2018
A N N U A L R E P O R T
Shareholder’s Annual Report
Laserbond Limited ABN 24 057 636 692
Laserbond Limited
N.S.W. Division:
2 / 57 Anderson Road
SMEATON GRANGE
NSW 2567
Ph: +61 2 4631 4500
Fax: +61 2 4631 4555
S.A. Division:
112 Levels Road
CAVAN SA 5094
Phone: +61 8 8262 2289
www.laserbond.com.au
Contents
Corporate Directory
About Us
Chairman’s Letter
Directors’ Report
Directors’ Declaration
Auditor’s Independence Declaration
Independence Auditor’s Report
Statement of Profit or Loss & Other Comprehensive Income
Statement of Financial Position
Statement of Cash Flow
Statement of Change in Equity
Notes to the Financial Statements
Shareholder Information
Page
3
4
6
8
19
20
21
25
26
27
28
29
44
Corporate Directory
Directors:
Mr. Philip Suriano
Chairman / Non-Executive Director
Mr. Wayne Hooper
Executive Director
Mr. Gregory Hooper
Executive Director
Company Secretary:
Mr. Matthew Twist
Registered Office,
Principal place of business:
2 / 57 Anderson Road
SMEATON GRANGE
NSW 2567
Phone: +61 2 4631 4500
+61 2 4631 4555
Fax:
South Australia Division
112 Levels Road
CAVAN SA 5094
Phone: +61 8 8262 2289
Website:
www.laserbond.com.au
Share Registry:
Auditor:
Solicitor:
Bankers:
Boardroom Pty Ltd
Grosvenor Place
Level 12, 225 George Street
SYDNEY NSW 2000
Phone: 1300 737 760
LNP Audit and Assurance
Level 14, 309 Kent Street
SYDNEY NSW 2000
Legal Vision
67 Fitzroy Street
SURRY HILLS NSW 2010
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.
4
About Us
LaserBond is a specialist surface engineering company founded in
1992 that focuses on the development and application of materials,
technologies and 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 their capital
equipment. As almost all components fail at the surface, due to material
removal through abrasion, erosion, corrosion, cavitation, heat and impact,
and any combinations of these wear mechanisms, a tailored surface
metallurgy will extend its life and enhance its performance.
LaserBond recognises that its technology has applications 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 high performance materials.
›› Optimising a wide range of materials and 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 customers are typically internationally recognised Original
Equipment Manufacturers (OEMs) and 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, and the environment which is delivered through our
certified PAS99 integrated management system.
Other very important areas our customers benefit by utilising our services
is in WHS, and the positive contribution to the environment.
WHS benefits are often realised because the maintenance of equipment
and replacement of worn parts is often carried out in potentially
hazardous environments (e.g. on mine sites) and/or involves handling of
difficult and heavy components. Many of our customers recognise that
by reducing the frequency of required maintenance, the utilisation of
LaserBond’s services significantly lowers the risk of injury to personnel.
Environmental benefits arise from LaserBond’s
ability to remanufacture and provide
performance improvements to machine parts
that would have typically been scrapped and
replaced with new parts. The typical carbon
footprint for a LaserBond remanufactured part
is less than 1% of a new part, and with life
improvements of between 2 to 20 times of a
standard part, a carbon footprint of much less
than 1% is achieved.
LaserBond operates from facilities in New
South Wales and South Australia.
Road Header Mining Boom reclamation with LaserBond®
cladding. Road headers are flexible rock cutting
machines, used to cut soft to medium rock formations.
Laserbond Limited - Annual Report 2018 5
Laserbond Limited - Annual Report 2018 Our R&D Division continues its collaborative
work with its partners; the University of SA
and Boart Longyear on the development
& commercialisation of high wear life
components in drilling for mining via the
Wear Life Performance (CRCp project). In
addition LaserBond is participating as a core
industry partner with the ARC funded Surface
Engineering for Advanced Materials (SEAM)
training centre, in conjunction with Swinburne
University, University of SA and RMIT as well as
other industry partners.
Both the Services and Production Divisions are
benefiting from the buoyant mining sector.
As the mining sector continues to be a major
source of work for both divisions an increased
level of activity directly impacts our revenue.
We expect to see many customers seeking our
services as they both ramp up production and
play catch up on their maintenance programs.
6
Chairman’s Letter
Dear Shareholder,
As reported in the half yearly results our Services & Products Divisions
continued to increase revenue in-line with the company’s forecast.
On behalf of the Board I am pleased to present the Annual Financial
Report to 30th June 2018. Given the amount of investment over
the course of the year growing our resources and workforce, we are
extremely pleased that we were able to deliver a solid performance for
the year.
30 June
2018
30 June
2017
Revenues
$15.648 M
Up 13.8% from
$13.751 M
Services Division
$10.040 M
Up 38.7 % from
$7.237 M
Products Division
$5.608 M
Up 10.5% from
$5.076 M
Technology Division
$0
No FY2018 Revenue
$1.438 M
EBITDA
$2.223 M
Down 9.2% from
$2.449 M
EBITDA (before Impairment) 1
$2.505 M
Up 2.2% from
$2.449 M
NPAT
$0.968 M
Down 13.0% from
$1.113 M
NPAT (before Impairment) 1
$1.249 M
Up 12.3% from
$1.113 M
Earnings per share (cents)
1.04 c
Down 14.8% from
1.22 c
EPS (before Impairment) 1
1.34 c
Up 9.8% from
1.22 c
1The Board has taken a prudent approach to take an impairment by writing down some
stock. Please refer to the Directors Report for more details.
All three Divisions this fiscal year are forecast to increase revenue. As at
the date of this report we are pleased to report that our FY2019 forecasts
are on track.
Our Technology Division, having sold its second technology license
in August 2018, is actively working through its production process to
achieve delivery and revenue recognition in FY19. This is particularly
pleasing result for two reasons; the licensee is a major multi-billion dollar
global engineering company that has recognised LaserBond is a world
leader in this field; and it provides further support to demonstrate that
one aspect of the company’s current strategy for international expansion
of its technology is working. The license will deliver ongoing revenue
and profit for the license term of 7 years, and will likely lead to further
Technology Division sales to the licensee in the future.
Laserbond Limited - Annual Report 2018 Chairman’s Letter
7
The outlook for Laserbond in 2018/19 and beyond is very positive with
several key strategic actions and expectations:
›› Ongoing organic growth of our Products & Services Divisions at levels
similar to those achieved in FY18 but with an expected return to the
higher historical gross profits and EBITDA percentages.
›› Growth in the Technology Division as we leverage recent successes.
›› Appointment of an International Sales BDM to expand our market
place by taking our successful proprietary products to much larger
markets.
›› Expansion through acquisition – several targets identified that will add
immediate accretive value if negotiations are successful.
›› Grow our senior management/executives.
The Board also recognises the need to be continually developing a skilled
work force and are committed to bring on new apprentices, trainees
and graduates that we can train for future management, operations and
application of our technology.
Given the increased opportunities that we have
been developing, the positive growth outlook
for the coming years and taking into account
performance achieved, the Board has decided
to increase its full year dividends to a total of
0.6 cps for FY18.
Success is delivered by a skilled and dedicated
team and the board would like to take this
opportunity in thanking our staff, management
and executives for creating an environment that
has fostered this success. We thank all those
who support the vision and our Board.
Yours sincerely
Philip Suriano
Chairman
LaserBond Limited
Laserbond Limited - Annual Report 2018 reducing the burden of overtime, and increasing
capabilities within our South Australian facility.
Despite the plan for continued human resources
investment, our gross profit results are expected
to continue to improve to historical gross profit
percentages.
8
Directors’ Report
The Directors present their report together with the financial
statements of LaserBond Limited for the financial year ended
30th June 2018.
Principal Activity
LaserBond is a specialist surface engineering company founded in
1992 that focuses on the development and application of materials,
technologies and methodologies to increase operating performance
and wear life of capital-intensive machinery components.
LaserBond operates from facilities in New South Wales and South
Australia.
Review of Operations & Financial Results
The 2018 fiscal year has been a year of investment in order to deliver
on planned growth, focused on:
1. Increasing skill and capabilities, through recruitment and training.
2. Increasing capacity and capabilities, through investment in plant
and equipment at both facilities.
3. Continued growth, through our on-going research and
development activities.
SKILL AND CAPABILITIES
As at 30 June 2018 our workforce has increased to seventy
employees, a 40% increase in human resources during the financial
year. After the initial temporary impact from recruitment costs and
training (prior to a shop floor employee generating revenue) and
overtime (long term shop floor employees rising to the challenge
from the revenue growth and the timing of initial recruitment and
training activities) our gross profits increased from 45% in the first
half of the financial year to 48% in the second half (before inventory
impairment).
This investment in people will continue throughout the 2019
financial year, with the intent to have a more fully manned afternoon
shift at our New South Wales facility both increasing capacity and
Hands on training of our apprentices is crucial for our future growth.
Laserbond Limited - Annual Report 2018 Directors’ Report
9
Laserbond Limited - Annual Report 2018 10
Laserbond’s new large capacity cylindrical grinder – 5 metres between centres, 1.25 metre swing, 5.5 tonne capacity.
CAPACITY AND CAPABILITIES
Both facilities have invested in equipment to increase capacity and
capabilities. Some of the major equipment investment includes:
1. Additional large capacity cylindrical grinding machines.
2. Additional large cylindrical lathes increasing our capacity.
3. High Velocity Air Fuel (HVAF) thermal spray system increasing
capacity and capability and providing higher energy efficiencies,
lower temperatures and reduced particle sizes.
4. Large capacity horizontal borer expected to be commissioned in
South Australia in September 2018.
5. Continued development of the automated laser cladding system,
planned through the Next Generation Manufacturing Improvement
program, expecting full commissioning by April 2019, however
this investment is progressive and over the last few months is
now providing significant operational improvements in our South
Australian facility, thus increasing recent production output.
Laserbond Limited - Annual Report 2018 11
Concept of automated LaserBond laser cladding cell being commissioned.
1
1) - Normal laser cladding process creates deeper heat affects
which embed within the cladding to reduce performance.
2
2) - New Laserbond Deposition Technology shows the
metallugical bond without dilution effects and higher
concentration.
RESEARCH AND DEVELOPMENT ACTIVITIES
Our R&D efforts continue to improve upon our deposition
methodologies and materials.
Dramatic improvements in production cycles are being realised with
our new 16kW Laser.
We have had very successful trials over the last 18 months of a new
LaserBond® product for the Steel Industry. A life improvement of
greater than 15 times is being realised by our Australian customer
when using the Laserbond® product. This consumable product
is applicable in Steel Mills worldwide, and we are now in supply
discussions with a major international steel producer in the US.
Our collaborative work with the University of South Australia and
Boart Longyear through the CRC-P is continuing with a number of
applications having commercial possibilities.
Additionally, and as announced our R&D department has secured
an Industrial Partner position within the Australian Research
Council funded Training Centre in “Surface Engineering for
Advanced Materials (SEAM)”, and are looking forward to working
collaboratively with the best Academic and Industrial minds we
have to achieve the projects vision.
Laserbond Limited - Annual Report 2018 12
Results by Reportable Segments
Explanation of Results
6 month revenue by division
Dec’16
Jun’17
Dec’17
Jun’18
6M
5M
4M
3M
2M
1M
0
Services
Products
Technology
›› Revenue from operations was $15.648 million,
up by 13.8% on FY2017.
›› Services Division achieved revenue of $10.040 million,
up 38.7% on FY2017.
›› Products Division achieved revenue of $5.608 million,
up 10.5% on FY2017.
›› Technology Division reports no revenue for FY2018,
after achieving in FY2017 its first sale of $1.438 million.
600
500
6 monthly EBITDA by division
Dec’16
Jun’17
Dec’17
Jun’18
1.2M
400
1M
300
800K
200
600K
400K
100
200K
0
0
-200K
-400K
Services
Products
Technology
Research &
Development
›› EBITDA from operations was $2.223 million,
down by <9.2%> on FY2017.
›› Services Division achieved EBITDA of $1.827 million,
up 16.1% on FY2017.
›› Products Division, after the impact of an inventory impairment of
<$0.282 million>, achieved EBITDA of $0.935 million,
down by <5.5%> on FY2017.
›› Technology Division achieved a small loss, after reporting EBITDA
of $0.255 million in FY2017 after the first sale.
SERVICES DIVISION
The Services division achieved revenue for FY2018
of $10.040 million representing 38.7% growth on
FY2017 revenue of $7.237 million. The second half
of FY2018 reported an increase in revenue from
the first half, directly related to delays due to the
need for recruitment and training of new staff in
the first half. The NSW facility represents 89% 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 101.7%
increase in services revenue based on sales
strategies developed for growth in services.
This division reports a $1.827 million EBITDA,
representing a 16.1% growth on FY2017 EBITDA of
$1.573 million.
The Services division continues to expect growth
in revenue at similar rates, largely based on
increasing demand from a growing customer base
and the increasing capacity and capabilities from
investment in resources (human and equipment).
PRODUCTS DIVISION
The Products division achieved revenue for
FY2018 of $5.608 million representing a 10.5%
growth on FY2017 revenue of $5.076 million.
The focus of the South Australian facilities has
been on products, and represents 48% of this
revenue. The balance of 52% is generated from
contract manufacturing of products for long
standing original equipment manufacturers.
Growth in products revenue is expected to grow
largely in South Australia due to the increasing
investment in resources (largely equipment) and
the improved output due to the upgrading to the
automated laser cladding system.
During FY2018 the Products Division incurred
an impairment of $281,624 on slow moving
inventory items. Refer to the Inventory Impairment
commentary on page 13 for more details.
The underlying EBITDA (prior to impairment)
was $1.217m representing a 23% increase on
FY2017 EBITDA of $0.989m. After the impairment,
Products Division achieved $0.935 million EBITDA.
During FY2018 margins on products division
work has been affected by the investment in
human resources (training impact particularly
coming up to speed with machining of our
surface engineering applications) and the short
term reduced production output impact from the
implementation of the automated laser cladding
system in South Australia.
Laserbond Limited - Annual Report 2018 The Products Division is expected to continue to provide the most
revenue growth for the business.
Our first LaserBond laser cladding cell commissioned in China through the
Technology division.
TECHNOLOGY DIVISION
In the 4th quarter of FY2017, LaserBond delivered its first Technology
Division sale to a mineral processing equipment repairer in China which
intends to utilise laser cladding in its reclamation activities. The training
and support will continue over a five year period from commissioning
on the licensee’s premises in return for licensing fees, but due to delays
in completion of the licensee’s premises with an adequate power supply.
The equipment is now fully installed, commissioned and operating for
license fee returns commencing in FY2019.
In August 2018, the Technology Division secured the sale of a second
technology license to a multi-billion dollar global manufacturer that
will utilise LaserBond’s technology in its product offerings for improved
market differentiation. This will alone provide double digit increase
in revenue in FY2019 over FY2018 with associated increase in profits.
License fees and consumable sales will be derived over a 7 year
license term.
LaserBond has signed an agreement with a third party to support the
identification and qualification process for further technology sales. There
have been a number of enquiries that are being actively pursued.
LaserBond’s aim is to provide continued revenue from the Technology
Division in the form of the continuing licensing fees, consumables and
new technology sales.
Research & Development
LaserBond is committed to ongoing expenditure in Research &
Development to improve and maintain its market leading position.
This division reports an EBITDA loss of $500,513. Net costs against R&D
increased by over 36% due to the necessary continued research into new
products and / or applications crucial for LaserBond’s continuing growth.
For further information refer to the commentary on R&D Activities on
page 11 of this Directors’ Report.
13
Inventory Impairment
The ongoing commercialisation of the
technology we have developed and continue to
develop for the Down-the-Hole (DTH) hammers
and other drilling consumables is the subject
of the CRCp program in conjunction with our
partners Boart Longyear and the University
of SA. The project is proceeding well and will
deliver very positive results for the company
in the future. However, as noted within our
December 2017 half year report, at the time of
launch of our Down-the-Hole (DTH) hammers
a marketing campaign provided information
related to the type and size of hammers and
consumables used by potential customers.
Since this campaign a number of stocked
consumables, particularly bits, have not been
sold to customers.
As at the date of this report, discussions are
in progress with the original supplier of DTH
hammers for potential buyback options.
Taking a prudent approach, the Board has
written down DTH hammer and consumables
amounting to $281,624 as at 30 June 2018.
Outlook
During FY2019 LaserBond is targeting
continued double digit revenue growth from
the Services & Products divisions in addition to
already reported increases in revenue from the
Technology division, whilst retaining historical
gross profit rates. This is expected to reflect in
significant increases in net profit. There will be
continued investment in resources (human
and equipment) as well as research and
development to deliver future growth.
Further, the Board is implementing a strategic
plan aiming to achieve $40 million revenue
within four years. This plan focuses largely on:
1. Organisational Structure
The development of a structure that
provides a successful management team,
scaled for growth and reducing reliance
on the current Executive Directors for
operational matters.
2. Capacity & Capabilities
Increasing capacity and capabilities of all
facilities, including through an improved
shop floor shift structure to increase
capacity and reduce the burden on select
skilled staff, process optimisation to increase
machine uptime and effectiveness, and a
focus on the ongoing increasing of skill and
capabilities of operational staff.
Laserbond Limited - Annual Report 2018 14
3. Growth Options
A focus on international business development, including through
both Technology Licensing and maximising the potential and return
of opportunities with global customers within the Products and
Services divisions.
4. Investment
A focus on continued investment in resources (human and
equipment) and growth through acquisitions or development of
further “greenfield” sites in strategic domestic and/or international
locations.
Directors and Company Secretary
Details of the company’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:
Position Held
In Office Since
Ceased to Hold Office
Wayne Hooper
Executive Director
21 April 1994
Gregory Hooper
Executive Director
30 September 1992
Allan Morton
Non-Executive Chairperson
18 March 2014
4th October 2017
Philip Suriano
Chairperson / Non-Executive Director
6 May 2008
Matthew Twist
Company Secretary
30 March 2009
Information on Directors and Company Secretary
(currently holding office)
Wayne Hooper GAICD – Chief Executive Officer, Audit and Risk
committee member
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.
Gregory Hooper – Chief Technology Officer
Gregory has a mechanical engineering background with over 35 years
of hands on experience, as well as sales and management experience in
the engineering, metallurgy, welding and thermal spray industries. Before
founding Laserbond® Gregory held key positions with multinational
surface engineering equipment and specialty welding consumable
manufacturers. Gregory founded the Company with his parents in 1992,
and has been responsible for the research, integration and development
of the company’s materials and Thermal Spray and LaserBond® cladding
processes. Gregory’s responsibility as CTO is the general management
and overseeing of Workshop, Technology, and Research and
Development management within the group, as well as working closely
with his brother (CEO), the board, and the rest of the Laserbond team to
deliver on the goals targeted.
Philip Suriano GAICD – Chairman / Non-
Executive Director, Audit and Remuneration
committee member
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.
For the past 14 years he has been working in
corporate finance.
Matthew Twist GIA (Cert) – Company Secretary,
and Risk committee member
Matthew Twist has over 20 years financial
management experience, encompassing financial
and operational control and systems development
in manufacturing companies. Matthew has been
the company’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.
Laserbond Limited - Annual Report 2018 Remuneration Report
The directors present the LaserBond Limited 2018 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 company and the Company Secretary are
considered as key management personnel (KMP’s) for the
management of its affairs, and are covered by this report.
(b) Remuneration policy and link to performance
Remuneration levels for KMP’s are competitively set to attract,
motivate and retain appropriately qualified and experienced
personnel. Remuneration levels are reviewed annually by the Board
through the Remuneration Committee including a reference to the
company’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
15
on our website, http://www.laserbond.com.au/
investor-relations/governance-statement.html,
for details.
(c) Link between remuneration and
performance
The company has 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. During the current
financial year, one non-executive director
received non-cash (equity based) payments
amounting to $12,500.
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 42.
Laserbond Limited - Annual Report 2018 16
Remuneration Report (continued)
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.
2018
$
2017
$
2016
$
2015
$
2014
$
Revenue
15,648,146
13,751,417
10,515,581
9,546,595
9,669,960
Net Profit after Tax
967,749
1,112,892
78,745
366,766
660,944
Share price at year end (Cents)
Dividends paid (Cents)
12.50
0.5
12.50
0.4
8.10
0.4
13.00
0.4
8.70
0.4
(d) KMP Remuneration
The following table shows details of the remuneration expense
recognised for the company Key Management Personnel for the current
and previous financial year.
KMP’s received a fixed remuneration in the year ended 30 June 2017 and
30 June 2018
Salaries and fees
Superannuation
Share based
payments
Long Service
Leave
Wayne Hooper1
Gregory Hooper1
Philip Suriano2
Allan Morton3
Matthew Twist
Totals
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
308,650
305,671
308,335
302,927
28,750
25,000
5,000
30,000
151,653
143,098
802,388
806,696
46,650
39,651
29,031
28,840
-
-
-
-
14,273
13,462
89,954
81,953
-
-
-
-
12,500
20,250
-
20,250
1,000
1,000
13,500
41,500
-
-
-
3,868
-
-
-
-
-
-
3,868
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 39 reports all remuneration through payroll for all relatives of executive directors, including spouses.
2 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 39 to 40.
3 Alan Morton resigned on 4 October 2017.
Laserbond Limited - Annual Report 2018 17
Remuneration Report (continued)
(e) Contractual arrangements for executive KMP’s
KMP’s who are active employees of the company 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.
(f) Non-executive director arrangements
Non-executive directors are employed based on the company’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 has not agreed on the volume of shares to be issued to
Philip Suriano at the time of lodgement of this report. Any issue is subject
to shareholder approval with the price based on the closing share price
on the day of approval.
(g) Shares held by key management personnel
The number of ordinary shares in the company
during the 2018 financial year held by each of
the company’s key management personnel,
including their related parties, is set out below:
Balance at 30 June
2017
Granted as
remuneration
Other changes
Balance at 30 June
2018
Wayne Hooper
Gregory Hooper
Philip Suriano
Allan Morton1
Matthew Twist
10,200,206
9,191,551
439,296
1,454,964
56,554
-
-
100,000
-
9,154
369,587
385,308
5,835
-
-
10,569,793
9,576,859
545,131
1,454,9642
65,708
1 Allan Morton resigned on 4 October 2017.
2 These were the amount of shares held at the date of Allan Morton’s resignation.
End of remuneration report.
Director’s Meetings
During the financial year ended 30th June 2018, the number of meetings
held, and attended, by each Director were as follows:
Director
Board Meetings
Audit and Risk Committee
Meetings
Remuneration Committee
Meetings
Eligible
Attended
Eligible
Attended
Eligible
Attended
Wayne Hooper
Gregory Hooper
Allan Morton1
Philip Suriano
8
8
5
8
8
7
4
8
1
-
-
2
1 Allan Morton resigned on 4 October 2017
Please refer to the Corporate Governance Statement at http://www.
laserbond.com.au/investor-relations/governance-statement.html for
further information.
1
-
-
2
-
-
-
1
-
-
-
1
Laserbond Limited - Annual Report 2018 18
Significant Changes in State of Affairs
Directors’ and Auditors’ Information
Insurance premiums of $20,714 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 20.
Signed in accordance with a resolution of the
Board of Directors.
Director
Wayne Hooper
Director
Gregory Hooper
Dated this 27th day of August 2018
During the financial year there was no significant change in the state
of affairs of the company other than that referred to in the financial
statements or notes thereto.
Future Developments
Any future developments required to be disclosed as per ASX Listings
Rules have either been disclosed previously or are included in
commentary or notes to this report. Any future items requiring to be
disclosed will be disclosed according to recent listing rules.
Environmental Regulation
The company’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
a) DIVIDENDS
2017 final dividends of 0.3 cents per share and 2018 interim
dividends of 0.2 cents per share were paid during the year.
The directors have recommended the payment of a final dividend
for FY2018 of 0.4 cents per fully-paid ordinary share (FY2017: 0.3c),
fully franked based on tax paid at 30%. The dividend is expected to
be paid on 12th October 2018.
Subject to the company continuing to develop in accordance
with future plans, the Board expects to continue to maintain
future dividends.
b) TECHNOLOGY LICENSE AGREEMENT
LaserBond has signed its second Technology License Agreement,
this time with a UK based multinational engineering company.
The agreement involves the supply of a LaserBond® designed and
constructed laser cladding system, ongoing training and support
and consumable sales. This agreement will yield an increase in
revenue this financial year by more than 10% year on year with
associated overhead recovery and increase in profits. Revenue in
future years will include ongoing royalty fees over a seven year
license term as well as consumable sales.
Laserbond Limited - Annual Report 2018 19
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.
Directors’ Declaration
Corporate Governance
The directors of the company 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 company’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
The directors of the company declare that:
1. The financial statements and notes, as set out on pages 25 to 44 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
Director
Wayne Hooper
b. Give a true and fair view of the financial position as at 30th June
2018 and of the performance for the financial year ended on that
date of the company.
2. In the directors’ opinion there are reasonable grounds to believe
that the company will be able to pay its debts as and when they
become due and payable.
Director
Gregory Hooper
Dated this 27th day of August 2018 in Sydney.
Laserbond Limited - Annual Report 2018 20
ABN 65 155 188 837
ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
T +61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
L24 570 Bourke Street Melbourne VIC 3000
T +61 3 8658 5928
T +61 3 8658 5928
www.lnpaudit.com
www.lnpaudit.com
AUDITOR’S INDEPENDENCE DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF LASERBOND LIMITED
TO THE DIRECTORS OF LASERBOND LIMITED
As lead auditor of Laserbond Limited for the year ended 30 June 2018, I declare that, to the best of my
As lead auditor of Laserbond Limited for the year ended 30 June 2018, I declare that, to the best of my
knowledge and belief, there have been:
knowledge and belief, there have been:
1.
1.
no contraventions of the auditor independence requirements as set out in the Corporations
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
Act 2001 in relation to the audit; and
2.
2.
no contraventions of any applicable code of professional conduct in relation to the audit.
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Laserbond Limited during the financial year.
This declaration is in respect of Laserbond Limited during the financial year.
LNP Audit and Assurance
LNP Audit and Assurance
Anthony Rose
Anthony Rose
Director
Director
Sydney, 27 August 2018
Sydney, 27 August 2018
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
20
20
Laserbond Limited - Annual Report 2018
ABN 65 155 188 837
ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
T +61 3 8658 5928
L24 570 Bourke Street Melbourne VIC 3000
T +61 3 8658 5928
www.lnpaudit.com
www.lnpaudit.com
21
INDEPENDENT AUDIT REPORT
TO THE MEMBERS OF LASERBOND LIMITED
Opinion
AUDITOR’S INDEPENDENCE DECLARATION
We have audited the financial report of Laserbond Limited, which comprises the statement of
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
financial position as at 30 June 2018, the statement of profit or loss and other comprehensive
TO THE DIRECTORS OF LASERBOND LIMITED
income, the statement of changes in equity and the statement of cash flows for the year then
ended, notes comprising a summary of significant accounting policies and other explanatory
As lead auditor of Laserbond Limited for the year ended 30 June 2018, I declare that, to the best of my
information and the Directors’ Declaration of the Company.
knowledge and belief, there have been:
In our opinion:
1.
the accompanying financial report of Laserbond Limited is in accordance with the Corporations Act
2001, including:
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
2.
a) Giving a true and fair view of the company’s financial position as at 30 June 2018 and of its
no contraventions of any applicable code of professional conduct in relation to the audit.
financial performance for the year ended on that date; and
b) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
This declaration is in respect of Laserbond Limited during the financial year.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
LNP Audit and Assurance
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the company 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
Anthony Rose
responsibilities in accordance with the Code. We believe that the audit evidence we have
Director
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Sydney, 27 August 2018
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
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
21
20
Laserbond Limited - Annual Report 2018
22
the procedures performed to address the matters below, provide the basis for our audit opinion
on the accompanying financial report.
the procedures performed to address the matters below, provide the basis for our audit opinion
on the accompanying financial report.
How our audit addressed the matter
Key Audit Matter
Carrying value of inventory
Key Audit Matter
Refer Note 8 – inventory
Carrying value of inventory
The company holds significant inventories.
Refer Note 8 – inventory
The carrying value of inventory is by its nature
The company holds significant inventories.
judgemental and based on many assumptions,
The carrying value of inventory is by its nature
influenced by expected future market demand,
judgemental and based on many assumptions,
raw materials expected to be required, and other
influenced by expected future market demand,
uncertain matters.
raw materials expected to be required, and other
uncertain matters.
How our audit addressed the matter
Our procedures included, among others:
• Evaluating management’s strategy and plan
Our procedures included, among others:
for developing, producing and realising
• Evaluating management’s strategy and plan
inventory
for developing, producing and realising
• Assessing the company’s impairment policy
inventory
• Assessing and testing the inventory and
• Assessing the company’s impairment policy
evaluating the recoverable value of these
• Assessing and testing the inventory and
products.
evaluating the recoverable value of these
products.
Other information
The Directors are responsible for the other information. The other information comprises the
Other information
information included in the annual report for the year ended 30 June 2018 but does not include
The Directors are responsible for the other information. The other information comprises the
the financial report and the auditor’s report thereon. Our opinion on the financial report does not
information included in the annual report for the year ended 30 June 2018 but does not include
cover the other information and we do not express any form of assurance conclusion thereon.
the financial report and the auditor’s report thereon. Our opinion on the financial report does not
In connection with our audit of the financial report, our responsibility is to read the other
cover the other information and we do not express any form of assurance conclusion thereon.
information and, in doing so, consider whether the other information is materially inconsistent
In connection with our audit of the financial report, our responsibility is to read the other
with the financial report or our knowledge obtained in the audit or otherwise appears to be
information and, in doing so, consider whether the other information is materially inconsistent
materially misstated.
with the financial report or our knowledge obtained in the audit or otherwise appears to be
If, based upon the work we have performed, we conclude that there is a material misstatement of
materially misstated.
this other information, we are required to report that fact. We have nothing to report in this
If, based upon the work we have performed, we conclude that there is a material misstatement of
regard.
this other information, we are required to report that fact. We have nothing to report in this
Directors’ Responsibilities
regard.
The Directors of the Company are responsible for the preparation of the financial report that gives
Directors’ Responsibilities
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
The Directors of the Company are responsible for the preparation of the financial report that gives
2001 and for such internal control as the Directors determine is necessary to enable the
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
preparation of the financial report that gives a true and fair view and is free from material
2001 and for such internal control as the Directors determine is necessary to enable the
misstatement, whether due to fraud or error.
preparation of the financial report that gives a true and fair view and is free from material
In preparing the financial report, the Directors are responsible for assessing the company’s ability
misstatement, whether due to fraud or error.
to continue as a going concern, disclosing, as applicable, matters related to going concern and
In preparing the financial report, the Directors are responsible for assessing the company’s ability
using the going concern basis of accounting unless the Directors either intend to liquidate the
to continue as a going concern, disclosing, as applicable, matters related to going concern and
company or cease operations, or have no realistic alternative but to do so.
using the going concern basis of accounting unless the Directors either intend to liquidate the
company or cease operations, or have no realistic alternative but to do so.
22
22
Laserbond Limited - Annual Report 2018
the procedures performed to address the matters below, provide the basis for our audit opinion
on the accompanying financial report.
the 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
Carrying value of inventory
Key Audit Matter
Refer Note 8 – inventory
Carrying value of inventory
The company holds significant inventories.
Refer Note 8 – inventory
The carrying value of inventory is by its nature
The company holds significant inventories.
judgemental and based on many assumptions,
The carrying value of inventory is by its nature
influenced by expected future market demand,
judgemental and based on many assumptions,
raw materials expected to be required, and other
influenced by expected future market demand,
uncertain matters.
raw materials expected to be required, and other
uncertain matters.
Other information
How our audit addressed the matter
Our procedures included, among others:
• Evaluating management’s strategy and plan
Our procedures included, among others:
for developing, producing and realising
• Evaluating management’s strategy and plan
inventory
for developing, producing and realising
• Assessing the company’s impairment policy
• Assessing and testing the inventory and
• Assessing the company’s impairment policy
evaluating the recoverable value of these
• Assessing and testing the inventory and
products.
evaluating the recoverable value of these
inventory
products.
The Directors are responsible for the other information. The other information comprises the
Other information
information included in the annual report for the year ended 30 June 2018 but does not include
The Directors are responsible for the other information. The other information comprises the
the financial report and the auditor’s report thereon. Our opinion on the financial report does not
information included in the annual report for the year ended 30 June 2018 but does not include
cover the other information and we do not express any form of assurance conclusion thereon.
the financial report and the auditor’s report thereon. Our opinion on the financial report does not
In connection with our audit of the financial report, our responsibility is to read the other
cover the other information and we do not express any form of assurance conclusion thereon.
information and, in doing so, consider whether the other information is materially inconsistent
In connection with our audit of the financial report, our responsibility is to read the other
with the financial report or our knowledge obtained in the audit or otherwise appears to be
information and, in doing so, consider whether the other information is materially inconsistent
materially misstated.
with the financial report or our knowledge obtained in the audit or otherwise appears to be
If, based upon the work we have performed, we conclude that there is a material misstatement of
materially misstated.
this other information, we are required to report that fact. We have nothing to report in this
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
regard.
The Directors of the Company are responsible for the preparation of the financial report that gives
Directors’ Responsibilities
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
The Directors of the Company are responsible for the preparation of the financial report that gives
2001 and for such internal control as the Directors determine is necessary to enable the
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
preparation of the financial report that gives a true and fair view and is free from material
2001 and for such internal control as the Directors determine is necessary to enable the
misstatement, whether due to fraud or error.
preparation of the financial report that gives a true and fair view and is free from material
In preparing the financial report, the Directors are responsible for assessing the company’s ability
misstatement, whether due to fraud or error.
to continue as a going concern, disclosing, as applicable, matters related to going concern and
In preparing the financial report, the Directors are responsible for assessing the company’s ability
using the going concern basis of accounting unless the Directors either intend to liquidate the
to continue as a going concern, disclosing, as applicable, matters related to going concern and
company or cease operations, or have no realistic alternative but to do so.
using the going concern basis of accounting unless the Directors either intend to liquidate the
company or cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
23
L24 570 Bourke Street Melbourne VIC 3000
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
T +61 3 8658 5928
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
www.lnpaudit.com
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
AUDITOR’S INDEPENDENCE DECLARATION
influence the economic decisions of users taken on the basis of this financial report.
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF LASERBOND LIMITED
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
•
As lead auditor of Laserbond Limited for the year ended 30 June 2018, I declare that, to the best of my
knowledge and belief, there have been:
Identify and assess the risks of material misstatement of the financial report, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and
obtain 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 for
no contraventions of the auditor independence requirements as set out in the Corporations
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
Act 2001 in relation to the audit; and
misrepresentations, or the override of internal control.
no contraventions of any applicable code of professional conduct in relation to the audit.
• Obtain an understanding of internal control relevant to the audit 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.
This declaration is in respect of Laserbond Limited during the financial year.
1.
2.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
LNP Audit and Assurance
accounting estimates and related disclosures made by the Directors.
Anthony Rose
Director
• Conclude on the appropriateness of the Directors’ use of the going concern basis of
accounting in the preparation of the financial report. We also conclude, based on the audit
evidence obtained, whether a material uncertainty exists related to events and conditions
that may cast significant doubt on the entity’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in the
auditor’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, including
the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Sydney, 27 August 2018
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the company to express an opinion on the financial
report. We are responsible for the direction, supervision and performance of the company
audit. We remain solely responsible for our audit opinion.
• We communicate with the Directors regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
22
22
Liability limited by a scheme approved under Professional Standards Legislation
23
20
Laserbond Limited - Annual Report 2018
• We are also required to provide the Directors with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
• We are also required to provide the Directors with a statement that we have complied
• From the matters communicated to the Directors, we determine those matters that were
with relevant ethical requirements regarding independence, and to communicate with
of most significance in the audit of the financial report of the current year and are
them all relationships and other matters that may reasonably be thought to bear on our
therefore the key audit matters. We describe these matters in our auditor’s report unless
independence, and where applicable, related safeguards.
law or regulation precludes public disclosure about the matter or when, in extremely rare
• From the matters communicated to the Directors, we determine those matters that were
circumstances, we determine that a matter should not be communicated in our report
of most significance in the audit of the financial report of the current year and are
because the adverse consequences of doing so would reasonably be expected to outweigh
therefore the key audit matters. We describe these matters in our auditor’s report unless
the public interest benefits of such communication.
law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report
Opinion on the Remuneration Report
because the adverse consequences of doing so would reasonably be expected to outweigh
We have audited the Remuneration Report included on pages 15 to 17 of the Directors' Report for
the public interest benefits of such communication.
the year ended 30 June 2018.
In our opinion, the Remuneration Report of Laserbond Limited for the year ended 30 June 2018,
Opinion on the Remuneration Report
complies with section 300A of the Corporations Act 2001.
We have audited the Remuneration Report included on pages 15 to 17 of the Directors' Report for
the year ended 30 June 2018.
Responsibilities
In our opinion, the Remuneration Report of Laserbond Limited for the year ended 30 June 2018,
The Directors of the Company are responsible for the preparation and presentation of the
complies with section 300A of the Corporations Act 2001.
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
Responsibilities
in accordance with Australian Auditing Standards.
The Directors of the Company are responsible for the preparation and presentation of the
The engagement partner on the audit resulting in this independent auditor’s report is Anthony
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
Rose.
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
LNP Audit and Assurance
The engagement partner on the audit resulting in this independent auditor’s report is Anthony
Rose.
LNP Audit and Assurance
Anthony Rose
Director
Sydney, 27 August 2018
Anthony Rose
Director
Sydney, 27 August 2018
24
24
• We are also required to provide the Directors with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our
• We are also required to provide the Directors with a statement that we have complied
independence, and where applicable, related safeguards.
• From the matters communicated to the Directors, we determine those matters that were
with relevant ethical requirements regarding independence, and to communicate with
of most significance in the audit of the financial report of the current year and are
them all relationships and other matters that may reasonably be thought to bear on our
therefore the key audit matters. We describe these matters in our auditor’s report unless
independence, and where applicable, related safeguards.
• From the matters communicated to the Directors, we determine those matters that were
law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report
of most significance in the audit of the financial report of the current year and are
because the adverse consequences of doing so would reasonably be expected to outweigh
therefore the key audit matters. We describe these matters in our auditor’s report unless
the public interest benefits of such communication.
law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report
Opinion on the Remuneration Report
because the adverse consequences of doing so would reasonably be expected to outweigh
We have audited the Remuneration Report included on pages 15 to 17 of the Directors' Report for
the public interest benefits of such communication.
the year ended 30 June 2018.
In our opinion, the Remuneration Report of Laserbond Limited for the year ended 30 June 2018,
Opinion on the Remuneration Report
complies with section 300A of the Corporations Act 2001.
We have audited the Remuneration Report included on pages 15 to 17 of the Directors' Report for
the year ended 30 June 2018.
Responsibilities
In our opinion, the Remuneration Report of Laserbond Limited for the year ended 30 June 2018,
The Directors of the Company are responsible for the preparation and presentation of the
complies with section 300A of the Corporations Act 2001.
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
Responsibilities
in accordance with Australian Auditing Standards.
The Directors of the Company are responsible for the preparation and presentation of the
The engagement partner on the audit resulting in this independent auditor’s report is Anthony
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
Rose.
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
LNP Audit and Assurance
The engagement partner on the audit resulting in this independent auditor’s report is Anthony
Rose.
LNP Audit and Assurance
Sydney, 27 August 2018
Anthony Rose
Director
Anthony Rose
Director
Sydney, 27 August 2018
2018 FINANCIAL STATEMENTS
25
Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30th June 2018
2018
2017
Revenue from continuing operations
Cost of Sales
Inventory Impairment
Gross Profit from continuing
operations
Other Income
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Expenses
Administration Expenses
Repairs & Maintenance
Equipment Lease Expenses
Finance Costs
Research & Development
Other Expenses
Note
23
8
3
$
15,648,146
(8,404,424)
(281,624)
6,962,098
665,418
(162,208)
(717,499)
(2,071,643)
(730,733)
(1,550,776)
(163,085)
(25,180)
(110,774)
(470,091)
(223,334)
$
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)
Profit before income tax expense from
continuing operations
Income tax expense
4, 23
5, 23
1,402,193
1,510,717
(434,444)
(397,825)
Profit after income tax expense from continuing
operations
967,749
1,112,892
Other comprehensive income
-
-
Total comprehensive income attributable to
members of LaserBond Limited
967,749
1,112,892
Earnings per share for profit attributable to members:
Basic and diluted earnings per share
(cents)
6
1.040
1.221
This Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
24
24
LaserBond Ltd 2018 Annual Report | Page 20
Laserbond Limited - Financial Statements 2018
26
Statement of Financial Position
As at 30th June 2018
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Deferred tax assets
Intangible assets
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee Benefits
Financial liabilities
Current Tax Liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Financial liabilities
Employee Benefits
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Retained earnings
TOTAL EQUITY
2018 FINANCIAL STATEMENTS
Note
7
8
9
11
10
12
2018
$
1,379,062
5,362,441
2,487,605
9,229,108
3,086,473
288,040
23,387
3,397,900
2017
$
2,011,636
4,054,013
1,785,317
7,850,966
2,537,510
233,137
5,988
2,776,635
12,627,008
10,627,601
1,867,497
792,429
441,988
225,832
3,327,746
1,480,879
43,386
1,524,265
4,852,011
1,445,396
630,591
363,173
105,051
2,544,211
991,394
46,779
1,038,173
3,582,384
7,774,997
7,045,217
13
6,406,948
1,368,049
7,774,997
6,186,816
858,401
7,045,217
This Statement of Financial Position should be read in conjunction with the accompanying notes.
LaserBond Ltd 2018 Annual Report | Page 21
Laserbond Limited - Financial Statements 2018
Note
19
Statement of Cash Flows
for the Year Ended 30th June 2018
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income taxes paid
Net cash inflow 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 share issue costs
Payments for financial leases
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 YEAR
2018 FINANCIAL STATEMENTS
27
2018
2017
$
$
18,906,545
(18,043,530)
(110,774)
7,190
(372,589)
386,842
(273,216)
-
(25,400)
(298,616)
(12,784)
(455,660)
(252,356)
(720,800)
(632,574)
2,011,636
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
1,379,062
2,011,636
This Statement of Cash Flows should be read in conjunction with the accompanying notes.
LaserBond Ltd 2018 Annual Report | Page 22
Laserbond Limited - Financial Statements 2018
28
Statement of Changes in Equity
for the Year Ended 30th June 2018
2018 FINANCIAL STATEMENTS
Issued
capital
$
Retained
earnings
$
Total equity
$
Opening Balance at 1st July 2016
5,985,756
105,322
6,091,078
Profit for the year
Issue of Share Capital, net of cost
Dividends paid during the year
-
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
Profit for the year
Issue of Share Capital. net of cost
Dividends Paid during the year
-
220,132
-
967,749
-
(458,101)
967,749
220,132
(458,101)
Closing Balance at 30th June 2018
6,406,948
1,368,049
7,774,997
This Statement of Changes in Equity should be read in conjunction with the accompanying notes.
LaserBond Ltd 2018 Annual Report | Page 23
Laserbond Limited - Financial Statements 2018
2018 FINANCIAL STATEMENTS
29
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
Corporate Information
LaserBond Limited is a for-profit listed public company, incorporated and domiciled in Australia. The company specialises in
developing technologies and implementing its metal cladding methodologies to increase operating performance and wear life
of capital -intensive machinery component.
General Information and Statement of compliance
The financial report was authorised for issue in accordance with a resolution of the directors on 27th August 2018. 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).
The financial report has been prepared on an accruals basis.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a) Revenue Recognition
Revenue arises from sale of products and services. It is measures with reference to the fair value of the consideration received or
receivable. 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. Revenue from sale of good with no
significant service obligation is recognised on delivery.
Interest
Revenue from interest is recognised on accrual basis.
Other Income
Revenue from other income streams is recognised when the company receives it or as an accrual if the group are aware of the
entitlement to the other income.
b) 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.
c) 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.
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.
LaserBond Ltd 2018 Annual Report | Page 24
Laserbond Limited - Financial Statements 2018
30
2018 FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
d) Foreign Currency Translation
The functional and presentation currency of the company 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 or 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.
e) 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.
f) 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.
g) Financial Instruments
Financial assets
The company 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 company 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 "interest paid". 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 company‘s financial liabilities include 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 company 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 company 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
to 90 days from date of invoice.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to
another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with
the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference
between the carrying value of the financial liability extinguished or transferred to another party and the fair value of
consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
Subsequent Measurement
Loans and receivables are carried at amortised cost using the effective interest method or cost.
LaserBond Ltd 2018 Annual Report | Page 25
Laserbond Limited - Financial Statements 2018
2018 FINANCIAL STATEMENTS
31
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Impairment
The company 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 company 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.
h)
Inventory
Raw materials, finished goods and work in progress are stated at the lower of cost or net realisable value. Cost of work in
progress comprises direct materials, direct labour and any external sub-contract costs. Net realisable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make
the sale.
i) Property, Plant and Equipment
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%
j) 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
company, 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.
k) 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.
l) Leases
Leases of plant and equipment, where the company as lessee has substantially all the risks and rewards of ownership, are
classified as finance liabilities. Financed 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 finance agreements are depreciated
over the shorter of the asset’s useful life and the lease term.
LaserBond Ltd 2018 Annual Report | Page 26
Laserbond Limited - Financial Statements 2018
32
2018 FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are
classified as operating leases. Payments made under operating leases are charged to the Statement of Profit or Loss and Other
Comprehensive Income on a straight-line basis over the period of the lease.
m) 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.
n) 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.
o) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and 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.
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 company of options over its equity instruments to the employees of subsidiary undertakings in the company is
treated as a capital contribution to that subsidiary undertaking. The fair value of the employee services received, measured by
LaserBond Ltd 2018 Annual Report | Page 27
Laserbond Limited - Financial Statements 2018
2018 FINANCIAL STATEMENTS
33
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
p) 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.
q) Earnings per share
(i) Basic Earnings per share
Basic earnings per share is calculated by dividing:
-
-
The profit attributable to members of the company, 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.
r) 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.
s) 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 is yet to take a detailed assessment of the impact of the
AASB9. However, based on its preliminary assessment, the standard is not expected to have a material impact on the
transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019.
Impairment of assets is now based on expected losses in AASB 9 which requires entities to measure:
• The 12 month expected credit losses (expected credit losses that result from those default events on the financial
instrument that are possible within 12 months of the reporting date); or
• Full lifetime expected credit loss (expected credit losses that result from all possible default events over the life of the
financial instrument)
(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. Based on preliminary assessment, when this standard is first adopted
for the year ending 30 June 2019, there will be no material impact on the transactions and balances recognised in the financial
statements
(iii) AASB 16 Leases (Effective Date: 1 January 2019)
AASB 16 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.. The
changes in AASB 16 will lead to recognition of increased lease liabilities on the balance sheet. LaserBond is yet to undertake a
detailed assessment of the impact of AASB16.
LaserBond Ltd 2018 Annual Report | Page 28
Laserbond Limited - Financial Statements 2018
34
2018 FINANCIAL STATEMENTS
(iv) AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share based Payment
Transactions (effective date: 1 January 2018)
This Standard amends AASB 2 Share-based Payment to address:
a) The accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based
payments,
b) The classification of share-based payment transactions with a net settlement feature for withholding tax obligations;
and
c) The accounting for a modification to the terms and conditions of a share-based payment that changes the classification
of the transaction from cash-settled to equity-settled.
When these amendments are first adopted for the year ending 30 June 2019 there will be no material impact on the financial
statements.
NOTE 2: Critical Accounting Estimates and Judgements
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. At 30 June 2018 the directors have impaired the down-
the-hole (DTH) hammers and consumable inventory by $281,624 (2017: Nil)
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
- Audit Services – audit and review of Financial Reports
NOTE 5: INCOME TAX
2018
$
7,190
640,772
17,456
665,418
2017
$
7,308
246,382
38,561
292,251
61,253
58,596
Reconciliation of Income Tax Expense from continuing operations
Profit before Income Tax expense
1,402,193
1,510,717
Prima Facie Tax at the Australian tax rate of 30% (2017: 30%)
Deferred Tax Asset adjustments
R&D Tax Concession
Non-deductible expense
Adjustment to Prior Year Income Tax Provisions
Total Income Tax Expenses
NOTE 6: EARNINGS PER SHARE
420,658
54,903
(63,723)
4,926
17,680
434,444
453,215
8,574
(28,631)
(86,084)
50,751
397,825
Basic and diluted earnings per share (cents)
There are no current options to affect diluted earnings per share.
1.04
1.22
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2017
Shares issued as at 9th October 2017
Shares issued as at 13th October 2017
Shares issued as at 21st December 2017
Shares issued as at 6th April 2018
Closing Balance as at 30th June 2018
No. of Shares
Weighted No.
91,132,465
100,000
979,480
152,008
709,536
91,132,465
72,329
697,712
79,544
165,234
93,073,489
92,147,284
LaserBond Ltd 2018 Annual Report | Page 29
Laserbond Limited - Financial Statements 2018
NOTE 7: TRADE AND OTHER RECEIVABLES
Trade Receivables
Provision – Impairment of Receivables
Loans – Key Management Personnel
Loans – Employees
Prepayments
2018 FINANCIAL STATEMENTS
35
2018
$
3,478,783
(13,135)
16,174
2,789
1,877,830
5,362,441
2017
$
3,078,550
(12,800)
28,174
2,400
957,689
4,054,013
Prepayments include $376,495 being income entitlement on a milestone relating to a government grant (Next Generation
Manufacturing Improvement Program (NGMIP) and $735,675 being deposits on equipment either to increase capacity and / or
capabilities or related to the commissioning of the automated laser cladding facility for the NGMIP.
Past due but not impaired
(days overdue)
2018
Trade receivables
Other receivables
2017
Trade receivables
Other receivables
Gross
Amount
$
Past due
and
impaired
$
3,440
1,922
5,362
3,079
988
4,067
13
-
13
13
-
13
<30
$
1,657
1,922
3,579
1,177
988
2,165
31-60
$
1,153
-
1,153
1,297
-
1,297
NOTE 8: INVENTORY
Stock on Hand – Raw Materials
Stock on Hand – Finished Goods
Stock on Hand – Inventory Impairment
Work in Progress
61-90
$
608
-
608
428
-
428
2018
$
1,421,559
382,659
(281,624)
965,011
2,487,605
Within trade
terms
$
>90
$
9
-
9
164
-
164
3,291
1,922
5,213
2,815
988
3,803
2017
$
1,051,717
412,720
-
320,880
1,785,317
The ongoing commercialisation of the technology we have developed and continue to develop for the Down-the-Hole (DTH)
hammers and other drilling consumables is the subject of the CRCp program in conjunction with our partners Boart Longyear
and the University of SA. The project is proceeding well and will deliver very positive results for the company in the future.
However, as noted within our December 2017 half year report, at the time of launch of our Down-the-Hole (DTH) hammers a
marketing campaign provided information related to the type and size of hammers and consumables used by potential
customers. Since this campaign a number of stocked consumables, particularly bits, have not been sold to customers.
As at the date of this report, discussions are in progress with the original supplier of DTH hammers for potential buyback options.
Taking a prudent approach, the Board has written down DTH hammer and consumables amounting to $281,624 as at 30 June
2018.
LaserBond Ltd 2018 Annual Report | Page 30
Laserbond Limited - Financial Statements 2018
36
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
2018 FINANCIAL STATEMENTS
2018
$
6,042,366
(3,221,727)
2,820,639
214,240
(156,697)
57,543
534,035
(325,744)
208,291
2017
$
4,903,165
(2,629,214)
2,273,951
184,473
(151,975)
32,498
465,234
(234,173)
231,061
TOTAL PROPERTY, PLANT & EQUIPMENT
3,086,473
2,537,510
(a) Movements in Carrying Amounts
Plant &
Equipment
Office
Equipment
Motor Vehicles
Total
2018 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
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
(b) Asset Additions financed
$
2,273,951
1,140,237
(88)
(593,461)
2,820,639
$
2,163,829
663,881
(41,727)
(512,032)
2,273,951
32,498
51,630
(249)
(26,336)
57,543
$
39,542
12,088
-
(19,132)
32,498
$
231,061
68,800
-
(91,570)
208,291
$
173,356
169,364
(9,576)
(102,083)
231,061
The values for asset additions purchased utilising finance leases or hire
purchase agreements are:
2018
1,011,041
NOTE 10: INTANGIBLES
2018 Financial Year
Balance at the beginning of the year
Additions
Disposals
Amortisation Expense
Carrying Amount at the end of the year
2017 Financial Year
Balance at the beginning of the year
Additions
Disposals
Amortisation Expense
Carrying Amount at the end of the year
Patents and
Trademarks
Development
Asset
Other
Intangibles
$
5,955
-
-
(447)
5,508
6,438
-
-
(483)
5,955
$
-
-
-
-
-
235,994
-
-
(235,994)
-
$
33
24,231
(700)
(5,685)
17,879
71
-
-
(38)
33
Amortisation charges are included in depreciation and amortisation in the statement of profits and loss.
$
2,537,510
1,260,675
(337)
(711,367)
3,086,473
$
2,376,727
845,333
(51,303)
(633,247)
2,537,510
2017
693,849
Total
$
5,988
24,231
(700)
(6,132)
23,387
242,503
-
-
(236,515)
5,988
LaserBond Ltd 2018 Annual Report | Page 31
Laserbond Limited - Financial Statements 2018
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
At June 2016
(Charged) / credited
- to profit or loss
- directly to equity
At June 2017
(Charged) / credited
- to profit or loss
- directly to equity
At June 2018
NOTE 12: TRADE AND OTHER PAYABLES
Trade Payables
Taxes
Superannuation
Dividends
Accrued Expenses
2018 FINANCIAL STATEMENTS
37
2018
$
250,744
37,296
288,040
160,562
127,478
288,040
Employee
Benefits
Expense
Accruals
180,702
22,509
-
203,211
47,533
-
250,744
43,860
(13,934)
-
29,926
7,370
-
37,296
2018
$
1,036,909
85,729
38,070
28,631
678,158
1,867,497
2017
$
203,211
29,926
233,137
121,927
111,210
233,137
Total
224,562
8,575
-
233,137
54,903
-
288,040
2017
$
1,021,802
73,449
32,996
26,508
290,641
1,445,396
Accrued Expenses include $563,677 relating to two government grants (Next Generation Manufacturing Improvement Program
(NGMIP) and Cooperative Research Collaboration Project (CRC-P). This balance relates to deferred revenue for funding
entitlements for the NGMIP ($188,248) plus government funding due and tax invoices received from project partners for
expense claims relating to the CRC-P ($375,429).
NOTE 13: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Opening Balance
Issued Shares
Provision Unissued (Entitled) Shares
2018
Shares
91,132,465
1,941,024
-
93,073,489
2018
$
6,186,816
220,132
-
6,406,948
2017
Shares
89,410,345
1,722,120
-
91,132,465
2017
$
5,985,756
201,060
-
6,186,816
(a) Ordinary Shares
Date
Details
1st July 2016
Opening 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
No. Shares
89,410,465
721,972
300,000
63,700
636,448
91,132,465
Issue Price
(Cents per
Share)
10.93
13.50
12.50
12.56
$
75,415
39,250
8,705
77,690
201,060
LaserBond Ltd 2018 Annual Report | Page 32
Laserbond Limited - Financial Statements 2018
38
9th October 2017
13th October 2017
21st December 2017
6th April 2018
Non.Exec. Director Remuneration
Dividend Reinvestment Plan
Employee Share Plan
Dividend Reinvestment Plan
30th June 2018
Closing Balance
(b) Capital Risk Management
2018 FINANCIAL STATEMENTS
100,000
979,480
152,008
709,536
93,073,489
12.50
12.54
15.00
11.40
10,662
118,212
14,866
76,392
220,132
Management effectively manages the company’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 company has no borrowings and no externally imposed capital requirements. In order to maintain or adjust the capital
structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt.
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
2018
$
546,473
1,648,390
2,194,863
(271,996)
1,922,867
2017
$
432,367
1,045,794
1,478,161
(123,594)
1,354,567
The company’s hire purchase and finance lease commitments are in relation to plant & equipment and motor vehicles. These are
under agreements expiring currently within 1 to 5 years. Under the Terms of Agreements, the company has the option to acquire
the financed assets by payment of the final instalment. This option lapses in the event of a default of the finance lease
agreement.
(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)
NOTE 15: CONTINGENT ASSETS & LIABILITIES
744,378
2,583,057
-
3,327,435
820,119
2,634,832
116,168
3,571,119
The directors are not aware of any contingent assets or contingent liabilities that would have an effect on these financial
statements. (2017: 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)
238,098
Note: this is exclusive of executive director remuneration which is included within the remuneration report on pages 15 to 17
171,984
LaserBond Ltd 2018 Annual Report | Page 33
Laserbond Limited - Financial Statements 2018
(b) Key Management Personnel Transactions
Consultants
Hawkesdale Group
Sam Holdings (Aust.)
2018 FINANCIAL STATEMENTS
39
2018
$
2,500
57,450
59,950
2017
$
4,375
234,575
238,950
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 15 to 17.
Hawkesdale Group provided consultancy services related to sales support and strategy development. This is a director related
entity.
Sam Holdings provided consultancy services related to Sales and Marketing support, Government grant support and strategy
development. This is a director related entity.
Loans
Director Loan – Gregory Hooper
16,174
28,174
All Loans are classified as current, unsecured and interest free. This is payable on demand.
Superannuation
Contribution to superannuation funds on behalf of key management
personnel
NOTE 17: KEY MANAGEMENT PERSONNEL
89,954
62,041
The key management personnel of the company 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 company for management of its affairs are
included in the remuneration Report on pages 15 to 17.
(b) Options Held
There were no options held at 30 June 2018 or 30 June 2017. There were no options issued during the financial year.
(c) Shares Held
tseretnI
Wayne Hooper Direct
Wayne Hooper In-Direct
Greg Hooper Direct
Greg Hooper In-Direct
Philip Suriano In-Direct
Allan Morton1 In-Direct
Matthew Twist Direct
ta sa dleH serahS
30th June 2017
Issued Purchased / (Sold)
Shares Held as at
30th June 2018
9,067,779
1,132,427
5,412,926
3,778,625
439,296
1,454,964
56,554
21,342,571
284,153
47,434
226,733
158,275
105,835
-
9,154
831,584
-
38,000
-
-
-
-
-
38,000
9,351,932
1,217,861
5,639,659
3,936,900
545,131
1,454,9642
65,708
22,212,155
1 Allan Morton resigned on 4 October 2017.
2 These were the amount of shares held at the date of Allan Morton’s resignation.
tseretnI
ta sa dleH serahS
30th June 2016
Issued Purchased / (Sold)
Shares Held as at
30th June 2017
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
8,839,454
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
923,874
-
-
-
-
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
LaserBond Ltd 2018 Annual Report | Page 34
Laserbond Limited - Financial Statements 2018
40
NOTE 18: DIVIDENDS
Declared 2018 fully franked interim ordinary dividend of 0.2 (2017: 0.2)
cents per share franked at the tax rate of 30% (2017: 30%)
Declared 2017 fully franked final ordinary dividend of 0.3 (2017: 0.2)
cents per share franked at the tax rate of 30% (2016: 30%)
Total dividends per share for the period
Dividends paid in cash or satisfied by the issues of shares under the
dividend reinvestment plan during the year were as follows:
Paid in cash
Satisfied by the issue of shares
2018 FINANCIAL STATEMENTS
2018
$
184,728
273,373
0.5 cents
254,389
203,712
458,101
2017
$
178,821
180,992
0.4 cents
200,957
158,856
359,813
Dividends not recognised during the reporting period
Since year end the directors have recommended the payment of a final dividend of 0.4 cents per fully-paid ordinary share (2017:
0.3) fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 12th
October 2018 out of retained earnings at 30 June 2018, but not recognised as a liability at year end is $372,294 The debit
expected to franking account arising from this dividend is $111,688.
Franking credits
Franking credits available for subsequent periods based on a tax rate
of 30% (2017: 30%)
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
1,672,208
2018
$
967,749
783,048
(337)
(1,308,428)
(702,288)
(54,903)
422,101
161,838
120,781
(3,393)
1,495,948
2017
$
1,112,892
920,172
(1,186)
(1,077,905)
72,636
-
668,695
97,500
275,814
(93,267)
Net cash provided by operating activities
386,842
1,975,351
NOTE 20: FINANCIAL INSTRUMENTS
Financial Risk Management Policies
Activities undertaken may expose the company 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 company.
The Board of Directors monitors and manages financial risk exposures of the company and reviews the effectiveness of internal
controls relating these risks. The overall risk management strategy seeks to assist the company 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.
LaserBond Ltd 2018 Annual Report | Page 35
Laserbond Limited - Financial Statements 2018
2018 FINANCIAL STATEMENTS
41
Maturity of financial liabilities at 30th June 2018
Trade and other payables
Hire Purchase / Finance Lease
Total financial liabilities
Maturity of financial liabilities at 30th June 2017
Trade and other payables
Hire Purchase / Finance Lease
Total financial liabilities
Within 1 Year
$
1,878,381
441,988
1 to 5 Years
$
-
1,480,879
Total
$
1,878,381
1,922,867
2,320,369
1,480,879
3,801,248
Within 1 Year
$
1,445,396
363,173
1 to 5 Years
$
-
991,394
Total
$
1,445,396
1,354,567
1,808,569
991,394
2,799,963
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 company 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 company as 30th June 2018 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 company purchases certain raw material from overseas due to non-availability in Australia or savings due to bulk buying
power overseas. The company continues to expand its operation and has some overseas customers. 100% 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 company 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
company (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.
Shares issued are vested for a period of three years from date of issue, with one third released annually on each anniversary date
of the Board approved issue date. If employment is ceased for any reason any shares still currently vested and not released will
be forfeited by the employee. Shares are issued as fully-paid ordinary shares and rank equally with existing shares on issue.
Number of new shares issued under the plan to participating
employees: (refer to Note 13 a) for detail of date of issue and
issue price)
2018
$
152,008
2017
$
63,700
LaserBond Ltd 2018 Annual Report | Page 36
Laserbond Limited - Financial Statements 2018
42
2018 FINANCIAL STATEMENTS
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 2017 Annual General Meeting shareholder approval was sought and gained for the issue of 100,000 shares to one non-
executive director who held office for the full twelve months of fiscal year 2017. No approval has as yet been sought or gained for
the 2018 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: CONTROLLED ENTITIES
2018
$
16,704
12,500
29,204
2017
$
10,454
40,500
50,954
The group owns 100% of LaserBond (Qld) Pty Ltd, which is a non-trading entity incorporated in Australia.
NOTE 23: SEGMENT REPORTING
The company has identified its operating segment based on internal reports that are reviewed and used by the executive
directors (chief decision makers) in assessing performance and determining allocation of resources. The company operates
entirely within Australia. Segment information for the reporting period is as provided below. Other category consists of the
Technology and Research and Development segments.
Revenue
EBITDA
Interest
Depreciation & Amortisation
30 June 2018
Services
Product
Other
Total
10,040,123
5,608,023
-
15,648,146
1,827,354
934,973
(539,051)
2,223,276
45,407
400,583
58,177
314,974
-
1,942
110,774
717,499
Profit Before Income Tax
1,381,364
561,822
(540,993)
1,402,193
Income tax expense
(424,284)
(172,458)
162,298
(434,444)
Profit after Income Tax
957,080
389,364
(378,695)
967,749
Assets
Liabilities
12,482,710
(4,752,011)
144,298
12,627,008
(100,000)
(4,852,011)
LaserBond Ltd 2018 Annual Report | Page 37
Laserbond Limited - Financial Statements 2018
2018 FINANCIAL STATEMENTS
43
30 June 2017
Services
Product
Other
Total
7,237,205
5,075,744
1,438,486
13,751,417
1,572,571
989,428
(106,072)
2,455,927
Revenue
EBITDA
Interest
Depreciation & Amortisation
434,945
431,237
42,498
27,998
Profit Before Income Tax
1,095,128
530,193
(114,604)
7,308
1,224
77,804
867,406
1,510,717
Income tax expense
(288,386)
(139,619)
30,180
(397,825)
Profit after Income Tax
806,742
390,574
(84,424)
1,112,892
Assets
Liabilities
10,165,650
(3,253,526)
461,951
10,627,601
(328,858)
(3,582,384)
NOTE 24: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
a) Dividends
The directors have recommended the payment of a final dividend of 0.4 cents per fully-paid ordinary share (2017: 0.3), fully
franked based on tax paid at 30%. The aggregate amount of the proposed dividend is expected to be paid on 12th October 2018.
Subject to the group continuing to develop in accordance with future plans, the Board expects to continue to maintain future
dividends.
b) Technology License Agreement
LaserBond has signed its second Technology License Agreement, this time with a UK based multinational engineering company.
The agreement involves the supply of a LaserBond® designed and constructed laser cladding system, ongoing training and
support and consumable sales. This agreement will yield an increase in revenue this financial year by more than 10% year on
year with associated overhead recovery and increase in profits. Revenue in future years will include ongoing royalty fees over a
seven year license term as well as consumable sales.
NOTE 25: ECONOMIC DEPENDENCY
Revenues of $7,216,681 (2017 - $5,801,663) are derived from two external customers.
LaserBond Ltd 2018 Annual Report | Page 38
Laserbond Limited - Financial Statements 2018
44
1. Substantial Shareholders at 27th July 2018
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 27th July 2018
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
34
47
65
216
98
460
Total Units
5,468
177,237
518,484
8,044,476
84,327,824
93,073,489
SHAREHOLDER INFORMATION
%
10.048
10.048
1.308
7.826
7.669
6.059
4.230
5.311
Number of
Ordinary
Fully Paid
Shares Held
9,351,932
9,351,932
1,217,861
7,283,916
7,137,590
5,639,659
3,936,900
4,943,344
%
0.006
0.190
0.557
8.643
90.603
100.000
Holdings less than a marketable parcel 53
54,525
0.05858
3. Twenty Largest Shareholders as at 27th July 2018
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 Gregory John Hooper (Grendy Super Fund A/C)
Mr Ian Davies
Parks Australia Pty Ltd
Myall Resources Pty Ltd
Mr Keith Knowles
Fortitude Enterprises Pty Ltd
Mr Brendan Thomas Birthistle
Mr Makram Hanna & Mrs Rita Hanna (Hanna & Co P/L Super A/C)
W&D Hooper Investments Pty Ltd
Mr William Ross Fenner
Dixson Trust Pty Limited
Fortitude Enterprises Pty Ltd
Mr David Webster & Mrs Janine Florence Webster
Eory Super Pty Ltd
Number of
Ordinary Fully
Paid Shares Held
9,351,932
9,351,932
7,283,916
7,137,590
5,356,842
4,943,344
3,936,900
3,609,555
2,347,133
2,296,750
2,100,000
1,343,764
1,325,675
1,234,397
1,217,861
913,807
869,560
782,567
573,988
555,327
%
10.048
10.048
7.826
7.669
5.755
5.311
4.230
3.878
2.522
2.468
2.256
1.444
1.424
1.326
1.308
0.982
0.934
0.841
0.617
0.597
Totals for Top 20
66,532,840
71.484
Security Totals
93,073,489
LaserBond Ltd 2018 Annual Report | Page 39
Laserbond Limited - Financial Statements 2018
45
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
4. Voting Rights
4. Voting Rights
The voting rights attached to each class of equity securities are:
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
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one vote and
b) Options – No voting rights.
b) Options – No voting rights.
upon a poll each share shall have one vote.
upon a poll each share shall have one vote.
5. Restricted Securities
5. Restricted Securities
The group has no restricted securities.
The group has no restricted securities.
6. Securities subject to voluntary escrow
6. Securities subject to voluntary escrow
Total number of shares held
Total number of shares held
in escrow
in escrow
51,838
51,838
85,327
85,327
146,674
146,674
Escrow Release Date 1
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 2
Escrow Release Date 3
Escrow Release Date 3
21 Dec 2018 – 51,838 shares
21 Nov 2018 – 42,672 shares
16 Dec 2018 – 48,884 shares
21 Dec 2018 – 51,838 shares
21 Nov 2018 – 42,672 shares
16 Dec 2018 – 48,884 shares
21 Nov 2019 – 42,655 shares
16 Dec 2019 – 48,884 shares
21 Nov 2019 – 42,655 shares
16 Dec 2019 – 48,884 shares
16 Dec 2020 – 48,906 shares
16 Dec 2020 – 48,906 shares
LaserBond Ltd 2018 Annual Report | Page 40
LaserBond Ltd 2018 Annual Report | Page 40
Laserbond Limited - Financial Statements 2018
2018
A N N U A L R E P O R T
Shareholder’s Annual Report
Laserbond Limited ABN 24 057 636 692
Laserbond Limited
2 / 57 Anderson Road
SMEATON GRANGE
NSW 2567
Ph: +61 2 4631 4500
Fax: +61 2 4631 4555
Laserbond (SA)
112 Levels Road
CAVAN SA 5094
Phone: +61 8 8262 2289
www.laserbond.com.au
Quality 9001, Environment 14001,
Health & Safety 4801