ANNUAL REPORT
2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
WHAT WE DO
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.
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ANNUAL REPORT 2022
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
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Financial
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Notes to the Financial
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Shareholder
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Corporate
Directory
CONTENTS
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5
6
8
9
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28
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32
33
34
35
36
53
55
About LaserBond
Financial Snapshot
Chairman’s Letter
At a glance
Performance Summary
Chief Executive Officer’s Review of Operations
Directors’ Report
Remuneration Report
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
Financial Report
Statement of Profit or Loss
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Shareholder Information
Corporate Directory
ANNUAL REPORT 2022
3
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
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, Queensland, South Australia and
Victoria.
ABOUT LASERBOND
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
integrated management system. Importantly our customers
also achieve WHS benefits, and the positive contribution to
the environment by utilising our services.
WHS benefits are often realised because of the
maintenance of equipment and replacement of
worn parts is often carried out in potentially
hazardous environments (e.g. on mine sites)
and/or involves handling of difficult
and heavy components. Many of our
customers recognise that by reducing
the frequency of required maintenance,
the utilisation of LaserBond’s services
significantly lowers the risk of injury
to personnel.
4
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL SNAPSHOT
REVENUE INCREASE of 24.5% from
$24.7 m in FY21 to
$30.7 m in FY22, and a
29.1% increase in the second half.
EBITDA for the year was
$8.68 m, up by
35.9% on FY21.
CASH BALANCES continue to grow from
$4.91 m at 30 June 2021 to
$5.68 m at 30 June 2022,
driven by continuing strong cash flow from operations of
$4.24 m.
WORKING CAPITAL increased by 39.7% from
$8.79 m in FY21 to
$12.27 m in FY22.
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ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
CHAIRMAN’S LETTER
When I reported to you in August 2020, I noted that the year
had been “like no other,” with bushfires and the outbreak of the
COVID-19 global pandemic. Since then, businesses around
the world have had to adapt to a different marketplace with
various restrictions on site access, border closures, supply
chain constraints, reduced workforce due to illness, inflationary
pressures and interest rate rises more recently, and the list
continues. It was impossible to envisage, try as we might,
how the ensuing few years might unfold. However, against
an exceptionally difficult set of conditions that modern
businesses have ever faced, LaserBond has more than proven
its cornerstone role in providing sophisticated, proprietary
technologies, products, and services to a host of critical
industries across the globe. We are also confident that had
the pandemic not occurred we would have made greater in
roads in some Asian and North American markets with large
technology sales and ongoing consumable
supply arrangements.
On behalf of the Board, I am pleased to share with you the
details of another excellent performance in all metrics. The
business has achieved a 24.5% increase in FY22 revenue to
$30.7 million from $24.7 million in FY21. I am also pleased to
report corresponding FY22 increases of 35.9% in EBITDA and
27.9% in NPAT over FY21. These increases in profit and loss
metrics have been achieved with healthy growth in all business
divisions, including the Technology Division which had been
heavily impacted by pandemic border and travel restrictions in
previous years.
Cash balances remain strong with $5.68 million as at 30 June
2022. This cash gives us the resources we need to make up for
lost time on our expansion strategy.
Earnings Highlights
Despite the changed trading conditions, our strategy remains
relevant. We remain committed to our offshore expansion
plans with products and technologies that have clear demand
from specific overseas markets. We will also continue to
expand our geographic footprint in the domestic market to
locate our services closer to customers to help reduce lead
times and costs. To this end, we acquired QSP Engineering in
Queensland from 1st February this year, funded by a successful
capital raising. The Queensland facility has increased revenue,
while also improving proximity to customers and providing an
opportunity for LaserBond to add its proprietary laser cladding
technology to existing laser units to enhance capability and
stimulate demand in that region. Our aim is now to continue
our planned expansion into Western Australia.
We are also continuing to build capability in our people
and invest in equipment to grow the operations, as well as
maintaining our product and technology development focus,
and our aim to secure long-tailed licensing agreements
for our technologies.
On the research and development front, we progressed each
of our MicrocladTM , NanocladTM and E-CladTM technologies
began to contribute revenue in FY22, after successful trials and
launches in FY21. With the lifting of restrictions, a sales and
marketing drive is intended to build sales momentum both
here and in the US. Innovation has been at the core of our
business since its inception in 1992 and it is this intellectual
property that sets us apart from the more standard offerings of
our competitors.
The Board was strengthened with the appointment of Ian
Neal as a non-executive director in early May. Ian brings vast
experience in financial markets and business strategy,
FY22
FY21
Revenue from Continuing Operations
$30.711 M
up 24.5% from
$24.664 M
EBITDA
Net Profit Before Tax
Net Profit After Tax1
$8.676 M
$5.331 M
$3.629 M
up 35.9% from
up 58.4% from
up 27.9% from
$6.383 M
$3.365 M
$2.838 M
1 FY22 Profit after tax was impacted by a prior year tax adjustment related to the instant asset write off being claimed by the Company. This adjustment has no impact on tax liabilities.
Further details can be found under Note 4 of the Financial Statements.
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ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
Dividend
Having reviewed the need for capital to aggressively pursue the
expansion plans, the Board has determined to increase its final
dividend to 0.8 cents per share, bringing the full year dividend
to 1.4 cents per share, fully franked. It reflects the strong
balance sheet and cash flows, and the business’s necessity to
the breadth of essential industries across the country.
I would like to thank our shareholders for continuing to believe
in our ability to grow our business and deliver returns. I am
pleased to that we have delivered to shareholders a compound
net profit after tax increase of 39.2% per annum since 2018.
Lastly, I would like to acknowledge the incredible ability of
our employees to adapt and prosper at the same time. While
the board and management set the strategy, it has been the
unwavering endeavours and commitment of our employees
who have joined forces to realise its value and deliver another
superior performance of year-on-year compound growth. This
effort has also been achieved with an unyielding backdrop of
trading difficulties, which make it all the more remarkable.
I look forward to updating you on the innovations and
successes that make our business unique.
Philip Suriano
Chairman
commencing his career as an equities analyst and performing
various banking and finance positions until he co-founded
Nanyang Ventures in 1993 where he was the Managing Director
until 2004. Ian is currently a Chair for The Executive Connection
where he mentors CEOs. Ian also consults to several companies
on strategy and implementation. The board welcomes the
experience of Ian as LaserBond resumes its expansion strategy
both domestically and internationally with the relaxing of
border restrictions and closures that have been in place for
various periods over the past few years. To further strengthen
the board to guide the delivery of our strong growth, plans are
underway to appoint a third non-executive director in the
near future.
Outlook
LaserBond has a clearly articulated growth strategy, reliable
cash flows and a strong balance sheet with $12.3 million of
working capital to assist in growing sales in markets where
there is strong demand. It is a business that has proved its
worth to customers, shareholders, suppliers and employees
in navigating a tumultuous and unforeseen global event.
Since the easing of restrictions and bans linked to Covid, it has
continued to face other challenges from the fallout of Covid,
such as worker shortages.
More broadly, the business has had to heed the increasing cost
pressures felt throughout the economy with the high and rapid
rate of inflation, supply chain constraints and the increases
in interest rates which impact our customers as well as our
suppliers. Despite this backdrop of wider market forces and
uncertainties, the Board remains confident that it can achieve
the current revenue target of $60 million by 2025 through a
number of sales growth targets, new
sales in offshore market, added
capacity in its labour force and
additional capability
with sites closer to
customers.
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ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
AT A GLANCE
A CULTURE OF INNOVATION
Darwin u
Adelaide p
t Brisbane
t Sydney
t Canberra
t Melbourne
t Hobart
The company is driven by innovation,
deriving approximately 75% of its
revenue from proprietary technologies,
and is currently implementing a national
and international growth strategy.
LaserBond’s proprietary technology
gives it a competitive edge for quality,
efficiency and innovation. Its products,
services and technologies are used
in a range of industry sectors that are
essential to our well-being and to our
economy.
Perth u
SOME OF OUR BLUE-CHIP CUSTOMERS
MINING AND MINERALS PROCESSING
HEAVY INDUSTRY
CONSTRUCTION
MANUFACTURING
ENERGY
8
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ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
PERFORMANCE SUMMARY
NPAT
Net Cash from Operations
($m)
($m)
4
3
2
1
0
1.5
1.2
0.9
0.6
0.3
0.0
20
15
10
5
0
2.0
1.5
1.0
0.5
0.0
0.8
1.8
0.9
0.8
FY19
FY20
FY21
FY22
2.8
2.8
2.8
3.6
FY19
FY20
FY21
FY22
Dividend
Earnings per share
(cents)
(cents)
0.9
1.0
1.2
1.4
FY19
FY20
FY21
FY22
Net Tangible Assets Per Share
(cents)
10.6
FY19
12.8
FY20
14.8
FY21
19.3
FY22
4
3
2
1
0
5
4
3
2
1
0
3.0
2.9
3.0
3.5
FY19
FY20
FY21
FY22
Safety (LTIFR)
4.1
FY19
2.7
FY20
1.7
FY21
1.7
FY22
9
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ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
CHIEF EXECUTIVE OFFICER’S REVIEW OF OPERATIONS
OVERVIEW
I am pleased to report strong growth despite some challenges
becoming more pronounced since the half-year. The lifting
of site and travel restrictions earlier this calendar year enabled
more sales activity and a significant increase in demand for
our products and services. While this is a positive change,
it has been somewhat countered by the difficulty in scaling
up the workforce to support the high level of demand that
LaserBond is experiencing, as well as the challenges thrown up
by supply chain issues and accessibility of raw materials and
other operational equipment. While the financial performance
of the business is strong these complications have meant
that the upswing across all earnings metrics might have been
even higher had the business been able to source the level of
manpower and other resources necessary to reduce lead times
and operate more productively to meet the ongoing high level
of demand.
From 1st February this year, LaserBond acquired
certain assets and assumed liabilities of QSP
that
Engineering, a Queensland business
specialises in surface engineering. Its suite of
thermal spraying and laser cladding systems
can be immediately optimised with LaserBond
IP and technology to augment its value to our
business and provide more local services closer
to many of our customers. The acquisition was
funded by a capital raising in December/January,
which provided $10 million via a placement and
a further $1.137 million via a share purchase plan.
LaserBond takes a disciplined approach when assessing
potential acquisitions, with a specific set of criteria by which
to measure their suitability. The aim of these acquisitions is to
gain complementary businesses that bring skilled personnel,
equipment, an existing client base and a platform to roll out
LaserBond cladding technology to that new market, and the
ability to reduce lead times with existing customers who are
located closer to the new premises.
LaserBond sources essential materials for its core products and
services business from around the world. Significant issues
have been avoided with the prudent decision to increase
minimum levels of critical inventory stocks before the scarcity
of supply magnified and created problems with availability.
These increased inventory levels have kept the business’s
requirements ahead of any delays in shipments. To date,
LaserBond has been able to continue operating at appropriate
levels, notwithstanding the labour force issues, fulfilling
customer demand and earning revenue that otherwise would
have been under threat.
However, recognition of revenue for two technology sales in
FY22 was not possible due to unexpected delays in delivery of
relatively minor electronic components. Due to global demand
and supply issues, our automation equipment suppliers
unexpectedly and repeatedly extended their promised delivery
dates, finally meaning the business could not deliver on these
technology orders in FY22. These systems were very close to
completion, significantly increasing WIP inventory at 30 June
2022. We have learnt from this experience and the business is
now ordering several components that have become long lead
time parts in advance, as preparation for the execution of new
technology sale agreements in FY23.
As supply chain issues and risks normalise, we expect to be
able to reduce forward orders and inventories, freeing up
further cash.
A more significant issue has been the difficulty in recruiting
appropriately skilled people into the business to operate
machines that are not working at full capacity. However, we
are well advanced in obtaining immigration approval for an
additional 15 skilled visa workers which we anticipate will
be able to commence by October 2022. This will enable the
business to become significantly more productive across
all sites and continue to deliver the growth. We have also
significantly increased our apprentice and trainee programs
across the organisation to help deliver the skilled workers we
need now and in the future.
As with most organisations now, Covid-19 and all that it brings,
with in-built hygiene processes and lost man hours, as well as
the issues associated with recruiting people and maintaining
reliable supply chains, is now built into all parts of our business.
Our strategic plans for growth, our operations spanning several
states in Australia, our policies, and our processes all now
account for the potential for an outbreak of a virus and the
return to the altered operating conditions that were necessary
under substantially and rapidly changed trading environment.
Many measures instituted during that time remain in place and
have become incorporated in daily operating routines.
10
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL PERFORMANCE
All earnings metrics were up, an excellent achievement and
largely reflecting the relaxation of Covid restrictions, enabling
an increase in sales, marketing, and operational activity, as
well as a superior performance from the new acquisition
in Queensland.
Total revenue increased by 24.5% from $24.7
million in FY21 to $30.7 million in FY22, and by
29.6% between the first half and the second half.
This revenue increase is also off the back of an
11.2% increase between FY20 and FY21, showing
the underlying strength of the business in the
toughest of trading conditions. Furthermore, the
compound annual growth rate for revenue over
the four years to FY22 was a healthy 18.4%, right
through the worst impacts of the pandemic.
EBITDA for the year was $8.7 million, up by
35.9% on the $6.4 million achieved in FY21.
The compound annual growth rate in profit
before tax was 39.6% over the four years to FY22.
Cash balances continued to grow throughout the year, with
a 15.8% increase from $4.91 million at 30 June 2021 to $5.68
million at year-end. Cash flows from operations remained
strong at $4.24 million, despite the strategic decision to increase
essential raw material inventories in the face of supply chain
issues. Over the period, working capital increased by 39.7%
from $8.79 million in FY21 to $12.27 million in FY22, creating a
solid financial base from which to fund the acceleration of the
domestic and offshore expansion strategy.
Consistent with its culture of innovation, LaserBond invested
$0.51 million in its research and development program
compared with $0.68 million in FY21, progressing several
collaboration projects that are expected to lead to new
products and services in the near future.
Revenue ($m)
10.9
12.9
17.3
11.3
11.8
13.4
12.2
10.5
FY19
FY20
FY21
FY22
1H
2H
EBITDA ($m)
4.87
6.19
6.38
8.70
FY19
FY20
FY21
FY22
NPAT ($m)
2.8
2.8
2.84
3.6
FY19
FY20
FY21
FY22
35
30
25
20
15
10
5
0
10
8
6
4
2
0
4
3
2
1
0
11
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
OPERATIONAL PERFORMANCE
While the first half of the year continued to be impacted by
site and travel restrictions as well as border closures, both
domestic and international, the second half delivered a stronger
performance, albeit one that was impacted by the challenges
of labour force shortages and supply chain constraints.
This year, all three Divisions increased earnings
metrics, including the Technology Division which
was most impacted by the fallout of Covid.
15
12
9
6
3
0
1H
2H
Services Revenue ($m)
5.48
5.94
6.19
7.92
5.69
6.89
5.45
5.78
FY19
FY20
FY21
FY22
5
4
3
2
1
0
1H
2H
Services EBITDA ($m)
2.08
1.34
1.44
2.33
1.23
FY19
1.94
FY20
1.55
FY21
1.31
FY22
Services Division
The Services Division achieved a 17.7% uplift in revenue from
$11.64 million in FY21 to $13.70 million, with a 37.2% increase in
second half revenue compared with the first half. The healthier
second half revenue reflected the contribution of revenue from
the new Queensland acquisition, after settlement on 31 January
2022, as well as the abatement of various restrictions associated
with managing the pandemic. Similarly, EBITDA rose by 22.0%
from $2.99 million in FY21 to $3.64 million in FY22.
A major element of the rationale for acquiring the Queensland
business was to increase services revenue by providing more
local supply to the Queensland market. With healthy margins
and shorter lead times, the new business has more than
met initial performance expectations and we are confident
that, with our planned capital improvements in a proprietary
LaserBond® cladding cell, we can further optimise performance.
The assets purchased in the acquisition include surface
engineering capabilities, which LaserBond intends to upgrade
to expand the service offering and increase efficiencies and
bring them into line with LaserBond facilities in other states.
The Victorian acquisition has been impacted by Covid to a
greater degree than initially expected with a six-month delay
in installing the new LaserBond® cladding cell due to border
closures, ultimately necessitating the remote installation
and final commissioning in February this year. The business
suffered during the prolonged periods of lockdown in the
first half year and is now focusing on hiring skilled operators
to man additional shifts together with a focus on business
development to build the business back to full capacity,
incorporating the newly installed LaserBond®
cladding capability.
12
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
15
12
9
6
3
0
1H
2H
Products Revenue ($m)
6.62
7.46
4.34
4.81
4.80
4.36
6.33
7.50
FY19
FY20
FY21
FY22
6
5
4
3
2
1
0
1H
2H
Products EBITDA ($m)
1.39
1.73
2.09
2.68
1.26
1.23
1.99
2.34
FY19
FY20
FY21
FY22
Products Division
The Products Division achieved a 15.5% uplift in revenue
from $12.95 million in FY21 to $14.96 million and was evenly
spread across each half. Since FY18, revenue has grown by a
compound annual growth rate of 27.8%, while EBITDA grew at
52.2% pa over the same period.
EBITDA grew by 23.0% from $4.08 million in FY21 to $5.02
million in FY22.
Revenue from the manufacture of steel mill rolls came close
to doubling between FY21 and FY22, with an uplift in sales in
the second half after restrictions eased and, offshore business
development activities re-commenced. As foreshadowed in
the FY21 annual report, the first LaserBond-branded rotary
feeder was shipped to the US and is now under trial. Revenue
for that sale was recognised in FY22.
2.5
2.0
1.5
1.0
0.5
0.0
1H
2H
Technology Revenue ($m)
2.36
1.95
0.18
0.05
FY19
FY20
FY21
0.10
FY22
0.5
0.4
0.3
0.2
0.1
0
-0.1
Technology EBITDA ($m)
1H
2H
0.34
0.52
1.44
-0.02
-0.06
-0.02
-0.06
-0.04
-0.04
FY19
FY20
FY21
FY22
Technology Division
The Technology Division has been the most adversely affected
by the border closures and Covid-driven restrictions, as well as
global supply chain issues, so the recognition of $2.05 million
of revenue is encouraging. While a significant increase on the
previous year’s revenue of approximately $71,000, this revenue
only recognises the equipment component of one of three
large technology sales against orders already received and
originally planned for delivery in FY22, a shortfall largely due to
supply issues related to minor electronic components.
Technology Division revenue in FY22 also includes consumable
sales and ongoing license fees for our UK licensee.
The two delayed technology sales, one in North America and
one in Western Australia for Curtin University, are now expected
to deliver revenue in FY23. The business is working towards
securing an additional technology sale that is currently close
to finalisation.
LaserBond continues to work with opportunities for more
licensees in North America, Asia and Europe and hopes to have
agreements executed with sufficient lead time to enable up to
two new equipment sales during FY23. To combat the supply
issues hampering revenue recognition in FY22, LaserBond is
ordering several long lead time components in advance of
executing these agreements.
13
ANNUAL REPORT 2022 About
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Corporate
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R&D Investment ($m)
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.47
0.55
0.68
0.68
0.51
FY18
FY19
FY20
FY21
FY22
INNOVATION
We have also continued to invest in innovation to stay ahead
of the market and maintain our position as the leader in our
markets with products, services and technologies that are
easily accessible, ahead of the innovation curve and cost-
effective. This includes significant investment in internal R&D
using our science and engineering staff, laboratory and testing
equipment to develop solutions for particular applications with
our customers.
In FY22, LaserBond also continued to leverage its research
and development investments through collaborative research
partnerships utilising Federal Government funding assistance
with various customers in conjunction with researchers within
various universities. These include:
❖❖ Cooperative Research Centre Project with University
of SA and an industry partner further developing high
performance coatings for wear and corrosion in minerals
processing equipment.
❖❖ SEAM-ARC project with Swinburne University and McTaggert
Scott for protection of glass and carbon fibre reinforced
composites.
❖❖ SEAM-ARC project with University of SA for coating and
repair of additively manufactured components.
❖❖ ARC Linkage Project with Monash University Institute of
Railway Technology with Yarra Trams and ANSTO for the
development and demonstration of laser cladding to
maintain rails in tram networks.
These projects will be completed between October 2022
and January 2024 and are expected to provide opportunities
for commercialisation of new products and applications. The
comprehensive testing and characterisation of the coatings
carried out by the researchers will assist in the commercialisation.
With respect to the LaserBond® equipment sale to Curtin
University in the coming months, LaserBond has an agreement
with Curtin to commence collaborative projects to increase
business opportunities particularly with resource and energy
companies with a strong presence in Western Australia.
Several technologies, such as MicrocladTM , NanocladTM and
E-CladTM, that were launched in FY21 are now beginning to
make a contribution to revenue that is expected to grow with
the greater ability to pursue sales and marketing activities.
PEOPLE
The most substantial challenge facing LaserBond at present,
as with countless other businesses, is identifying, recruiting
and training people to man equipment that is currently not
fully optimised to bolster the number of skilled operators and
machinists to cover afternoon shifts. In 2017, the Company
appointed six employees under skilled visa applications, with
these employees more than proving their value over the
last few years of difficult trading. In early 2020, LaserBond
continued to seek skilled visa applicants, however, COVID-
related restrictions and travel bans rendered the process
unviable, and those applications could not proceed at that time.
More recently, however, since these restrictions
and bans have been lifted, the visas for these
skilled migrants are
in the final stages of
processing and it is expected that 15 workers will
begin work with LaserBond between late August
and October this year. Once inducted and
trained, they should become fully productive by
February 2023 and allocated to sites to alleviate
increase production with
worker shortages,
additional shifts and reduce prolonged lead times.
LaserBond will continue its strong recruitment drive to employ
additional apprentices, trainees, and skilled machinists locally as
well as offshore until its assets can be fully optimised to meet
the accelerating demands of its customers.
Furthermore, the Company intends to become an employer
of choice and is working on increasing employee autonomy,
building the competencies of all employees, and promoting a
greater level of decision-making at all levels of the workforce to
reinforce the culture of accountability, trust, and excellence.
14
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
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Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
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Notes to the Financial
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Shareholder
Information
Corporate
Directory
HEALTH AND SAFETY
Keeping our people safe requires a commitment that is driven
from the top of the Company and conveyed through every
strand of the organisation. At LaserBond, the health and safety
of its people is paramount, and much work is done each year
to build on the solid cultural safety foundation that has been
established over the past decades.
In the three decades of our operation, LaserBond
has had an excellent safety record, and I am
pleased to report that our rolling 12-month
Lost Time Injury Frequency Rate has remained
stable over the last year, despite an increase
in
the
Queensland acquisition over the same period.
the workforce size
resulting
from
To mitigate the risk of COVID infection on all LaserBond sites,
the business introduced on-site Rapid Antigen Testing for all
employees and visitors in August 2021 in New South Wales and
Victoria, and from January 2022 in South Australia. With the
acceptance of Covid as part of the Australian virus landscape,
this routine testing has ceased at all sites, and subject to no
change in COVID permeation statistics or future restrictions, the
business does not anticipate any need to reinstate the program.
Again, like all businesses, LaserBond continues to deal with
worker shortages resulting from Covid infection, but to date has
not experienced any cluster events where large proportions of
employees are affected and unable to work.
SUSTAINABILITY
LaserBond is at the forefront of driving cleaner outcomes for
heavy industry, having designed new processes to manufacture
more environmentally friendly options for customers. The
E-Clad technology developed under our dedicated research
and development program uses a metallurgical bond that is
substantially more impact resistant than the chemical bond
that is produced by the traditional hard chroming process.
The process is faster, more durable, and requires less than a
quarter of energy used in hard chroming. Not least, it does
not utilise or produce harmful carcinogenic chemicals in the
process. This process is the result of much investment in R&D,
strong relationships with universities, and a relentless focus
on the future of technology and the likely changes in demand
as organisations across the globe want to, and moreover,
are required to, adopt more sustainable practices in their
operations.
As well as productivity and cost considerations,
a central objective for our R&D program is
impact of
to minimise the environmental
our customers’ operations. The very nature
of our products is to increase wear life and
thus reduce the requirement for additional
steel milling to manufacture new parts and
equipment. By extending the life of heavy
industry equipment, we eliminate the need
for
to
manufacture and scrap the steel components.
intensive energy usage
required
Furthermore, sustainability is not just the responsibility of
the large industrial operators. With governments around
the world legislating and regulating for lower emissions and
stricter environmental controls across the board, it makes good
business sense to work towards a cleaner operating framework.
LaserBond is ISO 14001 certified and has sound environmental
practices and employee training in place to manage waste
disposal, hazardous substances and energy usage.
STRATEGY
While there have been momentous and unforeseen changes
across the economy over the past two years, a recent review of
the business strategy by the LaserBond Board and management
resulted in renewed commitment to it as the most compelling
means to achieve maximum expansion with the resources
available. The FY25 $60 million revenue target remains in place,
as do the objectives and activities designed to achieve it over
the next three years.
With the recent easing of international travel restrictions, global
business development activity has re-commenced with vigour,
and we intend to resume our business development program
to build demand for specific products and technologies in
specific markets in Asia the Americas and Europe. Following is
a snapshot of LaserBond’s progress as well as FY23 plans and
initiatives to further its strategy.
15
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
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CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
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CEO’S REVIEW OF OPERATIONS
Strategic Objective
Strategic Objective
GEOGRAPHIC EXPANSION -
push existing and new products into
new domestic and offshore markets
CAPACITY AND CAPABILITY -
invest in people and equipment to
improve margins and build productivity
FY22 Progress on Plans
FY22 Progress on Plans
❖❖ Identified, assessed, acquired and integrated QSP
Engineering in Queensland, which delivered a local
facility to which capacity and capability could be
added to better serve the local market
❖❖ Continued to assess acquisition options in Western
Australia
❖❖ Heightened sales and marketing efforts in offshore
markets as international travel bans were progressively
lifted.
❖❖ Worked with Austrade and other advisors in specific
Asian markets to meet with and demonstrate
LaserBond® technology to potential licensees.
FY 23 Stated Plans
❖❖ Continue to analyse potential acquisition targets for
the planned LaserBond presence in Western Australia.
❖❖ Grow the Products and Technology Division sales
in specific areas of North & South America, Asia and
Europe
❖❖ Continue the Austrade collaboration to build specific
South American markets for products and services as
well as technology licensees.
❖❖ Grow Services Division sales based on the spread of
facilities in close proximity to customers.
❖❖ Installed a new large LaserBond® system in Vic to
increase capability. A new automated LaserBond®
system is being commissioned in NSW and is
expected to be operational from Sept, and fully
automated from Dec 2022.
❖❖ Recruited 15 people for skilled visa entry and
advanced their immigration approval. Expected arrival
in the coming months
❖❖ Successfully integrated employees from the new QLD
acquisition. Continuing to enhance culture remains a
priority for the Board and management.
FY 23 Stated Plans
❖❖ Invest in people and training, and introduce more
shifts to best utilise existing equipment capacity
across all facilities
❖❖ Invest in equipment, both new and upgraded, and
automate processes to improve efficiency, particularly
in Queensland and Victoria
16
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
Strategic Objective
Strategic Objective
PRODUCT DEVELOPMENT -
innovate, build R&D capability and
stay ahead of the market
TECHNOLOGY LICENSING -
build a suite of technologies for sale
under long-tailed licensing arrangements
FY22 Progress on Plans
FY22 Progress on Plans
❖❖ Launched MicrocladTM, NanocladTM and E-CladTM and
release costings throughout the year and they are
now contributing to revenue
❖❖ Launched new hard chrome replacement technology
and now working on achieving a more competitive
price for some smaller componentry
FY 23 Stated Plans
❖❖ Continue business development activities for all new
products/applications including Microclad, Nanoclad,
E-Clad, steel mill rolls, rotary feeders and release
coatings
❖❖ Continue to invest in research and development
activities and projects to remain ahead of the market
for surface engineering equipment, applications, and
capabilities
❖❖ Concentrate on Services Division applications for
a broader range of industry sectors, including rail,
power, timber, oil and gas, drilling and defence
❖❖ Completed Technology sale to a NZ licensee.
❖❖ North American and Curtin University cells near
completion, deliveries delayed by supply chain issues
on small components.
❖❖ Increased sales and marketing activities as
international travel bans lifted.
❖❖ Other technology licensing agreements negotiation
progressing.
FY 23 Stated Plans
❖❖ Delivery of the North American and Curtin University
cells in FY23.
❖❖ Plans for another two licensing agreements to be
secured with revenue recognised in FY23
❖❖ More resources devoted to offshore marketing to
increase technology licensing sales
ANNUAL REPORT 2022
17
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
OUTLOOK
LaserBond has a clear path for growth and a solid balance
sheet with good cash flows and $12.3 million of working
capital combined with low debt to provide the ability to fund
it. While the pandemic has certainly produced its challenges,
the business has achieved growth despite these challenges,
achieving a compound annual growth rate of 21.3% in EBITDA
between FY19 and FY22. This performance demonstrates
the underlying strength of the operations under extreme
circumstances. It is also a validation of the business’s worth to
its customer base.
Assuming that constraints to our business, as
well as our supplier’s and customer’s operations,
do not return
in a major way, LaserBond
remains committed to strong revenue growth
in FY23, and beyond to the $60 million FY25
target. With the additional employees coming
on board to increase machine operations as
well as the various domestic and offshore
sales and marketing plans for growth into high
demand markets, and the continued focus on
innovation to stay ahead of the competition in
our space, we are confident that FY23 will be
the year that defines our shift from a defensive
growth strategy to a far more aggressive one.
Wayne Hooper
Chief Executive Officer and Executive
Director
18
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
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CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
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Financial
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Notes to the Financial
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19
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
DIRECTORS’ REPORT
The Directors present their report together with the financial
statements of LaserBond Limited for the financial year ended
30th June 2022.
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,
Queensland, South Australia and Victoria.
REVIEW OF OPERATIONS & FINANCIAL RESULTS,
EXPLANATION OF RESULTS AND OUTLOOK
Please refer to the CEO’s Report on page 10.
DIRECTORS AND COMPANY SECRETARY
Details of the Company’s Directors who have held office during
the current financial year are:
Director
Position Held
In Office Since
Philip Suriano
Chairman / Non-Executive
Director
6 May 2008
Ian Neal
Non-Executive Director
9 May 2022
Wayne Hooper
CEO/ Executive Director
21 April 1994
Matthew Twist
CFO / Executive Director
30 June 2020
Matthew Twist
Company Secretary
30 March 2009
INFORMATION ON DIRECTORS AND COMPANY
SECRETARY (CURRENTLY HOLDING OFFICE)
Philip Suriano GAICD – Chairman / Non-Executive Director, Audit,
Risk, Nomination and Remuneration committee member
Philip began his career in corporate banking with the State
Bank of Victoria (Commonwealth Bank). He holds a degree
in banking & finance (B.Bus. (Bkg & Fin)). He spent 16 years in
senior positions within the Australian Media Industry. Philip
has gained wide knowledge & experience to give him a strong
background in operations, sales and marketing in such roles
as National Sales Director, MCN (Austar and Foxtel TV sales JV)
and Group Sales Manager at Network Ten. Prior to joining MCN,
Philip was employed within the Victor Smorgon Group. For the
past 15 years he has been working in corporate finance.
Ian Neal - Non-Executive Director, Audit, Risk, Nomination and
Remuneration committee member
Ian’s professional background is in financial markets,
commencing as an equities analyst and moving to various
banking positions until establishing Nanyang Ventures. Ian is
a Chairman for The Executive Connection where he mentors
CEOs. He is a life member of the Financial Services Institute
of Australia, a previous National President of the Securities
Institute of Australia and was a member of the first Corporate
Governance Council which established the Corporate
Governance Guidelines.
Wayne Hooper GAICD – Executive Director, Chief Executive Officer
Wayne is a professional engineer with 40 years of management
and technical experience within a range of industries. His
engineering experience includes design, maintenance and
project management. He started his career within the electricity
generation industry, followed by FMCG production and other
high volume manufacturing industries. Prior to joining the
Company in 1994, Wayne held senior roles in marketing within
the building products industry. Wayne holds degrees in Science,
Engineering (Honours Class 1) and an MBA.
Matthew Twist GIA (Cert) – Executive Director, Company Secretary,
and Audit, Risk, Nomination and Remuneration committee
member
Matthew Twist has over 25 years’ financial management
experience, encompassing financial and operational control and
systems development in manufacturing companies. Matthew
has been the Company’s Chief Financial Officer since March
2007 and was appointed Company Secretary on 30 March 2009.
Matthew has a Certificate in Governance Practice and is an
affiliated member of the Governance Institute of Australia.
20
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
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Shareholder
Information
Corporate
Directory
21
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
REMUNERATION REPORT
The directors present the LaserBond Limited 2022 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
Until 30 June 2021, the Company provided remuneration to
non-executive directors through both cash fees and non-
cash benefits in the form of equity issues. At the 2021 Annual
General Meeting shareholder approval was sought and gained
for the issue of 40,000 shares amounting to $37,800 for one
non-executive director who held office for the full twelve
months of fiscal year 2022. Approval was also sought and
gained for the issue of 40,000 shares amounting to $37,800 to
one executive director.
22
ANNUAL REPORT 2022 About
Laserbond
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Snapshot
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Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
From 1st July 2021, non-executive directors will only be paid quarterly fixed cash fees.
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.
Revenue
Net Profit after Tax
Share price at year end (Cents)
Dividends paid (Cents)
(d) KMP Remuneration
2022
$
30,711,118
3,628,751
66.00
1.2
2021
$
24,664,453
2,838,114
94.50
1.2
2020
$
22,177,264
2,805,061
39.50
1.0
2019
$
22,667,200
2,809,404
39.00
0.9
2018
$
15,648,146
967,749
12.50
0.6
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 2022 and 30 June 2021.
Wayne Hooper
Philip Suriano1
Ian Neal1
Matthew Twist
Totals
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Salaries
and fees
$
315,924
326,867
30,000
30,000
10,000
-
170,843
171,833
526,767
528,700
Superannuation
Share based
payments
$
Long Service
Leave
27,429
25,209
-
-
-
-
16,909
16,163
44,338
41,372
-
-
37,800
19,750
-
-
37,800
1,000
75,600
20,750
-
-
-
-
-
-
-
-
-
1 Philip Suriano and Ian Neal’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).
(e) Contractual arrangements for executive KMP’s
KMP’s who are active employees of the Company are hired following current human resources policies and procedures, and each are
required to have employment contracts, job descriptions and key performance indicators relevant to their roles and responsibilities.
(f) Non-executive director arrangements
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.
Up until 30 June 2021, if a non-executive director held their Board position for the full twelve months of each reporting period, they
may have been eligible for non-cash benefits of a fixed quantity of LaserBond shares reviewed annually by the Board. From 1 July 2021,
all Board members are paid fixed quarterly cash fees.
23
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
(g) Shares held by key management personnel
The number of ordinary shares in the Company during the 30 June 2022 financial year held by each of the Company’s key
management personnel, including their related parties, is set out below:
Name
Balance 30 June 2021
Granted as remuneration
Bought / (Sold)
Dividend Reinvestment
Balance 30 June 2022
Wayne Hooper
Philip Suriano
Ian Neal
Matthew Twist
11,064,295
843,565
-
73,973
(h) Loans to key management personnel
-
40,000
-
40,000
-
-
25,000
-
-
12,617
-
-
11,064,295
896,182
25,000
113,973
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 (2021: $Nil). The loans to key management personnel are
generally for a short term, unsecured and interest free.
END OF REMUNERATION REPORT.
DIRECTOR’S MEETINGS
During the financial year ended 30th June 2022, the number of meetings held, and attended, by each Director were as follows:
Director
Board Meetings
Audit and Risk Committee
Nomination and Remuneration Committee
Wayne Hooper
Philip Suriano
Ian Neal
Matthew Twist
Eligible
Attended
Eligible
Attended
Eligible
Attended
8
8
2
8
8
8
2
8
2
3
1
3
2
3
1
3
-
1
1
1
-
1
1
1
Please refer to the Corporate Governance Statement at
http://www.laserbond.com.au/investor-relations/governance-statement.html for further information.
24
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In February 2022, the Company acquired certain assets of QSP
Engineering Pty Ltd in Brisbane. Refer to Note 9 for details. There
was no other significant change in the state of affairs of the
Company other than that referred to in the financial statements
or notes thereto.
FUTURE DEVELOPMENTS
Any future developments required to be disclosed as per ASX
Listings Rules have either been disclosed previously or are
included in commentary or notes to this report. Any future
items required to be disclosed will be done according to
current listing rules requirements.
ENVIRONMENTAL REGULATION
The Company’s operations are not regulated by any significant
environmental regulation under a law of the Commonwealth or
of a state or territory.
MATTERS SUBSEQUENT TO THE END OF THE
FINANCIAL YEAR
The final dividend has been recommended and will be paid as
detailed below.
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.
DIVIDENDS
2021 final dividends of 0.6 cents per share and 2022 interim
dividends of 0.6 cents per share were paid during the year. The
directors have recommended the payment of a final dividend
for FY2022 of 0.8 cents per fully paid ordinary share (FY2021:
0.6c), fully franked based on tax paid at 25.0%. The dividend is
expected to be paid on 7 October 2022.
Subject to the Company continuing to develop in accordance
with future plans, the Board expects to continue to maintain
future dividends.
INSURANCE OF DIRECTORS’ AND AUDITORS’
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 or indemnities been
provided in respect of the Auditors.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of
the Corporations Act 2001 for leave to bring proceeding
proceedings on behalf of the Company, or to intervene in any
proceedings to which the Company is a party, for the purpose
of taking responsibility on behalf of the Company for all or part
of those proceedings.
No proceedings have been brought or intervened in on behalf
of the Company with leave of the Court under section 237 of
the Corporations Act 2001.
AUDIT AND NON-AUDIT SERVICES
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 2022 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.
25
ANNUAL REPORT 2022 About
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Financial
Snapshot
Chairman’s
Letter
At A
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
AUDITORS’ INDEPENDENCE DECLARATION
A copy of the auditors’ independence declaration as required
under section 307C of the Corporations Act 2001 is set out on
page 28.
Signed in accordance with a resolution of the Board of
Directors.
Director
Wayne Hooper
Dated this 25th day of August 2022
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
26
ANNUAL REPORT 2022 Auditor’s Independence
Declaration
Declaration
by Directors
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Independent Auditor’s
Report
Corporate
Directory
DIRECTORS’ DECLARATION
The directors of the Company declare that:
1. The financial statements and notes, as set out on pages
33 to 52 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 2022 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 25th day of August 2022
27
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
ABN 65 155 188 837
L8 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 2022, 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.
LNP Audit and Assurance Pty Ltd
Archana Kumar
Director
Sydney 25 August 2022
Liability limited by a scheme approved under Professional Standards Legislation
28
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
ABN 65 155 188 837
L8 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 (the Company), which comprises the statement of financial
position as at 30 June 2022, 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 the Company, 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 2022 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 procedures performed to address the matters below, provide the basis for our audit opinion on
the accompanying financial report.
Liability limited by a scheme approved under Professional Standards Legislation
29
ANNUAL REPORT 2022
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At a
Glance
CEO’s Review
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Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
Key Audit Matter
How our audit addressed the matter
Assessment of Carrying Value of goodwill
Our procedures included:
Goodwill at 30 June 2022 relating to acquisition of QSP
Engineering Pty Ltd business was $6,260,968.
Management assessed the recoverable amount of
goodwill relating to each cash generating unit (CGU) at 30
June 2022. The recoverable amount of CGU is determined
on a value in use basis, the assessment incorporates a
range of assumptions, including discount rates, growth
rates, and the timing and amounts of cashflows.
This a key audit matter due to the material value of
goodwill and the degree of subjectivity, judgement and
estimation required with the assessment.
Our procedures included, among others:
•
Evaluating the “value in use” discounted cash flow
models developed by management for each cash
generating unit to assess the recoverable amount of
goodwill, including critically assessing the following
assumptions:
(a) the discount rate;
(b) the revenue growth rate;
(c) other growth rate assumptions; and
(d) the timing and amounts of forecasted cash
flows.
•
•
•
•
Testing on a sample basis mathematical accuracy of
forecasting of the cash flows of each cash generating
unit.
Consideration of the assumptions used in comparison
with publicly available data.
Assessing company’s impairment testing model by
subjecting the key assumptions to sensitivity analysis
and stress test.
Assessing the appropriateness and adequacy of the
relevant disclosures made 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 2022 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.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such 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.
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
30
ANNUAL REPORT 2022
About
Laserbond
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Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
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 the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, 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 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.
Report on the Remuneration report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 18 to 19 of the Directors' Report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of LaserBond Limited for the year ended 30 June 2022, 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
25 August 2022
31
ANNUAL REPORT 2022
About
Laserbond
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Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
32
ANNUAL REPORT 2022 About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30th June 2022
2022
2021
FINANCIAL REPORT
Revenue
Cost of sales
Gross Profit
Other income
Advertising & promotional expenses
Depreciation & amortisation
Employment expenses
Administration expenses
Repairs & maintenance
Finance Costs
Research & development
Other expenses
Profit before income tax expense
Income tax expense
Note
22
2
3
4
4
$
30,711,119
(14,009,933)
16,701,186
457,376
(188,560)
(2,902,203)
(4,509,889)
(2,651,014)
(259,148)
(443,991)
(508,836)
(363,550)
5,331,371
(1,702,620)
$
24,664,453
(12,076,478)
12,587,975
1,020,964
(66,002)
(2,554,806)
(3,780,626)
(2,196,184)
(301,147)
(463,973)
(678,882)
(202,439)
3,364,880
(526,766)
Profit after income tax expense
3,628,751
2,838,114
Other comprehensive income
-
-
Total comprehensive income attributable to
members of LaserBond Limited
3,628,751
2,838,114
Earnings per share for profit attributable to members:
Basic and diluted earnings per share
(cents)
5
3.531
2.955
This Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
25 | P a g e
33
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
Statement of Financial Position
As at 30th June 2022
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax assets
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Deferred tax assets
Rental Bond
Intangible assets
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Current Tax Liabilities
Employee benefits
Financial liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Financial liabilities
Deferred Tax Liabilities
Employee benefits
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Retained earnings
TOTAL EQUITY
Note
6
7
8
11a
9
12
4
14
14
11b
2022
$
5,683,812
9,773,596
5,589,899
-
21,047,307
16,367,296
632,398
37,500
6,418,611
23,455,805
2021
$
4,907,855
5,806,508
3,437,194
777,495
14,929,052
13,991,383
533,142
-
77,312
14,601,837
44,503,112
29,530,889
4,263,545
110,014
1,823,267
2,577,877
8,774,703
6,708,326
1,422,202
89,769
8,220,297
2,370,809
-
1,530,701
2,239,705
6,141,215
8,461,672
602,524
63,803
9,127,999
16,995,000
15,269,214
27,508,112
14,261,675
13
18,226,957
9,281,155
27,508,112
7,378,717
6,882,958
14,261,675
This Statement of Financial Position should be read in conjunction with the accompanying notes.
34
26 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
Statement of Cash Flows
for the Year Ended 30th June 2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income taxes paid, net
Net cash inflow from operating
activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Payments for plant and equipment
Payment for acquisition
Loans to employees
Net cash outflow from investing
activities
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares
Payments for share issue costs
Payments for hire purchase assets and
finance leases
Dividends paid
Net cash inflow / (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
2022
$
30,558,799
(25,777,187)
(443,991)
1,206
(94,990)
19
4,243,837
10
(1,897,140)
(8,940,039)
(24,159)
2021
$
26,619,131
(20,369,724)
(463,973)
1,068
(1,029,571)
4,756,931
(450,038)
(805,851)
(9,650)
(10,861,338)
(1,265,539)
11,127,101
(691,579)
(2,132,265)
(929,678)
7,373,579
775,957
4,907,855
-
(12,404)
(1,726,028)
(842,758)
(2,581,190)
910,202
3,997,653
5,683,812
4,907,855
This Statement of Cash Flows should be read in conjunction with the accompanying notes.
27 | P a g e
35
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
FINANCIAL REPORT
Statement of Changes in Equity
for the Year Ended 30th June 2022
Statement of Changes in Equity
for the Year Ended 30th June 2022
Issued
Issued
capital
capital
$
$
Retained
Retained
earnings
earnings
$
$
Total equity
$
Total equity
$
Opening Balance at 1st July 2020
Opening Balance at 1st July 2020
7,042,358
7,042,358
5,193,847
5,193,847
12,236,205
12,236,205
Profit for the year
Profit for the year
-
-
2,838,114
2,838,114
Issue of Share Capital, net of cost
Issue of Share Capital, net of cost
336,359
336,359
-
-
2,838,114
2,838,114
336,359
336,359
Dividends paid/payable during the year
Dividends paid/payable during the year
-
-
(1,149,003)
(1,149,003)
(1,149,003)
(1,149,003)
Closing Balance at 30th June 2021
Closing Balance at 30th June 2021
7,378,717
7,378,717
6,882,958
6,882,958
14,261,675
14,261,675
Profit for the year
Profit for the year
-
-
3,628,751
3,628,751
Issue of Share Capital, net of cost
Issue of Share Capital, net of cost
10,848,240
10,848,240
-
-
3,628,751
3,628,751
10,848,240
10,848,240
Dividends paid/payable during the year
Dividends paid/payable during the year
-
-
(1,230,554)
(1,230,554)
(1,230,554)
(1,230,554)
Closing Balance at 30th June 2022
Closing Balance at 30th June 2022
18,226,957
18,226,957
9,281,155
9,281,155
27,508,112
27,508,112
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.
36
28 | P a g e
28 | P a g e
ANNUAL REPORT 2022
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Laserbond
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Snapshot
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Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
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 25 August 2022. 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 accruals basis.
NOTE 1: 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.
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 either receives it or becomes entitled to it.
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 rates enacted or substantively enacted at the end of the reporting period, 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 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 and 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 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.
29 | P a g e
37
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
d) Foreign Currency Translation
The functional and presentation currency of the Company is Australian dollars. Foreign currency transactions are translated into
the functional currency using the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated
in foreign currencies are retranslated at the rate of exchange ruling at the reporting date. Foreign exchange gains and losses
resulting from settling foreign currency transactions, as well as from restating foreign currency denominated monetary assets and
liabilities, are recognised in the Statement of Profit or Loss and Other Comprehensive Income. Non-monetary items measured at
fair value in a foreign currency are translated using the exchange rates at the date when fair value was determined.
e) Comparative Information
Where necessary, comparative amounts have been reclassified and repositioned for consistency with current year accounting
policy and disclosures. If there are any such changes, details on the nature and reason for the amounts that may have been
reclassified and repositioned for consistency with current year accounting policy and disclosures, where considered material, are
referred to separately in the financial statements or notes thereto.
f) Cash and Cash Equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
g) Financial Instruments
Financial 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.
38
30 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 have been determined using the simplified approach in AASB 9 which uses an estimation of
lifetime expected credit losses. The Company has determined the probability of non-payment of the receivable and contract asset
and multiplied this by the amount of the expected loss arising from default.
Financial liabilities
The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities are
measured at amortised cost using the effective interest rate method. The financial liabilities of the Company comprise trade
payables and finance lease liabilities.
h)
Inventory
Raw materials, finished goods and work in progress are stated at the lower of cost and net realisable value. Cost of work in progress
comprises direct materials, direct labour, and any external sub-contract costs. Net realisable value is the estimated selling price in
the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
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.
Goodwill
Goodwill on acquisitions of a business (note 10) is included in intangible assets. Goodwill is not amortised but it is tested for
impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at
cost less accumulated impairment losses.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination in which the
goodwill arose.
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
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 to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.
31 | P a g e
39
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 an 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 are increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities are 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 premises 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 premises leases for a further 5 years.
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.
40
32 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
FINANCIAL REPORT
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 benefits 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 Company does not have an unconditional right to defer settlement for any of
these obligations. However, based on past experiences, the Company does not expect all employees to take the full amount of
accrued leave or require payment within the next 12 months.
(iii) Share-based payments
Share-based compensation benefits are provided to employees via an employee share scheme. The fair value of options granted
under the employee share scheme is recognised as an employee benefits expense with a corresponding increase in equity. The
total amount to be expensed is determined by reference to the fair value of the shares granted, including the impact of any vesting
conditions.
Vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is
recognised over the vesting period, which is the period over which all 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.
p) Dividends
Provision is made for 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
33 | P a g e
41
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTE 1 (i): STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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) New and amended Standards adopted by the Entity
The Company has adopted all standards and amendments issued for reporting periods commencing 1 July 2021. The adoption of
the standards and amendments did not have any impact on the amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
t)
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 2021 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.
u) Critical accounting estimates and judgement
In applying the Company’s accounting policies, several estimates and assumptions have been made concerning the future. The
directors base their judgements and estimates on historical experience and various other factors they believe to be reasonable
under the circumstances, but which are inherently uncertain and unpredictable. As a result, actual results could differ from those
estimates. The main areas where a higher degree of judgement arises or where assumptions and estimates are significant to the
financial statements are:
(a) Carrying value of Goodwill – note 10
NOTE 2: OTHER INCOME
Grant Income
Government Rebates / Subsidies
Other
NOTE 3: AUDITOR REMUNERATION
Profit before Income Tax from continuing operations includes the
following specific expenses:
Auditors Remuneration
Audit Services – audit and review of Financial Reports
Non-Audit Services
NOTE 4: INCOME TAX
Reconciliation of Income Tax Expense from continuing operations
Profit before Income Tax expense
Prima Facie Tax at the Australian tax rate of 25.0% (2021: 26.0%)
Tax effect of timing differences
R&D Tax Concession
Net Non-Deductible Expenses
Other Deductible Expenses
Net adjustment relating to prior year income tax provisions (a)
Total income tax expenses
2022
$
190,628
122,512
144,236
457,376
93,200
22,000
115,200
5,331,371
1,332,843
146,539
(46,150)
29,091
(172,895)
413,192
1,702,620
2021
$
297,976
699,500
23,488
1,020,964
79,500
-
79,500
3,364,880
874,869
(377,869)
(84,861)
10,710
(3,225)
106,962
526,766
(a)
Included in this balance is an adjustment for prior year income tax expense amounting to $563,448 which relates largely
to the impact of the cash benefit available for the instant asset write-off being claimed by the Company. This
adjustment has no impact on tax liabilities.
42
34 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
NOTE 5: EARNINGS PER SHARE
Profit after tax
Basic and diluted earnings per share (cents)
There are no current options to affect diluted earnings per share.
(a) Weighted Average Shares on Issue
Opening Balance as at 1st July 2021
Shares issued on 8th October 2021
Shares issued on 8th November 2021
Shares issued on 23rd December 2021
Shares issued on 28th January 2022
Shares issued on 8th April 2022
Closing Balance as at 30th June 2022
NOTE 6: TRADE AND OTHER RECEIVABLES
Trade Receivables
Provision for expected credit losses
Loans – Employees
Prepayments and other receivables (a)
FINANCIAL REPORT
2022
$
3,628,751
3.531
No. of Shares
96,055,413
167,844
80,000
11,494,253
1,295,447
208,652
109,301,609
2022
$
8,862,893
(80,000)
9,553
981,150
9,773,596
2021
$
2,838,114
2.955
Weighted No.
96,055,413
121,859
51,288
5,951,819
543,023
47,447
102,770,849
2021
$
5,213,349
(83,417)
9,257
667,319
5,806,508
(a) Balances includes progress payments on patent applications and recruitment, and accrual for government subsidies receivable
at balance date.
Within Trade Terms (not impaired)
2022
Trade receivables
Other receivables
2021
Trade receivables
Other receivables
Gross
Amount
$,000
Past due
(and
impaired)
$,000
8,783
991
9,774
5213
593
5,806
80
-
80
83
-
83
<30
$,000
4,336
991
5,327
2,187
593
2,780
31-60
$,000
2,160
-
2,160
1,534
-
1,534
61-90
$,000
1,031
-
1,031
834
-
834
>90
$,000
1,176
-
1,176
575
-
575
Total
$,000
8,783
991
9,774
5,213
593
5,806
Standard customer credit terms are 30 to 90 days depending on the customers. The Company applies the simplified approach to
provide expected credit losses as prescribed by AASB9, which permits the use of the lifetime expected loss provision for all trade
receivables. The expected credit loss rate has been estimated and determined based on historic experience of sales and bad debts.
NOTE 7: INVENTORY
Stock on Hand – Raw Materials
Stock on Hand – Finished Goods
Work in Progress
2022
$
3,203,961
160,820
2,225,118
5,589,899
2021
$
2,194,360
412,210
830,624
3,437,194
35 | P a g e
43
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
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
FINANCIAL REPORT
2022
$
1,924,790
18,346,413
(8,212,482)
10,133,931
324,804
(216,896)
107,908
640,077
(492,063)
148,014
6,737,451
(2,684,798)
4,052,653
2021
$
1,219,473
14,623,436
(6,459,416)
8,164,020
287,930
(213,059)
74,871
565,762
(447,290)
118,472
6,082,032
(1,667,485)
4,414,547
TOTAL PROPERTY, PLANT & EQUIPMENT
16,367,296
13,991,383
(a) Movements in Carrying Amounts
Plant &
Equipment
Office
Equipment
Motor
Vehicles
Right of
Use Assets
Total
2022 Financial Year
Balance at the beginning of the year
Additions
Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
2021 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
$
9,383,493
4,428,296
-
(1,753,068)
12,058,721
$
6,365,660
4,476,842
(24)
(1,458,985)
9,383,493
$
74,871
100,267
(13,477)
(53,753)
107,908
$
84,886
39,165
(152)
(49,028)
74,871
The values for asset additions purchased utilising finance leases or hire
purchase agreements are:
NOTE 9: INTANGIBLES
Goodwill (Note 10)
Patents and Trademarks
At Cost
Less Accumulated Amortisation
Software
At Cost
Less Accumulated Amortisation
TOTAL INTANGIBLES
44
$
118,472
74,315
-
(44,773)
148,014
$
188,862
-
(5,910)
(64,480)
118,472
2022
$
-
$
$
4,414,547
655,419
-
(1,017,313)
13,991,383
5,258,297
(13,477)
(2,868,907)
4,052,653
16,367,296
$
4,712,813
637,423
-
(935,689)
$
11,352,221
5,153,430
(6,086)
(2,508,182)
4,414,547
13,991,383
2021
$
2,992,152
6,260,968
-
128,094
(10,841)
117,253
62,845
(22,456)
40,390
6,418,611
53,302
(4,252)
49,050
70,634
(42,372)
28,262
77,312
36 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
(a) Movements in Carrying Amounts
Goodwill
Patents &
Trademarks
Software
Total
2022 Financial Year
Balance at the beginning of the year
Additions
Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
2021 Financial Year
Balance at the beginning of the year
Additions
Sale / Disposal of Asset
Depreciation Expense
Carrying Amount at the end of the year
NOTE 10: ACQUISITION OF BUSINESS
$
-
6,260,968
-
-
6,260,968
$
-
-
-
-
-
$
49,050
79,045
-
(10,841)
117,253
$
14,048
39,165
-
(49,028)
49,050
$
28,262
34,583
-
(22,455)
40,390
$
7,050
-
-
(64,480)
28,262
$
77,312
6,374,595
-
(33,297)
6,418,611
$
21,098
102,838
-
(46,624)
77,312
In February 2022 the Company acquired certain assets and assumed certain liabilities of QSP Engineering Pty Ltd for a total purchase
consideration of $8,940,039 exclusive of GST. The purchase consideration was adjusted by $59,961 for employee entitlements and
certain asset balances.
The details of fair value of net assets acquired are:
Plant & Equipment
$
2,750,787
The liabilities assumed as at the date of acquisition were:
Employee Entitlements
71,716
Net tangible assets acquired as at the date of acquisition amounted to $2,679,071. At the same date, the Company also acquired the
right of use asset in the sum of $655,419 and lease liabilities of the same amount.
This transaction has been accounted for as a business acquisition in the financial statements and the Company assessed that the
value of any goodwill that were acquired consequential to the tangible assets was $6,260,968. This goodwill has been recognised
on the financial statements along with other intangible assets of the Company which include patents and software. Goodwill has
been assessed for impairment and no impairment has been recognised as at year end.
Significant estimates and judgement – Carrying value of Goodwill
The company determines whether goodwill is impaired at least at each reporting date. This requires an estimation of the recoverable
amount of the cash generating units (CGU) to which goodwill has been allocated, using value in use discounted cash flow
methodology. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the cash
generating unit and a suitable discount rate in order to calculate present value. Where the future cash flows are less than expected,
a material impairment loss may arise.
NOTE 11: DEFERRED TAX
a) Deferred Tax Asset
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 12 months
2022
$
478,259
154,139
632,398
436,570
195,828
632,398
2021
$
414,571
118,571
533,142
366,476
166,666
533,142
37 | P a g e
45
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
At June 2020
(Charged) / credited
- to profit or loss
At June 2021
(Charged) / credited
- to profit or loss
At June 2022
b) Deferred Tax Liability
Deferred tax liabilities comprise temporary differences attributable to:
Depreciation of fixed assets
NOTE 12: TRADE AND OTHER PAYABLES
Trade Payables
Superannuation
Dividends
Other payables and accrued Expenses
NOTE 13: CONTRIBUTED EQUITY
Issued and Paid Up Capital
Opening Balance
Issued Shares
(a) Ordinary Shares
Employee
Benefits
$
318,176
96,395
414,571
63,688
478,259
Expense
Accruals
$
68,207
50,364
118,571
35,568
154,139
2022
$
1,422,202
1,845,124
75,269
28,556
2,314,596
4,263,544
Total
$
386,383
146,759
533,142
99,256
632,398
2021
$
602,524
1,427,063
60,173
38,958
844,615
2,370,809
2021
$
7,042,358
336,359
7,378,717
2022
Shares
96,055,413
13,246,196
109,301,609
2022
$
7,378,717
10,848,240
18,226,957
2021
Shares
95,414,650
640,763
96,055,413
Date
Details
1st July 2020
Opening Balance
9th October 2020
19th November 2020
11th February 2021
1st April 2021
Dividend Reinvestment Plan
Director Non-Cash Remuneration
Employee Share Plan
Dividend Reinvestment Plan
30th June 2021
Closing Balance
8th October 2021
8th November 2021
23rd December 2021
28th January 2022
8th April 2022
Dividend Reinvestment Plan
Director Non-Cash Remuneration
Capital Raise
Share Placement Plan
Dividend Reinvestment Plan
Employee Share Plan
No. Shares
95,414,650
258,420
50,000
51,646
280,697
96,055,413
167,844
80,000
11,494,253
1,295,447
208,652
-
Issue Price
(Cents per
Share)
54.55
39.50
60.00
59.31
$
7,042,358
134,779
17,828
164,230
19,522
7,378,717
132,921
74,350
9,361,997
1,085,137
167,995
25,840
30th June 2022
Closing Balance
109,301,609
18,226,957
46
38 | P a g e
ANNUAL REPORT 2022
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Snapshot
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At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
(b) Capital Risk Management
Management effectively manages the Company’s capital by assessing the Company’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.
FINANCIAL REPORT
NOTE 14: 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)
2022
$
1,308,399
1,269,478
2,577,877
3,441,090
3,267,236
6,708,326
2021
$
1,366,547
873,158
2,239,705
4,546,103
3,915,569
8,461,672
9,286,203
10,701,377
Included in the lease liabilities balances are finance costs of $293,815 (2021: $573,544).
NOTE 15: CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
Apart from security deposit guarantees of $245,102 with CBA for three of the leased premises, the directors are not aware of any
contingent liabilities that would have an effect on these financial statements. (2021: $63,217).
The Company has committed to $458,280 of fixed asset purchases of which, $384,123 has been recognised in Prepayments of
Assets classified in Property, plant and equipment (Note 8) as at 30 June 2022.
The Company did not have any contingent liabilities or capital commitments as at 30 June 2022.
NOTE 16: RELATED PARTY TRANSACTIONS
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other
parties unless otherwise stated.
(a) Other Related Parties
Labour Costs
Payroll persons related to executive directors
2022
$
213,732
2021
$
253,734
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
26,875
45,000
These consultant fees are 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.
Superannuation
Contribution to superannuation funds on behalf of key management
personnel
71,967
66,305
39 | P a g e
47
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTE 17: KEY MANAGEMENT PERSONNEL
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 2022 or 30 June 2021. There were no options issued during the financial year.
(c) Shares Held
Interest
Wayne Hooper Direct
Wayne Hooper Indirect
Philip Suriano Indirect
Ian Neal Indirect
Matthew Twist Direct
Interest
Wayne Hooper Direct
Wayne Hooper Indirect
Philip Suriano Indirect
Matthew Twist Direct
NOTE 18: DIVIDENDS
Shares Held as
at 30th June
2021
9,768,797
1,295,498
843,565
-
73,973
11,981,833
Shares Held as
at 30th June
2020
9,768,797
1,295,498
776,576
72,307
11,913,178
Declared 2022 fully franked interim ordinary dividend of 0.60
(2021: 0.60) cents per share franked at the tax rate of 25.0% (2021:
26.0%)
Declared 2021 fully franked final ordinary dividend of 0.60 (2020:
0.60) cents per share franked at the tax rate of 25.0% (2020: 26.0%)
Total dividends per share for the period
Dividends paid in cash or satisfied by the issues of shares under
the dividend reinvestment plan during the year were as follows:
Paid in cash
Satisfied by the issue of shares
Issued
Purchased
(DRP)
Purchased /
(Sold) on market
Shares Held as
at 30th June
2022
-
-
40,000
-
40,000
80,000
-
-
12,617
-
-
12,617
-
-
-
25,000
-
25,000
9,768,797
1,295,498
896,182
25,000
113,973
12,099,450
Issued
Purchased
(DRP)
Purchased /
(Sold) on market
Shares Held as
at 30th June
2021
-
-
50,000
1,666
51,666
-
-
16,989
-
16,989
-
-
-
-
-
2022
$
9,768,797
1,295,498
843,565
73,973
11,981,833
2021
$
654,558
574,360
576,332
574,642
1.20 cents
1.20 cents
927,459
303,431
1,230,890
841,433
307,569
1,149,002
Dividends not recognised during the reporting period
Since year-end the directors have recommended the payment of a final dividend of 0.8 cents per fully paid ordinary share (2021:
0.6) fully franked based on tax paid at 25.0%. The aggregate amount of the proposed dividend expected to be paid on 7th October
2022 out of retained earnings as at 30 June 2022 but not recognised as a liability at year-end is $874,413. The debit expected to
the franking account arising from this dividend is $218,603.
Franking credits
Franking credits available for subsequent periods based on a tax rate
of 25.0% (2021: 26.0%)
2022
$
2021
$
3,454,761
3,655,600
48
40 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
NOTE 19: CASH FLOW INFORMATION
Reconciliation of profit after income tax to net cash flows from
operating activities
Profit after Income Tax for the year
NOTE 19: CASH FLOW INFORMATION
Reconciliation of profit after income tax to net cash flows from
operating activities
Profit after Income Tax for the year
Non-cash flows in operating surplus
Depreciation, Amortisation & Impairment
(Profit) / loss on disposal of property, plant & equipment
Non-cash flows in operating surplus
Depreciation, Amortisation & Impairment
(Profit) / loss on disposal of property, plant & equipment
Changes in assets and liabilities
Changes in assets and liabilities
(Increase) / Decrease in trade and other receivables
(Increase) / Decrease in trade and other receivables
(Increase) / Decrease in inventories
(Increase) / Decrease in inventories
(Increase) / Decrease in deferred tax assets
(Increase) / Decrease in deferred tax assets
(Increase) / Decrease in current tax assets
(Increase) / Decrease in current tax assets
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in current provisions
Increase / (Decrease) in current provisions
Increase / (Decrease) in current tax liabilities
Increase / (Decrease) in current tax liabilities
Increase / (Decrease) in non-current provisions
Increase / (Decrease) in non-current provisions
Increase / (Decrease) in deferred tax liabilities
Increase / (Decrease) in deferred tax liabilities
Net cash provided by operating activities
Net cash provided by operating activities
NOTE 20: FINANCIAL INSTRUMENTS
NOTE 20: FINANCIAL INSTRUMENTS
FINANCIAL REPORT
FINANCIAL REPORT
3,628,751
3,628,751
2,902,203
2,902,203
13,477
13,477
(3,967,088)
(3,967,088)
(2,152,705)
(2,152,705)
(99,256)
(99,256)
777,495
777,495
1,892,736
1,892,736
292,566
292,566
110,014
110,014
25,966
25,966
819,678
819,678
4,243,837
4,243,837
2,838,114
2,838,114
2,554,806
2,554,806
3,357
3,357
(1,415,454)
(1,415,454)
17,779
17,779
(146,759)
(146,759)
(777,495)
(777,495)
1,044,628
1,044,628
434,308
434,308
(402,367)
(402,367)
3,190
3,190
602,524
602,524
4,756,631
4,756,631
Financial Risk Management Policies
Activities undertaken may expose the Company to credit risk, liquidity risk and cash flow interest rate risk. The Company’s risk
management policies and objectives are therefore reviewed to minimise the potential impacts of these risks on the results of the
Company.
Financial Risk Management Policies
Activities undertaken may expose the Company to credit risk, liquidity risk and cash flow interest rate risk. The Company’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.
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 2022
Maturity of financial liabilities at 30th June 2022
Within 1 Year
Within 1 Year
Trade and other payables
Trade and other payables
Hire Purchase / Finance Lease
Hire Purchase / Finance Lease
Lease Liabilities (AASB16)
Lease Liabilities (AASB16)
Total financial liabilities
Total financial liabilities
$
$
4,263,545
4,263,545
1,308,400
1,308,400
1,269,477
1,269,477
6,841,422
6,841,422
Maturity of financial liabilities at 30th June 2021
Maturity of financial liabilities at 30th June 2021
Within 1 Year
Within 1 Year
Trade and other payables
Trade and other payables
Hire Purchase / Finance Lease
Hire Purchase / Finance Lease
Lease Liabilities (AASB16)
Lease Liabilities (AASB16)
Total financial liabilities
Total financial liabilities
$
$
2,370,809
2,370,809
1,366,547
1,366,547
873,158
873,158
4,610,514
4,610,514
Greater than 1
Greater than 1
Year
Year
$
$
-
-
3,441,090
3,441,090
3,267,236
3,267,236
6,708,326
6,708,326
Greater than 1
Greater than 1
Year
Year
$
$
-
-
4,546,103
4,546,103
3,915,569
3,915,569
8,461,672
8,461,672
Total
Total
$
$
4,263,545
4,263,545
4,749,490
4,749,490
4,536,713
4,536,713
13,549,748
13,549,748
Total
Total
$
$
2,370,809
2,370,809
5,912,650
5,912,650
4,788,727
4,788,727
13,072,186
13,072,186
Credit Risk Exposure
The maximum exposure to credit risk, excluding the value of any collateral or other security, at the 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.
Credit Risk Exposure
The maximum exposure to credit risk, excluding the value of any collateral or other security, at the 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 Company may encounter difficulties raising funds to meet commitments. The Company manages
this risk by monetary cash flow forecasts
Liquidity Risk
Liquidity risk is the risk that the Company may encounter difficulties raising funds to meet commitments. The Company 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.
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.
41 | P a g e
41 | P a g e
49
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
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’s results and equity which could result from a change in these risks.
Interest Rate Sensitivity Analysis:
The Company as at 30th June 2022 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 materials 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 Company 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 daily). The Directors do not consider that any reasonably possible movement in foreign
currency rates would cause a material effect on profit or equity.
NOTE 21: SHARE BASED PAYMENTS
a) Employee Share Plan
A scheme under which shares may be issued by the Company to employees for no cash consideration was approved by
shareholders through the prospectus. Eligibility to participate is based on an employee being a full-time employee of the
Company (or any of its 100% owned subsidiaries), the employee is an Australian resident for income tax purposes and the
employee has been directly employed by the Company (or any of its 100% owned subsidiaries) for at least a 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 Company on the day each issue is formally passed by the Board. Offers under the
scheme are at the discretion of the Board. Shares issued are vested for a period of three years from the date of issue, with one-third
released annually on each anniversary date of the Board approved issue date. If employment is ceased for any reason any shares
still currently vested and not released will be forfeited by the employee. Shares are issued as fully paid ordinary shares and rank
equally with existing shares on issue.
Number of new shares issued under the plan to participating
employees: (refer to Note 13 (a) for detail of issue)
2022
-
2021
51,646
Due to the level of shares vested and not released but forfeited by employees, no new shares were required to be issued under
the employee share plan in the twelve months to 30 June 2022.
b) Non-Executive Director Remuneration (Non-Cash)
Up until 30 June 2021, Non-Executive Directors were paid quarterly fixed fees, reviewed annually. Further, if a Non-Executive
Director held their Board position for the full twelve months of each reporting period, they may have been eligible for non-cash
benefits of a fixed quantity of LaserBond shares, reviewed annually by the Board and based on approval by shareholders at a
general meeting.
At the 2021 Annual General Meeting shareholder approval was sought and gained for the issue of 40,000 shares to one non-
executive director who held office for the full twelve months of fiscal year 2021. From 1st July 2021, Non-Executive Directors will
only be paid quarterly fixed fees.
c) Expense arising from share-based payment
transactions
Shares Issued under employee share plan
Shares Issued under Director Remuneration
2022
$
-
75,600
75,600
2021
$
21,444
19,750
41,194
50
42 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTE 22: SEGMENT REPORTING
The Company has identified its operating segment based on internal reports that are reviewed and used by the executive directors
(chief decision makers) in assessing performance and determining the allocation of resources. The Company operates entirely
within Australia. Segment information for the reporting period is provided below.
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 2022
Services
Products
Technology
R&D
13,699,219
14,964,100
2,047,800
51.6%
58.6%
42.5%
Total
30,711,119
54.4%
-
-
3,641,140
5,021,125
522,750
(508,656)
8,676,359
Depreciation & Amortisation
(1,370,763)
(1,497,328)
(211,623)
(231,162)
-
-
-
(442,785)
(34,112)
(2,902,203)
Profit Before Income Tax
2,058,754
3,292,635
522,750
(542,768)
5,331,371
Income tax expense
(657,481)
(1,051,532)
(166,945)
173,338
(1,702,620)
Profit after Income Tax
1,401,273
2,241,103
355,805
(369,430)
3,628,751
44,503,112
(16,995,000
30 June 2021
Services
Products
Technology
R&D
11,638,940
12,954,613
70,900
47.8%
53.7%
87.5%
Total
24,664,453
51.0%
-
-
2,985,450
4,081,721
(59,974)
(624,648)
6,382,549
Revenue
Gross Profit
EBITDA
Interest
Assets
Liabilities
Revenue
Gross Profit
EBITDA
Interest
Depreciation & Amortisation
(1,189,055)
(1,323,467)
(219,051)
(243,8120
-
-
-
(462,863)
42,284
(2,554,806)
Profit Before Income Tax
1,577,344
2,514,442
(59,974)
(666,932)
3,364,880
Income tax expense
(246,931)
(393,632)
9,389
104,407
(526,766)
Profit after Income Tax
1,330,413
2,120,810
(50,585)
(562,525)
Assets
Liabilities
2,838,114
29,530,889
(15,269,214)
43 | P a g e
51
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
FINANCIAL REPORT
NOTE 22: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
a) Dividends
The directors have recommended the payment of a final dividend of 0.8 cents per fully paid ordinary share (2021: 0.6) fully franked
based on tax paid at 25.0%. The aggregate amount of the proposed dividend is expected to be paid on 7 October 2022.
Subject to the Company continuing to develop in accordance with future plans, the Board expects to continue to maintain future
dividends.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly
affect the operations of the Company, the results of those operations or the state of affairs of the Company.
NOTE 23: ECONOMIC DEPENDENCY
Revenues of $15,002,017 (2021 - $12,586,099) that are contributed largely to the products segment are derived from two
independent customers.
52
44 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
1. Substantial Shareholders at 27th July 2022
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
HSBC Custody Nominees (Australia) Limited
Mrs Lillian Hooper
2. Distribution of Shareholders as at 27th July 2022
SHAREHOLDER INFORMATION
Number of
Ordinary
Fully Paid
Shares Held
9,768,797
9,768,797
1,295,498
6,883,916
6,817,126
5,542,928
%
8.937
8.937
1.185
6.269
6.237
5.071
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
364
824
312
532
103
2,135
Total Units
196,476
2,088,454
2,244,006
16,017,962
88,754,708
109,301,609
%
0.180
1.910
2.050
14.650
81.200
100.000
Holdings less than a marketable parcel
218
72,517
0.06635
3. Twenty Largest Shareholders as at 27th July 2022
Holder LaserBond Limited
Ms Diane Constance Hooper
Mr Wayne Edward Hooper
Mr Rex John Hooper
HSBC Custody Nominees (Australia) Limited
Mrs Lillian Hooper
Lornat Pty Ltd
National Nominees Limited
Mr Keith Knowles
Mr Ian Davies
HSBC Custody Nominees (Australia) Limited – A/C 2
Myall Resources Pty Ltd
BNP Paribas Nominees Pty Ltd HUB4 Custodial Serv Ltd
Parks Australia 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
J P Morgan Nominees Australia Pty Limited
DMX Capital Partners Limited
Number of Ordinary Fully Paid
Shares Held
9,768,797
9,768,797
6,883,916
6,817,126
5,542,928
4,943,344
4,500,827
3,009,207
2,749,532
2,517,026
1,836,777
1,537,932
1,495,378
1,483,610
1,295,498
1,244,000
1,041,780
1,034,582
1,014,060
974,138
%
8.937
8.937
6.298
6.237
5.071
4.523
4.118
2.753
2.516
2.303
1.680
1.407
1.368
1.357
1.185
1.138
0.953
0.947
0.928
0.891
Totals for Top 20
69,459,255
63.548
Security Totals
109,301,609
45 | P a g e
53
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Independent Auditor’s
Declaration
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
SHAREHOLDER INFORMATION
4. Voting Rights
The voting rights attached to each class of equity securities are:
a) Ordinary shares - on a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll, each share shall have one vote.
b) Options – No voting rights.
5. Restricted Securities
The Company has no restricted securities.
6. Securities subject to voluntary escrow
Total number of shares held
in escrow
9,765
31,108
47,561
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
7 Feb 2023 – 9,765 shares
2 Feb 2023 – 15,540 shares
7 Feb 2023 – 15,873 shares
2 Feb 2024 – 15,568 shares
7 Feb 2024 – 15,873 shares
7 Feb 2025 – 15,815 shares
54
46 | P a g e
ANNUAL REPORT 2022
About
Laserbond
Financial
Snapshot
Chairman’s
Letter
At a
Glance
CEO’s Review
of Operations
Directors’
Report
Remuneration
Report
Declaration
by Directors
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Notes to the Financial
Statements
Shareholder
Information
Corporate
Directory
CORPORATE DIRECTORY
DIRECTORS:
Mr. Philip Suriano
Chairman / Non-Executive Director
Mr. Ian Neal
Non-Executive Director
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
QUEENSLAND DIVISION
2 / 57 Anderson Road
SMEATON GRANGE NSW 2567
Phone: +61 2 4631 4500
112 Levels Road
CAVAN SA 5094
Phone: +61 8 8262 2289
26-32 Aberdeen Road
ALTONA VIC 3018
Phone: +61 3 9398 5925
74 High Road
BETHANIA QLD 4205
Phone: +61 7 3200 9733
WEBSITE:
www.laserbond.com.au
SHARE REGISTRY:
AUDITOR:
SOLICITOR:
BANKERS:
STOCK EXCHANGE LISTING:
Boardroom Pty Ltd
Grosvenor Place
Level 12, 225 George Street
SYDNEY NSW 2000
Phone: 1300 737 760
LNP Audit and Assurance Pty Ltd
Level 8, 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.
55
ANNUAL REPORT 2022
LaserBond Limited
ABN 24 057 636 692
NSW: 2/57 Anderson Road,
Smeaton Grange, NSW 2567 Australia
p. +61 2 4631 4500
SA: 112 Levels Road,
Cavan, South Australia 5094
p. +61 8 8262 2289
VIC: 26-32 Aberdeen Road,
Altona, Victoria 3018
p. +61 3 9398 5925
QLD: 74 High Road,
Bethania, Queensland 4205
p. +61 2 4631 4500
Free Phone: 1300 LASERBOND
info@laserbond.com.au
www.laserbond.com.au
Quality 9001,
Environment 14001,
Health & Safety 4801