Contents
About Us
At a glance
Chairman’s Letter
CEO’s Review of Operations
Directors’ Report
Declaration by Directors
Auditor’s Independence Declaration
4
6
8
10
19
23
24
Independent Auditor’s Report
25
Statement of Profit or Loss & Other Comprehensive Income 29
Statement of Financial Position
Statement of Cash Flows
Statement of Change in Equity
Notes to the Financial Statements
Shareholder Information
30
31
32
33
52
Corporate Directory
Directors:
Mr. Philip Suriano
Chairman / Non-Executive Director
Share Registry:
Auditor:
Solicitor:
Bankers:
Stock Exchange
Listing:
Mr. Wayne Hooper
Executive Director
Mr. Matthew Twist
Executive Director
Company Secretary: Mr. Matthew Twist
Registered Office,
Principal place
of business:
South Australia
Division:
Victoria 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
26-32 Aberdeen Road
ALTONA
VIC 3018
Phone: +61 3 9398 5925
Website:
www.laserbond.com.au
2
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
Major Client Group
Level 9, Darling Park Tower 1
201 Sussex Street
SYDNEY NSW 2000
LaserBond Ltd shares are listed
on the Australian Securities
Exchange (ASX) under LBL.
Contents
LaserBond Operations
3
SERVICES
DIVISION
Repair and refurbishing
worn or damaged
machine parts
Exposure to
recurring service
problems leads to
research for better
solutions & product
opportunities
RESEARCH &
DEVELOPMENT
New cladding materials
and application
technologies
A
wide range
of customers and
industries seeking better
than new repair of (mostly)
wear related machinery
maintenance
problems
Technology
developed in
collaboration with
researchers and industry
partners
TECHNOLOGY
DIVISION
Design, manufacture,
licensing & support of
tailored cladding
systems
Global METS
OEM partners who
are seeking strategic
advantage from high
performance wear
components
PRODUCTS
DIVISION
Specialised surface engineered
components for OEM
partners and end
users.
W
h
a
t
w
e
d
o
LaserBond Limited - Annual Report 2020
WHS benefits are often realised because the maintenance of
equipment and replacement of worn parts is often carried
out in potentially hazardous environments (e.g. on mine sites)
and/or involves handling of difficult and heavy components.
Many of our customers recognise that by reducing the
frequency of required maintenance, the utilisation of
LaserBond’s services significantly lowers the risk of injury to
personnel.
Environmental benefits arise from LaserBond’s ability to
remanufacture and provide performance improvements
to machine parts that would have typically been
scrapped and replaced with new parts. The
typical carbon footprint for a LaserBond
remanufactured part is less than 1% of a
new part, and with life improvements of
between 2 to 20 times of a standard
part, a carbon footprint of much
less than 1% is achieved.
LaserBond operates
from facilities in New
South Wales, South
Australia and
Victoria.
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.
4
LaserBond Limited - Annual Report 2020 5
LaserBond Limited - Annual Report 2020 Darwin u
Adelaide p
L
a
s
t Brisbane
t Sydney
t Canberra
t Melbourne
t Hobart
e
r
B
o
n
d
F
a
cilitie
s
At a glance
A CULTURE OF INNOVATION
The company is driven by innovation, deriving
approximately 80% of its revenue from proprietary
technologies, and is currently implementing a
Perth u
national and international growth strategy.
LaserBond’s proprietary technology gives it a competitive edge
for quality, efficiency and innovation. Its products, services and
technologies are used in a range of industry sectors that are essential to
our well-being and to our economy.
Some of our blue-chip customers
Mining and Minerals Processing
Heavy Industry
Construction
Manufacturing
Energy
6
LaserBond Limited - Annual Report 2020
LaserBond Limited - Annual Report 2020
7
S
n
a
p
s
h
o
t
$6.2 MILLION
EBITDA
$22.2 MILLION
REVENUE
2.94 CENTS
EARNINGS
PER SHARE
$4 MILLION
CASH
102
EMPLOYEES
$2.8 MILLION
NET PROFIT
AFTER TAX
The commitment of our workforce and the discipline of
our processes and controls have stood us in good stead
to navigate the new and continuing challenges of the
global pandemic. I want to thank every staff member for
the proactive and responsible manner in which they have
responded to the vastly changed operating conditions.
It has been a stellar effort and their contribution is
clearly reflected in the solid performance we have
achieved this year.
I also thank our shareholders for their
continued commitment in these
turbulent times and for believing
in our future and our ability to
harness it.
To date the impact of
COVID-19 on our national and
international supply chains has
been manageable, and we continue
to receive orders from a diverse and
active customer base. On this basis, we are
intent on pursuing our revenue growth target
of $40 million by 2022, remaining committed
to the strategy underpinning this target of bolt-on
acquisitions, organic growth and subscription licensing
revenue from proprietary technology. We recognise, however,
that we are in the midst of a unique phenomenon and
remain realistic about an economic situation that is not only
unpredictable, but highly fluid.
Philip Suriano
Chairman
Chairman’s Letter
Dear Shareholder
2020 was a year like no other. In January, we were blanketed
in smoke from ferocious bushfires across the country and
close to our New South Wales operations, before a pandemic
of unparalleled proportions hit the health and economic
well-being of communities around the world. While we
all believed in the value of our business and have been
committed to its success, LaserBond had never been tested as
it has been in the last several months, and I am proud to say
that it has withstood that testing with a resilience of which we
are all incredibly proud.
Net profit after tax was stable at $2.805 million for the year
compared with $2.809 million in FY19 on equally stable
revenue of $22.2 million compared with $22.7 million last year.
The robustness of the business was also evident in the level
of cash it generated with a 125% increase in net cash flow
over the year to $1.8 million from $0.8 million in the previous
corresponding period. Cash flow from operations was up by
4.4% to $4.3 million from $4.1 million in FY19. The Board has
declared an increased final dividend of 0.6 cents, bringing the
annual dividend to 1.1 cent per share fully franked.
In line with our growth plans, we acquired the business and
assets of Victorian company United Surface Technologies, a
surface engineering company that provides industry with
an advanced thermal spray coating and weld hardfacing
service. The acquisition, which completed in August this
year, will expand LaserBond’s market reach, and product and
service offering with a dedicated facility and complementary
technologies to grow its customer base in Victoria and
Tasmania across a broad range of essential services and heavy
industry sectors.
During the year, we were also highly encouraged by the
positive test results of our hard chrome plating replacement
technology which has been developed under our R&D
program over the past few years. While lab testing is not
always an exact indication of performance, the tests returned
superior results for durability and corrosion resistance, and
we are confident that the technology is more efficient, more
durable, non-toxic and more cost-effective. Overall a better
solution than chrome plating.
8
LaserBond Limited - Annual Report 2020 9
LaserBond Limited - Annual Report 2020 CEO’s Review of Operations
In the face of significant adverse external events, I am pleased
to report that LaserBond produced a stable performance for
financial year 2020, demonstrating considerable resilience
in earnings and cash flow. Strong foundations have been
laid over the years that have stood us well in the face of the
current unforeseen circumstances.
While we are pleased with the maintenance of our
performance as a baseline, the advent of COVID-19 did impact
planned growth in the business, particularly with respect to
the Technology division and the projected acceleration of
growth in international sales in the Products division,
both due to international travel restrictions. Similarly,
while overall demand for our products and services grew,
it is undoubted that some customers delayed investment
in refurbishment of plant and equipment due to the
uncertainty stemming from the pandemic, although
this is impossible to quantify.
MANAGEABLE COVID-19 IMPACT
Like most other businesses in Australia,
LaserBond responded quickly
and effectively to the pandemic
risk, enacting a comprehensive
risk management plan to protect the
operations and our employees. Measures
included increased hygiene procedures,
social distancing, split shifts, working from home
arrangements and continual monitoring of, and
communication with, all employees. Fortunately, with the
strong cooperation of everyone in the LaserBond team,
there have been no cases of coronavirus at our sites.
I have been heartened by the resilience of
our revenue streams, particularly from the
Products and Services divisions. The
impact of COVID-19 on our operations
continues to be well-managed and
we are fortunate to have a client
base firmly rooted in sectors that have
avoided direct impact from the pandemic.
LaserBond is considered support to essential
services and the majority of customers expect
and need the company to continue to supply its
products and services. Power generation, mining and
minerals processing, oil and gas, transport, agriculture and
manufacturing all represent parts of the economy that have
been deemed essential and whose continued operations
have required and enabled LaserBond to trade without
much detriment to established demand for its services
and products.
To date, COVID-19 impacts on the company have been
limited to the effect of the restriction on travel, constraining
our face-to-face sales effort. These travel restrictions have
delayed business development activity largely relating to our
Products and Technology divisions internationally.
RESILIENT EARNINGS IN UNPRECEDENTED ECONOMIC
ENVIRONMENT
Revenue from continuing operations was slightly down from
$22.7 million in FY19 to $22.2 million in FY20, primarily due
to strong growth in the Services division but a drop in
revenue in the Technology division from $2.4 million in
FY19 to $0.2 million in FY20. The shortfall resulted
from the international travel restrictions as well
as delays in fulfilment of Products division
orders from one original equipment
manufacturer due to changes in
product specifications. While the
Products division delivered flat
revenue, up 0.4% from $9.13
million in FY19 to $9.16
million in FY20, the
Services division
produced
a 14.8%
increase
in revenue,
from $11.2
million in FY19 to
$12.8 million in FY20.
EBITDA was $6.19 million,
up by 26.5% on FY19, partly
due to the effect of the changes
to AASB 16 which required a
change in the treatment of leases and
payments made under those leases.
IMPACT OF AASB 16 LEASES
On 1 July 2019, the company was required to
adopt AASB 16 Leases, which required facility leases to
be recognised on the statement of financial position as
Right of Use (ROU) depreciable assets with a corresponding
finance liability. LaserBond has existing lease contracts for
10
LaserBond Limited - Annual Report 2020 11
Revenue ($m)
EBITDA ($m)
25
20
15
10
5
0
7.0
6.7
12.2
10.9
8.4
7.2
10.5
11.3
FY17
FY18
FY19
FY20
1H
2H
facility premises in New South Wales and South Australia.
Prior to the adoption of the changes as per AASB 16 Leases,
the company classified each of its facility leases as an
operating lease, with the cost of the lease reported as rent
expense. These changes affect the calculation of Net Profit
and have a major effect on reported EBIT and EBITDA.
For the purposes of enabling comparison to previous year
results, the table below shows a reconciliation of FY20 NPBT,
EBIT and EBITDA to accurately compare with FY19. Without
AASB 16 Leases, the reported (“underlying”) Net Profit Before
Tax would have been up 1.3%. The underlying EBIT grew
by 8.9% and underlying EBITDA grew by 10.4% compared
with the previous corresponding period. As a result of the
change, our EBITDA is approximately $0.51 million higher than
otherwise. The result reflects the strength of our operations,
having been achieved on flat total sales.
7
6
5
4
3
2
1
0
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2.5
2.2
4.9
6.2
FY17
FY18
FY19
FY20
NPAT ($m)
1.1
1.0
2.8
2.8
FY17
FY18
FY19
FY20
Net Profit Before Tax
Rent Expense
Depreciation on right of use asset
Lease interest expense
Reconciliation of FY20 EBITDA to pre-AASB 16 Leases
FY20
$3,765,047
($769,585)
$731,797
$158,818
FY19
$3,834,867
-
-
-
Underlying Net Profit Before Tax (pre-AASB 16 Leases)
$3,886,077
$3,834,867
EBIT
Lease interest expense
Underlying EBIT (pre AASB 16 Leases)
Reported EBITDA
Rent expense
Underlying EBITDA (pre AASB 16 Leases)
$4,203,388
$158,818
$4,362,206
$6,185,017
($769,585)
$5,415,432
$4,004,793
-
$4,004,793
$4,904,427
-
$4,904,427
Change
(1.8%)
1.3%
5.0%
8.9%
26.1%
10.4%
LaserBond Limited - Annual Report 2020 Net profit after tax was consistent with that of FY19 at $2.80
million. Cash balances have almost doubled to $1.8 million
over the year from $2.2 million at 30 June 2019 to $4.0 million
at year end 2020, driven by continuing strong cash flows
from operations. Consistent with its culture of innovation,
LaserBond invested $0.76 million in its research and
development program compared with $0.67 million in FY19.
SEGMENTS STRONG DESPITE EXTERNAL FACTORS
The reported segmental earnings show solid contributions
for each of the Products and Services divisions, with
some unsatisfied demand largely resulting from the travel
restrictions. The Products division experienced a delay
in order fulfilment resulting from changed component
specifications as well as lower than forecast international sales,
while the Technology division did not achieve a license sale
in FY20 as it did in FY19 and as budgeted for FY20. Services
division achieved the forecast double-digit growth.
Revenue by division
FY’17
FY’18
FY’19
FY’20
12.8
11.2
10.0
7.2
9.1
9.2
5.6
5.1
2.4
1.4
0.0
0.2
Services
Products
Technology
EBITDA by division
FY’17
FY’18
FY’19
FY’20
4.0
2.6
2.0
1.6
3.0
2.6
1.0
0.7
Services
Services revenue was $12.83 million representing a 14.8%
increase on FY19 revenue of $11.175 million, with a 56.2%
growth in EBITDA from $2.575 million in FY19 to $4.023
million. The NSW facility contributed 87% of Services revenue
based on its long-standing surface engineering repair and
reclamation business. Its 14.8% revenue growth was a result
of ongoing investment in resources (human and equipment),
enabling greater throughput and hence increased levels of
plant efficiency. Whilst most of South Australia’s revenue was
from the sale of products, this facility achieved a 20% increase
in Services revenue based on the implementation of targeted
sales strategies. The recently acquired Melbourne facility is
expected to contribute approximately $4 million of Services
revenue in FY21.
Products
Products revenue was essentially flat with a 0.4% increase
from $9.13 million in FY19 to $9.17 million in FY20. EBITDA
grew by 11.6% from $2.65 million in FY19 to $2.96 million
in FY20. Orders received in FY20 grew by 10.9%, however,
delays in fulfilment of orders from one original equipment
manufacturer means significant Products division revenue will
not be recognised until the first half of FY21. Furthermore, a
planned acceleration of growth in international product sales
was hampered by COVID-19 travel restrictions. It is intended
that revenue growth for this division will emanate from
targeted marketing of a number of current products as well as
soon-to-be available products currently in development.
Half Yearly Product Division Orders Received ($ 000’s)
$4481
$4439
$5232
$4238
6000
5000
4000
3000
2000
1000
0.3
0.3
0.0
0.0
-.04 -.05 -.07 -.08
FY’19 H1
FY’19 H2
FY’20 H1
FY’20 H2
Services
Products
Technology
Research &
Development
15M
12M
9M
6M
3M
0
5.0M
4.0M
3.0M
600
2.0M
500
1.0M
400
0
300
-1.0M
200
100
0
0
12
LaserBond Limited - Annual Report 2020 13
Technology
Technology was the division most affected by the onset
of COVID-19 within the company, disrupting efforts to
sell licenses for LaserBond’s proprietary technologies in
offshore markets. The division contributed revenue
of $0.180 million and an EBITDA loss of $0.039
million compared with revenue of $2.4 million
and EBITDA of $0.342 million in FY19,
representing a drop in revenue of 92.5%
and in EBITDA of 111.4%. Revenue
from the division consists of $0.050
million for licensing and $0.130
million for the supply of
laser cladding consumables.
While our budgets included
the completion of an additional
equipment sale during FY20, this was
prevented by the international
travel restrictions.
The highlight for the Technology division was
the finalisation of R&D work to develop a laser
cladding alternative to hard chrome plating that
provides superior performance to hard chrome with lower
costs. Recently, we received the results of independent
testing conducted by the University of South Australia’s Future
Industries Institute, which indicated excellent performance
in the areas of durability and corrosion resistance. This
new technology addresses the environmental and toxicity
problems associated with current hard chrome plating
processes, offers greater durability and can be applied in less
time, making it an efficient alternative. While there is ample
demand in the international marketplace, the technology
will also provide LaserBond with a marketable
equipment solution for current hard chrome
suppliers and end users in Australia, with sales
commencing in 1H21.
Grants
During 4Q20, LaserBond was
successful in gaining a grant
under the Manufacturing
Modernisation Fund
which is provided by the
Australian federal government
to stimulate business investment
in new technologies and processes in
the manufacturing sector. The purpose
of the grant is to assist LaserBond to build an
automated LaserBond® cladding cell incorporating
Industry 4.0 technology. This will involve the design,
installation and commissioning of an automatic,
integrated LaserBond® cladding cell utilising transformative
technologies for volume production of surface-engineered
cylindrical components.
LaserBond Limited - Annual Report 2020 The cladding cell will have dramatically improved productivity
and capacity for these components and will allow the
company to increase its domestic and international market
share, particularly in products for minerals processing, steel
mills and hydraulic actuators and to access entirely new and
expanded market bases. The total of the grant is $548,217
payable as the project progresses over the next 18 months.
Research and Development
LaserBond continues to grow its business utilising structured
R&D programs focused on delivering effective and economic
surface engineering solutions to a range of industry problems.
Internal R&D resources are supplemented by leveraging
academic and financial support through universities
such as the Future Industries Institute of the University of
South Australia, Monash University, Swinburne University
and ANSTO. This leveraging of R&D resources is enabling
LaserBond to accelerate the development and independent
testing of its surface engineering solutions across a range of
industries, with a number of concurrent projects.
HARD CHROME REPLACEMENT
During FY20, further development, parameter optimisation,
laboratory testing and field trials confirmed the superior
performance and economics of specific LaserBond® solutions
as replacements for the environmentally and occupationally
hazardous hard chrome plating process. The market for hard
chrome plating is estimated to be in excess of US$1.2 billion,
and there is increased pressure from regulators globally to
eliminate the process due to the hazards that hexavalent
chromium presents. LaserBond’s developments open up
tremendous opportunities in all divisions of the company,
including domestic and export sales, and commercialisation
will be pursued during 1H21.
SURFACE ENGINEERING CONTROL SYSTEMS & ADDITIVE
MANUFACTURING
The Surface Engineering for Advanced Materials (SEAM)
project supported by the Australian Research Council
focuses on applied research. Together with Future Industries
Institute at UniSA LaserBond is developing flexible 3D
additive manufacturing from the laser cladding process. A
second project is developing novel control technologies and
process monitoring tools in laser cladding allowing a further
improvement of process stability. ARC SEAM also aspires to
train under-graduate and graduate students. Leveraging the
ARC financial support, LaserBond is investing in developing
its own technological knowledge and concurrently into
Australia’s future advanced manufacturing workforce.
DRILLING AND EXPLORATION
During FY20, LaserBond successfully finished a CRC-P funded
project focusing on life time improvements for components
for explorative drilling with UniSA and Boart Longyear. New
surface engineering and additive manufacturing solutions for
the mining industry were developed and comprehensively
tested under real life conditions, and demonstrated a
substantial gain in life over conventional products. Whilst the
CRC-P project is complete, testing of other very promising
components by our project partner is ongoing (delayed by
current pandemic).
MINERALS PROCESSING
In FY21 a project funded within the IMCRC sees LaserBond
and UniSA joining forces with a global OEM for mining and
mineral processing equipment. Here the team of scientists
will develop and test protective surfaces and additively
manufactured features which tackle superimposed wear
and corrosion loads under harshest environments.
Success in this project will see applications
globally for LaserBond’s technology.
RAIL
With another project supported by
the Australian Research Council,
LaserBond together with
Monash University, ANSTO and
Yarra Trams will focus on repair of
damaged rail components, both in-situ
and in the workshop. The application of
the successful outcomes from this project
will significantly reduce rail maintenance
costs; Components which at the moment have
to be sourced from overseas in the future will be
remanufactured in Australia. At the same time, intelligent
materials design will contribute to dramatic extension in the
life times of the wearing components.
Strategy
We remain committed to the strategy we have espoused
to the market for the last few years, which underpins the
achievement of a $40 million revenue target by FY22.
However, the emergence of COVID-19 and the effect of
its medium to long-term consequences now need to be
factored into the target in time, as those consequences
become more apparent. Clearly, part of the business’s success
relates to international sales, particularly in the Products and
Technology divisions. Thus, optimal business performance
will rely on the relaxation of international travel restrictions
and restored economic conditions. The business continues
to execute a four-pronged strategy to achieve the revenue
target, as follows:
14
LaserBond Limited - Annual Report 2020 15
LaserBond Limited - Annual Report 2020 STRATEGIC OBJECTIVE
GEOGRAPHIC EXPANSION
STRATEGIC OBJECTIVE
CAPACITY AND CAPABILITY
Push into existing and new markets
Progress Milestones
›› Acquisition of United Surface Technologies in
Melbourne to widen market reach into Victoria
and Tasmania
›› Further growth generated by integrating
LaserBond’s laser cladding technology
capability into Melbourne facility – expected
3Q21
›› Augmentation of sales capacity with
recruitment of Victorian representative in
Melbourne
›› Consideration of additional bolt-on facilities in
other key states as opportunities arise
›› Continued expansion into international
markets for products
Invest in people and equipment
to improve margins and build
productivity
Progress Milestones
›› The purchase of a large CNC vertical borer in
FY20 opens up new business opportunities,
increases internal capability, improves margins
and lessens reliance on subcontractors.
›› Similarly, the purchase of a new larger Okuma
CNC lathe in FY20 improved our capabilities in
the production of larger rolls for steel and other
industries, improving margins and reducing
reliance on subcontractors.
›› Planned equipment purchases for FY21 include
the automated LaserBond® cladding cell in
NSW (with federal government support under
the Manufacturing Modernisation Fund), a new
LaserBond® cladding cell for VIC, and a large
CNC horizontal borer for SA, all predominantly
financed by existing bank facilities
›› Increased shift sizes and scheduled additional
shifts to boost productivity and revenue
16
LaserBond Limited - Annual Report 2020 17
STRATEGIC OBJECTIVE
PRODUCT DEVELOPMENT
STRATEGIC OBJECTIVE
TECHNOLOGY LICENSING
Build a suite of technologies for
sale under long-tailed licensing
arrangements
Progress Milestones
›› Launch of hard chrome replacement
technology in 1H21
›› Continue marketing and sales of technology
licenses globally
Innovate, build R&D capability and stay
ahead of the market
Progress Milestones
›› Continued investment in structured R&D
program in conjunction with OEM customers
and where appropriate with universities and
with the support of governments.
›› During FY20, the company upgraded its
Scanning Electron Microscope to allow more
detailed investigation of applied surface
engineering properties and performance.
›› Recent development of rotary feeders for
pneumatic conveying of mulch, soil, sand
and aggregate, which is a rapidly expanding
application globally
›› Commencement of marketing of replacement
feeders for a local exchange service and
exploring export markets
LaserBond Limited - Annual Report 2020 Outlook
While the FY20 sales performance has fallen short of the
company’s stated target of double-digit sales growth, the
outlook across the group remain s positive and we remain
confident that we can still achieve the medium-term revenue
target of $40 million by 2022. The COVID-19 risks to our
business relate to growth rather than to the existing revenue
base. Nevertheless, we still see a clear growth trajectory
in the current environment and continue to prosecute
that strategy off the back of the progress we have
made in FY20. Undoubtedly, we are in a better
position than many companies, given our
statutory classification as support for
essential services businesses, and we
have a solid pipeline of work within
our blue-chip customer base.
I add my appreciation
and thanks to Philip’s
in acknowledgement of
the LaserBond team and their
commitment to adhere to changed
practices and embrace the new working
environment in an unwavering manner. It
is with their support that our growth plans can
become real.
Wayne Hooper
Chief Executive Officer and Executive Director
18
LaserBond Limited - Annual Report 2020 19
Directors’ Report
The Directors present their report together with the financial
statements of LaserBond Limited for the financial year ended
30th June 2020.
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,
South Australia and Victoria.
Review of Operations & Financial Results,
Explanation of Results and Outlook
Please refer to CEO’s Review of Operations from page 10.
Directors and Company Secretary
Details of the company’s Directors who have been in office
during the entire current financial year and up to the date of
this report unless otherwise stated are:
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.
Philip Suriano GAICD – Chairman / Non-Executive Director,
Audit and Remuneration committee member
Philip has been a Director since 2008. He began his career
in corporate banking with the State Bank of Victoria
(Commonwealth Bank). He holds a degree in banking
& finance (B.Bus. (Bkg & Fin)). He spent 16 years in senior
positions within the Australian Media Industry. Philip has
gained wide knowledge & experience to give him a strong
background in operations, sales and marketing in such roles
as National Sales Director, MCN (Austar and Foxtel TV sales
JV) and Group Sales Manager at Network Ten. Prior to joining
MCN, Philip was employed within the Victor Smorgon Group.
For the past 14 years he has been working in
corporate finance.
Director:
Position Held
In Office Since
Ceased to Hold
Office
Matthew Twist GIA (Cert) – Executive Director,
Company Secretary, and Risk committee member
Wayne
Hooper
Gregory
Hooper
Philip
Suriano
Matthew
Twist
Matthew
Twist
CEO/ Executive
Director
21 April 1994
CTO/ Executive
Director
30 September
1992
30 June
2020
Chairman / Non-
Executive Director
CFO / Executive
Director
6 May 2008
30 June 2020
Company
Secretary
30 March
2009
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.
LaserBond Limited - Annual Report 2020 Directors’ Report - CONTINUED
Remuneration Report
The directors present the LaserBond Limited 2020
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 provides remuneration to non-executive
directors through both cash fees and non-cash benefits in the
form of equity issues. At the 2019 Annual General Meeting
shareholder approval was sought and gained for the issue of
50,000 shares amounting to $19,500 for one non-executive
director who held office for the full twelve months of fiscal
year 2019. No approval has as yet been sought or gained for
the 2020 fiscal year.
Non-cash (equity based) payments for non-executive directors
are determined annually based on the time, commitment and
responsibilities of their role, financial forecasts and cash-flow
position of the company; their holding of office for the full
twelve months of a fiscal year; and subject to shareholder
approval prior to issue at the Annual (or Extraordinary) General
Meeting. Further details can be found under Note 20 b).
20
The following table shows the gross revenue, profits and
dividends for the last five years for the company as well as the
share prices at the end of the respective financial years.
2020
$
2019
$
2018
$
2017
2016
$
$
Revenue
22,177,264 22,667,200 15,648,146 13,751,417 10,515,581
2,805,061
2,809,404
967,749
1,112,892
78,745
39.50
39.00
12.50
12.50
8.10
1.0
0.9
0.6
0.5
0.4
Net Profit
after Tax
Share
price at
year end
(Cents)
Dividends
paid
(Cents)
(d) KMP Remuneration
The following table shows details of the remuneration
expense recognised for the company’s Key Management
Personnel for the current and previous financial year. KMP’s
received a fixed remuneration during the year ended 30 June
2020 and 30 June 2019.
Salaries and
fees
Super
annuation
Share based
payments
Long Service
Leave
Wayne
Hooper1
Gregory
Hooper1
Philip
Suriano2
Matthew
Twist
2020
370,705
2019
313,272
2020
379,937
2019
319,880
49,968
54,477
31,952
30,139
-
-
-
-
2020
2019
30,000
30,000
-
-
19,500
18,750
2020
158,309
2019
155,310
14,912
14,549
1,000
1,000
-
-
21,044
-
-
-
-
-
Totals
2020
938,951
96,832
20,500
21,044
2019
818,462
99,165
19,750
-
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 is reported in Note 15 (b).
LaserBond Limited - Annual Report 2020 21
(e) Contractual arrangements for executive KMP’s
Director’s Meetings
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
Arrangements with Non-executive directors are 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 based on FY20 company performance 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 30
June 2020 financial year held by each of the company’s key
management personnel, including their related parties, is set
out below:
Name
Balance at 30
June
2019
Granted as
remuneration
Bought /
(Sold)
Dividend Re
investment
Balance at
30 June
2020
During the financial year ended 30th June 2020, the number
of meetings held, and attended, by each Director were as
follows:
Director
Board Meetings
Audit and Risk
Committee Meetings
Remuneration
Committee Meetings
Eligible Attended
Eligible Attended
Eligible Attended
Wayne
Hooper
Gregory
Hooper
Philip
Suriano
8
8
8
8
7
8
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.
Significant Changes in State of Affairs
On 30 June 2020 the company signed a purchase agreement
for the acquisition of all assets of United Surface Technologies
Pty Ltd located in Victoria. Settlement has occurred in August
2020 and includes all staff and existing management, plant
& equipment, ongoing contracts, facility leases and licenses
as well as trading names. The $1.1 million purchase price was
funded through existing equipment financing facilities and
cash reserves. For further information, please refer to the ASX
announcement dated 15 June 2020, and the Chairman’s Letter
and CEO Report within this document.
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 required to be disclosed will be done according to
recent listing rules requirements.
Wayne
Hooper
Gregory
Hooper
Philip
Suriano
Matthew
Twist
10,891,183
-
30,000
143,112 11,064,295
Future Developments
9,576,859
- (241,751)
- 9,335,108
708,305
50,000
70,909
1,333
-
-
18,271
776,576
65
72,307
Environmental Regulation
(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 company’s loans to key management
personnel during the year was $Nil (2019: $4,174). The loans
to key management personnel are generally for a short term,
unsecured and interest free.
End of remuneration report.
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.
No other matters or circumstances has arisen that has
affected, or may significantly affect the company’s operations,
the results of those operations or the company’s state of affairs
in future financial years which has not already been reflected
in the financial report.
LaserBond Limited - Annual Report 2020 Directors’ Report - CONTINUED
Dividends
Auditors’ Independence Declaration
2019 final dividends of 0.5 cents per share and 2020 interim
dividends of 0.5 cents per share were paid during the year. The
directors have recommended the payment of a final dividend
for FY2020 of 0.6 cents per fully-paid ordinary share (FY2019:
0.5c), fully franked based on tax paid at 27.5%. The dividend is
expected to be paid on 9th October 2020.
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
In accordance with the provisions of the Corporations Act
2001, the company has insured the directors and officers
against liabilities incurred in their role as directors and
officers of the company. The terms of the insurance policy,
including the premium, are subject to confidentiality clauses
and therefore the company is prohibited from disclosing the
nature of the liabilities covered and the premium paid.
No insurance premiums have been paid in respect of Auditors.
Non-Audit Fees paid to Auditor
The Audit and Risk committee has reviewed details of the
amounts paid or payable for non-audit services provided to
the company during the year ended 30 June 2020 by the
company’s auditor LNP Audit and Assurance.
The directors are satisfied that the provision of those non-
audit services by the auditor is compatible with the general
standards of independence for auditors imposed by the
Corporations Act 2001 and did not compromise the auditor
independence requirements of the Corporations Act 2001 for
the following reasons:
›› All non-audit services have been reviewed by the board of
directors to ensure they do not impact the impartiality and
objectivity of the auditor;
›› None of the services undermine the general principles
relating to auditor independence as set out in the APES 110
Code of Ethics for Professional Accountants.
For details of fees for non-audit services paid to the auditors,
refer to note 3.
A copy of the auditors’ independence declaration as required
under section 307C of the Corporations Act 2001 is set out on
page 24.
Signed in accordance with a resolution of the Board of
Directors.
Director
Wayne Hooper
Dated this 18th day of August 2020
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. In compliance
with the “if no why not” reporting regime, where the
Company’s corporate governance practices do not follow a
recommendation, the Board has explained its reasons for not
following the recommendation and disclosed what, if any,
alternative practices the Company has adopted instead of
those in the recommendation.
A description of the company’s current corporate governance
practices is set in the company’s Corporate Governance
Statement which can be viewed at: http://www.laserbond.
com.au/investor-relations/governance-statement.html
22
LaserBond Limited - Annual Report 2020 23
Declaration by Directors
The directors of the company declare that:
1. The financial statements and notes, as set out on pages
29 to 53 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 2020 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
Dated this 18th day of August 2020
LaserBond Limited - Annual Report 2020 ABN 65 155 188 837
L14 309 Kent Street Sydney NSW 2000
+61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
+61 3 8658 5928
L14 167 Eagle Street Brisbane QLD 4000
+61 7 3607 6379
www.lnpaudit.com
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS
ACT 2001 TO THE DIRECTORS OF LASERBOND LIMITED
As lead auditor of Laserbond Limited for the year ended 30 June 2020, 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
Archana Kumar
Director
Sydney, 18 August 2020
24
Liability limited by a scheme approved under Professional Standards Legislation
LaserBond Limited - Annual Report 2020
25
ABN 65 155 188 837
L14 309 Kent Street Sydney NSW 2000
+61 2 9290 8515
L24 570 Bourke Street Melbourne VIC 3000
+61 3 8658 5928
L14 167 Eagle Street Brisbane QLD 4000
+61 7 3607 6379
www.lnpaudit.com
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LASERBOND LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of LaserBond Limited, which comprises the statement of financial
position as at 30 June 2020, 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 ended, notes
comprising a summary of significant accounting policies and other explanatory information and the
Directors’ Declaration of the Company.
In our opinion the accompanying financial report of LaserBond Limited is in accordance with the
Corporations Act 2001, including:
a) Giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its
financial performance for the year ended on that date; and
b) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia; and we have
fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial statements. The results of our audit procedures, including the
Liability limited by a scheme approved under Professional Standards Legislation
LaserBond Limited - Annual Report 2020
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
Key Audit Matter
How our audit addressed the matter
Note 1(ii)
Measurement of expected credit losses on trade
receivables
At 30 June 2020 gross trade receivables amounted to
$3,867,677. The valuation of trade receivables
requires management judgement due to the credit
risk associated with each individual trade receivable.
Management assesses the recoverability of trade
receivables by reviewing customer’s ageing profile,
credit history, status of subsequent receipts,
forward-looking information and assumptions, this
year with higher estimation uncertainty due to
impact of COVID-19.
The determination of expected credit loss requires
management to make significant judgements and
assumptions and is highly subjective, amplified by
inherently
the
challenging to audit.
impact of COVID-19 which are
Our procedures included:
• Obtaining an understanding of the Company’s
credit control procedures and assessing the
design,
operating
effectiveness of key controls over granting of
credit to customers;
implementation
and
• Evaluating the Company’s assumptions and
judgements used in its expected credit loss
model;
• Validating data used in the model; and
• Assessing the adequacy of disclosures in the
financial statements.
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 2020 but does not include the
financial report and the auditor’s report thereon. Our opinion on the financial report does not cover
the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based upon the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibilities
The Directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the Directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due
to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Company or cease
operations, or have no realistic alternative but to do so.
26
LaserBond Limited - Annual Report 2020
27
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but, is not a guarantee that an
audit conducted in accordance with Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether 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.
• 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 Company’s internal control.
• 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.
• 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.
We communicate with those charged with governance, 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 also provide those charged with governance 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,
actions taken to eliminate threats or safeguards applied.
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
LaserBond Limited - Annual Report 2020
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 in pages 20 to 21 of the Directors' Report for the
year ended 30 June 2020.
In our opinion, the Remuneration Report of LaserBond Limited for the year ended 30 June 2020,
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.
LNP Audit and Assurance Pty Ltd
Archana Kumar
Director
Sydney
18 August 2020
2020 FINANCIAL STATEMENTS
29
Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30th June 2020
2020
2019
Revenue
Cost of Sales
Gross Profit
Other Income
Advertising & Promotional Expenses
Depreciation & Amortisation
Employment Expenses
Property Expenses
Administration Expenses
Repairs & Maintenance
Finance Costs
Research & Development
Other Expenses
Profit before income tax expense
Income tax expense
Note
22
2
3
3
4
4
$
22,177,264
(10,654,478)
11,522,786
663,300
(76,294)
(1,981,629)
(2,990,621)
(15,532)
(1,743,024)
(233,047)
(440,860)
(675,774)
(264,258)
$
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)
3,765,047
3,834,867
(959,986)
(1,025,463)
Profit after income tax expense
2,805,061
2,809,404
Other comprehensive income
-
-
Total comprehensive income attributable to
members of LaserBond Limited
2,805,061
2,809,404
Earnings per share for profit attributable to members:
Basic and diluted earnings per share
(cents)
5
2.940
2.972
This Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
23 | P a g e
LaserBond Limited - Annual Report 2020
30
Statement of Financial Position
As at 30th June 2020
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
2020 FINANCIAL STATEMENTS
Note
6
7
8
10
9
11
13
13
2020
$
3,997,653
4,391,054
3,454,973
11,843,680
11,352,221
386,383
21,097
11,759,701
2019
$
2,192,535
5,395,681
2,547,508
10,135,724
5,862,445
363,355
39,680
6,265,480
23,603,381
16,401,204
1,326,181
1,096,393
1,761,841
402,367
4,586,782
6,719,781
60,613
6,780,394
2,037,970
998,778
641,201
386,327
4,064,276
2,213,062
63,642
2,276,704
TOTAL LIABILITIES
11,367,176
6,340,980
NET ASSETS
EQUITY
Issued capital
Retained earnings
TOTAL EQUITY
12,236,205
10,060,224
12
7,042,358
5,193,847
12,236,205
6,725,293
3,334,931
10,060,224
This Statement of Financial Position should be read in conjunction with the accompanying notes.
24 | P a g e
LaserBond Limited - Annual Report 2020
31
2020 FINANCIAL STATEMENTS
Statement of Cash Flows
for the Year Ended 30th June 2020
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 IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at beginning
of year
CASH AND CASH EQUIVALENTS AT
END OF YEAR
Note
2020
$
26,884,309
(21,206,921)
(440,860)
2,519
(979,084)
18
4,259,963
(604,583)
10,574
(594,009)
(13,117)
(1,199,422)
(648,297)
(1,860,836)
1,805,118
2,192,535
2019
$
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
3,997,653
2,192,535
This Statement of Cash Flows should be read in conjunction with the accompanying notes.
25 | P a g e
LaserBond Limited - Annual Report 2020
32
Statement of Changes in Equity
Statement of Changes in Equity
for the Year Ended 30th June 2019
for the Year Ended 30th June 2020
2020 FINANCIAL STATEMENTS
2019 FINANCIAL STATEMENTS
Issued
capital
Issued
capital
$
$
Retained
earnings
Retained
earnings
$
$
Total
equity
Total
equity
$
$
Opening Balance at 1st July 2018
Opening Balance at 1st July 2017
6,406,948
6,186,816
1,368,049
858,401
7,774,997
7,045,217
Profit for the year
Profit for the year
-
-
2,809,404
967,749
Issue of Share Capital, net of cost
Issue of Share Capital, net of cost
318,345
220,132
-
-
Dividends paid during the year
Dividends paid during the year
-
-
(842,522)
(458,101)
2,809,404
967,749
318,345
220,132
(842,522)
(458,101)
Closing Balance at 30th June 2019
Closing Balance at 30th June 2018
6,725,293
6,406,948
3,334,931
1,368,049
10,060,224
7,774,997
Profit for the year
Profit for the year
Issue of Share Capital, net of cost
Issue of Share Capital. net of cost
Dividends Paid during the year
Dividends Paid during the year
-
-
318,345
317,065
2,805,061
2,809,404
-
-
-
-
(946,145)
(842,522)
2,805,061
2,809,404
317,065
318,345
(946,145)
(842,522)
Closing Balance at 30th June 2020
Closing Balance at 30th June 2019
7,042,358
6,725,293
5,193,847
3,334,931
12,236,205
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
26 | P a g e
LaserBond Limited - Annual Report 2020
33
2020 FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
Corporate Information
LaserBond Limited is a for-profit listed public company, incorporated and domiciled in Australia. The nature of the
operations and principle activities of the company are described in the Directors’ Report.
General Information and Statement of compliance
The financial report was authorised for issue in accordance with a resolution of the directors on 17th August 2020. 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 16 Leases
AASB 16 Leases amends the accounting standard for leases and replaces AASB 117 Leases. The standard removes the
distinction between operating and finance leases and requires lessees to bring all leases on to the statement of financial
position.
The impact effect adopting AASB 16 at 1 July 2019 is as follows: The company recognised right-of-use assets of $5,444,610
and lease liabilities of $5,444,610 (current liabilities $766,256, and non-current liabilities $4,687,354) at 1 July 2019, for
leases which were previously classified as operating lease commitments. This mainly relates to lease obligations for facility
premises in New South Wales and South Australia.
There was no effect on net assets or total equity or cash flows at 1 July 2019. The lease liabilities as at 1 July 2019 can be
reconciled to the operating lease commitments as 30 June 2019 as follows:
Operating lease commitments at 1 July 2019 financial statements
Discounted using the incremental borrowing rate at 1 July 2019
Add: Renewal Option not included in prior year calculation
Lease liabilities recognised at 1 July 2019
$
2,583,057
2,391,905
3,052,705
5,444,610
The weighted average lessee's incremental borrowing rate applied by the company to lease liabilities at 1 July 2019 was 5%.
The company adopted AASB 16 Leases using the modified retrospective method and therefore the comparative
information for the year ended 30 June 2019 has not been restated. Upon adoption of AASB 116, the company applied a
single recognition and measurement approach for all leases, except for short term leases and low-value assets.
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a) Revenue and other income
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: (i) Identifying the contract with a
customer; (ii) Identifying the performance obligations; (iii) determining the transaction price; (iv) allocating the transaction
price to the performance obligations; and (v) 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.
27 | P a g e
LaserBond Limited - Annual Report 2020
34
2020 FINANCIAL STATEMENTS
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Interest
Revenue from interest is recognised on accrual basis and is mainly derived from cash at bank.
Other Income
Revenue from other income streams is recognised when the company receives it or as an accrual if the company is aware
of the entitlement to the other income.
b) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision makers. The chief operating decision makers, who are responsible for allocating resources and assessing
performance of the operating segments, have been identified as the Board.
c) Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is not accounted for if it
arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of
the transaction does not affect either accounting or taxable profit or loss.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date
and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets
are recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction.
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
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 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.
28 | P a g e
LaserBond Limited - Annual Report 2020
35
2020 FINANCIAL STATEMENTS
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f) Cash and Cash Equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
g) Financial Instruments
Financial 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.
Classification and subsequent measurement
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.
Recognition and initial measurement
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.
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 significantly 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.
29 | P a g e
LaserBond Limited - Annual Report 2020
36
2020 FINANCIAL STATEMENTS
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
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 Non-Financial 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
Comparative period
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.
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.
30 | P a g e
LaserBond Limited - Annual Report 2020
37
2020 FINANCIAL STATEMENTS
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Current period
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.
Right of use assets
The company recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the relevant commencement date less any
lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of
the relevant lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its
estimated useful life and the relevant lease term. Right-of-use assets are subject to impairment.
Lease liabilities
At the commencement date of the relevant lease, the company recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate (initially
measured using the index or rate as at the relevant commencement date), and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised
by the company and payments of penalties for terminating a lease, if the lease term reflects the company exercising the
option to terminate. The company applies the practical expedient to not separate non-lease components from lease
components, and instead accounts for each lease component and any associated lease components as a single lease
component.
The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which
the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the company uses the incremental borrowing rate at the relevant lease
commencement date if the interest rate implicit in the lease is not readily determinable. After the relevant commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
Significant judgements
The company has made the following significant judgements with respect to its leases as lessee:
Determining the lease term of contracts with renewal options
The company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised.
Under one of its facility premise leases, the company is able to continually exercise the option to extend the term of the
lease. The company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That
is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement
date, the company reassesses the lease term specifically if there is a significant event or change in circumstances that is
within its control and affects its ability to exercise (or not to exercise) the option to renew (i.e. a change in business strategy).
The company has included reasonably certain renewal options as part of the lease term for one of its facility premise leases
for a further 5 years.
31 | P a g e
LaserBond Limited - Annual Report 2020
38
2020 FINANCIAL STATEMENTS
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Determining the incremental borrowing rate
The company has applied judgement to determine the incremental borrowing rate, which affects the amount of lease
liabilities or right-of-use assets recognised. The company reassesses and applies the incremental borrowing rate on a lease
by lease basis at the relevant lease commencement date based on the term of the lease (or the remaining term of the lease
at the initial date of application). The company’s equipment financing rate was used as a base rate in the company’s
judgment.
m) Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
n) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset
or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the Australian Taxation Office is included with other receivables or payables in the balance
sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
o) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
wholly settled within 12 months after the end of the period in which the employees render the related service are recognised
in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be
paid when the liabilities are settled. The liability for annual leave and long service leave is recognised in the provision for
employee benefits. All other short-term employee benefit obligations are presented as payables.
(ii) Other long-term employee benefit obligations
The liability for employee entitlements which are not expected to be settled within 12 months after the end of the period
in which employees render the related service is recognised in the provision for employee benefits and measured as the
present value of expected future payments to be made in respect of services provided by employees up to the end of the
reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Discount rates are based on the market yield on Commonwealth
Government Securities with maturity dates close to the expected date the employee will reach 10 years of service.
The obligations are presented as current liabilities in the Statement of Financial Position if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual
settlement is expected to occur.
The current provision for employee benefits includes accrued annual leave and long service leave. For long service leave it
covers all unconditional entitlements where employees have completed the required period of service and also those where
employees are entitled to pro-rata payments in certain circumstances. Where employees have completed the required
period of service, this entire amount is presented as current, since the group does not have an unconditional right to defer
settlement for any of these obligations. However, based on past experiences, the group does not expect all employees to
take the full amount of accrued leave or require payment within the next 12 months.
32 | P a g e
LaserBond Limited - Annual Report 2020
39
2020 FINANCIAL STATEMENTS
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
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
Certain new accounting standards and amendments to standards have been published that are not mandatory for reporting
periods commencing 1 July 2019 and have not been early adopted by the company. These standards are not expected to
have a material impact on the company in the current or future reporting periods and on foreseeable transactions.
1(ii) Significant accounting judgements, estimates and assumptions
The company has considered the impact of COVID-19 and associated market volatility in preparing its financial statements
which results in further judgement in the areas in which significant judgement already occurs. As a consequence of and in
preparing these financial statements management has: re-evaluated whether there were any additional areas of judgement
or estimation uncertainty; reviewed external market communications to identify other COVID-19 related impacts; assessed
the carrying value of its assets and liabilities and determined any impact that may occur as a result of factors impacted by
33 | P a g e
LaserBond Limited - Annual Report 2020
40
2020 FINANCIAL STATEMENTS
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
COVID-19; ran multiple stress testing scenarios which are an integral component to the company’s risk management
framework to assess the potential impact of pandemic; and considered the impact of covid-19 on the company’s financial
statement disclosures. As a result of applying these processes the company has made additional disclosures in respect of
the impact of COVID-19 on accounting judgements and estimates for the following:
Significant estimate and judgement – receivables and expected credit losses
Receivables are recognised at amortised cost using the effective interest rate method, less any allowance for expected
credit losses. The modelling methodology applied in estimating expected credit losses in these financial statements is
consistent with that applied in the financial statements for the year ended 30 June 2019. The impact of COVID-19 on the
global economy and how the business, government and customers react is uncertain. This uncertainty is reflected in the
company’s assessment of expected credit losses from its customers which are subject to a number of management
judgements and estimates in the context of the impact of the pandemic and reflecting historical experience and other
factors that are considered to be relevant, including future events that are believed to be reasonable under the
circumstances. In relation to COVID-19, judgements and assumptions include the extent and duration of the pandemic, the
impacts of actions of governments world-wide (especially US, UK and China), and the responses of business and customers
in different industries relevant to the company.
Accordingly, the company’s expected credit losses estimates are inherently uncertain and as a result, actual results may
differ from these estimates.
NOTE 2: OTHER INCOME
Grant Income
Government Rebates / Subsidies
Other
NOTE 3: EXPENSES
Profit before Income Tax from continuing operations includes the
following specific expenses
Property expenses (a)
Auditors Remuneration
Audit Services – audit and review of Financial Reports
Non-Audit Services
2020
$
-
626,000
37,300
663,300
15,532
72,000
33,000
105,000
2019
$
468,606
18,000
60,980
547,586
773,650
67,000
-
67,000
(a) Upon adoption of AASB 16 Leases on 1 July 2019, rental expenses has been replaced by depreciation and interest
expenses
NOTE 4: INCOME TAX
Reconciliation of Income Tax Expense from continuing operations
Profit before Income Tax expense
3,765,047
3,834,867
Prima Facie Tax at the Australian tax rate of 27.5% (2019: 27.5%)
Deferred Tax Asset adjustments
R&D Tax Concession
Non-deductible expense
Adjustment to prior year income tax provisions
Total income tax expenses
1,035,388
16,360
(77,268)
2,606
(17,100)
959,986
1,054,588
99,317
(88,682)
7,208
(46,968)
1,025,463
34 | P a g e
LaserBond Limited - Annual Report 2020
41
2020 FINANCIAL STATEMENTS
NOTE 5: EARNINGS PER SHARE
Basic and diluted earnings per share (cents)
There are no current options to affect diluted earnings per share.
2020
$
2.940
2019
$
2.972
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2019
Shares issued as at 11th October 2019
Shares issued as at 22nd October 2018
Shares issued as at 14th February 2020
Shares issued as at 3rd April 2020
Closing Balance as at 30th June 2020
NOTE 6: TRADE AND OTHER RECEIVABLES
Trade Receivables
Provision – Impairment of Receivables
Loans – Key Management Personnel
Loans – Employees
Prepayments
No. of Shares
94,539,442
50,000
146,556
33,325
645,327
Weighted No.
94,539,442
36,027
101,184
12,508
83,257
95,414,650
94,772,418
2020
$
3,867,677
(33,370)
-
-
556,747
4,391,054
2019
$
4,822,307
(7,740)
4,174
6,642
570,298
5,395,681
Prepayments include progress payments on patent applications, and provisions for entitled government subsidies.
Within Trade Terms
(not impaired)
Gross
Amount
$,000
Past due
(and
impaired)
$,000
3,867
524
4,391
4,822
574
5,396
33
-
33
8
-
8
<30
$,000
1,822
524
2,346
2,902
574
3,476
31-60
$,000
1,123
-
1,123
1,379
-
1,379
2020
Trade receivables
Other receivables
2019
Trade receivables
Other receivables
NOTE 7: INVENTORY
Stock on Hand – Raw Materials
Stock on Hand – Finished Goods
Work in Progress
61-90
$,000
>90
$,000
432
-
432
380
-
380
457
-
457
153
-
153
2020
$
2,075,143
476,292
903,538
3,454,973
Total
$,000
3,867
524
4,391
4,822
574
5,396
2019
$
1,492,517
392,188
662,803
2,547,508
35 | P a g e
LaserBond Limited - Annual Report 2020
42
NOTE 8: PROPERTY, PLANT & EQUIPMENT
Prepayments of Assets
Plant & Equipment
At Cost
Less Accumulated Depreciation
Office Equipment
At Cost
Less Accumulated Depreciation
Motor Vehicles
At Cost
Less Accumulated Depreciation
Right of Use Assets
At Cost
Less Accumulated Depreciation
2020 FINANCIAL STATEMENTS
2020
$
264,848
11,029,987
(4,929,175)
6,100,812
266,519
(181,633)
84,886
616,656
(427,794)
188,862
5,444,610
(731,797)
4,712,813
2019
$
-
9,411,567
(3,865,580)
5,545,987
234,734
(138,487)
96,247
569,383
(349,172)
220,211
-
-
-
TOTAL PROPERTY, PLANT & EQUIPMENT
11,352,221
5,862,445
(a) Movements in Carrying Amounts
Plant &
Equipment
Office
Equipment
Motor
Vehicles
Right of
Use Assets
Total
2020 Financial Year
Balance at the beginning of the year
Additions
Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
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
(b) Asset Additions financed
$
5,545,987
1,921,925
(91)
(1,102,161)
6,365,660
$
2,820,639
3,455,136
(85,936)
(643,852)
5,545,987
$
96,247
39,407
(300)
(50,468)
84,886
$
57,543
88,133
(70,878)
21,449
96,247
$
220,211
47,273
-
(78,622)
-
5,444,610
-
(731,797)
$
5,862,445
7,453,215
(391)
(1,963,048)
188,862
4,712,813
11,352,221
$
208,291
100,256
(64,908)
(23,428)
220,211
2020
$
$
3,086,473
3,643,525
(221,722)
(645,831)
5,862,445
-
-
-
-
-
2019
$
The values for asset additions purchased utilising finance leases or
hire purchase agreements are:
1,411,201
1,495,157
36 | P a g e
LaserBond Limited - Annual Report 2020
43
2020 FINANCIAL STATEMENTS
NOTE 9: INTANGIBLES
2020 Financial Year
Balance at the beginning of the year
Additions
Disposals
Amortisation Expense
Carrying Amount at the end of the year
2019 Financial Year
Balance at the beginning of the year
Additions
Disposals
Amortisation Expense
Carrying Amount at the end of the year
Patents and
Trademarks
$
16,093
-
-
(2,045)
14,048
Patents and
Trademarks
$
5.508
12,491
-
(1,906)
16,093
Other
Intangibles
$
23,587
-
(2)
(16,536)
7,049
Other
Intangibles
$
17.879
27,271
(3,383)
(18,180)
23,587
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
At June 2018
(Charged) / credited
- to profit or loss
- directly to equity
At June 2019
(Charged) / credited
- to profit or loss
- directly to equity
At June 2020
NOTE 11: TRADE AND OTHER PAYABLES
Trade Payables
Superannuation
Dividends
Other payables and accrued Expenses
2020
$
318,176
68,207
386,383
238,695
147,688
386,383
Employee
Benefits
$
250,744
41,422
-
292,166
26,010
-
318,176
Expense
Accruals
$
37,296
33,893
-
71,189
(2,982)
-
68,207
Total
$
39,680
-
(2)
(18,581)
21,097
Total
$
23.387
39,762
(3,383)
(20,086)
39,680
2019
$
292,166
71,189
363,355
223,280
140,075
363,355
Total
$
288,040
75,315
-
363,355
23,028
-
386,383
2020
$
1,169,047
46,504
40,282
70,348
1,326,181
2019
$
1,280,494
44,094
33,955
679,427
2,037,970
37 | P a g e
LaserBond Limited - Annual Report 2020
44
NOTE 12: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Opening Balance
Issued Shares
(a) Ordinary Shares
Date
Details
1st July 2018
Opening Balance
2020 FINANCIAL STATEMENTS
2020
Shares
94,539,442
875,208
95,414,650
2020
$
6,725,293
317,065
7,042,358
2019
Shares
93,073,489
1,465,953
94,539,442
2019
$
6,406,948
318,345
6,725,293
12th October 2018
23rd October 2018
25th February 2019
5th April 2019
Dividend Reinvestment Plan
Non-executive Director Remuneration
Employee Share Plan
Dividend Reinvestment Plan
No. Shares
93,073,489
812,074
150,000
59,731
444,148
Issue Price
(Cents per
Share)
15.91
12.50
38.50
36.68
$
6,406,948
127,464
16,866
14,677
159,338
30th June 2019
Closing Balance
94,539,442
6,725,293
11th October 2019
22nd October 2019
14th February 2020
3rd April 2020
Dividend Reinvestment Plan
Non-executive Director Remuneration
Employee Share Plan
Dividend Reinvestment Plan
146,556
50,000
33,325
645,327
74.77
39.00
75.00
28.19
107,648
17,578
15,317
176,522
30th June 2020
Closing Balance
95,414,650
7,042,358
(b) Capital Risk Management
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: FINANCIAL LIABILITIES
Current Liabilities
Hire purchase and finance lease
Lease Liabilities (AASB 16)
Non-Current Liabilities
Hire purchase and finance lease
Lease Liabilities (AASB 16)
2020
$
789,751
972,090
1,761,841
2,779,600
3,940,181
6,719,781
2019
$
641,201
-
641,201
2,213,062
-
2,213,062
8,481,622
2,854,263
The company has committed to the purchase of a number of assets which will be funded through existing equipment
financing facilities. As at the date of this report this commitment totals $2.85 million and includes the purchase of the assets
of United Surface Technologies Pty Ltd in Victoria, an automated laser cladding cell for the NSW facility, a laser cladding
cell for Victoria and a horizontal borer for the SA facility.
38 | P a g e
LaserBond Limited - Annual Report 2020
45
2020 FINANCIAL STATEMENTS
NOTE 14: CONTINGENT ASSETS & LIABILITIES
The directors are not aware of any contingent assets or contingent liabilities that would have an effect on these financial
statements. (2019: 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
2020
$
233,242
2019
$
163,363
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
71,250
51,875
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
All Loans are classified as current, unsecured and interest free.
Superannuation
Contribution to superannuation funds on behalf of key
management personnel
NOTE 16: KEY MANAGEMENT PERSONNEL
96,832
94,652
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.
(b) Options Held
There were no options held at 30 June 2020 or 30 June 2019. There were no options issued during the financial
year.
39 | P a g e
LaserBond Limited - Annual Report 2020
46
(c) Shares Held
Interest
Wayne Hooper
Direct
Wayne Hooper
Indirect
Greg Hooper1
Direct
Greg Hooper1
Indirect
Philip Suriano
Indirect
Matthew Twist Direct
2020 FINANCIAL STATEMENTS
Shares Held as
at 30th June
2019
Issued
Purchased
(DRP)
Purchased /
(Sold) on
market
Shares Held
as at 30th
June 2020
143,112
30,000
9,798,797
9,625,685
1,265,498
5,639,659
3,936,900
708,305
70,909
21,246,956
-
-
-
-
-
-
-
50,000
1,333
51,333
18,271
65
161,448
-
1,265,498
(241,451)
5,398,208
-
-
-
(211,451)
3,936,900
776,576
72,307
21,248,286
Interest
Shares Held as
at 30th June
2018
Issued
Purchased
(DRP)
Purchased /
(Sold) on
market
Shares Held
as at 30th
June 2019
Wayne Hooper
Direct
Wayne Hooper
Indirect
Greg Hooper
Direct
Greg Hooper
Indirect
Philip Suriano
Indirect
Matthew Twist Direct
9,351,932
1,217,861
5,639,659
3,936,900
545,131
65,708
20,757,191
-
-
-
-
150,000
2,597
152,597
273,753
47,637
-
-
13,174
2,604
337,168
1 Greg Hooper resigned on 30 June 2020.
2 These were the amount of shares held at the date of Greg Hooper’s resignation.
NOTE 17: DIVIDENDS
Declared 2020 fully franked interim ordinary dividend of 0.50
(2019: 0.50) cents per share franked at the tax rate of 27.5%
(2019: 27.5%)
Declared 2019 fully franked final ordinary dividend of 0.50
(2018: 0.40) cents per share franked at the tax rate of 27.5%
(2018: 27.5%)
-
-
-
-
-
-
-
9,625,685
1,265,498
5,639,659
3,936,900
708,305
70,909
21,246,956
2020
$
2019
$
473,634
470,339
472,511
372,183
Total dividends per share for the period
1.00 cents
0.90 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
654,623
291,522
946,145
550,380
292,142
842,522
40 | P a g e
LaserBond Limited - Annual Report 2020
47
2020 FINANCIAL STATEMENTS
Dividends not recognised during the reporting period
Since year end the directors have recommended the payment of a final dividend of 0.6 cents per fully-paid ordinary share
(2019: 0.5) fully franked based on tax paid at 27.5%. The aggregate amount of the proposed dividend expected to be paid
on 9th October 2020 out of retained earnings at 30 June 2020 but not recognised as a liability at year end is $568,416. The
debit expected to franking account arising from this dividend is $156,314.
Franking credits
Franking credits available for subsequent periods based on a tax
rate of 27.5% (2019: 27.5%)
2020
$
2019
$
2,873,260
2,253,059
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
2,805,061
2,809,404
1,981,629
302
1,004,627
(907,465)
(23,028)
(711,789)
97,615
16,040
(3,029)
886,070
(3,558)
(33,240)
(59,903)
(75,315)
170,473
206,349
160,495
20,256
Net cash provided by operating activities
4,259,963
4,081,031
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 2020
Within 1 Year
Trade and other payables
Hire Purchase / Finance Lease
Lease Liabilities (AASB16)
Total financial liabilities
$
1,326,181
789,751
972,090
3,088,022
Greater than 1
Year
$
-
2,779,600
3,940,181
6,719,781
Total
$
1,326,181
3,569,351
4,912,271
9,807,803
41 | P a g e
LaserBond Limited - Annual Report 2020
48
2020 FINANCIAL STATEMENTS
Maturity of financial liabilities at 30th June 2019
Within 1 Year
Trade and other payables
Hire Purchase / Finance Lease
Lease Liabilities (AASB16
Total financial liabilities
$
2,037,970
641,201
-
2,679,171
Greater than 1
Year
$
-
2,213,062
-
2,213,062
Total
$
2,037,970
2,854,263
-
4,892,233
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 2020 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.
42 | P a g e
LaserBond Limited - Annual Report 2020
49
2020 FINANCIAL STATEMENTS
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)
2020
33,325
2019
59,731
b) Non-Executive Director Remuneration (Non-Cash)
Non-Executive Directors may be paid remuneration through both cash fees and non-cash benefits in the form of equity
issues. The fees will be a fixed sum determined annually that reflects the time, commitment and responsibilities of their
role, financial forecasts and cash-flow position of the company.
No shares will be issued until shareholder approval is gained at the next Annual (Or Extraordinary) General Meeting.
Where the issue of shares results in the aggregate amount of fees to exceed the sum approved last by shareholders,
shareholder approval may be sought to modify the agreed aggregate amount of fees.
Where the issue of shares results in a non-executive director’s total remuneration for a fiscal year to be in any way deemed
‘unreasonable remuneration’, shareholder approval will be sought to approve any recommended issue. Unreasonable
remuneration is defined as the aggregate amount of fees most recently approved by shareholders divided by the total
number of non-executive directors.
The required approval, if any, will be determined by the Board prior to the next Annual (or Extraordinary) General meeting.
A non-executive director is ineligible for non-cash benefits in the form of equity issues if the non-executive director has
not held a position on the Board for the full twelve months of each fiscal year.
At the 2019 Annual General Meeting shareholder approval was sought and gained for the issue of 50,000 shares to one
non-executive director who held office for the full twelve months of fiscal year 2019. No approval has as yet been sought
or gained for the 2020 fiscal year.
c) Expense arising from share-based payment
transactions
Shares Issued under employee share plan
Shares Issued under Non-Executive Director Remuneration
2020
$
19,161
19,500
38,661
2019
$
16,861
18,750
35,611
43 | P a g e
LaserBond Limited - Annual Report 2020
50
2020 FINANCIAL STATEMENTS
NOTE 21: 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.
Segment Definitions:
a) Services – the reclamation or repair of worn components for end users, or the manufacture of products that do
not incorporate LaserBond® cladding applications.
b) Products – the manufacture of products incorporating LaserBond® cladding applications.
c) Technology – the sale of LaserBond® cladding technology and associated licensing fees and consumables supply.
d) Research & Development – costs related to the ongoing development of new or improved technology,
applications and products.
30 June 2020
Services
Products
Technology
R&D
Revenue
12,830,584
9,166,460
180,220
Gross Profit
51.7%
52.7%
30.8%
Total
22,177,264
52.0%
-
-
EBITDA
Interest
Depreciation & Amortisation
4,023,105
2,962,847
(39,166)
(761,769)
6,185,017
255,678
1,140,308
182,663
814,661
-
-
-
438,341
26,660
1,981,629
Profit Before Income Tax
2,627,119
1,965,523
(39,166)
(788,429)
3,765,047
Income tax expense
(669,844)
(501,156)
9,986
201,028
(959,986)
Profit after Income Tax
1,957,275
1,464,367
(29,180)
(587,401)
2,805,061
Assets
Liabilities
Revenue
Gross Profit
EBITDA
Interest
23,603,381
(11,367,176)
30 June 2019
Services
Products
Technology
R&D
Total
11,175,053
9,132,229
2,359,918
-
22,667,200
47.5%
51.9%
29.2%
-
47.4%
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
Income tax expense
(555,222)
(557,448)
342,313
(91,536)
(668,437)
3,834,867
178,743
(1,025,463)
Profit after Income Tax
Assets
Liabilities
1,522,419
1,525,902
250,777
(489,694)
2,809,404
16,401,204
(6,340,980)
44 | P a g e
LaserBond Limited - Annual Report 2020
51
2020 FINANCIAL STATEMENTS
NOTE 22: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
a) Dividends
The directors have recommended the payment of a final dividend of 0.6 cents per fully-paid ordinary share (2019: 0.5) fully
franked based on tax paid at 27.5%. The aggregate amount of the proposed dividend is expected to be paid on 9th October
2019.
Subject to the group continuing to develop in accordance with future plans, the Board expects to continue to maintain
future dividends.
NOTE 23: ECONOMIC DEPENDENCY
Revenues of $10,152,242 (2019 - $10,504,279) are derived from two independent customers.
45 | P a g e
LaserBond Limited - Annual Report 2020
52
2020 FINANCIAL STATEMENTS
1. Substantial Shareholders at 28th July 2020
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
97
272
154
365
99
987
Total Units
36,392
768,845
1,249,851
12,102,366
81,257,196
95,414,650
%
10.238
10.238
1.358
7.634
6.527
5.614
4.126
5.181
Number of
Ordinary
Fully Paid
Shares Held
9,768,797
9,768,797
1,295,498
7,283,916
6,227,406
5,356,842
3,936,900
4,943,344
%
0.04
0.81
1.31
12.68
85.16
100.000
Holdings less than a marketable parcel
106
45,935
0.04814
3. Twenty Largest Shareholders as at 29th July 2019
Holder LaserBond Limited
Ms Diane Constance Hooper
Mr Wayne Edward Hooper
Mr Rex John Hooper
Mrs Lillian Hooper
Lornat Pty Ltd
Mr Gregory John Hooper
Mr Gregory John Hooper
Mr Ian Davies
Mr Keith Knowles
Parks Australia Pty Ltd
Myall Resources Pty Ltd
Mr Brendan Thomas Birthistle
W&D Hooper Investments Pty Ltd
Mr Makram Hanna & Mrs Rita Hanna
Fortitude Enterprises Pty Ltd < Fortitude Super Fund A/C>
Dixson Trust Pty Limited
Mr Gregory John Hooper
Mr William Ross Fenner
Mr Keith Knowles
Mr Michael Cottrell & Mrs Jennifer Mae Cottrell
Number of Ordinary Fully
Paid Shares Held
9,768,797
9,768,797
7,283,916
6,227,406
4,943,344
4,356,842
3,936,900
2,789,718
2,506,993
1,900,000
1,798,599
1,459,841
1,295,498
1,247,000
1,010,327
1,000,100
1,000,000
977,135
752,415
618,783
%
10.238
10.238
7.634
6.527
5.181
4.566
4.126
2.924
2.627
1.991
1.885
1.530
1.358
1.307
1.537
1.048
1.048
1.024
0.789
0.649
Totals for Top 20
64,642,411
67.749
Security Totals
95,414,650
46 | P a g e
LaserBond Limited - Annual Report 2020
53
2020 FINANCIAL STATEMENTS
4. Voting Rights
The voting rights attached to each class of equity securities are:
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one
vote and upon a poll each share shall have one vote.
b) Options – No voting rights.
5. Restricted Securities
The group has no restricted securities.
6. Securities subject to voluntary escrow
Total number of shares
held in escrow
44,460
36,351
31,967
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
16 Dec 2020 – 44,460 shares
21 Feb 2021 – 18,186 shares
7 Feb 2021 – 10,656 shares
21 Feb 2022 – 18,165 shares
7 Feb 2022 – 10,656 shares
7 Feb 2023 – 10,655 shares
47 | P a g e
LaserBond Limited - Annual Report 2020