Shareholder’s Annual Report
LaserBond Limited
ABN 24 057 636 692
2019
A N N U A L R E P O R T
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
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
6
8
19
20
21
25
26
27
28
29
47
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:
South Australia Division:
2 / 57 Anderson Road
SMEATON GRANGE
NSW 2567
Phone: +61 2 4631 4500
+61 2 4631 4555
Fax:
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
LNP Audit and Assurance Pty Ltd
Level 14, 309 Kent Street
SYDNEY NSW 2000
HWL Ebsworth Lawyers
Level 14, Australia Square
264-278 George Street
SYDNEY NSW 2000
Phone: +61 2 9334 8555
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 using
advanced additive manufacturing technologies to increase operating
performance and life of wearing components in capital-intensive
industries. Within these industries, the wear of components can have a
profound effect on the productivity and total cost of ownership of their
capital equipment. Almost all components fail at the surface, through a
combination of abrasion, erosion, corrosion, cavitation, heat and impact,
so a tailored surface metallurgy can be used to dramatically extend life
and enhance performance.
LaserBond’s technology has applications across many industries where
surface engineering can deliver significant cost effective improvements
in productivity and/or lower total cost of equipment ownership. They
include resources and energy, agriculture, fluid handling, steel and
aluminium production, heavy transport, advanced manufacturing,
defence and infrastructure construction.
Our growth has been built on the pursuit of leadership in innovation and
technology across three surface engineering foundations;
›› The tribology of wear and performance in heavy industrial
components.
›› Metallurgy and science of high performance materials.
›› Optimisation of 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 large end users in capital-intensive
heavy industries that endure high costs whenever their equipment is out
of production for maintenance. In addition to the significant cost savings
and productivity improvements we deliver, these customers recognise
LaserBond’s focus on WH&S, quality assurance, and the environment
which is delivered through our certified PAS99 integrated management
system. Importantly our customers also achieve WHS benefits, and the
positive contribution to the environment by utilising our services.
WHS benefits are often realised because of 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.
LASERBOND LIMITED - ANNUAL REPORT 2019 5
LASERBOND LIMITED - ANNUAL REPORT 2019 6
Chairman’s Letter
Dear Shareholder,
After my first full year as Chairman I am both extremely proud and
excited to present the company results for the 2019 fiscal year. During
this period LaserBond’s share price has risen by 212%. Whilst this growth
has occurred over the past 12 months it has been the culmination of
a number of years work by management and staff, implementing and
executing structural and strategic change to the business. The Board has
been delighted that our loyal shareholders have been rewarded for their
patience and continued trust in the company and the direction that the
Board has set for it..
LaserBond has achieved its goals and exceeded forecasts for FY2019,
providing shareholders with continued confidence in their investment.
The company’s continued performance has provided market certainty
that has led to greater investor interest and has seen our shareholder
base grow by 47%.
30 June
2019
30 June
2018
Revenues
$22.667 M
Up 44.9% from
$15.648 M
Services Division
$11.175 M
Up 11.3% from
$10.040 M
Products Division
$9.132 M
Up 62.8% from
$5.608 M
Technology Division
$2.360 M
No FY2018 Revenue
$-
EBITDA
NPAT
$4.904 M
Up 120.6% from
$2.223 M
$2.809 M
Up 190.3% from
$0.968 M
Earnings per share (cents)
2.972c
Up 185.8% from
1.04 c
The results in all divisions surpassed our annual expectations (refer
Directors’ Report for commentary) and as a direct result of the company’s
performance the Board is pleased to announce an increase to our final
dividend to 0.5 cents per share. This brings the yearly dividends to 1.0
cent per share, fully franked, an increase of 67% over FY2018.
The Board would like to take this opportunity
to thank all our staff for the tremendous level
of commitment that they have shown to the
business over the past twelve months and our
shareholders that continue to show their support.
This year has provided LaserBond with greater recognition and reputation
globally of our technology, products and services. LaserBond is attracting
interest from larger companies and the Board is satisfied that we are
well positioned and have advisors on-hand to assist with any future
opportunities.
Looking forward to the year ahead the forecast is to organically achieve
double digit growth in revenue year on year. The business plan remains
unaltered with the $40 million revenue target by 2022. The company
continues to review expansion opportunities in strategic areas and
markets in its quest to gain greater scale and presence in order to
fulfil customer requirements in a timely manner with a reduction to
transportation distance and cost.
Yours sincerely
Philip Suriano
Chairman
LaserBond Limited
LASERBOND LIMITED - ANNUAL REPORT 2019 Chairman’s Letter
7
LASERBOND LIMITED - ANNUAL REPORT 2019 8
Directors’ Report
The Directors present their report together with the financial
statements of LaserBond Limited for the financial year ended
30th June 2019.
Principal Activity
LaserBond is a specialist surface engineering company that focuses
on the development and application of materials using advanced
additive manufacturing technologies to increase operating
performance and life of wearing components in capital-intensive
industries. Within these industries, the wear of components can have
a profound effect on the productivity and total cost of ownership of
their capital equipment. Almost all components fail at the surface,
through a combination of abrasion, erosion, corrosion, cavitation,
heat and impact, so a tailored surface metallurgy can be used to
dramatically extend life and enhance performance.
LaserBond operates from facilities in New South Wales and
South Australia.
Review of Operations & Financial Results
During the 2019 financial year LaserBond achieved tremendous
growth with continued investment in order to deliver on future
planned growth.
The focus of the organisation was on:
1. Increasing staff skill, capacity and capabilities, through
recruitment and ongoing training.
2. Increasing equipment capacity and capabilities, through
investment in plant and equipment at both facilities.
3. Continued growth, through our on-going research and
development activities.
4. Development of the LaserBond technology offering to provide
higher productivity for LaserBond and its licensees.
5. Improving customer satisfaction through improved delivery
times.
SKILL AND CAPABILITIES
Our continued investment in people throughout
the 2019 financial year was based on a plan to
have a more fully manned afternoon shifts at both
facilities, increasing capacity and reducing the
burden of overtime.
Finding personnel with the base trade skills
we need has been a challenge for some time,
but with a number of recent recruits and the
successful employment of six employees on
skilled visa programs, our NSW afternoon shift
has increased to nine full time employees, with
a further three to move to afternoon shift in the
next few months. This is an increase from four
afternoon shift employees in June 2018.
Our SA facility capabilities have increased with
the employment of an additional 33% of shop
floor staff.
The company continues to train apprentices and
graduate engineers to provide the skills it needs
for the future. It is noteworthy that aside from
the founders, the longest serving employee, now
a key member of the management team in NSW,
started as an apprentice in January 1997.
Investment in personnel will continue in order to
increase capabilities further at both facilities and
deliver on the planned growth.
LASERBOND LIMITED - ANNUAL REPORT 2019 Directors’ Report
9
Our growing afternoon shift providing increased skill and capacity.
LASERBOND LIMITED - ANNUAL REPORT 2019 10
CAPACITY AND CAPABILITIES
During the 2019 financial year the company
fully commissioned two significant
equipment investments:
1. Automated dual station high power
LaserBond® cladding system adding
significant capacity in South Australia.
2. An additional large capacity CNC horizontal
borer in New South Wales, doubling capacity
for this work.
In accordance with its practice since
establishment, the company will continue
appropriate and measured investment in
FY2020 to allow increased capacity, capability
and improved productivity at both facilities.
This is necessary to deliver the planned future
growth and increased profits. Equipment is
usually financed by equipment finance facilities
provided by our bank.
LaserBond® cladding system recently commissioned for a global manufacturing company.
Newly commissioned Horizontal Borer more than doubling capacity.
LASERBOND LIMITED - ANNUAL REPORT 2019 RESEARCH AND DEVELOPMENT ACTIVITIES
Our R&D efforts focus mainly on the development of application
oriented coating systems, the development of new materials and the
associated processing parameters for all our coating technologies:
Laser Cladding, Thermal Spraying and Surface Brazing. This includes
a focus on increasing productivity, which has included the significant
improvements in production cycles realised with our new 16 kW
Laser source. For example, the deposition rate has been improved by
more than 100 % on a number of our high volume applications with a
subsequent improvement of critical overlay properties.
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. In the last year further
products where identified where LaserBond’s coatings exhibit
tremendous potential to significantly reduce both wear and downtime
in Reverse Circulation and Down-the-Hole drilling applications. After
the development of coating strategies, parts for on-site testing are
currently being carried out on a drill site near Olary, SA.
A second research project has just commenced - the Training Centre
“Surface Engineering for Advanced Materials (SEAM)”, supported
by the Australian Research Council. SEAM will be Australia’s premier
manufacturing Research and Development centre that focuses on
applied research with tangible outcomes to nurture and cultivate
the industrial innovation leaders of tomorrow. The Centre aspires to
provide an excellent environment for carrying out research, explore
projects with industry, government and other organisation. Within
the frame of SEAM, LaserBond will focus on Additive Manufacturing
using Direct Laser Deposition Techniques. The work will be carried out
in close collaboration with the Future Industries Institute of UniSA and
Swinburne University. Within the frame of the project one additional
Research Assistant, two PhD students and several international
students will support LaserBond’s efforts in continuing its advance in
laser cladding.
11
Further industry-oriented research
projects have been initiated. Within the
frame of one of them the aim is to transfer
LaserBond’s cladding technologies to a new
industrial area (Transportation). Another
industrial sector, where LaserBond’s coating
technologies are believed to have a major
impact is agriculture, with our LaserBond®
cladding being investigated with regard to
their application for new products. So far
results are very promising with an example
being when wear by erosion or abrasion
limits components lifetimes. In abrasion
testing, our claddings prove less than a fifth
of the wear rate compared to commercially
available coated products.
Across multiple industries worldwide,
for environmental reasons, “hardchrome
plating” is becoming more and more of an
issue with considerable research having
been conducted over a couple of decades
by many companies to try and come up
with an environmentally friendly and cost
efficient alternative. We have for many years
been conducting our own research and
development for a cost effective alternative
to hardchrome plating. Considerable success
has been accomplished over the last 12
months. Development of materials and
process parameters for both our LaserBond
Cladding and Thermal Spraying processes
has enabled the deposition of surface layers
that exhibit wear and corrosion properties
that exceed those of hardchrome coatings.
Two different coating systems have been
developed, with one representing the
best technical solution and the other one
a very economical alternative. Both are
outperforming existing hardchrome coatings
with regards to corrosion and wear resistance.
LASERBOND LIMITED - ANNUAL REPORT 2019 12
Results by Reportable Segments
Explanation of Results
Revenue by division
FY’17
FY’18
FY’19
12M
10M
8M
6M
4M
2M
0
Services
Products
Technology
›› Revenue from operations was $22.667 million,
up by 44.9% on FY2018.
›› Services Division achieved revenue of $11.175 million,
up 11.3% on FY2018.
›› Products Division achieved revenue of $9.132 million,
up 62.8% on FY2018.
›› Technology Division reports revenue of $2.360 million,
600
with no revenue in FY2018.
500
3.0M
400
.2.5M
300
2.0M
200
1.5M
1.0M
100
0.5M
0
0
0
-0.5M
-1.0M
EBITDA by division
FY’17
FY’18
FY’19
Services
Products
Technology
Research &
Development
›› EBITDA from operations was $4.904 million, up by 120.6% on FY2018.
›› Services Division achieved EBITDA of $2.575 million,
up 27.7% on FY2018.
›› Products Division achieved EBITDA of $2.654 million,
up 252.4% on FY2018.
›› Technology Division achieved EBITDA of $0.342 million,
after a FY2018 loss of <$0.039 million>.
›› R&D Division represented a cost of $0.667 million,
after a FY2018 cost of $0.501 million.
SERVICES DIVISION
The Services Division achieved revenue for
FY2019 of $11.175 million representing 11.3%
growth on FY2018 revenue of $10.040 million.
The NSW facility provides 87.8% of this revenue
based on its long standing surface engineering
repair and reclamation business, and achieved
9.3% growth. Whilst most of South Australia’s
revenue is from the sale of products, this facility
achieved a 28.1% increase in Services Division
revenue based on sales strategies developed for
growth in services. The second half of FY2019
reported a small decrease in Services Division
revenue from the first half, directly related to some
capacity constraints caused by the manufacture of
equipment for the technology division sale. With
the growing capabilities in NSW future impact
from the technology division will be reduced.
This division provided EBITDA of $2.575 million,
representing a 27.7% growth on FY2018 EBITDA
of $2.016 million.
It is expected the Services Division will continue to
deliver 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). It is also expected that this
division will achieve growing profit margins due to
the productivity improvements gained from the
investment in resources.
PRODUCTS DIVISION
The Products Division achieved revenue for
FY2019 of $9.132 million representing a 62.8%
growth on FY2018 revenue of $5.608 million. The
focus of the South Australian facilities has been on
products, and represents 61.8% of this revenue.
The balance of 38.2% is generated from contract
manufacturing of products for long standing
original equipment manufacturers. Growth
in products revenue is expected to continue
to grow largely in South Australia due to the
increasing investment in resources (both human
and equipment) and the improved output due to
the completed commissioning of the automated
LaserBond® cladding system.
The Products Division achieved $2.654 million
EBITDA representing a 252.4% growth on FY2018
EBITDA of $0.753 million.
LASERBOND LIMITED - ANNUAL REPORT 2019 The Products Division is expected to continue to provide the most
revenue growth for the business particularly with the growing market
for our existing product offerings to large OEM’s and our own long-life
composite carbide steel mill rolls in North America and other countries.
LaserBond is now receiving repeat orders from mills in the USA, and is
working towards developing customers in other countries.
The steel mill roll market in the United States alone is estimated to be
well over fifteen times that of Australia, and Australian steel mills provided
$285k revenue in FY2019 (and growing). A testimonial from an Australian
steel company has been provided:
“The Maintenance Engineering Team at OneSteel had heard of some of
the application successes of a local company called LaserBond Ltd. with
their Carbide Composite technology. Within a time period of less than 6
months LaserBond has become an Integral Supply Chain Partner with
our Procurement and Maintenance Teams. In every case the Carbide
Composite components that are manufactured and supplied to us by
LaserBond have far exceeded our expectations in terms of the service life
we are now achieving.”
A great result for another superior product application from LaserBond,
providing tremendous opportunities for growth domestically and around
the world.
LaserBond continues to develop export and domestic markets for other
products.
TECHNOLOGY DIVISION
Laser cladding in recent years has become more globally recognised as a
superior solution for wear problems in many industries. This recognition
has also created a desire globally for large businesses, particularly original
equipment manufacturers, to develop their own surface engineered
products for improved market differentiation. Over twenty-seven years
LaserBond has developed a culture of innovation that continually
develops innovative surface engineering technology and applications,
and an accumulated knowledge of the mechanics of wear to vital
machine components that experience some of the fastest wear rates in
abrasive and chemically hostile environments. LaserBond has developed
global recognition in our own laser cladding solutions, with components
exported internationally including to the United States, Canada, South
America, South Africa, Europe and Asia.
Further, some laser suppliers have recently introduced equipment for
laser cladding, but most suppliers do not have a history of research
and development of applications to enable the best wear performance
results. LaserBond are able to provide immediate and superior solutions
to businesses looking to invest in laser cladding. Our Technology
division customers become partners with LaserBond who we assist with
integrating the equipment, developing the software systems, in-depth
operator training including the understanding of the metallurgy, and
building the quality assurance process.
13
In the 4th quarter of FY2019, LaserBond
delivered its second Technology Division sale
to a multi-billion-dollar global manufacturer
that will utilise LaserBond’s technology in its
product offerings. The training and support
will continue over a seven-year period in return
for equipment utilisation based licensing
fees. The equipment is now fully installed,
commissioned and operating for license fee
returns commencing in FY2020.
This division achieved $2.360 million revenue
with an EBITDA of $0.342 million after an
overhead recovery allowance provided from the
NSW facilities fixed costs.
This revenue is made up of $1.945m for the sale
of the LaserBond® laser cladding equipment
and a further $0.415 million for the provision
of laser cladding consumables which will form
an ongoing need by the customer which is
contractually obligated to purchase these
specialised consumables from LaserBond.
LaserBond’s aim is to provide continued
revenue from the Technology Division in the
form of:
a) LaserBond® laser cladding equipment as an
off-the-shelf design or custom built to suit a
customer’s needs. Value will be dependent
on the design however an off-the-shelf
design would typically provide revenue of
approximately $1.2 - $1.7 million. The target
is to provide one additional equipment sale
during FY20 and two each year from FY21.
b) Ongoing licensing fees for the term of each
agreement. The revenue from licensing fees
depends on the utilisation of the equipment
but can be in the hundreds of thousands
annually for each system supplied. This
license revenue leverages the detailed
technical knowledge and other IP LaserBond
has developed over many years with little in
the way of additional costs.
c) Where practical, ongoing consumables
supply for the term of each agreement with
each piece of equipment supplied capable
of using up to $1 million per annum in
consumables, depending on utilisation and
the type of work carried out. This revenue
leverages LaserBond’s buying power for
consumables, but in order to maintain
competitiveness, has low margins relative to
other revenue streams.
LASERBOND LIMITED - ANNUAL REPORT 2019 14
Research & Development
This division reported an EBITDA cost of $667,004. Net R&D increased
by over a third 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 Research &
Development Activities on page 11 of this Directors’ Report.
Outlook
During FY2020 LaserBond is targeting continued double digit revenue
growth from the Services & Products divisions (including targets from
the steel mill products internationally), plus a growing customer base
for equipment and ongoing licensing and consumables from our
Technology division. This is expected to reflect in similar net profitability
rates to those achieved in FY2019 after improvements to gross
profitability based on increasing productivity and after reduction of Other
Income due to the completion of the Next Generation Manufacturing
Investment Program (NGMIP) in FY2019. The NGMIP provided an
allocation of $0.47 million government funding during FY2019 as part
of the $3.22 million project to improve our capacity and capabilities in
South Australia. There will be continued investment in resources
(human and equipment) as well as research and development
to deliver future growth.
Further, the Board remains focused on its strategic plan aiming to
achieve $40 million revenue within three years. This plan remains
focused largely on:
1. Organisational Structure
The ongoing development of a structure
that provides an increasingly 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.
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
CEO/ Executive Director
21 April 1994
Gregory Hooper
CTO/ Executive Director
30 September 1992
Philip Suriano
Chairman / Non-Executive Director
6 May 2008
Matthew Twist
Company Secretary
30 March 2009
LASERBOND LIMITED - ANNUAL REPORT 2019 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.
As CEO, Wayne is responsible for sales, marketing, administration and
compliance to ensure a smoothly functioning, efficient organisation.
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 15 years he has been working in corporate finance.
Matthew Twist GIA (Cert) – Company Secretary, and
Risk committee member
Matthew Twist has over 25 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 an affiliated member of the Governance
Institute of Australia.
15
Remuneration Report
The directors present the LaserBond Limited
2019 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 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 current financial
year, one non-executive director received
non-cash (equity based) payments amounting
to $18,750.
Executive Director’s performance based
bonuses are subject to the achievement of set
key performance indicators, reviewed annually
by the Remuneration Committee.
LASERBOND LIMITED - ANNUAL REPORT 2019 16
Remuneration Report (continued)
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 20 b).
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.
2019
$
2018
$
2017
$
2016
$
2015
$
Revenue
22,667,200
15,648,146
13,751,417
10,515,581
9,546,595
Net Profit after Tax
2,809,404
967,749
1,112,892
78,745
366,766
Share price at year end (Cents)
Dividends paid (Cents)
39.00
0.9
12.50
0.6
12.50
0.5
8.10
0.4
13.00
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 2018 and 30 June 2019
Salaries and fees
Superannuation
Share based
payments
Long Service
Leave
Wayne Hooper1
Gregory Hooper1
Philip Suriano2
Matthew Twist
Totals
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
313,272
308,650
319,880
308,335
30,000
28,750
155,310
151,653
818,462
797,388
54,477
46,650
30,139
29,031
-
-
14,549
14,273
99,165
89,954
-
-
-
-
18,750
12,500
1,000
1,000
19,750
13,500
-
-
-
-
-
-
-
-
-
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 15 a) 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 15 b).
LASERBOND LIMITED - ANNUAL REPORT 2019 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 2019 financial year held by each of
the company’s key management personnel,
including their related parties, is set out below:
Wayne Hooper
Gregory Hooper
Philip Suriano
Matthew Twist
Balance at
30 June 2018
Granted as
remuneration
10,569,793
9,576,859
545,131
65,708
-
-
150,000
2,597
Other
changes
321,390
-
13,174
2,604
Balance at
30 June 2019
10,891,183
9,576,859
708,305
70,909
(h) Loans to key management personnel
The company allows its employees to take short term loans and this
facility is also available to its key management personnel. The table
below provides aggregate information relating to company’s loans to key
management personnel during the year:
The loans to key management personnel are
generally for a short term. These loans are
unsecured and interest free.
Loans to key management personnel
End of remuneration report.
Director’s Meetings
During the financial year ended 30th June 2019, the number of meetings
held, and attended, by each Director were as follows:
2019
4,174
2018
16,174
Director
Board Meetings
Audit and Risk Committee
Meetings
Remuneration Committee
Meetings
Eligible
Attended
Eligible
Attended
Eligible
Attended
Wayne Hooper
Gregory Hooper
Philip Suriano
6
6
6
6
6
6
3
-
2
3
-
2
-
-
1
-
-
1
Please refer to the Corporate Governance Statement at http://www.
laserbond.com.au/investor-relations/governance-statement.html for
further information.
LASERBOND LIMITED - ANNUAL REPORT 2019 18
Significant Changes in State of Affairs
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 20th day of August 2019
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
The final dividend has been recommended and will be paid as
detailed below.
DIVIDENDS
2018 final dividends of 0.4 cents per share and 2019 interim dividends
of 0.5 cents per share were paid during the year. The directors have
recommended the payment of a final dividend for FY2019 of 0.5 cents
per fully-paid ordinary share (FY2018: 0.4c), fully franked based on tax
paid at 27.5%. The dividend is expected to be paid on
11th October 2019.
Subject to the company continuing to develop in accordance
with future plans, the Board expects to continue to maintain
future dividends.
Directors’ and Auditors’ Information
Insurance premiums of $9,224 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.
LASERBOND LIMITED - ANNUAL REPORT 2019 19
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 46 are
in accordance with the Corporations Act 2001 and:
a. Comply with Accounting Standards, the Corporations Regulations
2001 and other mandatory professional reporting requirements;
and
b. Give a true and fair view of the financial position as at 30th June
2019 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.
Note 1 confirms that the financial statements also comply with
International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The directors have been given the declarations by the chief executive
officer and chief financial officer required by Section 295A of the
Corporations Act 2001.
This declaration is made in accordance with a resolution of the
Board of Directors.
Director
Wayne Hooper
Director
Gregory Hooper
Dated this 20th day of August 2019.
LASERBOND LIMITED - ANNUAL REPORT 2019 20
www.lnpaudit.com ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
+61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
+61 3 8658 5928
L1 180 Main Street Kangaroo Point QLD 4169
+61 7 3391 6322
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS
ACT 2001 TO THE DIRECTORS OF LASERBOND LIMITED
As lead auditor of Laserbond Limited for the year ended 30 June 2019, I declare that, to the best of my
knowledge and belief, there have been:
1.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
2.
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Laserbond Limited during the financial year.
LNP Audit and Assurance Pty Ltd
Anthony Rose
Director
Sydney 20 August 2019
Liability limited by a scheme approved under Professional Standards Legislation
20
LASERBOND LIMITED - ANNUAL REPORT 2019
ABN 65 155 188 837
www.lnpaudit.com ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
+61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
T +61 3 8658 5928
L24 570 Bourke Street Melbourne VIC 3000
www.lnpaudit.com
+61 3 8658 5928
21
INDEPENDENT AUDIT REPORT
TO THE MEMBERS OF LASERBOND LIMITED
L1 180 Main Street Kangaroo Point QLD 4169
+61 7 3391 6322
AUDITOR’S INDEPENDENCE DECLARATION
Opinion
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
We have audited the financial report of Laserbond Limited, which comprises the statement of
TO THE DIRECTORS OF LASERBOND LIMITED
financial position as at 30 June 2019, the statement of profit or loss and other comprehensive
income, the statement of changes in equity and the statement of cash flows for the year then
As lead auditor of Laserbond Limited for the year ended 30 June 2018, I declare that, to the best of my
ended, notes comprising a summary of significant accounting policies and other explanatory
knowledge and belief, there have been:
information and the Directors’ Declaration of the Company.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
In our opinion:
1.
The accompanying financial report of Laserbond Limited is in accordance with the Corporations Act
2001, including:
2.
no contraventions of any applicable code of professional conduct in relation to the audit.
i. Giving a true and fair view of the company’s financial position as at 30 June 2019 and of its
financial performance for the year ended on that date; and
This declaration is in respect of Laserbond Limited during the financial year.
ii. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
LNP Audit and Assurance
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
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
Anthony Rose
Standards Board’s APES110 Code of Ethics for Professional Accountants (the Code) that are relevant
Director
to our audit of the financial report in Australia; and we have fulfilled our other ethical
responsibilities in accordance with the Code. We believe that the audit evidence we have obtained
Sydney, 27 August 2018
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not
provide a separate opinion on these matters. Our description of how our audit addressed the
matter is provided in that context.
Liability limited by a scheme approved under Professional Standards Legislation
21
20
LASERBOND LIMITED - ANNUAL REPORT 2019
22
Key Audit Matter
How our audit addressed the matter
Implementation of new revenue accounting policy
(refer to note 1)
We performed
amongst others:
the
following procedures,
The company adopted a new revenue accounting
policy during the year due to the mandatory
introduction of AASB 15 Revenue from Contract
with Customers. The new policy is disclosed in note
2.
The adoption of a new revenue accounting policy
was a key audit matter due to the:
•
•
•
significance of revenue to understanding
the financial results for users if the financial
report.
complexity involved in applying the new
AASB 15 requirements to contracts with
customers.
judgement required by the company in
applying the new AASB 15 requirements,
such as whether contracts contain multiple
performance obligations which should be
accounted for separately and when to
recognise revenue based on when control
transfers to a customer.
• Developed an understanding of and
evaluated the operating effectiveness
of relevant key internal control.
• Assessed
the
adequacy
of
methodology used the company for
determining the extent of contract
reviews required to identify AASB 15
impact.
• Assessed whether the company’s new
accounting policies were in accordance
with the requirements of AASB 15
through
of
company’s analysis in relation to AASB
15.
consideration
the
• Considered
identification
obligations
invoices
contracts.
and
issued
in
the
of
company’s
performance
sales
these
inspecting
fulfilling
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2019 but does not include the
financial report and the auditor’s report thereon. Our opinion on the financial report does not cover
the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial report or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based upon the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
22
LASERBOND LIMITED - ANNUAL REPORT 2019
Directors’ Responsibilities
ABN 65 155 188 837
L14 309 Kent St Sydney NSW 2000
T +61 2 9290 8515
23
The Directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the Directors determine is necessary to enable the
preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
www.lnpaudit.com
L24 570 Bourke Street Melbourne VIC 3000
T +61 3 8658 5928
AUDITOR’S INDEPENDENCE DECLARATION
In preparing the financial report, the Directors are responsible for assessing the company’s ability to
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
continue as a going concern, disclosing, as applicable, matters related to going concern and using
TO THE DIRECTORS OF LASERBOND LIMITED
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.
As lead auditor of Laserbond Limited for the year ended 30 June 2018, I declare that, to the best of my
Auditor’s Responsibilities for the Audit of the Financial Report
knowledge and belief, there have been:
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
1.
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
2.
considered material if, individually or in the aggregate, they could reasonably be expected to
This declaration is in respect of Laserbond Limited during the financial year.
influence the economic decisions of users taken on the basis of this financial report.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
LNP Audit and Assurance
•
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
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Anthony Rose
Director
• 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.
Sydney, 27 August 2018
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Directors.
• 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.
Liability limited by a scheme approved under Professional Standards Legislation
23
20
LASERBOND LIMITED - ANNUAL REPORT 2019
• 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.
• 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.
• 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.
• From the matters communicated to the Directors, we determine those matters that were
of most significance in the audit of the financial report of the current year and are therefore
the key audit matters. We describe these matters in our auditor’s report unless 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
because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Opinion on the Remuneration Report
We have audited the Remuneration Report included on pages 15 to 17 of the Directors' Report for
the year ended 30 June 2019.
In our opinion, the Remuneration Report of Laserbond Limited for the year ended 30 June 2019,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
The engagement partner on the audit resulting in this independent auditor’s report is Anthony
Rose.
LNP Audit and Assurance Pty Ltd
Anthony Rose
Director
Sydney, 20 August 2019
24
2019 FINANCIAL STATEMENTS
25
Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30th June 2019
2019
2018
Revenue from continuing operations
Cost of Sales
Gross Profit from continuing
operations
Other Income
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Expenses
Administration Expenses
Repairs & Maintenance
Finance Costs
Research & Development
Other Expenses
Note
22
2
$
22,667,200
(11,924,478)
10,742,722
547,586
(182,183)
(886,070)
(2,550,761)
(773,650)
(1,721,481)
(244,945)
(176,708)
(552,826)
(366,817)
Profit before income tax expense
from continuing operations
4, 22
3,834,867
$
15,648,146
(8,686,048)
6,962,098
665,418
(162,208)
(717,499)
(2,071,643)
(730,733)
(1,575,956)
(163,085)
(110,774)
(470,091)
(223,334)
1,402,193
Income tax expense
4, 22
(1,025,463)
(434,444)
Profit after income tax expense from
continuing operations
2,809,404
967,749
Other comprehensive income
-
-
Total comprehensive income attributable to
members of LaserBond Limited
2,809,404
967,749
Earnings per share for profit attributable to members:
Basic and diluted earnings per share
(cents)
5
2.972
1.040
This Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
LaserBond Ltd 2019 Annual Report | Page 21
LaserBond Limited - Financial Statements 2019
26
2019 FINANCIAL STATEMENTS
Statement of Financial Position
As at 30th June 2019
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
Note
6
7
8
10
9
11
2019
$
2,192,535
5,395,681
2,547,508
10,135,724
5,862,445
363,355
39,680
6,265,480
2018
$
1,379,062
5,362,441
2,487,605
9,229,108
3,086,473
288,040
23,387
3,397,900
16,401,204
12,627,008
2,037,970
998,778
641,201
386,327
4,064,276
2,213,062
63,642
2,276,704
1,867,497
792,429
441,988
225,832
3,327,746
1,480,879
43,386
1,524,265
TOTAL LIABILITIES
6,340,980
4,852,011
NET ASSETS
EQUITY
Issued capital
Retained earnings
TOTAL EQUITY
10,060,224
7,774,997
12
6,725,293
3,334,931
10,060,224
6,406,948
1,368,049
7,774,997
This Statement of Financial Position should be read in conjunction with the accompanying notes.
LaserBond Ltd 2019 Annual Report | Page 22
LaserBond Limited - Financial Statements 2019
Statement of Cash Flows
for the Year Ended 30th June 2019
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
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
Note
18
27
2019 FINANCIAL STATEMENTS
2019
2018
$
$
25,467,090
(20,315,706)
(176,708)
6,783
(900,428)
4,081,031
(3,432,839)
(22,600)
(3,455,439)
(9,408)
742,347
(545,058)
187,881
813,473
1,379,062
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
2,192,535
1,379,062
This Statement of Cash Flows should be read in conjunction with the accompanying notes.
LaserBond Ltd 2019 Annual Report | Page 23
LaserBond Limited - Financial Statements 2019
28
Statement of Changes in Equity
Statement of Changes in Equity
for the Year Ended 30th June 2019
for the Year Ended 30th June 2019
2019 FINANCIAL STATEMENTS
2019 FINANCIAL STATEMENTS
Issued
capital
Issued
capital
$
$
Retained
earnings
Retained
earnings
$
$
Total
equity
Total
equity
$
$
Opening Balance at 1st July 2017
Opening Balance at 1st July 2017
6,186,816
6,186,816
858,401
858,401
7,045,217
7,045,217
Profit for the year
Profit for the year
-
-
967,749
967,749
Issue of Share Capital, net of cost
Issue of Share Capital, net of cost
220,132
220,132
-
-
967,749
967,749
220,132
220,132
Dividends paid during the year
Dividends paid during the year
-
-
(458,101)
(458,101)
(458,101)
(458,101)
Closing Balance at 30th June 2018
Closing Balance at 30th June 2018
6,406,948
6,406,948
1,368,049
1,368,049
7,774,997
7,774,997
Profit for the year
Profit for the year
-
-
2,809,404
2,809,404
Issue of Share Capital. net of cost
Issue of Share Capital. net of cost
318,345
318,345
-
-
Dividends Paid during the year
Dividends Paid during the year
-
-
(842,522)
(842,522)
2,809,404
2,809,404
318,345
318,345
(842,522)
(842,522)
Closing Balance at 30th June 2019
Closing Balance at 30th June 2019
6,725,293
6,725,293
3,334,931
3,334,931
10,060,224
10,060,224
This Statement of Changes in Equity should be read in conjunction with the accompanying notes.
This Statement of Changes in Equity should be read in conjunction with the accompanying notes.
LaserBond Ltd 2019 Annual Report | Page 24
LaserBond Ltd 2019 Annual Report | Page 24
LaserBond Limited - Financial Statements 2019
SHAREHOLDER INFORMATION
29
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
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 20th August 2019. 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.
CHANGE IN ACCOUNTING POLICY
AASB 9 Financial Instruments
AASB 9 sets out new requirements for the classification and measurement of financial assets and liabilities and include
forward-looking expected loss impairment model. This standard replaces AASB 139 Financial Instruments: Recognition and
Measurement.
The adoption of AASB 9 did not have a significant effect on the company’s accounting policy relating to financial liabilities.
Trade receivables is the only financial asset that has been impacted by the adoption of the standard, specifically the
measurement basis for the impairment of trade receivables which is now based on expected credit loss (ECL). When
determining the credit risk for trade receivables, the company uses quantitative and qualitative information and analysis,
based on the company’s historical experience and informed credit assessment including forward looking information.
The company applies the AASB 9 simplified model of recognising lifetime expected credit losses for all trade receivables as
these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables
have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based
on the days past due and also according to the geographical location of customers which is predominantly Australia. The
expected loss rates are based on the payment profile for sales over the past 36 months before 30 June 2019 as well as the
corresponding historical credit losses during that period. The historical rates are adjusted to reflect current and forwarding
looking economic factors affecting the customer’s ability to settle the amount outstanding. The company has identified the
borrowing rate for small to large business and the unemployment rate to be the most relevant factors and accordingly
adjusts historical loss rates for expected changes with reference to these factors. However, given the short period exposed
to credit risk, the impact of these economic factors has not been considered significant within the reporting period. Trade
receivables are written off when there is no reasonable expectation of recovery. Failure to make payments and to
communicate alternative payment arrangements may be considered indicators of no reasonable expectation of recovery.
Given the prudent approach to estimating losses on receivables in accordance with the previous standards, the company
did not need to adjust the estimated recoverability of trade receivables on transition to AASB 9.
AASB 15 Revenue from Contracts with Customers
AASB 15 introduces a changed process for revenue recognition based on identifying when performance obligations are
met. Revenue from sale of goods are recognised by the company when the goods are transferred to the customer, namely
from the time the customer gains controls of the goods. Revenue from services is recognised at the point the services are
provided.
Where the company’s contracts comprise a variety of performance obligations including, but not limited to, equipment
delivery, training, and installation, under AASB 15, the company must evaluate the separability of the promised goods or
services based on whether they are ‘distinct’. A promised good or service is ‘distinct’ if both:
the customer benefits from the item either on its own or together with other readily available resources;
it is ‘separately identifiable’ (i.e. the company does not provide a significant service integrating, modifying or customising
it).
While this represents significant new guidance, the implementation of this new guidance did not have a significant impact
on the timing or amount of revenue recognised by the company during the year. Application of AASB 15 did not impact
the way in which the company accounts for revenue from sale of goods or provision of services.
LaserBond Ltd 2019 Annual Report | Page 25
LaserBond Limited - Financial Statements 2019
30
SHAREHOLDER INFORMATION
Other amended standard adopted by the Group which do not have a material impact on the financial statements:
AASB 2016-5 Amendments to Australian Accounting Standards - Classification and Measurement of Share-based Payment
Transactions.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a) Revenue and other income
For current year
Revenue from contracts with customers
The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of promised goods or services to
customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.
Revenue is recognised by applying a five-step model as follows:
1.
Identifying the contract with a customer
Identifying the performance obligations
2.
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
Revenue from sale of goods and services
Revenue from sale of goods to customers is recognised when control of the goods has transferred to the customer, being
the point in time when the goods are received by the customer. Revenue from services is recognised at the point the
services are provided.
For comparative year
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.
LaserBond Ltd 2019 Annual Report | Page 26
LaserBond Limited - Financial Statements 2019
SHAREHOLDER INFORMATION
31
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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
For current year
Financial instruments are recognised initially on the date that the Company becomes party to the contractual provisions of
the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for
instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).
Financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.
LaserBond Ltd 2019 Annual Report | Page 27
LaserBond Limited - Financial Statements 2019
32
SHAREHOLDER INFORMATION
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Classification
On initial recognition, the Company classifies its financial assets at amortised cost. Financial assets are not reclassified
subsequent to their initial recognition unless the Company changes its business model for managing financial assets.
Assets measured at amortised cost are financial assets where the business model is to hold assets to collect contractual
cash flows and the contractual terms give rise on specified dates to cash flows are solely payments of principal and interest
on the principal amount outstanding. The Company's financial assets measured at amortised cost comprise trade and other
receivables and cash and cash equivalents in the statement of financial position. Subsequent to initial recognition, these
assets are carried at amortised cost using the effective interest rate method less provision for impairment.
Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or loss on
derecognition is recognised in profit or loss.
Impairment of financial assets
Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assets measured at amortised
cost.
When determining whether the credit risk of a financial assets has increased significant since initial recognition and when
estimating ECL, the Company considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company's
historical experience and informed credit assessment and including forward looking information.
Credit losses are measured as the present value of the difference between the cash flows due to the Company in accordance
with the contract and the cash flows expected to be received. This is applied using a probability weighted approach.
Impairment of trade receivables and contract assets have been determined using the simplified approach in AASB 9 which
uses an estimation of lifetime expected credit losses. The Company has determined the probability of non-payment of the
receivable and contract asset and multiplied this by the amount of the expected loss arising from default.
Financial liabilities
The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities
are measured at amortised cost using the effective interest rate method. The financial liabilities of the Company comprise
trade payables and finance lease liabilities.
For comparative year
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.
LaserBond Ltd 2019 Annual Report | Page 28
LaserBond Limited - Financial Statements 2019
SHAREHOLDER INFORMATION
33
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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 are recognised and amortised from the date at which the patent was granted. Patent expenditures are amortised
at 7.5% per annum.
LaserBond Ltd 2019 Annual Report | Page 29
LaserBond Limited - Financial Statements 2019
34
SHAREHOLDER INFORMATION
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Software
Software costs are recorded and amortised from the date 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.
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.
LaserBond Ltd 2019 Annual Report | Page 30
LaserBond Limited - Financial Statements 2019
SHAREHOLDER INFORMATION
35
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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 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.
LaserBond Ltd 2019 Annual Report | Page 31
LaserBond Limited - Financial Statements 2019
36
SHAREHOLDER INFORMATION
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 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 an asset (the right to use an asset) and a financial liability (to pay rentals) on
the balance sheet. The company currently has $2,583,057 worth of operating leases most of which we anticipate will be
brought onto the statement of financial position. Interest and amortisation expense will increase and rental expense will
decrease. The company is applying the modified retrospective approach and therefore will not restate comparatives.
NOTE 2: OTHER INCOME
Grant Income
Other
NOTE 3: EXPENSES
2019
$
468,606
78,980
547,586
2018
$
640,772
24,656
665,418
Profit before Income Tax from continuing operations includes the
following specific expenses
Auditors Remuneration
- Audit Services – audit and review of Financial Reports
67,000
60,000
NOTE 4: INCOME TAX
Reconciliation of Income Tax Expense from continuing operations
Profit before Income Tax expense
3,834,867
1,402,193
Prima Facie Tax at the Australian tax rate of 27.5% (2018: 30%)
Deferred Tax Asset adjustments
R&D Tax Concession
Non-deductible expense
Adjustment to Prior Year Income Tax Provisions
Total Income Tax Expenses
NOTE 5: EARNINGS PER SHARE
1,054,588
99,317
(88,682)
7,208
(46,968)
1,025,463
420,658
54,903
(63,723)
4,926
17,680
434,444
Basic and diluted earnings per share (cents)
2.972
1.040
There are no current options to affect diluted earnings per share.
LaserBond Ltd 2019 Annual Report | Page 32
LaserBond Limited - Financial Statements 2019
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2018
Shares issued as at 12th October 2018
Shares issued as at 23rd October 2018
Shares issued as at 25th February 2019
Shares issued as at 5th April 2019
Closing Balance as at 30th June 2019
NOTE 6: TRADE AND OTHER RECEIVABLES
Trade Receivables
Provision – Impairment of Receivables (a)
Loans – Key Management Personnel
Loans – Employees
Prepayments
37
SHAREHOLDER INFORMATION
No. of Shares
93,073,489
Weighted No.
93,073,489
812,074
150,000
59,731
444,148
580,689
102,740
20,456
104,649
94,539,442
93,882,023
2019
$
4,822,307
(7,740)
4,174
6,642
570,298
5,395,681
2018
$
3,478,783
(13,135)
16,174
2,789
1,877,830
5,362,441
Prepayments include progress payments on patent applications, deposits on equipment to increase capabilities and the
provision for an expense reimbursement claim from the Collaborative Research Centre Project.
Gross
Amount
$,000
Past due
(and
impaired)
$,000
4,822
574
5,396
3,479
1,883
5,362
8
-
8
13
-
13
2019
Trade receivables
Other receivables
2018
Trade receivables
Other receivables
Within Trade Terms
(not impaired)
<30
$,000
2,902
574
3,476
1,696
1,883
3,579
31-60
$,000
1,379
-
1,379
1,153
-
1,153
61-90
$,000
>90
$,000
153
-
153
608
-
608
380
-
380
9
-
9
Total
$,000
4,822
574
5,396
3,479
1,883
5,362
LaserBond Ltd 2019 Annual Report | Page 33
LaserBond Limited - Financial Statements 2019
38
NOTE 7: INVENTORY
Stock on Hand – Raw Materials
Stock on Hand – Finished Goods
Work in Progress
NOTE 8: PROPERTY, PLANT & EQUIPMENT
Plant & Equipment
At Cost
Less Accumulated Depreciation
Office Equipment
At Cost
Less Accumulated Depreciation
Motor Vehicles
At Cost
Less Accumulated Depreciation
SHAREHOLDER INFORMATION
2019
$
1,492,517
392,188
662,803
2,547,508
9,411,567
(3,865,580)
5,545,987
234,734
(138,487)
96,247
569,383
(349,172)
220,211
2018
$
1,139,935
382,659
965,011
2,487,605
6,042,366
(3,221,727)
2,820,639
214,240
(156,697)
57,543
534,035
(325,744)
208,291
TOTAL PROPERTY, PLANT & EQUIPMENT
5,862,445
3,086,473
(a) Movements in Carrying Amounts
Plant &
Equipment
Office
Equipment
Motor Vehicles
Total
2019 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
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
(b) Asset Additions financed
$
2,820,639
3,455,136
(85,936)
(643,852)
5,545,987
$
2,273,951
1,140,237
(88)
(593,461)
2,820,639
57,543
88,133
(70,878)
21,449
96,247
$
32,498
51,630
(249)
(26,336)
57,543
$
208,291
100,256
(64,908)
(23,428)
220,211
$
231,061
68,800
-
(91,570)
208,291
The values for asset additions purchased utilising finance leases or
hire purchase agreements are:
2019
1,495,157
$
3,086,473
3,643,525
(221,722)
(645,831)
5,862,445
$
2,537,510
1,260,675
(337)
(711,367)
3,086,473
2018
1,011,041
LaserBond Ltd 2019 Annual Report | Page 34
LaserBond Limited - Financial Statements 2019
39
SHAREHOLDER INFORMATION
NOTE 9: INTANGIBLES
2019 Financial Year
Balance at the beginning of the year
Additions
Disposals
Amortisation Expense
Carrying Amount at the end of the year
2018 Financial Year
Balance at the beginning of the year
Additions
Disposals
Amortisation Expense
Carrying Amount at the end of the year
Patents and
Trademarks
$
5,508
12,491
-
(1,906)
16,093
5,955
-
-
(447)
5,508
Other
Intangibles
$
17,879
27,271
(3,383)
(18,180)
23,587
33
24,231
(700)
(5,685)
17,879
Amortisation charges are included in depreciation and amortisation in the statement of profits and loss.
NOTE 10: 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
2019
$
292,166
71,189
363,355
223,280
140,075
363,355
Total
$
23,387
39,762
(3,383)
(20,086)
39,680
5,988
24,231
(700)
(6,132)
23,387
2018
$
250,744
37,296
288,040
160,562
127,478
288,040
At June 2017
(Charged) / credited
- to profit or loss
- directly to equity
At June 2018
(Charged) / credited
- to profit or loss
- directly to equity
At June 2019
NOTE 11: TRADE AND OTHER PAYABLES
Trade Payables
Superannuation
Dividends
Other payables and accrued Expenses
Employee
Benefits
Expense
Accruals
Total
203,211
29,926
233,137
47,533
-
250,744
41,422
-
292,166
7,370
-
37,296
33,893
-
71,189
2019
$
1,280,494
44,094
33,955
679,427
2,037,970
54,903
-
288,040
75,315
-
363,355
2018
$
1,036,909
38,070
28,631
763,887
1,867,497
LaserBond Ltd 2019 Annual Report | Page 35
LaserBond Limited - Financial Statements 2019
40
NOTE 12: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Opening Balance
Issued Shares
SHAREHOLDER INFORMATION
2019
Shares
93,073,489
1,465,953
94,539,442
2019
$
6,406,948
318,345
6,725,293
2018
Shares
91,132,465
1,941,024
93,073,489
2018
$
6,186,816
220,132
6,406,948
(a) Ordinary Shares
Date
Details
1st July 2017
Opening Balance
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
12th October 2018
23rd October 2018
25th February 2019
5th April 2019
Dividend Reinvestment Plan
Non.Exec. Director Remuneration
Employee Share Plan
Dividend Reinvestment Plan
30th June 2019
Closing Balance
(b) Capital Risk Management
No. Shares
91,132,465
100,000
979,480
152,008
709,536
93,073,489
812,074
150,000
59,731
444,148
94,539,442
Issue Price
(Cents per
Share)
12.50
12.54
15.00
11.40
15.91
12.50
38.50
36.68
$
10,662
118,212
14,866
76,392
220,132
127,464
16,866
14,677
159,338
318,345
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 13 : 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
2019
$
786,441
2,453,481
3,239,922
(385,659)
2,854,263
2018
$
546,473
1,648,390
2,194,863
(271,996)
1,922,867
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.
LaserBond Ltd 2019 Annual Report | Page 36
LaserBond Limited - Financial Statements 2019
(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 14: CONTINGENT ASSETS & LIABILITIES
SHAREHOLDER INFORMATION
41
2019
$
766,256
1,816,801
-
2,583,057
2018
$
744,378
2,583,057
-
3,327,435
The directors are not aware of any contingent assets or contingent liabilities that would have an effect on these financial
statements. (2018: Nil)
NOTE 15: 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
Payroll persons related to executive directors
163,363
171,984
Note: this is exclusive of executive director remuneration which is included in the remuneration report within the Directors’
Report of this Annual Report.
(b) Key Management Personnel Transactions
Consultants
Hawkesdale Group
Sam Holdings (Aust.)
51,875
-
51,875
2,500
57,450
59,950
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 director’s board fees are included in the remuneration report within the Directors’
Report of this Annual Report. Hawkesdale Group provided consultancy services related to sales support and strategy
development. This is a director related entity.
Loans
Director Loan – Gregory Hooper
4,174
16,174
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 16: KEY MANAGEMENT PERSONNEL
94,652
89,954
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 within the Directors’ Report of this Annual Report. .
LaserBond Ltd 2019 Annual Report | Page 37
LaserBond Limited - Financial Statements 2019
42
SHAREHOLDER INFORMATION
(b) Options Held
There were no options held at 30 June 2019 or 30 June 2018. There were no options issued during the financial year.
(c) Shares Held
Interest
Wayne Hooper Direct
Wayne Hooper Indirect
Greg Hooper Direct
Greg Hooper Indirect
Philip Suriano Indirect
Matthew Twist Direct
Shares Held as at
30th June 2018
Issued
Purchased /
(Sold)
Shares Held as at
30th June 2019
9,351,932
1,217,861
5,639,659
3,936,900
545,131
65,708
20,757,191
273,753
47,637
-
-
163,174
5,201
489,765
-
-
-
-
-
-
-
9,625,685
1,265,498
5,639,659
3,936,900
708,305
70,909
21,246,956
Interest
Shares Held as at
30th June 2017
Issued
Purchased /
(Sold)
Shares Held as at
30th June 2018
Wayne Hooper Direct
Wayne Hooper Indirect
Greg Hooper Direct
Greg Hooper Indirect
Philip Suriano Indirect
Allan Morton1 Indirect
Matthew Twist Direct
9,067,779
1,132,427
5,412,926
3,778,625
439,296
1,454,964
56,554
19,887,607
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
20,757,191
1 Allan Morton resigned on 4 October 2017.
2 These were the amount of shares held at the date of Allan Morton’s resignation.
NOTE 17: DIVIDENDS
Declared 2019 fully franked interim ordinary dividend of 0.50 (2018:
0.40) cents per share franked at the tax rate of 27.5% (2018: 27.5%)
2019
$
2018
$
470,339
184,728
Declared 2018 fully franked final ordinary dividend of 0.40 (2018:
0.30) cents per share franked at the tax rate of 27.5% (2017: 30%)
372,183
273,373
Total dividends per share for the period
0.90 cents
0.50 cents
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
550,380
292,142
842,522
254,389
203,712
458,101
Dividends not recognised during the reporting period
Since year end the directors have recommended the payment of a final dividend of 0.5 cents per fully-paid ordinary share
(2018: 0.4) fully franked based on tax paid at 27.5%. The aggregate amount of the proposed dividend expected to be paid
on 11th October 2019 out of retained earnings at 30 June 2019, but not recognised as a liability at year end is $472,697 The
debit expected to franking account arising from this dividend is $129,992.
LaserBond Ltd 2019 Annual Report | Page 38
LaserBond Limited - Financial Statements 2019
SHAREHOLDER INFORMATION
43
Franking credits
Franking credits available for subsequent periods based on a tax
rate of 27.5% (2018: 27.5%)
2,253,059
1,672,208
NOTE 18: 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
2019
$
2,809,404
886,070
(3,558)
(33,240)
(59,903)
(75,315)
170,473
206,349
160,495
20,256
2018
$
967,749
783,048
(337)
(1,308,428)
(702,288)
(54,903)
422,775
161,838
120,781
(3,393)
Net cash provided by operating activities
4,081,031
386,842
NOTE 19: 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.
Maturity of financial liabilities at 30th June 2019
Trade and other payables
Hire Purchase / Finance Lease
Within 1 Year
$
2,037,970
641,201
1 to 5 Years
$
-
2,213,062
Total
$
2,037,970
2,854,263
Total financial liabilities
2,679,171
2,213,062
4,892,233
Maturity of financial liabilities at 30th June 2018
Trade and other payables
Hire Purchase / Finance Lease
Within 1 Year
$
1,878,381
441,988
1 to 5 Years
$
-
1,480,879
Total
$
1,878,381
1,922,867
Total financial liabilities
2,320,369
1,480,879
3,801,248
LaserBond Ltd 2019 Annual Report | Page 39
LaserBond Limited - Financial Statements 2019
44
SHAREHOLDER INFORMATION
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 2019 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 Directors do not consider that any
reasonably possible movement in foreign currency rates would cause a material effect on profit or equity.
NOTE 20: 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 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 12 a) for detail of issue)
b) Non-Executive Director Remuneration (Non-Cash)
2019
$
59,731
2018
$
152,008
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.
LaserBond Ltd 2019 Annual Report | Page 40
LaserBond Limited - Financial Statements 2019
SHAREHOLDER INFORMATION
Liquidity risk is the risk that the group may encounter difficulties raising funds to meet commitments. The group manages
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
Credit Risk Exposure
to the financial statements.
Liquidity Risk
this risk by monetary cash flow forecasts
Net fair value of financial assets and liabilities
Sensitivity Analysis
risks.
Interest Rate Sensitivity Analysis:
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.
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
The company as 30th June 2019 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 Directors do not consider that any
reasonably possible movement in foreign currency rates would cause a material effect on profit or equity.
NOTE 20: 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 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 12 a) for detail of issue)
b) Non-Executive Director Remuneration (Non-Cash)
2019
$
59,731
2018
$
152,008
45
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.
SHAREHOLDER INFORMATION
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.
LaserBond Ltd 2019 Annual Report | Page 40
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 2018 Annual General Meeting shareholder approval was sought and gained for the issue of 150,000 shares to one
non-executive director who held office for the full twelve months of fiscal year 2018. No approval has as yet been sought
or gained for the 2019 fiscal year.
c) Expense arising
transactions
from share based payment
Shares Issued under employee share plan
Shares Issued under Non-Executive Director Remuneration
NOTE 21: CONTROLLED ENTITIES
2019
$
16,861
18,750
35,611
2018
$
16,704
12,500
29,204
The group owns 100% of LaserBond (Qld) Pty Ltd, which is a non-trading entity incorporated in Australia.
NOTE 22: 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.
30 June 2019
Services
Products
Technology
R&D
Total
11,175,053
9,132,229
2,359,918
-
22,667,200
2,575,341
2,653,777
342,313
(667,004)
4,904,427
Revenue
EBITDA
Interest
Depreciation & Amortisation
404,191
494,011
93,509
76,416
-
-
-
1.433
169,925
899,635
Profit Before Income Tax
2,077,641
2,083,350
342,313
(668,437)
3,834,867
Income tax expense
(555,222)
(557,448)
(91,536)
178,743
(1,025,463)
Profit after Income Tax
1,522,419
1,525,902
250,777
(489,694)
2,809,404
Assets
Liabilities
16,401,204
(6,340,980)
LaserBond Ltd 2019 Annual Report | Page 41
LaserBond Limited - Financial Statements 2019
Revenue
EBITDA
Interest
Assets
Liabilities
Revenue
EBITDA
Interest
SHAREHOLDER INFORMATION
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 2018 Annual General Meeting shareholder approval was sought and gained for the issue of 150,000 shares to one
non-executive director who held office for the full twelve months of fiscal year 2018. No approval has as yet been sought
or gained for the 2019 fiscal year.
c) Expense arising
transactions
from share based payment
Shares Issued under employee share plan
Shares Issued under Non-Executive Director Remuneration
46
NOTE 21: CONTROLLED ENTITIES
2019
$
16,861
18,750
35,611
2018
$
16,704
12,500
29,204
The group owns 100% of LaserBond (Qld) Pty Ltd, which is a non-trading entity incorporated in Australia.
NOTE 22: 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.
30 June 2019
Services
Products
Technology
R&D
Total
11,175,053
9,132,229
2,359,918
-
22,667,200
2,575,341
2,653,777
342,313
(667,004)
4,904,427
Depreciation & Amortisation
404,191
494,011
93,509
76,416
-
-
-
1.433
169,925
899,635
Profit Before Income Tax
2,077,641
2,083,350
342,313
(668,437)
3,834,867
Income tax expense
(555,222)
(557,448)
(91,536)
178,743
(1,025,463)
Profit after Income Tax
1,522,419
1,525,902
250,777
(489,694)
2,809,404
SHAREHOLDER INFORMATION
16,401,204
(6,340,980)
30 June 2018
Services
Products
Technology
R&D
Total
10,040,123
5,608,023
-
-
15,648,146
2,016,499
753,018
64,161
46,613
LaserBond Ltd 2019 Annual Report | Page 41
2,230,466
(500,513)
(38,538)
-
-
-
110,774
1,942
717,499
Depreciation & Amortisation
393,556
322,001
Profit Before Income Tax
1,558,782
384,404
(38,538)
(502,455)
1,402,193
Income tax expense
(478,587)
(118,155)
11,561
150,737
(434,444)
Profit after Income Tax
Assets
Liabilities
1,080,195
266,249
(26,977)
(351,718)
967,749
12,627,008
(4,852,011)
NOTE 23: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
a) Dividends
The directors have recommended the payment of a final dividend of 0.5 cents per fully-paid ordinary share (2018: 0.4), fully
franked based on tax paid at 27.5%. The aggregate amount of the proposed dividend is expected to be paid on 11th October
2019.
Subject to the group continuing to develop in accordance with future plans, the Board expects to continue to maintain
future dividends.
NOTE 24: ECONOMIC DEPENDENCY
Revenues of $10,504,279 (2018 - $7,216,681) are derived from two independent customers.
LaserBond Ltd 2019 Annual Report | Page 42
LaserBond Limited - Financial Statements 2019
SHAREHOLDER INFORMATION
47
1. Substantial Shareholders at 29th July 2019
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 29th July 2019
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
51
125
110
301
90
677
Total Units
13,338
377,323
891,763
10,546,607
82,710,411
94,539,442
%
10.182
10.182
1.339
7.705
7.550
5.965
4.164
5.229
Number of
Ordinary
Fully Paid
Shares Held
9,625,685
9,625,685
1,265,498
7,283,916
7,137,590
5,639,659
3,936,900
4,943,344
%
0.014
0.399
0.943
11.156
87.488
100.000
Holdings less than a marketable parcel
46
8,338
0.00882
3. Twenty Largest Shareholders as at 29th July 2019
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
Myall Resources Pty Ltd
Mr Keith Knowles
Parks Australia Pty Ltd
Fortitude Enterprises Pty Ltd
Mr Brendan Thomas Birthistle
W&D Hooper Investments Pty Ltd
Mr Makram Hanna & Mrs Rita Hanna (Hanna & Co P/L Super A/C)
Honne Investments Pty Limited
Mr William Ross Fenner
Dixson Trust Pty Limited
Fortitude Enterprises Pty Ltd
Mr David Webster & Mrs Janine Florence Webster
Number of
Ordinary Fully
Paid Shares
Held
9,625,685
9,625,685
7,283,916
7,137,590
5,356,842
4,943,344
3,936,900
2,736,555
2,580,000
2,561,224
2,000,060
1,453,543
1,414,937
1,265,498
1,200,397
1,000,000
884,333
869,560
809,629
%
10.182
10.182
7.705
7.550
5.666
5.229
4.164
2.895
2.729
2.709
2.116
1.537
1.497
1.339
1.270
1.058
0.935
0.920
0.856
SHAREHOLDER INFORMATION
Totals for Top 20
573,988
67,259,686
0.607
71.145
Security Totals
LaserBond Ltd 2019 Annual Report | Page 43
94,539,442
4. Voting Rights
The voting rights attached to each class of equity securities are:
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one
vote and upon a poll each share shall have one vote.
b) Options – No voting rights.
5. Restricted Securities
The group has no restricted securities.
6. Securities subject to voluntary escrow
Total number of shares
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
held in escrow
39,990
21 Nov 2019 – 39,990 shares
193,358
16 Dec 2019 – 46,662 shares
16 Dec 2020 – 46,684 shares
57,134
21 Feb 2020 – 19,052 shares
21 Feb 2021 – 19,052 shares
21 Feb 2022 – 19,030 shares
LaserBond Ltd 2019 Annual Report | Page 44
LaserBond Limited - Financial Statements 2019
48
4. Voting Rights
SHAREHOLDER INFORMATION
Totals for Top 20
67,259,686
71.145
Security Totals
94,539,442
The voting rights attached to each class of equity securities are:
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one
vote and upon a poll each share shall have one vote.
b) Options – No voting rights.
5. Restricted Securities
The group has no restricted securities.
6. Securities subject to voluntary escrow
Total number of shares
held in escrow
39,990
193,358
57,134
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
21 Nov 2019 – 39,990 shares
16 Dec 2019 – 46,662 shares
21 Feb 2020 – 19,052 shares
16 Dec 2020 – 46,684 shares
21 Feb 2021 – 19,052 shares
21 Feb 2022 – 19,030 shares
LaserBond Ltd 2019 Annual Report | Page 44
LaserBond Limited - Financial Statements 2019
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
Ph: +61 8 8262 2289
www.laserbond.com.au
Quality 9001, Environment 14001,
Health & Safety 4801