.
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2016 Annual Report2016 Annual Report
NOTE 3: OTHER INCOME
Interest Revenue
Other
NOTE 4: EXPENSES
(Loss) / (Profit) before Income Tax from continuing operations
includes the following specific expenses
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
Reconciliation of Income Tax Expense from continuing operations
(Loss) / Profit before Income Tax expense
Prima Facie Tax at the Australian tax rate of 30% (2015: 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 (Benefit) / Expense:
2016 FINANCIAL REPORT
2016
2015
$
21,260
87,486
108,746
$
54,539
111,613
166,152
116,750
128,271
57,984
59,378
(36,840)
(11,052)
(11,313)
(12,249)
(46,143)
(34,828)
(115,585)
384,756
115,427
49,737
(147,854)
95,526
(94,846)
17,990
$
0.42
NOTE 6: EARNINGS PER SHARE
2016
2015
Basic and diluted earnings per share (cents)
There are no current options to affect diluted earnings per share.
$
0.09
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2015
Shares issued as at 25th August 2015
Shares issued as at 7th October 2015
Shares Cancelled as at 29th October 2015
Shares issued as at 29th October 2015
Shares issued as at 24th December 2015
Shares issued as at 8th April 2016
No. of Shares
Weighted No.
87,608,466
300,000
532,344
(300,000)
300,000)
172,703
796,832
87,608,466
254,795
389,413
(201,370)
201,370
89,427
181,197
Closing Balance as at 30th June 2016
89,410,345
88,523,298
36
LaserBond Ltd 2016 Annual Report | Page 36
2016 Annual Report
NOTE 7: TRADE AND OTHER RECEIVABLES
2016
2015
2016 FINANCIAL REPORT
Trade Receivables
Provision --- Impairment of Receivables
Loans --- Key Management Personnel
Loans --- Employees
Prepayments
Other Receivables
$
2,823,274
(2,865)
40,174
2,570
109,846
3,109
2,976,108
$
2,050,041
(19,175)
50,174
1,625
312,713
4,302
2,399,680
Gross
Amount
$000
Past due
and
impaired
$000
2,823
156
2,979
2,050
369
2,419
3
-
3
19
-
19
Past due but not impaired
(days overdue)
<30
$000
1,450
156
1,606
930
369
1,299
31-60
$000
61-90
$000
>90
$000
Within trade
terms
$000
913
-
913
590
-
590
427
-
427
430
-
430
30
-
30
81
-
81
2,661
156
2,817
1,520
369
1,889
2016
Trade receivables
Other receivables
2015
Trade receivables
Other receivables
NOTE 8: INVENTORY
2016
2015
Cost:
Stock on Hand --- Raw Materials
Stock on Hand --- Finished Goods
Work in Progress
NOTE 9: PROPERTY, PLANT & EQUIPMENT
Plant & Equipment
At Cost
Less Accumulated Depreciation
Office Equipment
At Cost
Less Accumulated Depreciation
Motor Vehicles
At Cost
Less Accumulated Depreciation
$
1,246,510
473,993
137,450
1,857,953
2016
$
4,258,256
(2,094,427)
2,163,829
184,265
(144,723)
39,542
396,167
(222,811)
173,356
$
669,525
582,255
80,721
1,332,501
2015
$
3,399,668
(1,663,821)
1,735,847
166,199
(127,361)
38,838
322,021
(210,011)
112,010
TOTAL PROPERTY, PLANT & EQUIPMENT
2,376,727
1,886,695
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2016 Annual Report2016 Annual Report
(a) Movements in Carrying Amounts
Plant &
Equipment
Office
Equipment
Motor Vehicles
Total
2016 FINANCIAL REPORT
2016 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
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
(b) Asset Additions financed
$
1,735,847
960,014
(5,400)
(526,632)
2,163,829
$
2,003,382
96,011
-
(363,546)
1,735,847
38,838
18,065
-
(17,361)
39,542
45,571
7,161
-
(13,894)
38,838
$
112,010
129,950
(35,849)
(32,755)
173,356
$
72,040
63,145
1,340
(24,515)
112,010
The values for asset additions purchased utilising finance leases or hire
purchase agreements are:
2016
413,596
NOTE 10: INTANGIBLES
Patents and
Trademarks
Development
Asset
Other
Intangibles
2016 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Net Book Amount at 30th June 2016
2015 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Net Book Amount at 30th June 2015
$
6,960
-
-
-
(522)
6,438
7,524
-
-
-
(564)
6,960
$
377,564
-
-
-
(141,570)
235,994
204,882
219,872
-
-
(47,190)
377,564
$
162
-
-
-
(91)
71
392
-
-
-
(230)
162
Amortisation charges are included in depreciation and amortisation in the statement of profits and loss.
NOTE 11: DEFERRED TAX ASSETS
Deferred tax assets comprise temporary differences attributable to:
Employee Benefits
Accruals
Deferred tax assets expected to be recovered within 12 months
Deferred tax assets expected to be recovered after more than 12
months
2016
$
180,702
43,860
224,562
108,985
115,577
224,562
$
1,886,695
1,108,029
(41,249)
(576,748)
2,376,727
$
2,120,993
166,317
1,340
(401,955)
1,886,695
2015
-
Total
$
384,686
-
-
-
(142,183)
242,503
212,798
219,872
-
-
(47,984)
384,686
2015
$
184,929
50,947
235,876
110,957
124,919
235,876
38
LaserBond Ltd 2016 Annual Report | Page 38
2016 Annual Report
2016 FINANCIAL REPORT
Employee
Benefits
Expense
Accruals
174,946
-
9,983
184,929
-
(4,227)
180,702
79,651
-
(28,704)
50,947
-
(7,087)
43,860
2016
$
566,923
144,901
61,218
23,672
85,038
881,752
5,985,756
Total
254,597
-
(18,721)
235,876
-
(11,314)
224,562
2015
$
375,317
116,106
25,377
20,104
126,272
663,176
5,868,200
2015
$
5,818,453
10,747
39,000
5,868,200
$
2016
Shares
87,608,466
1,801,879
-
89,410,345
2016
$
5,868,200
117,556
-
5,985,756
2015
Shares
87,397,357
211,109
-
87,608,466
Issue Price
(Cents per
Share)
No. Shares
87,397,357
211,109
87,608,466
300,000
532,344
(300,000)
300,000
172,703
796,932
89,410,445
9.00
10,747
13.00
10.48
(13.00)
13.00
9.00
7.41
10,747
(3,308)
54,138
(3,308)
3,308
10,587
56,139
117,556
At June 2014
(Charged) / credited
- to profit or loss
- directly to equity
At June 2015
(Charged) / credited
- to profit or loss
- directly to equity
At June 2016
NOTE 12: TRADE AND OTHER PAYABLES
Trade Payables
Taxes
Superannuation
Dividends
Accrued Expenses
NOTE 13: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Existing Shares
Issued Shares
Provision Unissued (Entitled) Shares
(a) Ordinary Shares
Date
Details
1st July 2014
15th December 2014
Opening Balance
Employee Share Plan
30th June 2015
Closing Balance
25th August 2015
7th October 2015
29th October 2015
29th October 2015
24th December 2015
8t April 2016
Non-Exec. Director Remuneration
Dividend Reinvestment Plan
Cancel Non-Exec. Director Remun.
Re-issue Non-Exec. Director
Remun.
Employee Share Plan
Dividend Reinvestment Plan
30th June 2016
Closing Balance
(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 2016 Annual Report | Page 39
39
2016 Annual Report2016 Annual Report
NOTE 14 : 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
2016 FINANCIAL REPORT
2016
$
578,284
392,406
970,690
(31,597)
939,093
2015
$
299,784
549,190
848,974
(19,527)
829,447
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
762,219
3,580,827
4,343,046
999,975
4,088,184
5,088,159
Operating lease commitments are in relation to Property Leases and Plant & Equipment.
NOTE 15: CONTINGENT ASSETS & LIABILITIES
The directors are not aware of any contingent assets or contingent liabilities that would have an effect on these financial
statements. (2015: Nil)
NOTE 16: 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 (persons related to executive directors)
Labour --- Contract Staff (Basin Enterprises, director related entity
providing casual administration staff)
Superannuation
Contribution to superannuation funds on behalf of employees
Loans --- Other Related Parties
Employee Loans - receivable from two employees.
Employee Personal Expenses -
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
40
2016
$
313,113
-
313,113
353,929
2,570
311
2,881
-
162,075
10,000
172,075
2015
$
325,629
9,041
334,670
297,505
1,625
1,572
3,197
21,650
100,625
61,250
183,525
LaserBond Ltd 2016 Annual Report | Page 40
2016 Annual Report
2016 FINANCIAL REPORT
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
All Loans are classified current, unsecured and interest free. The Director Loan is receivable from Mr Greg Hooper, a director of the
group.
2016
$
40,174
2015
$
50,174
Superannuation
Contribution to superannuation funds on behalf of key management
personnel
NOTE 17: KEY MANAGEMENT PERSONNEL
55,384
50,150
The key management personnel of the group for management of its affairs are all executive Directors and the company
secretary.
(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 pages 18 to 20.
(c) Options Held
There were no options held at 30 June 2016 or 30 June 2015. There were no options issued during the financial year.
(d) Shares Held
Interest
Wayne Hooper Direct
Wayne Hooper In-Direct
Greg Hooper Direct
Greg Hooper In-Direct
Philip Suriano In-Direct
Allan Morton In-Direct
Matthew Twist Direct
Shares Held as at
30th June 2015
Issued Purchased / (Sold)
Shares Held as at
30th June 2016
8,541,809
1,045,919
5,232,343
3,652,564
33,107
505,405
33,825
19,044,972
297,645
48,729
-
-
151,542
173,547
12,987
684,450
-
-
-
-
-
445
-
445
8,839,454
1,094,648
5,232,343
3,652,564
184,649
679,397
46,812
19,729,867
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
Matthew Twist Direct
8,541,809
935,919
4,969,952
3,652,564
33,107
255,405
22,714
18,411,470
-
-
-
-
-
-
11,111
11,111
-
110,000
262,391
-
-
250,000
-
622,391
8,541,809
1,045,919
5,232,343
3,652,564
33,107
505,405
33,825
19,044,972
NOTE 18: DIVIDENDS
2016
2015
Declared 2016 fully franked interim ordinary dividend of 0.2 (2015: 0.2)
cents per share franked at the tax rate of 30% (2015: 30%)
Declared 2015 fully franked final ordinary dividend of 0.2 (2014: 0.2)
cents per share franked at the tax rate of 30% (2014: 30%)
Total dividends per share for the period
$
177,227
175,817
0.4 cents
$
175,217
174,795
0.4 cents
LaserBond Ltd 2016 Annual Report | Page 41
41
2016 Annual Report2016 Annual Report
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
2016 FINANCIAL REPORT
2016
$
238,209
114,835
353,044
2015
$
350,012
-
350,012
Dividends not recognised during the reporting period
Since year end the directors have recommended the payment of a final dividend of 0.2 cents per fully-paid ordinary share (2015:
0.2) fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 7th October
2016 out of retained earnings at 30 June 2016, but not recognised as a liability at year end is $178,821. The debit expected to
franking account arising from this dividend is $76,638.
Franking credits
Franking credits available for subsequent periods based on a tax rate
of 30% (2015: 30%)
2016
$
2015
$
1,420,073
1,606,205
NOTE 19: CASH FLOW INFORMATION
Reconciliation of profit after income tax to net cash flows from
operating activities
Profit after Income Tax for the year
Non-cash flows in operating surplus
Depreciation, Amortisation & Impairment
(Profit) / loss on disposal of property, plant & equipment
Changes in assets and liabilities
(Increase) / Decrease in trade and other receivables
(Increase) / Decrease in inventories
(Increase) / Decrease in deferred tax assets
(Increase) / Decrease in assets held for sale
(Increase) / Decrease in non-current prepayments
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in current provisions
Increase / (Decrease) in current tax liabilities
Increase / (Decrease) in non-current provisions
Net cash provided by operating activities
2016
$
78,745
582,162
(23,612)
(576,428)
(525,452)
11,314
-
-
218,576
(17,848)
(58,614)
(38,716)
(349,873)
2015
$
366,766
503,791
(9,223)
252,508
(305,011)
18,721
40,000
(500)
(93,185)
10,686
(212,348)
135,861
708,066
42
LaserBond Ltd 2016 Annual Report | Page 42
2016 Annual Report
2016 FINANCIAL REPORT
NOTE 20: FINANCIAL INSTRUMENTS
Financial Risk Management Policies
Activities undertaken by the group may expose the group to, 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.
The Board of Directors monitors and manages financial risk exposures of the Group and reviews the effectiveness of internal
controls relating these risks. 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.
Maturity of financial liabilities at 30th June 2016
Within 1 Year
1 to 5 Years
Total
Trade and other payables
Hire Purchase / Finance Lease
Total financial liabilities
$
881,752
578,284
1,460,036
$
-
392,406
392,406
$
881,752
970,690
1,852,442
Maturity of financial liabilities at 30th June 2015
Within 1 Year
1 to 5 Years
Total
Trade and other payables
Hire Purchase / Finance Lease
Total financial liabilities
$
663,176
299,784
962,960
$
-
549,190
549,190
$
663,176
848,974
1,512,150
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.
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 cash flow forecasts
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.
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 2016 held a quantity of cash on hand in an Interest Bearing bank account. The Director’s do not consider
that any reasonably possible movement in interest rates would cause a material effect on profit or equity.
Foreign Currency Risk Sensitivity Analysis:
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. 100% of those overseas customers
invoiced in foreign currency and 97% of overseas suppliers paid in foreign currency are affected by movement in the US dollar
exchange rate. To mitigate foreign currency risk for US dollar transactions the group has a US dollar bank account. Payments
made from this US dollar account are from foreign customer deposits or transfers of cash at a time the exchange rate is deemed
positive (which is reviewed on a daily basis) The Director’s do not consider that any reasonably possible movement in foreign
currency rates would cause a material effect on profit or equity.
NOTE 21: SHARE BASED PAYMENTS
a) Employee Share Plan
A scheme under which shares may be issued by the group to employees for no cash consideration was approved by
shareholders through the prospectus. 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.
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.
LaserBond Ltd 2016 Annual Report | Page 43
43
2016 Annual Report2016 Annual Report
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.
2016 FINANCIAL REPORT
Number of shares issued under the plan to participating
employees: (refer to Note 13 a) for detail of date of issue and
issue price)
b) Non-Executive Director Remuneration (Non-Cash)
2016
$
172,703
2015
$
211,109
Non-Executive Directors may 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.
No shares will be issued until shareholder approval is gained at the next Annual (Or Extraordinary) General Meeting.
Where the issue of shares results in the aggregate amount of fees to exceed the sum approved last by shareholders, shareholder
approval may be sought to modify the agreed aggregate amount of fees.
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’, shareholder approval will be sought to approve any recommended issue. Unreasonable
remuneration is defined as the aggregate amount of fees most recently approved by shareholders divided by the total number
of non-executive directors.
The required approval, if any, will be determined by the Board prior to the next Annual (or Extraordinary) General meeting.
A non-executive director is ineligible for non-cash benefits in the form of equity issues if the non-executive director has not held
a position on the Board for the full twelve months of each fiscal year.
At the 2015 Annual General Meeting shareholder approval was sought and gained for the issue of 150,000 shares each to two
non-executive directors who held office for the full twelve months of fiscal year 2015. No approval has as yet been sought or
gained for the 2016 fiscal year.
c) Expense arising from share based payment transactions
Shares Issued under employee share plan
Provision Unissued (Entitled) Shares --- Non-Executive Director
Remuneration
12,241
-
12,241
10,837
39,000
49,837
NOTE 22: PARENT ENTITY FINANCIAL INFORMATION
The individual financial statements for the parent entity shows the following aggregate amounts:
Statement of Financial Position
Assets:
Current Assets
Total Assets
Liabilities:
Current Liabilities
Total Liabilities
Shareholders’ Equity
Issued Capital
Retained Earnings
Profit / (loss) before income tax expense
Profit after tax from continuing operations
Total comprehensive income attributable to members
44
5,772,865
8,616,657
1,993,127
2,525,579
5,985,756
105,322
6,091,078
(36,840)
78,745
78,745
5,870,265
8,489,071
1,258,676
2,241,851
5,868,200
379,620
6,247,820
384,756
366,766
366,766
LaserBond Ltd 2016 Annual Report | Page 44
2016 Annual Report
2016 FINANCIAL REPORT
Finance Facilities of the Parent Entity
The parent entity has given secured guarantees in respect of operating lease agreements:
(i)
(ii)
for the parent entity with a balance outstanding of $175,379 (2015: $346,475)
for subsidiaries with a balance outstanding of nil (2015: nil)
The parent entity has given unsecured guarantees in respect of Rental Bonds:
for the parent entity with totaling of $181,885 (2015: $181,885)
(i)
for subsidiaries with a balance outstanding of nil. (2015: nil)
(ii)
The parent entity has unsecured and unused finance facilities in place in respect of:
(i)
(ii)
Trade finance facility with unused limit of $2,722,203 (2015: $2,568,350).
Bank Guarantee Line unused with limit of $18,115 (2015: $18,115).
The trade finance facility is subject to annual review which last occurred February 2016.
The parent entity did not have any contingent liabilities as at 30 June 2016 or 30 June 2015. The parent entity had no current
contractual commitments for the acquisition of property plant or equipment as at 30 June 2016 or 30 June 2015.
NOTE 23: CONTROLLED ENTITIES
The group owns 100% of LaserBond (Qld) Pty Ltd, is a non-trading entity incorporated in Australia.
NOTE 24: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
The directors have recommended the payment of a final dividend of 0.2 cents per fully-paid ordinary share (2015: 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 2016.
Subject to the group continuing to develop in accordance with future plans, the Board expects to continue to maintain future
dividends.
NOTE 25: SEGMENT REPORTING
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Executive
Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group is
managed primarily on the basis of location. The group operates entirely within Australia.
NSW - Services Division
SA Services & Products Divisions
Jun 16
Jun 15
Jun 16
Jun 15
Services
Services
Product
Services
Product
Revenue
8,785,738
8,816,612
1,472,108
257,735
403,345
326,637
EBITDA
1,045,866
1,444,536
(376,848)
82,963
(104,553)
(241,016)
Interest
Depreciation &
Amortisation
Profit Before
Income Tax
Income tax
expense
Profit after
Income Tax
58,555
397,768
46,411
368,120
329
-
-
39,619
173,292
62,273
-
-
589,543
1,030,005
(416,796)
(90,330)
(166,826)
(241,016)
(134,640)
48,160
131,498
70,701
(7,800)
(11,269)
454,903
1,078,165
(285,298)
(19,629)
(174,626)
(252,285)
Assets
Liabilities
6,396,914
7,394,904
(2,295,121)
(2,166,422)
2,216,855
(230,457)
1,090,332
(75,429)
LaserBond Ltd 2016 Annual Report | Page 45
45
2016 Annual Report2016 Annual Report
2016 FINANCIAL REPORT
Other Divisions
Total
Jun 16
Jun 15
R&D
Tech
R&D
Tech
Jun 16
Jun 15
-
-
-
-
10,515,581
9,546,594
(79,438)
(37,595)
(106,598)
(128,713)
634,948
863,656
-
2,224
-
-
-
2,096
-
-
58,884
612,904
46,411
432,489
(81,662)
(37,595)
(108,694)
(128,713)
(36,840)
384,756
36,748
11,279
(5,082)
(6,018)
115,585
17,990
(44,914)
(26,317)
(113,776)
(134,731)
78,745
402,746
2,887
-
-
-
4,435
-
-
-
8,616,656
8,489,671
(2,525,578)
(2,241,851)
Revenue
EBITDA
Interest
Depreciation &
Amortisation
Profit Before
Income Tax
Income tax
expense
Profit after
Income Tax
Assets
Liabilities
NOTE 26: ECONOMIC DEPENDENCY
Revenues of $3,409,684 (2015 - $3,942,465) are derived from a single external customer. These revenues are attributed to the
Services segment.
46
LaserBond Ltd 2016 Annual Report | Page 46
2016 Annual Report2016 Annual Report
Shareholder Information
SHAREHOLDER INFORMATION
1. Substantial Shareholders at 9th August 2016
Holder LaserBond Limited
Ms Diane Constance Hooper
Mr Wayne Edward Hooper
Mr Wayne Edward Hooper (W&D Hooper Investments Pty Ltd)
Mr Rex John Hooper
Ms Lillian Hooper
Mr Gregory John Hooper
Mr Gregory John Hooper (Grendy Super Fund A/C)
Mrs Loretta Mary Peachey
Lornat Pty Ltd
2. Distribution of Shareholders as at 9th August 2016
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
29
48
66
255
93
491
Total Units
5,416
169,561
540,140
9,414,399
79,280,829
89,410,345
%
9.886
9.886
1.224
8.147
7.983
5.559
4.085
3.012
2.516
Number of
Ordinary
Fully Paid
Shares Held
8,839,454
8,839,454
1,094,648
7,283,916
7,137,590
5,232,343
3,652,564
2,693,344
2,250,000
%
0.006
0.190
0.604
10.529
88.671
100.000
Holdings less than a marketable parcel 79
185,196
0.207
3. Twenty Largest Shareholders as at 9th August 2016
Holder LaserBond Limited
Ms Diane Constance Hooper
Mr Wayne Edward Hooper
Ms Rex John Hooper
Mr Lillian Hooper
Mr Gregory John Hooper
Mr Gregory John Hooper (Grendy Super Fund A/C)
Mr Ian Davies
Mrs Loretta Mary Peachey
Lornat Pty Ltd (WK & LM Peachey S/Fund A/C)
Mr Keith Knowles
Parks Australia Pty Ltd
Mr James Gordon Moffatt
Myall Resources Pty Ltd
Fortitude Enterprises Pty Ltd
W&D Hooper Investments Pty Ltd
Mr Brendan Thomas Birthistle
Mr Makram Hanna & Mrs Rita Hanna (Hanna & Co P/L Super A/C)
Sam Nominees (Aust) Pty Ltd (Sam Super Fund A/C)
Mr William Ross Fenner
Dixson Trust Pty Limited
Number of
Ordinary Fully
Paid Shares Held
8,839,454
8,839,454
7,283,916
7,137,590
4,969,952
3,652,564
3,528,374
2,693,344
2,250,000
2,249,232
2,177,615
1,248,289
1,150,000
1,139,365
1,094,648
1,076,304
1,045,000
979,397
913,807
869,560
%
9.886
9.886
8.147
7.983
5.559
4.085
3.946
3.012
2.516
2.516
2.436
1.396
1.286
1.274
1.224
1.204
1.169
1.095
1.022
0.973
Totals for Top 20
63,137,865
70.616
Security Totals
89,410,345
LaserBond Ltd 2016 Annual Report | Page 47
47
2016 Annual Report2016 Annual ReportTitle2016 Annual Report
SHAREHOLDER INFORMATION
4. Voting Rights
The voting rights attached to each class of equity securities are:
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
b) Options --- No voting rights.
5. Restricted Securities
The group has no restricted securities.
6. Securities subject to voluntary escrow
Total number of shares held
in escrow
38,588
96,291
166,665
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
14 Feb 2017 --- 38,588 shares
15 Dec 2016 --- 48,152 shares
21 Dec 2016 ---55,560 shares
15 Dec 2017 --- 48,139 shares
21 Dec 2017 --- 55,560 shares
21 Dec 2018 --- 55,545 shares
48
LaserBond Ltd 2016 Annual Report | Page 48
2016 Annual Report
49
2016 Annual Report2016 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 02 8260 2238
International +61 8 8260 2238
Email info@laserbond.com.au
www.laserbond.com.au
Quality
Environment Health & Safety
ASX:LBL
50
With family support, Greg Hooper founded LaserBond as
HVOF Australia P/L in 1992, working from a small workshop in
Ingleburn, NSW, shown above. His brother, Wayne, joined the
business in 1994. It relocated to larger premises in Smeaton
Grange, NSW in 2012. Cavan SA was established in 2013. It
was ASX listed as LaserBond Limited (ASX:LBL). For 25 years
LaserBond has been researching, developing and applying
innovative surface engineering technologies to extend plant and
machinery life and improve resistance to wear and corrosion.
14645 08/2016
2016 Annual Report