LaserBond’s industry collaboration projects in laser surface engineering.
The Wearlife Performance - CRCp is a research program that seeks to extend wear life in drilling
for mining; our heavy duty high power laser cell opens further international opportunities.
Shareholder’s Annual Report
Laserbond Limited
ABN 24 057 636 692
For year ended 30th June 2017
All comparisons to year ended 30th June 2016
Contents
About Laserbond ........................................................... 2
Financial Report .............................................................. 9
1
2017 Annual Report 2
LaserBond has been at the forefront of surface engineering
depth of industry knowledge, advanced surface technologies,
technology for more than 25 years. We partner with organisations
deep understanding of wear mechanics and constant R&D
to significantly extend the wear and operational performance of
innovation. Because we take time to really understand the
their mission critical equipment, improve productivity and reduce
applications, our clients can achieve typically 2 - 10 times wear life
costs by applying advanced materials to operating surfaces. These
extensions, enabling dramatic increases in operational hours and
organisations engage with our dedicated team to access our
productivity. The science of material wear is our DNA.
Leadership in surface engineering technology
3
2017 Annual Report LaserBond has been at the forefront of surface engineering
depth of industry knowledge, advanced surface technologies,
technology for more than 25 years. We partner with organisations
deep understanding of wear mechanics and constant R&D
to significantly extend the wear and operational performance of
innovation. Because we take time to really understand the
their mission critical equipment, improve productivity and reduce
applications, our clients can achieve typically 2 - 10 times wear life
costs by applying advanced materials to operating surfaces. These
extensions, enabling dramatic increases in operational hours and
organisations engage with our dedicated team to access our
productivity. The science of material wear is our DNA.
Leadership in surface engineering technology
3
3
2017 Annual Report2017 Annual Report The operating efficiency and productivity of mining, drilling, mineral
the design of new components utilising next generation additive
LaserBond’s new research collaboration with the University of
us to technical thinking, a structured research rigour and novel
processing and other heavy-duty applications
in manufacture,
manufacturing processes. In 2017 several new design patents were
South Australia | Future Industries Institute and industry partners is
experimental techniques. Dialogues with academic scientists also
construction and defence all suffer from wear of key components.
applied for. Our successes in extending wear life and improving
multiplying our R&D efforts threefold. Our researchers gain access
provide a way to test the validity of our own thinking and directions.
Our services, products and technology are founded on three core
operating performance of machine components deliver sustainable
to highly qualified people with equipment to fix difficult problems,
They are partners who challenge our beliefs and conclusions.
areas of innovative thinking; the characteristics of multi modal wear
value for our clients. Getting more life and value from resources also
potentially resulting in an invention or technology with significant
Through our research collaboration LaserBond now provides
of surfaces; the development of advanced customised alloy cladding;
benefits our environment and footprint on the planet.
commercial value. Working with the academic community exposes
opportunities for students to work on real industry problems.
Innovation thinking
4
4
WEARLIFE PERFORMANCE CRCp
Laser Surface Engineering
Wearlife Performance CRCp is a LaserBond led collaboration
with UniSA and industry partner Boart Longyear.
Research
5
2017 Annual Report The operating efficiency and productivity of mining, drilling, mineral
the design of new components utilising next generation additive
LaserBond’s new research collaboration with the University of
us to technical thinking, a structured research rigour and novel
processing and other heavy-duty applications
in manufacture,
manufacturing processes. In 2017 several new design patents were
South Australia | Future Industries Institute and industry partners is
experimental techniques. Dialogues with academic scientists also
construction and defence all suffer from wear of key components.
applied for. Our successes in extending wear life and improving
multiplying our R&D efforts threefold. Our researchers gain access
provide a way to test the validity of our own thinking and directions.
Our services, products and technology are founded on three core
operating performance of machine components deliver sustainable
to highly qualified people with equipment to fix difficult problems,
They are partners who challenge our beliefs and conclusions.
areas of innovative thinking; the characteristics of multi modal wear
value for our clients. Getting more life and value from resources also
potentially resulting in an invention or technology with significant
Through our research collaboration LaserBond now provides
of surfaces; the development of advanced customised alloy cladding;
benefits our environment and footprint on the planet.
commercial value. Working with the academic community exposes
opportunities for students to work on real industry problems.
Innovation thinking
4
WEARLIFE PERFORMANCE CRCp
Laser Surface Engineering
Wearlife Performance CRCp is a LaserBond led collaboration
with UniSA and industry partner Boart Longyear.
Research
5
5
2017 Annual Report2017 Annual Report To ensure LaserBond remains competitive in the global economy,
of markets; meet the need for faster innovation and understand
LaserBond’s Services, Products and Technologies are reaching
Products are manufactured for OEMs to embed into their
we established two new strategic relationships with partners who
the increasing complexity of customer satisfaction. Fundamental
more international customers. Thanks to our successful
equipment sold internationally. Technology is again being
recognise the value of our technology and innovation. The quality
to our vision of being a globally significant surface engineering
technology, direct exports in 2017 represented 25% of sales,
exported and licensed to partners providing services in non-
of these relationships as suppliers, collaborators and customers
company is our ability to determine and manage relationships
a growth of 190% in the year. Each division recognises this
competitive markets, most recently a new advanced additive
enables us to develop a sustainable and competitive advantage.
with partners who seek continuous improvement in competitive
global market opportunity. Services Division partners with
laser cladding cell designed and produced by LaserBond.
With these partners we can better respond to the globalisation
technology and customer satisfaction.
global companies offering repair and remanufacturing
To support continued growth, our commercial systems and
to the global resources sector. Our specialised wear life
processes must meet the benchmarks of global best practice.
Engineering capability
International markets
6
6
7
2017 Annual Report To ensure LaserBond remains competitive in the global economy,
of markets; meet the need for faster innovation and understand
LaserBond’s Services, Products and Technologies are reaching
Products are manufactured for OEMs to embed into their
we established two new strategic relationships with partners who
the increasing complexity of customer satisfaction. Fundamental
more international customers. Thanks to our successful
equipment sold internationally. Technology is again being
recognise the value of our technology and innovation. The quality
to our vision of being a globally significant surface engineering
technology, direct exports in 2017 represented 25% of sales,
exported and licensed to partners providing services in non-
of these relationships as suppliers, collaborators and customers
company is our ability to determine and manage relationships
a growth of 190% in the year. Each division recognises this
competitive markets, most recently a new advanced additive
enables us to develop a sustainable and competitive advantage.
with partners who seek continuous improvement in competitive
global market opportunity. Services Division partners with
laser cladding cell designed and produced by LaserBond.
With these partners we can better respond to the globalisation
technology and customer satisfaction.
global companies offering repair and remanufacturing
To support continued growth, our commercial systems and
to the global resources sector. Our specialised wear life
processes must meet the benchmarks of global best practice.
Engineering capability
International markets
6
7
7
2017 Annual Report2017 Annual Report 21 June 2017
ASX: Market Update --- LaserBond’s WearLife Performance CRCp - Researchers
Leading International Surface Engineering Researchers to join LaserBond’s
‘Wearlife Performance CRCp’ Team in SA.
LaserBond together with University of South Australia / Future Industries Institute is pleased to announce the
appointment of two world leading researchers in advanced coating metallurgy and surface engineering for
their WearLife Performance CRCp. The research centre is destined to become a world-leading group that is
focused on extending wear life of critical machine components across a range of growth industry sectors.
LaserBond, Boart Longyear and University of SA are partners in the Commonwealth - Business funded
Cooperative Research Centre Programme (CRCp) that supports industry-led collaboration between industry,
researchers and the community.
Dr Christiane Schulz is a coatings development engineer currently working with a leading international
advanced materials manufacturer where she develops novel metallurgical coatings for a range of heavy
industries. Christiane had previously managed industrial research collaborations and lectured at the
prestigious Surface Engineering Institute at RWTH Aachen University in Germany.
Dr Thomas Schlafer presently works with a highly regarded coating system supplier where he is head of R&D.
He is responsible for the development of application oriented metallic, cermet and ceramic thermal spray
coatings. As Christiane, he too worked at RWTH Aachen University and previously heavily involved in
applications systems development.
Thomas is being employed by LaserBond as Manager --- R&D
Projects, to lead the CRCp work and development of our
advanced manufacturing LaserBond Cladding cell system.
Christiane is being employed by University of SA within the
Future Industries Institute as a metallurgist coatings researcher.
Christiane and Thomas bring fresh skills and highly regarded
credentials to the already talented team based in North
Adelaide. Gregory Hooper, founder of LaserBond recently met
them again at the International Thermal Spray 2017 conference
in Dusseldorf, Germany where they presented technical papers.
‘‘I’m excited to be expanding our knowledge and passion, taking what we developed at LaserBond over the
past 25 years to the next level, with new applications, new materials, and new technologies, all here in
Adelaide. Ultimately a globally recognised wear life research centre and advanced additive manufacturing
cluster.’’ Greg said. ‘‘We are all looking forward to welcoming them at the end of August’’.
staff who have potential to drive the business to the level
journey to becoming a successful
internationally
The
recognised business
is accompanied by challenges
necessary to work in new global partnerships and markets.
which we are proactively addressing. Ensuring we have
For further information http://www.laserbond.com.au/blog
We are proud to be investing in the team that has been with
well-trained, motivated people who are growing with
us and responsible for developing the opportunity through
us is the reward for sound, future-focused management.
LaserBond: Greg Hooper, Executive Director --- R&D | +61 8 8262 2289 | gregh@laserbond.com.au
Allan Morton, Chairman | +61 44 88 00 101 | allanm@laserbond.com.au
Emily Hilder, Director --- Future Industries Institute | +61 8 8302 6292 | Emily.Hilder@unisa.edu.au
Colin Hall, Senior Research Fellow - Energy & Advanced Manufacturing | +61 8 8302 3833 | colin.hall@unisa.edu.au
leveraging our research and strategic partnerships
UniSA | FII:
additional management, sales and technical training.
Ensuring LaserBond offers an ongoing exciting, safe and
rewarding work environment remains paramount to success.
LaserBond is now attracting internationally experienced
By
Capable people
LaserBond Limited: ABN 24 057 636 692
P: +61 2 4631 4500 1300 527 372 F: +61 2 4631 4555
E: info@laserbond.com.au W: www.laserbond.com.au
2/57 Anderson Road, Smeaton Grange NSW 2567 Australia
8
2017 Annual Report
2017 Financial Report
2017 FINANCIAL REPORT
Contents
Page
Chairman’s Letter
Corporate Directory
Directors’ Report
Declaration by Directors
Auditor’s Independence Declaration
Independent Audit Report
Consolidated Statement of Profits &
Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Shareholder Information
10
12
13
20
21
22
26
27
28
29
30
47
21 June 2017
ASX: Market Update --- LaserBond’s WearLife Performance CRCp - Researchers
Leading International Surface Engineering Researchers to join LaserBond’s
‘Wearlife Performance CRCp’ Team in SA.
LaserBond together with University of South Australia / Future Industries Institute is pleased to announce the
appointment of two world leading researchers in advanced coating metallurgy and surface engineering for
their WearLife Performance CRCp. The research centre is destined to become a world-leading group that is
focused on extending wear life of critical machine components across a range of growth industry sectors.
LaserBond, Boart Longyear and University of SA are partners in the Commonwealth - Business funded
Cooperative Research Centre Programme (CRCp) that supports industry-led collaboration between industry,
researchers and the community.
Dr Christiane Schulz is a coatings development engineer currently working with a leading international
advanced materials manufacturer where she develops novel metallurgical coatings for a range of heavy
industries. Christiane had previously managed industrial research collaborations and lectured at the
prestigious Surface Engineering Institute at RWTH Aachen University in Germany.
Dr Thomas Schlafer presently works with a highly regarded coating system supplier where he is head of R&D.
He is responsible for the development of application oriented metallic, cermet and ceramic thermal spray
coatings. As Christiane, he too worked at RWTH Aachen University and previously heavily involved in
applications systems development.
Thomas is being employed by LaserBond as Manager --- R&D
Projects, to lead the CRCp work and development of our
advanced manufacturing LaserBond Cladding cell system.
Christiane is being employed by University of SA within the
Future Industries Institute as a metallurgist coatings researcher.
Christiane and Thomas bring fresh skills and highly regarded
credentials to the already talented team based in North
Adelaide. Gregory Hooper, founder of LaserBond recently met
them again at the International Thermal Spray 2017 conference
in Dusseldorf, Germany where they presented technical papers.
‘‘I’m excited to be expanding our knowledge and passion, taking what we developed at LaserBond over the
past 25 years to the next level, with new applications, new materials, and new technologies, all here in
Adelaide. Ultimately a globally recognised wear life research centre and advanced additive manufacturing
The
journey to becoming a successful
cluster.’’ Greg said. ‘‘We are all looking forward to welcoming them at the end of August’’.
staff who have potential to drive the business to the level
internationally
recognised business
is accompanied by challenges
necessary to work in new global partnerships and markets.
which we are proactively addressing. Ensuring we have
For further information http://www.laserbond.com.au/blog
We are proud to be investing in the team that has been with
well-trained, motivated people who are growing with
us and responsible for developing the opportunity through
LaserBond: Greg Hooper, Executive Director --- R&D | +61 8 8262 2289 | gregh@laserbond.com.au
us is the reward for sound, future-focused management.
additional management, sales and technical training.
Allan Morton, Chairman | +61 44 88 00 101 | allanm@laserbond.com.au
By
leveraging our research and strategic partnerships
Emily Hilder, Director --- Future Industries Institute | +61 8 8302 6292 | Emily.Hilder@unisa.edu.au
Ensuring LaserBond offers an ongoing exciting, safe and
UniSA | FII:
LaserBond is now attracting internationally experienced
Colin Hall, Senior Research Fellow - Energy & Advanced Manufacturing | +61 8 8302 3833 | colin.hall@unisa.edu.au
rewarding work environment remains paramount to success.
Capable people
LaserBond Limited: ABN 24 057 636 692
P: +61 2 4631 4500 1300 527 372 F: +61 2 4631 4555
E: info@laserbond.com.au W: www.laserbond.com.au
2/57 Anderson Road, Smeaton Grange NSW 2567 Australia
8
LaserBond Ltd 2017 Annual Report | Page 9
9
2017 Annual Report2017 Annual Report
2017 Chairman’s Letter
Dear Shareholder,
As forecast our sales revenue and underlying EBITDA have grown in line with expectations for the 2017 financial year with all divisions
reporting positive outcomes. It’s been a pleasure to see many new initiatives with long-term transformational value now underway.
On behalf of the Board I am pleased to present the Annual Financial Report to 30th June 2017. We are understandably proud to report
this suite of positive results.
Revenues
Services Division
Products Division
Technology Division
Export Sales*
EBITDA
NPAT
30 June 2017
$13.751 M
$7.237 M
$5.076 M
$1.438M
$3.474 M
$2.449 M
$1.113 M
Earnings per share (cents)
1.22 c
Up 31 % from
Up 5.8 % from
Up 38 % from
New Division
Up 1927%
Up 283 % from
Up 1313 % from
Up 1257 % from
30 June 2016
$10.516 M
$6.843 M
$3.673 M
$1.191 M
$0.640 M
$0.079 M
0.09 c
* This includes direct Export revenue only. LaserBond products sold to local branches of Original Equipment Manufacturers are also exported globally.
LaserBond partners with clients to significantly extend the wear and operational performance of their mission critical equipment,
improve productivity and reduce costs by applying advanced materials to operating surfaces. They engage with us through our
advanced surface engineering technologies, built on three core strategic strengths developed over 25 years;
• We invest time to understand multi-modal wear in heavy industry applications; like mining, drilling, minerals processing,
infrastructure construction, agriculture and defence.
• We develop the material science of advanced surface engineered claddings; metal and non-metal powders.
New additive manufacturing methodologies to apply powders using kinetics, thermal transfer and lasers.
•
Combining this IP with knowledge of high value industry applications via our collaboration partners we have the foundations for
continued growth, particularly into new export markets.
Our commitment to pursue the innovation and industry led collaboration strategy outlined in our 2016 report has delivered many new
commercial opportunities for sustainable growth. Each division can now build resources and focus around its identified market
opportunities, whilst leveraging the accelerated R&D investment in technologies and applications.
In August 2016, LaserBond received a $1.07M grant under the Commonwealth’s Next Generation Manufacturing Investment Program
to develop and install an advanced additive manufacturing facility into our Cavan SA facilities. This was followed in February 2017 with
the awarding of a $2.6M Cooperative Research Centre Project grant to facilitate the development and commercialisation of high wear
life components in drilling for mining; the WearLife Performance CRCp.
This is a highly visible endorsement of the company’s strategy to invest in both technology research and in developing strategic
partnerships with University of SA’s Future Industries Institute and global OEM partners, like Boart Longyear. For our stakeholders
these relationships provide direction and opportunities for LaserBond to become a globally significant surface engineering company.
Transformation from our engineering workshop orientated foundations also brings challenges that our divisions must address to
capture these global opportunities.
•
•
‘Services’ remains an essential and core business. It maintains a valuable R&D window into the needs of our clients. Same
location growth opportunities align with the coming back of resources industry activity levels, which are in turn linked to
profitable resource commodity prices. Beyond that real growth opportunities exist for LaserBond where we can leverage our
technology through geographic expansion.
‘Products’ division sales and profits have grown significantly in 2017; revenue up 38%, importantly most of this is export.
Often we are limited by capacity in South Australia and therefore the installation of the new 16kW laser system will deliver
the capacity to continue growth with new commercial products coming out of our R&D.
10
2017 Annual Report 2017 CHAIRMAN’S LETTER
2017 CHAIRMAN’S LETTER
•
•
•
•
‘Technology’ has delivered its first complete laser cladding cell system and license. Converting our home grown innovation
into a marketable product has required almost two years of technical and market development, which will be capitalized
‘Technology’ has delivered its first complete laser cladding cell system and license. Converting our home grown innovation
upon with further sales.
into a marketable product has required almost two years of technical and market development, which will be capitalized
‘R&D’ is recognized as a division within LaserBond because it embodies the foundation for growth. In March 2017 the
upon with further sales.
Wearlife Performance CRCp began operations, with a team of 5 – 10 full-time, part-time and student researchers working
‘R&D’ is recognized as a division within LaserBond because it embodies the foundation for growth. In March 2017 the
with the three partners. This group expands our effective R&D capabilities three-fold, which in turn accelerates new product
Wearlife Performance CRCp began operations, with a team of 5 – 10 full-time, part-time and student researchers working
and service development well beyond our historical capacity.
with the three partners. This group expands our effective R&D capabilities three-fold, which in turn accelerates new product
and service development well beyond our historical capacity.
The Board also recognises that high growth in new areas brings tough and exciting challenges to many people within the business.
For LaserBond to realise our market and technical opportunities requires investment in up-skilling, retaining and expanding our
The Board also recognises that high growth in new areas brings tough and exciting challenges to many people within the business.
management talent pool with skilled, international experienced professionals. This is an ongoing and accelerating effort.
For LaserBond to realise our market and technical opportunities requires investment in up-skilling, retaining and expanding our
management talent pool with skilled, international experienced professionals. This is an ongoing and accelerating effort.
Given the substantial opportunity to pursue growth opportunities in the coming years the Board has decided to increase its full year
dividend to 0.5 cps based on the performance achieved.
Given the substantial opportunity to pursue growth opportunities in the coming years the Board has decided to increase its full year
dividend to 0.5 cps based on the performance achieved.
Success is a team effort, one with diverse skills committed to the future of LaserBond. I am pleased we have a comprehensive plan to
develop the business to more years of success like 2017 has delivered. We thank all those who support the vision and our Board.
Success is a team effort, one with diverse skills committed to the future of LaserBond. I am pleased we have a comprehensive plan to
develop the business to more years of success like 2017 has delivered. We thank all those who support the vision and our Board.
Yours sincerely
Yours sincerely
Allan Morton
Chairman
Allan Morton
LaserBond Limited
Chairman
LaserBond Limited
11
LaserBond Ltd 2017 Annual Report | Page 11
LaserBond Ltd 2017 Annual Report | Page 11
2017 Annual Report2017 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: +61 2 4631 4500
Fax: +61 2 4631 4555
112 Levels Road
CAVAN
SA 5094
Phone: +61 8 8262 2289
Fax: +61 8 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
Centric Park Central
CAMPBELLTOWN NSW 2560
Stock Exchange Listing:
LaserBond Ltd shares are listed on the
Australian Securities Exchange (ASX) under LBL.
12
LaserBond Ltd 2017 Annual Report | Page 12
2017 Annual Report2017 Annual Report
CORPORATE DIRECTORY
Directors:
Mr. Allan Morton
Chairman / Non-Executive Director
Mr. Wayne Hooper
Executive Director
Mr. Gregory Hooper
Executive Director
Mr. Philip Suriano
Non-Executive Director
Company Secretary:
Mr. Matthew Twist
Registered Office,
Principal place of business:
2 / 57 Anderson Road
South Australia Division
Website:
www.laserbond.com.au
Share Registry:
Boardroom Pty Ltd
Auditor:
LNP Audit and Assurance
Solicitor:
Equius Legal Pty Ltd
SMEATON GRANGE
NSW 2567
Phone: +61 2 4631 4500
Fax: +61 2 4631 4555
112 Levels Road
CAVAN
SA 5094
Phone: +61 8 8262 2289
Fax: +61 8 8260 2238
Grosvenor Place
Level 12, 225 George Street
SYDNEY NSW 2000
Phone: 1300 737 760
Level 14, 309 Kent Street
SYDNEY NSW 2000
Level 57, MLC Centre
19-29 Martin Place
SYDNEY NSW 2000
Bankers:
Commonwealth Bank of Australia
Corporate Financial Services
Sydney South-West
Centric Park Central
CAMPBELLTOWN NSW 2560
Stock Exchange Listing:
LaserBond Ltd shares are listed on the
Australian Securities Exchange (ASX) under LBL.
Directors’ Report
DIRECTORS’ REPORT
The Directors present their report on the consolidated entity for the financial year ended 30th June 2017.
Principal Activity
LaserBond is a 25-year family founded surface engineering company that specialises in developing technologies and
implementing its metal cladding methodologies to increase operating performance and wear life of capital-intensive machinery
components.
Within these industries, the wear of components can have a profound effect on the productivity and total cost of ownership of
the capital equipment. As almost all components fail at the surface, due to combinations of abrasion, erosion, corrosion and
impact, a tailored surface metallurgy will extend its life and enhance its performance. Metal cladding is an advanced additive
manufacturing process using a number of application technologies that enhances the surface, through the application of
metallurgically bonded high performance materials.
LaserBond recognises that its technology has application across many industries as more sectors accept that surface engineering
technologies can deliver significant cost effective improvements in productivity and/or lower total cost of ownership; mostly in
resources and energy, agriculture, advanced manufacturing, defence and infrastructure construction.
Our growth has been built on the pursuit of innovation and technology leadership in three surface engineering foundations;
The tribology of wear and performance in heavy industrial components.
•
• Metallurgy and science of cladding materials.
• Optimising a wide range of material application methodologies.
This is supported by marketing and sales focus that seeks opportunities offering productivity and sustainable gains;
•
•
Identifying components, equipment or applications that benefit from our technologies.
Customer partners with established needs and markets.
Our market strategy is to increasingly focus our attention and resources towards the recognised growth centre industries; see
www.industry.gov.au/industry/Industry-Growth-Centres.
Our customers are typically internationally recognised Original
Equipment Manufacturers (OEMs) and ‘Tier 1’ capital-intensive heavy industries that endure high costs whenever their
equipment is out of production for maintenance. These customers recognise LaserBond’s focus on WH&S, quality assurance, on-
time-delivery and the environment which is delivered through our certified PAS99 integrated management system.
LaserBond operates from facilities in New South Wales and South Australia.
Review of Operations & Results
In summary, compared to FY2016:
•
Revenue growth of 30.8% after both the successful first sale from our Technology Division, and the continued growth
from our Products division, particularly through our South Australian facility.
• Gross profit increased to 51.8% consolidated, from 49.1% in FY2016. Expectations are for continued investment in shop
floor training to maximise skills and capabilities to support continuing revenue growth.
• Operating expenses have increased $471,243, due to the continuing investment in growth-oriented activities to
maximise opportunities. The main areas of increase include research & development investment and depreciation
related to increasing manufacturing capabilities.
•
EBITDA increased by 286%.
• NPAT increased to $1.1 million from $78,745 in FY2016.
•
The current ratio of the group is 3.1:1 indicating continued financial strength after each division has reported positive
results in the second half of FY2017.
LaserBond Ltd 2017 Annual Report | Page 12
13
LaserBond Ltd 2017 Annual Report | Page 13
2017 Annual Report2017 Annual Report2017 Annual Report
Results by Reportable Segments
The Products Division is expected to continue to provide the most revenue growth for the business.
DIRECTORS’ REPORT
DIRECTORS’ REPORT
•
•
•
•
•
•
•
•
Revenue from operations was $13.751 million, up by 30.8% on FY2016.
Services Division achieved revenue of $7.237 million, up 5.8% on FY2016.
Products Division achieved revenue of $5.076 million, up 38.2% on FY2016.
Technology Division achieved its first sale of $1.438 million.
EBITDA from operations was $2.449 million, up by 285.7% on FY2016.
Services Division achieved EBITDA of $1.573 million, up 113.5% on FY2016.
Products Division achieved EBITDA of $0.989 million, after reporting a small loss in FY2016.
Technology Division after its first sale, is reporting EBITDA of $0.255 million.
Explanation of Results
Services Division
The Services division achieved revenue for FY2017 of $7.237 million representing 5.8% growth on FY2016 revenue of $6.843
million. The second half of FY2017 reported a slight decline in revenue from the first half, directly related to delays in some larger
projects from customers until the last quarter of 2017. The NSW facility represents 93% of this revenue based on its long
standing surface engineering repair and reclamation business. Most of South Australia’s revenue is from the sale of products,
however this facility achieved a 77.5% increase in services revenue based on sales strategies developed for growth in services.
This division reports a $1.573 million EBITDA, representing a 113.5% growth on FY2016 EBITDA of $0.736 million. This is partially
a direct result of the first Technology division sales and the share of some overhead expenditure against the Technology division.
The Services division continues to expect growth in revenue at similar rates.
Products Division
The Products division achieved revenue for FY2017 of $5.076 million representing a 38.2% growth on FY2016 revenue of $3.673
million. The focus of the South Australian facilities has been on products, and represents 49% of this revenue. The balance of 51%
is generated from contract manufacturing of products for long standing original equipment manufacturers. This division has
achieved growth each six month reporting period over the past two fiscal years.
Products Division achieved $0.989 million EBITDA after reporting a loss of <$7,661> in FY2016. This is a direct result of Product
division revenue from South Australia reporting growth of 71.9%.
14
LaserBond Ltd 2017 Annual Report | Page 14
In the 4th quarter of FY2017, LaserBond delivered it first Technology division sale to a large mineral processing equipment
manufacturer in China. Training and support will continue over a five year period in return for revenue based licensing fees.
Further, LaserBond has signed an agreement with a third party to support the identification and qualification process for further
LaserBond’s aim is to provide continued revenue from the Technology division in the form of the continuing licensing fees and
Technology Division
Technology sales.
new Technology sales.
Research & Development
This division reports an EBITDA loss of <$367,533> after discounting $298,000 other income for R&D related government grants.
Net costs against R&D increased by over 500% due to the necessary continued research into new products and / or applications
crucial for LaserBond’s continuing growth.
Outlook
The company plans to exploit many opportunities to continue the growth it has achieved. Whilst growth through all divisions is
expected to be achieved, the areas of largest opportunities lie in the Products and Technology Divisions.
For the Services Division, LaserBond has noted a general growth within the industries it serves, particularly in the resources and
mineral processing sectors. The sales and marketing resources of this Division are focused on exploiting this pick up as well as
developing other customers in these and other industries where the benefits of our services are yet to be fully realised. In
FY2018, the Services Division is expected to achieve similar growth to FY2017.
For the Products Division, LaserBond has two areas of focus that are expected to provide the largest areas of revenue growth
over the coming years:
a) The interest from global original equipment manufacturers (OEMs) provided significant export revenue growth since
March 2016. The performance of LaserBond’s applications and products have been proven with these OEM’s
recognising opportunities to work with LaserBond in developing new products which will form continuing revenue
growth from our Products Division.
b) The Cooperative Research Centres Project (CRC-P) is led by LaserBond in conjunction with its partners (University of
South Australia and Boart Longyear ASX:BLY). It is a three year collaboration associated with the material science and
use of LaserBond technologies to improve a spectrum of wear points associated with drilling for mining. An extensive
site proving program is required by our partners and is undertaken for each product development. As expected, our
products are performing exceedingly well under these extensive proving tests. Further, LaserBond is continuing to
develop these products, further improving wear life performance, reducing environmental impacts such as corrosion
and removing operational handling
issues. This
is allowing LaserBond to generate better products for
commercialisation at the later stages of the CRC-P.
The first Technology Division sale was achieved and completed late in FY2017. This sale will now deliver license revenue in
return for ongoing technical support from LaserBond over an agreed term of 5 years, growing as LaserBond assists the customer
to develop its applications and customer base. The Technology Division is leveraging this first sale and model to obtain
growth. LaserBond has appointed an international consultant to aid in the identification, qualification and sale of Technology
licensing packages and is actively pursuing several other opportunities which, if successful, will deliver excellent growth for the
company.
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):
______________Ceased to Hold Office
Director:
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Position Held
Executive Director
Executive Director
In Office Since
21 April 1994
30 September 1992
Non-Executive Chairman
18 March 2014
Non-Executive Director
6 May 2008
Matthew Twist
Company Secretary
30 March 2009
LaserBond Ltd 2017 Annual Report | Page 15
2017 Annual Report
DIRECTORS’ REPORT
The Products Division is expected to continue to provide the most revenue growth for the business.
Technology Division
In the 4th quarter of FY2017, LaserBond delivered it first Technology division sale to a large mineral processing equipment
manufacturer in China. Training and support will continue over a five year period in return for revenue based licensing fees.
Further, LaserBond has signed an agreement with a third party to support the identification and qualification process for further
Technology sales.
LaserBond’s aim is to provide continued revenue from the Technology division in the form of the continuing licensing fees and
new Technology sales.
Research & Development
This division reports an EBITDA loss of <$367,533> after discounting $298,000 other income for R&D related government grants.
Net costs against R&D increased by over 500% due to the necessary continued research into new products and / or applications
crucial for LaserBond’s continuing growth.
Outlook
The company plans to exploit many opportunities to continue the growth it has achieved. Whilst growth through all divisions is
expected to be achieved, the areas of largest opportunities lie in the Products and Technology Divisions.
For the Services Division, LaserBond has noted a general growth within the industries it serves, particularly in the resources and
mineral processing sectors. The sales and marketing resources of this Division are focused on exploiting this pick up as well as
developing other customers in these and other industries where the benefits of our services are yet to be fully realised. In
FY2018, the Services Division is expected to achieve similar growth to FY2017.
For the Products Division, LaserBond has two areas of focus that are expected to provide the largest areas of revenue growth
over the coming years:
a) The interest from global original equipment manufacturers (OEMs) provided significant export revenue growth since
March 2016. The performance of LaserBond’s applications and products have been proven with these OEM’s
recognising opportunities to work with LaserBond in developing new products which will form continuing revenue
growth from our Products Division.
b) The Cooperative Research Centres Project (CRC-P) is led by LaserBond in conjunction with its partners (University of
South Australia and Boart Longyear ASX:BLY). It is a three year collaboration associated with the material science and
use of LaserBond technologies to improve a spectrum of wear points associated with drilling for mining. An extensive
site proving program is required by our partners and is undertaken for each product development. As expected, our
products are performing exceedingly well under these extensive proving tests. Further, LaserBond is continuing to
develop these products, further improving wear life performance, reducing environmental impacts such as corrosion
and removing operational handling
is allowing LaserBond to generate better products for
commercialisation at the later stages of the CRC-P.
issues. This
The first Technology Division sale was achieved and completed late in FY2017. This sale will now deliver license revenue in
return for ongoing technical support from LaserBond over an agreed term of 5 years, growing as LaserBond assists the customer
to develop its applications and customer base. The Technology Division is leveraging this first sale and model to obtain
growth. LaserBond has appointed an international consultant to aid in the identification, qualification and sale of Technology
licensing packages and is actively pursuing several other opportunities which, if successful, will deliver excellent growth for the
company.
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):
Director:
Wayne Hooper
Gregory Hooper
Allan Morton
Philip Suriano
Position Held
Executive Director
Executive Director
Non-Executive Chairman
Non-Executive Director
______________Ceased to Hold Office
In Office Since
21 April 1994
30 September 1992
18 March 2014
6 May 2008
Matthew Twist
Company Secretary
30 March 2009
LaserBond Ltd 2017 Annual Report | Page 15
15
2017 Annual Report2017 Annual Report
DIRECTORS’ REPORT
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 technical and management experience within the surface engineering, general
engineering and manufacturing industries. His engineering experience includes design, maintenance and project management.
He started his career within the electricity generation industry, followed by 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, 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, sales, and 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. Currently, Gregory’s main focus within the group is the general management of the SA facility, and the
management of the research and development department.
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 13 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 certificated member
of the Governance Institute of Australia.
Remuneration Report
The directors present the LaserBond Limited 2017 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
(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 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.
DIRECTORS’ 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 2017 two
non-executive directors received non-cash (equity based) payments based on their full tenure for FY2016.
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)
2017
$
13,751,417
1,112,892
12.50
0.4
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
(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 2016 and 30 June 2017
Salaries and fees
Superannuation
Share based
payments
Long Service
Leave
Wayne Hooper1
Gregory Hooper1
Allan Morton2
Philip Suriano2
Matthew Twist
Totals
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
305,671
310,623
302,927
320,337
30,000
30,000
25,000
25,000
143,098
135,037
806,696
820,997
39,651
29,042
28,840
30,444
-
-
-
-
13,462
12,667
81,953
72,153
-
-
-
-
20,250
19,500
20,250
19,500
1,000
1,000
41,500
40,000
3,868
4,731
-
-
-
-
-
-
-
-
3,868
4,731
1 Wayne and Gregory Hooper’s remuneration is inclusive of their spouse’s remuneration for any period they were actively employed by the company.
Note 16 a) on Page 40 reports all remuneration through payroll for all relatives of executive directors, including spouses.
2 Allan Morton and Philip Suriano’s remuneration includes only fees related to their non-executive director remuneration. Any additional consulting
fees related to support of executive functions in reported within Note 16 b) on Pages 40 to 41.
16
LaserBond Ltd 2017 Annual Report | Page 16
LaserBond Ltd 2017 Annual Report | Page 17
2017 Annual Report
DIRECTORS’ 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 2017 two
non-executive directors received non-cash (equity based) payments based on their full tenure for FY2016.
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)
2017
$
13,751,417
1,112,892
12.50
0.4
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
(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 2016 and 30 June 2017
Salaries and fees
Superannuation
Share based
payments
Long Service
Leave
Wayne Hooper1
Gregory Hooper1
Allan Morton2
Philip Suriano2
Matthew Twist
Totals
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
305,671
310,623
302,927
320,337
30,000
30,000
25,000
25,000
143,098
135,037
806,696
820,997
39,651
29,042
28,840
30,444
-
-
-
-
13,462
12,667
81,953
72,153
-
-
-
-
20,250
19,500
20,250
19,500
1,000
1,000
41,500
40,000
-
-
3,868
4,731
-
-
-
-
-
-
3,868
4,731
1 Wayne and Gregory Hooper’s remuneration is inclusive of their spouse’s remuneration for any period they were actively employed by the company.
Note 16 a) on Page 40 reports all remuneration through payroll for all relatives of executive directors, including spouses.
2 Allan Morton and Philip Suriano’s remuneration includes only fees related to their non-executive director remuneration. Any additional consulting
fees related to support of executive functions in reported within Note 16 b) on Pages 40 to 41.
LaserBond Ltd 2017 Annual Report | Page 17
17
2017 Annual Report2017 Annual Report
DIRECTORS’ REPORT
(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.
If a non-executive director holds their Board position for the full twelve months of each reporting period they may be eligible
for non-cash benefits of a fixed quantity of LaserBond shares reviewed annually by the Board. The Board is offering Allan
Morton and Philip Suriano a non-cash (equity based) payment of 100,000 shares based on their full twelve months tenure
during FY2017. The issue is subject to shareholder approval with the price based on the closing share price on the day of
approval.
End of remuneration report.
Director’s Shareholdings
As at 30 June 2017, 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
9,067,779
1,132,427
5,412,926
3,778,625
1,454,964
439,296
During the financial year ended 30th June 2017, 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
11
11
11
11
11
9
11
10
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.
Corporate Governance
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.
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.
Matters Subsequent to the End of the Financial Year
The final dividend has been recommended and will be paid as detailed below.
18
LaserBond Ltd 2017 Annual Report | Page 18
DIRECTORS’ REPORT
Dividends
2016 final dividends of 0.2 cents per share and 2017 interim dividends of 0.2 cents per share were paid during the year. The
directors have recommended the payment of a final dividend for FY2017 of 0.3 cents per fully-paid ordinary share (FY2016: 0.2c),
fully franked based on tax paid at 30%. The dividend is expected to be paid on 13th October 2017.
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
respect of Auditors.
Non-Audit Fees paid to Auditor
Auditors’ Independence Declaration
21.
Insurance premiums of $18,280 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
During the financial year, there have been no fees paid to LNP Audit and Assurance for non-audit services.
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page
Signed in accordance with a resolution of the Board of Directors.
Director
Wayne Hooper
Director
Gregory Hooper
Dated this 30th day of August 2017
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 2017 Annual Report | Page 19
2017 Annual Report
DIRECTORS’ REPORT
Dividends
2016 final dividends of 0.2 cents per share and 2017 interim dividends of 0.2 cents per share were paid during the year. The
directors have recommended the payment of a final dividend for FY2017 of 0.3 cents per fully-paid ordinary share (FY2016: 0.2c),
fully franked based on tax paid at 30%. The dividend is expected to be paid on 13th October 2017.
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 $18,280 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
21.
Signed in accordance with a resolution of the Board of Directors.
Director
Wayne Hooper
Director
Gregory Hooper
Dated this 30th day of August 2017
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 2017 Annual Report | Page 19
19
2017 Annual Report2017 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 2017 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.
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 2017, I declare that, to the best of my
knowledge and belief, there have been:
1.
2.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
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
Director
Wayne Hooper
Director
Gregory Hooper
Dated this 30th day of August 2017
Tony Rose
Director
Sydney, 30th August 2017
20
LaserBond Ltd 2017 Annual Report | Page 20
Liability limited by a scheme approved under Professional Standards Legislation
2017 Annual ReportLiability limited by a scheme approved under Professional Standards LegislationAUDITOR’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 2017, I declare that, to thebest of my knowledge and belief, there have been: 1.no contraventions of the auditor independence requirements as set out in the CorporationsAct 2001 in relation to the audit; and2.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, 30th August 2017 ABN 65 155 188 837L14309 KentStSydney NSW2000T +61 2 9290 8515L24 570 Bourke Street Melbourne VIC 3000T +61 3 8658 5928www.lnpaudit.com ABN 65 155 188 837
Auditor’s Independence Declaration
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 2017, I declare that, to the best of my
knowledge and belief, there have been:
1.
2.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
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, 30th August 2017
Liability limited by a scheme approved under Professional Standards Legislation
21
2017 Annual Report2017 Annual ReportLiability limited by a scheme approved under Professional Standards LegislationAUDITOR’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 2017, I declare that, to thebest of my knowledge and belief, there have been: 1.no contraventions of the auditor independence requirements as set out in the CorporationsAct 2001 in relation to the audit; and2.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, 30th August 2017 ABN 65 155 188 837L14309 KentStSydney NSW2000T +61 2 9290 8515L24 570 Bourke Street Melbourne VIC 3000T +61 3 8658 5928www.lnpaudit.com Independent Audit Report
22
2017 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 Liability limited by a scheme approved under Professional Standards LegislationINDEPENDENT AUDIT REPORT TO THE MEMBERS OF LASERBOND LIMITED Opinion We have audited the financial report of Laserbond Limited, including its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of profit & loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the Directors’ Declaration of the Company. In our opinion: the accompanying financial report of Laserbond Limited is in accordance with the Corporations Act 2001, including: a)Giving a true and fair view of the Group’s consolidated financial position as at 30 June2017 and of its consolidated financial performance for the year ended on that date; andb)Complying with Australian Accounting Standards and the Corporations Regulations 2001.Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia; and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including ABN 65 155 188 837L14 309 Kent St Sydney NSW 2000T +61 2 9290 8515L24 570 Bourke Street Melbourne VIC 3000T +61 3 8658 5928www.lnpaudit.com 23
2017 Annual Report2017 Annual Reportthe procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. Key Audit Matter How our audit addressed the matter Recoverability of debtors from major customers Refer Note 7 Trade and other receivable and Note 26 Economic dependency 53% of the trade receivables of the Group are balances from two major customers. The assessment of the recoverability from these major customers involves significant judgment in respect of assumptions such as current work, future sales and demands, and the recoverability of certain legacy contract receivables. Our procedures included, among others: •Evaluating customers payment facilities inplace;•Evaluating the financial position of thecustomers; and•Evaluating management assessment onimpairment provisions.Impairment Assessment of Inventory Refer Note 8 – inventory The Group holds significant inventories. The impairment assessment of inventory is by its nature judgemental and based on many assumptions, influenced by expected future market demand, raw materials expected to be required, and other uncertain matters. Our procedures included, among others: •Evaluating management’s strategy and planfor developing, producing and realisinginventory•Assessing the adequacy of the Group’simpairment policy•Assessing the inventory and evaluating therecoverable value of these products.Other information The Directors are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2017, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based upon the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Directors’ Responsibilities 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 internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. 2017 Financial Report
24
2017 Annual ReportIn preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Consolidated Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: •Identify and assess the risks of material misstatement of the financial report, whether dueto fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.•Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity’s internal control.•Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Directors.•Conclude on the appropriateness of the Directors’ use of the going concern basis ofaccounting in the preparation of the financial report. We also conclude, based on the auditevidence obtained, whether a material uncertainty exists related to events and conditionsthat may cast significant doubt on the entity’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in theauditor’s report to the disclosures in the financial report about the material uncertainty or,if such disclosures are inadequate, to modify the opinion on the financial report. However,future events or conditions may cause an entity to cease to continue as a going concern.•Evaluate the overall presentation, structure and content of the financial report, includingthe disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.•Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the financialreport. We are responsible for the direction, supervision and performance of the Groupaudit. We remain solely responsible for our audit opinion. 25
2017 Annual Report2017 Annual Report•We communicate with the Directors regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficienciesin internal control that we identify during our audit.•We are also required to provide the Directors with a statement that we have compliedwith relevant ethical requirements regarding independence, and to communicate withthem all relationships and other matters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.•From the matters communicated to the Directors, we determine those matters that wereof most significance in the audit of the financial report of the current year and aretherefore the key audit matters. We describe these matters in our auditor’s report unlesslaw or regulation precludes public disclosure about the matter or when, in extremely rarecircumstances, we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 16 to 18 of the Directors' Report for the year ended 30 June 2017. In our opinion, the Remuneration Report of Laserbond Limited for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 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. The engagement partner on the audit resulting in this independent auditor’s report is Anthony Rose. LNP Audit and Assurance Anthony Rose Director Sydney, 30th August 2017 Consolidated Statement of Profit and Loss and Other Comprehensive Income
for the Year Ended 30th June 2017
2017
2016
Revenue from continuing operations
Cost of Sales
Gross Profit from continuing
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
Profit / (loss) before income tax
expense from continuing operations
Income tax (expense) / benefit
Other comprehensive income
Total comprehensive income attributable to
members of LaserBond Limited
Note
3
4
5
$
13,751,417
(6,565,425)
7,185,992
292,251
(216,969)
(867,406)
(1,836,564)
(693,987)
(1,493,428)
(129,537)
(42,913)
(77,804)
(447,849)
(161,069)
1,510,717
(397,825)
-
1,112,892
$
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
-
78,745
Earnings per share for profit attributable to members:
Basic and diluted earnings per share
(cents)
6
1.221
0.090
This Consolidated Statement of Profit and Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
26
LaserBond Ltd 2017 Annual Report | Page 26
2017 Annual Report
Consolidated Statement of Profit and Loss and Other Comprehensive Income
for the Year Ended 30th June 2017
Consolidated Statement of Financial Position
As at 30th June 2017
2017
2016
Revenue from continuing operations
Cost of Sales
operations
Gross Profit from continuing
Other Income
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Expenses
Administration Expenses
Repairs & Maintenance
Operating Lease Expenses
Borrowing Costs
Research & Development
Other Expenses
Profit / (loss) before income tax
expense from continuing operations
Income tax (expense) / benefit
Other comprehensive income
Total comprehensive income attributable to
members of LaserBond Limited
Note
3
4
5
$
13,751,417
(6,565,425)
7,185,992
292,251
(216,969)
(867,406)
(1,836,564)
(693,987)
(1,493,428)
(129,537)
(42,913)
(77,804)
(447,849)
(161,069)
1,510,717
(397,825)
-
1,112,892
$
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
-
78,745
Earnings per share for profit attributable to members:
Basic and diluted earnings per share
(cents)
6
1.221
0.090
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
Interest bearing liabilities
Current Tax 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
2017
$
2,011,636
4,054,013
1,785,317
-
7,850,966
2,537,510
233,137
5,988
2,776,635
10,627,601
1,445,396
630,591
363,173
105,051
2,544,211
991,394
46,779
1,038,173
3,582,384
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
2,525,579
7,045,217
6,091,078
13
6,186,816
858,401
7,045,217
5,985,756
105,322
6,091,078
This Consolidated Statement of Profit and Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
This Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
LaserBond Ltd 2017 Annual Report | Page 26
LaserBond Ltd 2017 Annual Report | Page 27
27
2017 Annual Report2017 Annual Report
Consolidated Statement of Cash Flows
for the Year Ended 30th June 2017
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income taxes paid
Net cash inflow / (outflow) from
operating activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Payments for plant and equipment
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
INCREASE / (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash and cash equivalents at beginning of
period
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
Note
19
2017
2016
$
$
15,414,775
(13,165,820)
(77,804)
7,308
(203,108)
1,975,351
(102,250)
11,846
(37,580)
(127,984)
(8,750)
(396,841)
(198,181)
(603,772)
1,243,595
768,041
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
2,011,636
768,041
This Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
28
LaserBond Ltd 2017 Annual Report | Page 28
2017 Annual Report
Consolidated Statement of Cash Flows
for the Year Ended 30th June 2017
Consolidated Statement of Changes in Equity
for the Year Ended 30th June 2017
Issued
capital
$
Retained
earnings
$
Total equity
$
Opening Balance at 1st July 2015
5,868,200
379,620
6,247,820
Profit 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
Profit for the Period
Issue of Share Capital
Dividends Paid during period
-
201,060
-
1,112,892
-
(359,813)
1,112,892
201,060
(359,813)
Closing Balance at 30th June 2017
6,186,816
858,401
7,045,217
This Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
2017
2016
Note
$
$
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income taxes paid
Net cash inflow / (outflow) from
operating activities
19
CASH FLOWS FROM INVESTING
ACTIVITIES
Payments for plant and equipment
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
INCREASE / (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash and cash equivalents at beginning of
period
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
15,414,775
(13,165,820)
(77,804)
7,308
(203,108)
1,975,351
(102,250)
11,846
(37,580)
(127,984)
(8,750)
(396,841)
(198,181)
(603,772)
1,243,595
768,041
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
2,011,636
768,041
This Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
LaserBond Ltd 2017 Annual Report | Page 28
29
LaserBond Ltd 2017 Annual Report | Page 29
2017 Annual Report2017 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
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 29th August 2017. 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 o r 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
2017 Annual Report 2017 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.
LaserBond Ltd 2017 Annual Report | Page 31
31
2017 Annual Report2017 Annual Report
2017 FINANCIAL REPORT
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
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.
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.
32
LaserBond Ltd 2017 Annual Report | Page 32
2017 Annual Report
2017 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
(iii) 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.
LaserBond Ltd 2017 Annual Report | Page 33
33
2017 Annual Report2017 Annual Report
2017 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
34
LaserBond Ltd 2017 Annual Report | Page 34
2017 Annual Report
2017 FINANCIAL REPORT
2017 FINANCIAL REPORT
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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
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.
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.
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.
t) Government Grants
(iii) AASB 117 Leases (Effective Date: 1 January 2019)
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.
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.
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.
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.
to equity.
r) Dividends
s) Earnings per share
(i) Basic Earnings per share
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.
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.
u) Parent entity financial information
v)
Investments in controlled entities
w) Tax consolidation legislation
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.
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.
consolidated group.
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
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.
LaserBond Ltd 2017 Annual Report | Page 34
35
LaserBond Ltd 2017 Annual Report | Page 35
2017 Annual Report2017 Annual Report
NOTE 3: OTHER INCOME
Interest Revenue
Grant Income
Other
NOTE 4: EXPENSES
Profit before Income Tax from continuing operations includes the
following specific expenses
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
Profit / (Loss) before Income Tax expense
Prima Facie Tax at the Australian tax rate of 30% (2016: 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 Expenses / (Benefit)
NOTE 6: EARNINGS PER SHARE
Basic and diluted earnings per share (cents)
There are no current options to affect diluted earnings per share.
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2016
Shares issued as at 7th October 2016
Shares issued as at 26th October 2016
Shares issued as at 24th November 2016
Shares issued as at 7th April 2016
2017 FINANCIAL REPORT
2017
2016
$
7,308
246,382
38,561
292,251
$
21,260
23,175
64,311
108,746
58,596
57,984
1,510,717
453,215
8,574
(28,631)
(86,084)
50,751
397,825
(36,840)
(11,052)
(11,313)
(12,249)
(46,143)
(34,828)
(115,585)
1.22
0.09
No. of Shares
Weighted No.
89,410,345
721,972
300,000
63,700
636,448
89,410,345
526,149
203,014
38,045
782,918
Closing Balance as at 30th June 2017
91,132,465
90,960,471
NOTE 7: TRADE AND OTHER RECEIVABLES
Trade Receivables
Provision – Impairment of Receivables
Loans – Key Management Personnel
Loans – Employees
Prepayments
$
3,078,550
(12,800)
28,174
2,400
957,689
4,054,013
$
2,823,274
(2,865)
40,174
5,679
109,846
2,976,108
Prepayments includes $608,255 related to two government grants (Next Generation Manufacturing Improvement Program
(NGMIP) and Cooperative Research Collaboration Project (CRC-P)). This figure relates to deposits on equipment for the
commissioning of the automated laser cladding facility for the NGMIP ($241,005) and provisions for funding claims against the
CRC-P quarter ending June 2017 ($367,250).
36
LaserBond Ltd 2017 Annual Report | Page 36
2017 Annual Report
NOTE 3: OTHER INCOME
Interest Revenue
Grant Income
Other
NOTE 4: EXPENSES
Auditors Remuneration
a) Lachlan Nielson Partners Pty Ltd
NOTE 5: INCOME TAX
Profit before Income Tax from continuing operations includes the
following specific expenses
Reconciliation of Income Tax Expense from continuing operations
Profit / (Loss) before Income Tax expense
Prima Facie Tax at the Australian tax rate of 30% (2016: 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 Expenses / (Benefit)
NOTE 6: EARNINGS PER SHARE
Basic and diluted earnings per share (cents)
There are no current options to affect diluted earnings per share.
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2016
Shares issued as at 7th October 2016
Shares issued as at 26th October 2016
Shares issued as at 24th November 2016
Shares issued as at 7th April 2016
Closing Balance as at 30th June 2017
NOTE 7: TRADE AND OTHER RECEIVABLES
Trade Receivables
Provision – Impairment of Receivables
Loans – Key Management Personnel
Loans – Employees
Prepayments
1.22
0.09
No. of Shares
89,410,345
Weighted No.
89,410,345
1,510,717
453,215
8,574
(28,631)
(86,084)
50,751
397,825
721,972
300,000
63,700
636,448
$
3,078,550
(12,800)
28,174
2,400
957,689
4,054,013
(36,840)
(11,052)
(11,313)
(12,249)
(46,143)
(34,828)
(115,585)
526,149
203,014
38,045
782,918
$
2,823,274
(2,865)
40,174
5,679
109,846
2,976,108
2017 FINANCIAL REPORT
2017
2016
$
7,308
246,382
38,561
292,251
$
21,260
23,175
64,311
108,746
2017 FINANCIAL REPORT
Gross
Amount
$000
Past due
and
impaired
$000
3,079
988
4,067
2,823
156
2,979
13
-
13
3
-
3
Past due but not impaired
(days overdue)
<30
$000
1,177
988
2,165
1,450
156
1,606
31-60
$000
1,297
-
1,297
913
-
913
61-90
$000
428
-
428
427
-
427
>90
$000
Within trade
terms
$000
164
-
164
30
-
30
2,815
988
3,803
2,661
156
2,817
2017
Trade receivables
Other receivables
2016
Trade receivables
Other receivables
- Audit Services – audit and review of Financial Reports
58,596
57,984
NOTE 8: INVENTORY
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
2017
2016
$
$
1,051,717
412,720
320,880
1,785,317
4,903,165
(2,629,214)
2,273,951
184,473
(151,975)
32,498
465,234
(234,173)
231,061
1,246,510
473,993
137,450
1,857,953
4,258,256
(2,094,427)
2,163,829
184,265
(144,723)
39,542
396,167
(222,811)
173,356
91,132,465
90,960,471
TOTAL PROPERTY, PLANT & EQUIPMENT
2,537,510
2,376,727
(a) Movements in Carrying Amounts
Plant &
Equipment
Office
Equipment
Motor Vehicles
Total
2017 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
$
2,163,829
663,881
(41,727)
(512,032)
2,273,951
39,542
12,088
-
(19,132)
32,498
$
173,356
169,364
(9,576)
(102,083)
231,061
$
2,376,727
845,333
(51,303)
(633,247)
2,537,510
LaserBond Ltd 2017 Annual Report | Page 36
LaserBond Ltd 2017 Annual Report | Page 37
37
Prepayments includes $608,255 related to two government grants (Next Generation Manufacturing Improvement Program
(NGMIP) and Cooperative Research Collaboration Project (CRC-P)). This figure relates to deposits on equipment for the
commissioning of the automated laser cladding facility for the NGMIP ($241,005) and provisions for funding claims against the
CRC-P quarter ending June 2017 ($367,250).
2017 Annual Report2017 Annual Report
2017 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
(b) Asset Additions financed
$
1,735,847
960,014
(5,400)
(526,632)
2,163,829
38,838
18,065
-
(17,361)
39,542
$
112,010
129,950
(35,849)
(32,755)
173,356
The values for asset additions purchased utilising finance leases or hire
purchase agreements are:
2017
693,849
NOTE 10: INTANGIBLES
Patents and
Trademarks
Development
Asset
Other
Intangibles
2017 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Carrying Amount at the end of the year
2016 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Amortisation Expense
Carrying Amount at the end of the year
$
6,438
-
-
-
(483)
5,955
6,960
-
-
-
(522)
6,438
$
235,994
-
-
-
(235,994)
-
377,564
-
-
-
(141,570)
235,994
$
71
-
-
-
(38)
33
162
-
-
-
(91)
71
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
2017
$
203,211
29,926
233,137
121,927
111,210
233,137
$
1,886,695
1,108,029
(41,249)
(576,748)
2,376,727
2016
413,596
Total
$
242,503
(236,515)
5,988
384,686
-
-
-
(142,183)
242,503
2016
$
180,702
43,860
224,562
108,985
115,577
224,562
At June 2015
(Charged) / credited
- to profit or loss
- directly to equity
At June 2016
(Charged) / credited
- to profit or loss
- directly to equity
At June 2017
38
Employee
Benefits
Expense
Accruals
184,929
-
(4,227)
180,702
-
22,509
203,211
50,947
-
(7,087)
43,860
-
(13,934)
29,926
Total
235,876
-
(11,314)
224,562
-
8,575
233,137
LaserBond Ltd 2017 Annual Report | Page 38
2017 Annual Report
2017 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
(b) Asset Additions financed
$
1,735,847
960,014
(5,400)
(526,632)
2,163,829
38,838
18,065
-
(17,361)
39,542
$
112,010
129,950
(35,849)
(32,755)
173,356
The values for asset additions purchased utilising finance leases or hire
purchase agreements are:
2017
693,849
NOTE 10: INTANGIBLES
Patents and
Trademarks
Development
Other
Total
Asset
Intangibles
NOTE 12: TRADE AND OTHER PAYABLES
Trade Payables
Taxes
Superannuation
Dividends
Accrued Expenses
2017 FINANCIAL REPORT
2017
$
1,021,802
73,449
32,996
26,508
290,641
1,445,396
2016
$
566,923
144,901
61,218
23,672
85,038
881,752
Trade and other payables include $597,571 related to the two government grants (Next Generation Manufacturing
Improvement Program (NGMIP) and Cooperative Research Collaboration Project (CRC-P)). This figure relates to unrecognised
revenue for funding received up to 30 June 17 for the NGMIP ($236,358) and tax invoices received from partners to the CRC-P
for the expense claims up to 30 June 17 ($361,213).
NOTE 13: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Existing Shares
Issued Shares
Provision Unissued (Entitled) Shares
6,960
377,564
162
384,686
(a) Ordinary Shares
6,186,816
2017
Shares
89,410,345
1,722,120
-
91,132,465
2017
$
5,985,756
201,060
-
6,186,816
2016
Shares
87,608,466
1,801,879
-
89,410,345
Issue Price
(Cents per
Share)
13.00
10.48
(13.00)
13.00
9.00
7.41
10.93
13.50
12.50
12.56
5,985,756
2016
$
5,868,200
117,556
-
5,985,756
$
(3,308)
54,138
(3,308)
3,308
10,587
56,139
117,556
75,415
39,250
8,705
77,690
201,060
Date
Details
1st July 2015
Opening Balance
25th August 2015
7th October 2015
29th October 2015
29th October 2015
24th December 2015
8th April 2016
Non-Exec. Director Remuneration
Dividend Reinvestment Plan
Cancel Non-Exec. Director
Remuneration
Re-issue Non-Exec. Director
Remuneration
Employee Share Plan
Dividend Reinvestment Plan
30th June 2016
Closing Balance
7th October 2016
26th October 2016
24th November 2016
7th April 2017
Dividend Reinvestment Plan
Non.Exec. Director Remuneration
Employee Share Plan
Dividend Reinvestment Plan
30th June 2017
Closing Balance
(b) Capital Risk Management
No. Shares
87,608,466
300,000
532,344
(300,000)
300,000
172,703
796,832
89,410,345
721,972
300,000
63,700
636,448
91,132,465
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 2017 Annual Report | Page 39
39
$
1,886,695
1,108,029
(41,249)
(576,748)
2,376,727
2016
413,596
$
242,503
(236,515)
5,988
-
-
-
(142,183)
242,503
2016
$
180,702
43,860
224,562
108,985
115,577
224,562
2017 Financial Year
Balance at the beginning of the year
Amortisation Expense
Carrying Amount at the end of the year
2016 Financial Year
Balance at the beginning of the year
Additions
Disposals
Impairment
Additions
Disposals
Impairment
6,438
235,994
(483)
5,955
(235,994)
$
-
-
-
-
-
-
-
$
-
-
-
-
-
-
$
71
-
-
-
(38)
33
-
-
-
(91)
71
Amortisation Expense
Carrying Amount at the end of the year
(522)
6,438
(141,570)
235,994
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
2017
$
203,211
29,926
233,137
121,927
111,210
233,137
At June 2015
(Charged) / credited
- to profit or loss
- directly to equity
At June 2016
(Charged) / credited
- to profit or loss
- directly to equity
At June 2017
Employee
Benefits
Expense
Accruals
184,929
50,947
-
-
(4,227)
180,702
22,509
203,211
(7,087)
43,860
-
-
(13,934)
29,926
Total
235,876
-
-
(11,314)
224,562
8,575
233,137
LaserBond Ltd 2017 Annual Report | Page 38
2017 Annual Report2017 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
2017 FINANCIAL REPORT
2017
$
363,173
991,394
1,354,567
(123,594)
1,230,973
2016
$
578,284
392,406
970,690
(31,597)
939,093
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
Later than five (5) years)
820,119
2,634,832
116,168
3,571,119
762,219
2,771,579
809,248
4,343,046
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. (2016: 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)
Note: this is exclusive of executive director remuneration which is
included within the remuneration report on pages 16 to 18
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
238,098
313,113
367,209
400
2,000
2,400
4,375
234,575
-
238,950
353,929
2,570
311
2,881
-
162,075
10,000
172,075
LaserBond Ltd 2017 Annual Report | Page 40
2017 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
(b) Operating Lease Commitments
Payable:
Within one (1) year
Later than one (1) year but not later than five (5) years
Later than five (5) years)
2017 FINANCIAL REPORT
2017
$
363,173
991,394
1,354,567
(123,594)
1,230,973
2016
$
578,284
392,406
970,690
(31,597)
939,093
820,119
2,634,832
116,168
3,571,119
762,219
2,771,579
809,248
4,343,046
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.
Operating lease commitments are in relation to Property Leases and Plant & Equipment.
The directors are not aware of any contingent assets or contingent liabilities that would have an effect on these financial
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to
NOTE 15: CONTINGENT ASSETS & LIABILITIES
statements. (2016: Nil)
NOTE 16: RELATED PARTY TRANSACTIONS
other parties unless otherwise stated.
(a) Other Related Parties
Labour Costs
Labour – Payroll Staff (persons related to executive directors)
Note: this is exclusive of executive director remuneration which is
included within the remuneration report on pages 16 to 18
Superannuation
Contribution to superannuation funds on behalf of employees
367,209
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
238,098
313,113
400
2,000
2,400
4,375
234,575
-
238,950
353,929
2,570
311
2,881
-
162,075
10,000
172,075
LaserBond Ltd 2017 Annual Report | Page 40
2017 FINANCIAL REPORT
These consultant fees are all paid to non-executive director related entities and relate to services to support executive functions.
Fees relative to a non-executive directors board fees are included within the remuneration report on pages 16 to 18.
Hawkesdale Group provided consultancy services related to sales support and strategy development.
Sam Holdings provided consultancy services related to Sales and Marketing support, Government grant support and strategy
development.
Deveth Drilling provided consultancy services related to Product Commercialisation and continuing development support.
Loans
Director Loan
2017
$
28,174
2016
$
40,174
All Loans are classified current, unsecured and interest free. The Director Loan is receivable from Mr Greg Hooper, a director of the
group.
Superannuation
Contribution to superannuation funds on behalf of key management
personnel
NOTE 17: KEY MANAGEMENT PERSONNEL
62,041
55,384
The key management personnel of the group for management of its affairs are all Executive Directors and the company
secretary.
(a) 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 16 to 18.
(b) Options Held
There were no options held at 30 June 2017 or 30 June 2016. There were no options issued during the financial year.
(c) Shares Held
Interest
Wayne Hooper Direct
Wayne Hooper Indirect
Greg Hooper Direct
Greg Hooper Indirect
Philip Suriano Indirect
Allan Morton Indirect
Matthew Twist Direct
Shares Held as at
30th June 2016
Issued Purchased / (Sold)
Shares Held as at
30th June 2017
8,839,454
1,094,648
5,232,343
3,652,564
184,649
679,397
46,812
19,729,867
228,325
37,779
180,583
126,061
154,647
186,736
9,742
923,873
-
-
-
-
100,000
588,831
-
688,831
9,067,779
1,132,427
5,412,926
3,778,625
439,296
1,454,964
56,554
21,342,571
Interest
Shares Held as at
30th June 2015
Issued Purchased / (Sold)
Shares Held as at
30th June 2016
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
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
NOTE 18: DIVIDENDS
2017
2016
Declared 2017 fully franked interim ordinary dividend of 0.2 (2016: 0.2)
cents per share franked at the tax rate of 30% (2016: 30%)
Declared 2016 fully franked final ordinary dividend of 0.2 (2015: 0.2)
cents per share franked at the tax rate of 30% (2015: 30%)
Total dividends per share for the period
$
178,821
180,992
0.4 cents
$
177,227
175,817
0.4 cents
LaserBond Ltd 2017 Annual Report | Page 41
41
2017 Annual Report2017 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
2017 FINANCIAL REPORT
2017
$
200,957
158,856
359,813
2016
$
238,209
114,835
353,044
Dividends not recognised during the reporting period
Since year end the directors have recommended the payment of a final dividend of 0.3 cents per fully-paid ordinary share (2016:
0.2) fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 13th
October 2017 out of retained earnings at 30 June 2017, but not recognised as a liability at year end is $273,397. The debit
expected to franking account arising from this dividend is $82,019.
Franking credits
Franking credits available for subsequent periods based on a tax rate
of 30% (2016: 30%)
2017
$
2016
$
1,495,948
1,420,073
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 trade and other payables
Increase / (Decrease) in current provisions
Increase / (Decrease) in current tax liabilities
Increase / (Decrease) in non-current provisions
Net cash provided by operating activities
NOTE 20: FINANCIAL INSTRUMENTS
1,112,892
78,745
920,172
(1,186)
(1,077,905)
72,636
-
668,695
97,500
275,814
(93,267)
1,975,351
582,162
(23,612)
(576,428)
(525,452)
11,314
218,576
(17,848)
(58,614)
(38,716)
(349,873)
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 2017
Within 1 Year
1 to 5 Years
Total
Trade and other payables
Hire Purchase / Finance Lease
Total financial liabilities
$
1,445,396
363,173
1,808,569
$
-
991,394
991,394
$
1,445,396
1,354,567
2,799,963
42
LaserBond Ltd 2017 Annual Report | Page 42
2017 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
2017 FINANCIAL REPORT
2017
$
200,957
158,856
359,813
2016
$
238,209
114,835
353,044
Dividends not recognised during the reporting period
Since year end the directors have recommended the payment of a final dividend of 0.3 cents per fully-paid ordinary share (2016:
0.2) fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 13th
October 2017 out of retained earnings at 30 June 2017, but not recognised as a liability at year end is $273,397. The debit
expected to franking account arising from this dividend is $82,019.
Franking credits
of 30% (2016: 30%)
Franking credits available for subsequent periods based on a tax rate
2017
$
2016
$
1,495,948
1,420,073
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 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
1,112,892
78,745
920,172
(1,186)
(1,077,905)
72,636
-
668,695
97,500
275,814
(93,267)
1,975,351
582,162
(23,612)
(576,428)
(525,452)
11,314
218,576
(17,848)
(58,614)
(38,716)
(349,873)
NOTE 20: FINANCIAL INSTRUMENTS
Financial Risk Management Policies
results of the group.
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
2017 FINANCIAL REPORT
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
$
-
392,406
$
881,752
970,690
1,460,036
392,406
1,852,442
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 2017 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. 44% of those overseas customers
invoiced in foreign currency and 95% 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.
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.
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.
Maturity of financial liabilities at 30th June 2017
Within 1 Year
1 to 5 Years
Total
Trade and other payables
Hire Purchase / Finance Lease
Total financial liabilities
$
1,445,396
363,173
1,808,569
$
-
991,394
991,394
$
1,445,396
1,354,567
2,799,963
Number of shares issued under the plan to participating
employees: (refer to Note 13 a) for detail of date of issue and
issue price)
2017
$
63,700
2016
$
172,703
LaserBond Ltd 2017 Annual Report | Page 42
LaserBond Ltd 2017 Annual Report | Page 43
43
2017 Annual Report2017 Annual Report
2017 FINANCIAL REPORT
b) Non-Executive Director Remuneration (Non-Cash)
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 2016 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 2016. No approval has as yet been sought or
gained for the 2017 fiscal year.
c) Expense arising from share based payment transactions
Shares Issued under employee share plan
Shares Issued under Non-Executive Director Remuneration
10,454
40,500
50,954
12,241
-
12,241
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
7,850,966
10,627,601
2,544,211
3,582,384
6,186,816
858,401
7,045,217
1,510,717
(397,825)
1,112,892
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
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 (2016: $175,379)
for subsidiaries with a balance outstanding of nil (2016: nil)
The parent entity has given unsecured guarantees in respect of Rental Bonds:
for the parent entity with totaling of $181,885 (2016: $181,885)
(i)
for subsidiaries with a balance outstanding of nil. (2016: nil)
(ii)
44
LaserBond Ltd 2017 Annual Report | Page 44
2017 Annual Report
2017 FINANCIAL REPORT
b) Non-Executive Director Remuneration (Non-Cash)
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 parent entity has unsecured and unused finance facilities in place in respect of:
(i)
(ii)
Trade finance facility with unused limit of $1,810,492 (2016: $2,722,203).
Bank Guarantee Line unused with limit of $18,115 (2016: $18,115).
The trade finance facility is subject to annual review which last occurred February 2017.
The parent entity did not have any contingent liabilities as at 30 June 2017 or 30 June 2016.
The parent entity has current contractual commitments for the acquisition of property plant or equipment as at 30 June 2017,
but had none as at 30 June 2016.
NOTE 23: CONTROLLED ENTITIES
The group owns 100% of LaserBond (Qld) Pty Ltd, which is a non-trading entity incorporated in Australia.
The required approval, if any, will be determined by the Board prior to the next Annual (or Extraordinary) General meeting.
NOTE 24: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
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.
The directors have recommended the payment of a final dividend of 0.5 cents per fully-paid ordinary share (2016: 0.2), fully
franked based on tax paid at 30%. The aggregate amount of the proposed dividend is expected to be paid on 13th October 2017.
At the 2016 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 2016. No approval has as yet been sought or
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.
Services & Products Divisions
Jun 17
Jun 16
Services
Product
Services
Product
7,237,205
5,075,744
6,842,572
3,673,008
1,572,571
989,428
736,398
(7,661)
42,498
27,998
44,135
20,042
434,945
431,237
382,940
228,642
1,095,128
530,193
309,323
(256,345)
(288,386)
(139,619)
(15,143)
82,701
806,742
390,574
294,180
(173,644)
10,165,650
(3,253,526)
8,613,770
(2,525,579)
Revenue
EBITDA
Interest
Depreciation &
Amortisation
Profit Before
Income Tax
Income tax
expense
Profit after
Income Tax
Assets
Liabilities
LaserBond Ltd 2017 Annual Report | Page 44
45
gained for the 2017 fiscal year.
c) Expense arising from share based payment transactions
Shares Issued under employee share plan
Shares Issued under Non-Executive Director Remuneration
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
10,454
40,500
50,954
12,241
-
12,241
7,850,966
10,627,601
2,544,211
3,582,384
6,186,816
858,401
7,045,217
1,510,717
(397,825)
1,112,892
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
Profit / (loss) before income tax expense
Profit after tax from continuing operations
Total comprehensive income attributable to members
Finance Facilities of the Parent Entity
The parent entity has given secured guarantees in respect of operating lease agreements:
for the parent entity with a balance outstanding of $175,379 (2016: $175,379)
for subsidiaries with a balance outstanding of nil (2016: nil)
The parent entity has given unsecured guarantees in respect of Rental Bonds:
for the parent entity with totaling of $181,885 (2016: $181,885)
for subsidiaries with a balance outstanding of nil. (2016: nil)
(i)
(ii)
(i)
(ii)
2017 Annual Report2017 Annual Report
2017 FINANCIAL REPORT
Other Divisions
Total
Jun 17
Jun 16
R&D
Tech
R&D
Tech
Jun 17
Jun 16
-
1,438,468
-
-
13,751,417
10,515,581
(367,533)
254,777
(76,325)
(11,946)
2,449,243
640,466
-
1,848
-
-
-
1,548
-
-
70,496
868,030
64,177
613,130
(369,381)
254,777
(77,873)
(11,946)
1,510,717
(36,841)
97,272
(67,092)
36,748
11,279
(397,825)
115,585
(272,109)
187,685
(41,125)
(667)
1,112,892
78,744
319,537
(328,858)
142,414
-
2,887
-
-
-
10,627,601
8,616,657
(3,582,384)
(2,525,579)
Revenue
EBITDA
Interest
Depreciation &
Amortisation
Profit Before
Income Tax
Income tax
expense
Profit after
Income Tax
Assets
Liabilities
NOTE 26: ECONOMIC DEPENDENCY
Revenues of $5,801,663 (2016 - $4,623,389) are derived from two external customers. These revenues are attributed to the both
the Products and Services segments.
46
LaserBond Ltd 2017 Annual Report | Page 46
2017 Annual Report2017 Annual Report
Other Divisions
Total
-
-
Jun 17
Jun 16
R&D
Tech
R&D
Tech
Jun 17
Jun 16
1,438,468
13,751,417
10,515,581
(367,533)
254,777
(76,325)
(11,946)
2,449,243
640,466
1,848
1,548
-
-
70,496
868,030
64,177
613,130
(369,381)
254,777
(77,873)
(11,946)
1,510,717
(36,841)
97,272
(67,092)
36,748
11,279
(397,825)
115,585
-
-
(272,109)
187,685
(41,125)
(667)
1,112,892
78,744
319,537
(328,858)
142,414
-
2,887
-
10,627,601
8,616,657
(3,582,384)
(2,525,579)
-
-
-
-
-
Revenue
EBITDA
Interest
Depreciation &
Amortisation
Profit Before
Income Tax
Income tax
expense
Profit after
Income Tax
Assets
Liabilities
NOTE 26: ECONOMIC DEPENDENCY
the Products and Services segments.
2017 FINANCIAL REPORT
Shareholder Information
SHAREHOLDER INFORMATION
1. Substantial Shareholders at 7th August 2017
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)
Lornat Pty Ltd
2. Distribution of Shareholders as at 7th August 2017
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
28
50
65
234
90
467
Total Units
4,206
180,980
543,944
8,855,253
81,548,082
91,132,465
%
9.950
9.950
1.243
7.993
7.832
5.940
4.146
5.424
Number of
Ordinary
Fully Paid
Shares Held
9,067,779
9,067,779
1,132,427
7,283,916
7,137,590
5,412,926
3,778,625
4,943,344
%
0.005
0.198
0.597
9.717
89.483
100.000
Holdings less than a marketable parcel 58
89,222
0.0979
Revenues of $5,801,663 (2016 - $4,623,389) are derived from two external customers. These revenues are attributed to the both
3. Twenty Largest Shareholders as at 7th August 2017
Holder LaserBond Limited
Ms Diane Constance Hooper
Mr Wayne Edward Hooper
Ms Rex John Hooper
Mr Lillian Hooper
Mr Gregory John Hooper
Lornat Pty Ltd (WK & LM Peachey S/Fund A/C)
Mr Ian Davies
Mr Gregory John Hooper (Grendy Super Fund A/C)
Parks Australia Pty Ltd
Mr Keith Knowles
Myall Resources Pty Ltd
Fortitude Enterprises Pty Ltd
Mr Makram Hanna & Mrs Rita Hanna (Hanna & Co P/L Super A/C)
Mr Brendan Thomas Birthistle
Sam Nominees (Aust) Pty Ltd (Sam Super Fund A/C)
W&D Hooper Investments Pty Ltd
Mr William Ross Fenner
Dixson Trust Pty Limited
Fortitude Enterprises Pty Ltd
Wantune Pty Ltd
Number of
Ordinary Fully
Paid Shares Held
9,067,779
9,067,779
7,283,916
7,137,590
5,141,580
4,943,344
3,983,374
3,778,625
2,252,772
2,217,232
2,184,236
1,300,000
1,217,045
1,189,690
1,154,964
1,132,427
913,807
869,560
782,567
700,000
%
9.950
9.950
7.993
7.832
5.642
5.424
4.371
4.146
2.472
2.433
2.397
1.426
1.335
1.305
1.268
1.243
1.003
0.954
0.859
0.768
Totals for Top 20
66,318,187
72.771
Security Totals
91,132,465
47
LaserBond Ltd 2017 Annual Report | Page 47
LaserBond Ltd 2017 Annual Report | Page 46
2017 Annual Report2017 Annual ReportTitle2017 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
49,309
111,102
144,000
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
15 Dec 2017 – 49,309 shares
21 Dec 2017 – 55,560 shares
21 Nov 2017 – 48,006 shares
21 Dec 2018 – 55,542 shares
21 Nov 2018 – 48,006 shares
21 Nov 2018 – 47,988
48
LaserBond Ltd 2017 Annual Report | Page 48
2017 Annual Report
SHAREHOLDER INFORMATION
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one vote and
4. Voting Rights
The voting rights attached to each class of equity securities are:
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
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
in escrow
49,309
111,102
144,000
15 Dec 2017 – 49,309 shares
21 Dec 2017 – 55,560 shares
21 Dec 2018 – 55,542 shares
21 Nov 2017 – 48,006 shares
21 Nov 2018 – 48,006 shares
21 Nov 2018 – 47,988
LaserBond Ltd 2017 Annual Report | Page 48
49
2017 Annual Report2017 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 4555
International +61 2 4631 4555
Email info@laserbond.com.au
LaserBond (SA)
112 Levels Road
Cavan SA 5094
Telephone 08 8262 2289
International +61 8 8262 2289
Fax 08 8260 2238
International +61 8 8260 2238
Email info@laserbond.com.au
www.laserbond.com.au
Quality
Environment
Health & Safety
ASX:LBL
50
LaserBond’s industry collaboration projects in laser surface engineering;
(front) The Wearlife Performance - CRCp is a research program which seeks to extend wear life in
drilling for mining. (above) Our heavy-duty high-power laser cell opens international opportunities.
14695 08/2017
2017 Annual Report