2024
Annual Report
C O N T E N T S
Surface Engineering
is in our DNA.
4
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Snapshot
6
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Strategic Update
8
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Chair’s Letter
10 |
CEO’s Review of Operations
12 |
Operating and Financial Review
18 |
Sustainability Report
22 |
Directors’ Report
30 |
Directors’ Declaration
31 |
Auditor’s Independence Declaration
32 |
Independent Auditor’s Report
36 |
Financial Report
57 |
Shareholder Information
59 |
Corporate Directory
O P E R A T I O N S - W H A T W E D O
Technology developed
in collaboration with
researchers and industry
partners
A wide range
of customers and
industries seeking better
than new repair of (mostly)
wear related machinery
maintenance problems
Exposure to recurring
service problems leads
to research for better
solutions & product
opportunities
Global METS OEM
partners who are seeking
strategic advantage from
high performance wear
components
SERVICES DIVISION
Repair and refurbishing
worn or damaged
machine parts
RESEARCH &
DEVELOPMENT
New cladding materials and
application technologies
TECHNOLOGY
DIVISION
Design, manufacture,
licensing & support of
tailored cladding systems
PRODUCTS
DIVISION
Specialised surface engineered
components for OEM partners
and end users.
A N N U A L R E P O R T
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2 0 2 4 | L A S E R B O N D
4
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
A market-leading specialist surface
engineering business that develops
and applies sophisticated technologies
to increase wear life on capital
intensive machinery across the
spectrum of heavy industry.
Its products and services increase
productivity, while reducing cost
and environmental impact.
C O M P A N Y S N A P S H O T
Innovation sets us apart
Geographic expansion trajectory
PROPRIETARY TECHNOLOGIES
A consistent long-term investment
in the development of new
technologies to address market gaps
and anticipate market demand has
resulted in a significant and sustained
competitive advantage.
AUSTRALIAN MARKET LEADER
IN SURFACE ENGINEERING
As proprietary technologies are
developed in conjunction with
customers and tertiary research
institutions, they are further adapted for
a wider market and commercialised.
INDUSTRY REPUTATION
A widespread reputation for innovation
and excellence based on our willingness
and ability to develop solutions to difficult
customer issues. We are also the industry
partner of choice for several tertiary and
research institutions.
Establish VIC
operations
Establish WA
operations
Establish
North American
operations
Expand QLD site
US services
ramp up to
existing and sales
customer base
US consolidation
and earnings
growth
Done
PHASE
1
Establish QLD
operations
Done
PHASE
2
Done
PHASE
3
PHASE
4
US product
manufacturing
and sales
PHASE
5
PHASE
6
PHASE
7
t Sydney, NSW
(Head Office)
t Melbourne, VIC
t Brisbane, QLD
Adelaide, SA p
North
American
Market
p Perth, WA
A N N U A L R E P O R T
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Snapshot
5
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
5
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F Y 2 4 P E R F O R M A N C E S N A P S H O T
HEALTH & SAFETY
OPERATIONAL
FINANCIAL
LTIFR
Better
than
FY23
65.3%
Revenue
8.7% on pcp
$41.98M
NPAT
25.9% on pcp
$3.52M
Dividend
In line with pcp
1.6 cents
Cash from Ops
13% on pcp
$6.71M
Staff Engagement
82%
75% in FY21
Staff Enthusiasm
89%
78% in FY21
R&D Investment
77.6% on pcp
$0.81M
New Modular Cell
Design completed
100%
3
New Senior
People
Operations & Sales
Acquisition
Gateway in WA
1
LTI
Better
than
FY23
62.5%
6
A N N U A L R E P O R T
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
S T R A T E G I C U P D A T E
FOCUS: GROWTH AND INNOVATION
LaserBond’s strategy is designed to guide the expansion into global markets and
retain the culture of innovation to support its continued market-leading position.
During 2H24, the Board reviewed LaserBond’s strategy and built
it out to 2028. This latest revision better supports and guides the
proposed move into the North American market with a facility
located in the US that is closer to large existing OEM customers,
and that also offers a significant level of opportunity for the wider
LaserBond products, services and technologies. During the year,
much investigative work was done to assess what the optimum
operating model might look like and to better understand the
breadth and scope of opportunity for an LaserBond offering in
various large and attractive regional markets.
In FY24, LaserBond also completed its national footprint with the
acquisition of a 40% stake in Gateway Equipment, Parts and Services.
The purchase agreement provides LaserBond a right to increase its
stake to 51% after three years, which is an attractive prospect given
the FY24 performance of the business and the access that it opens
up for LaserBond to pursue significantly greater levels of work in
the mining, oil and gas, and agricultural sectors. The purpose of the
acquisition, as with other states, is also to locate LaserBond facilities
closer to customers’ operations, thus reducing lead times and
increasing efficiency.
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VISION
To be a global leader in the
research, design and implementation
of advanced surface engineering
technologies and innovations that tangibly
reduce unit operating costs, and impact on the
environment, by extending the wear and operational life
of production - vital equipment.
MISSION
To optimise the capacity and capability of our facilities and
staff to deliver innovative services and products and build on
our core competency of surface engineering to diversify and
grow our business.
VALUES
Push existing
and new
products into
new domestic
and offshore
markets
Innovate,
build R&D
capability and
stay ahead of
the market
Invest in people
and equipment
to improve
margins
and build
productivity
Build a suite of
technologies
for sale under
long-tailed licensing
arrangements
1
3
2
4
Zero Harm
Innovation
Respect
Inclusion
Pride
Strategic
Update
7
A N N U A L R E P O R T
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
STRATEGY
STRATEGIC OBJECTIVE FY24
PROGRESS
STRATEGIC OBJECTIVE FY25
Geographic
Expansion
Purchased a 40% equity stake in Gateway
Equipment Parts and Services Pty Ltd
in WA, including a right to acquire a
minimum of 51% on/after three years
Expanded business case modelling
for North America, including key and
secondary target customers and markets,
and sales and marketing plans. Currently
progressing discussions with multiple
acquisition prospects in the region
Introduce surface engineering capabilities
to Gateway in WA, including laser
cladding, thermal spray technologies and
support equipment
Refine plans for North American
acquisition or investment
Consider further domestic expansion to
support opportunities in some regional
states, particularly QLD and WA
Capacity and
Capability
Invested at all sites to better support
local customers and increase efficiency,
including large turning, grinding, milling,
boring and R&D capabilities
Inducted 12 of the current tranche of 15
skilled visa applicants and began training
in June 2024
Continued to enhance a strong culture
of safety, innovation, and commitment to
excellence
Continue investing in people and training
to maximise capacity utilisation across
multiple shifts at all facilities
Continue to invest in new and upgraded
equipment, automate processes
to improve efficiency, and provide
capabilities to local customers
Develop ‘Quick Response Teams’ across all
facilities to support short lead times on
critical customer parts
Innovation
Invested in R&D resources to enable
increased spending and outcomes
appropriate to growth plans
Strengthened new business development
plans with the recently appointed
technical product and business
development team members
Significantly increased investment in R&D
for FY24 – 78% increase on pcp
Continue investing in research and
development activities and projects to
remain ahead of the market for surface
engineering equipment, applications, and
capabilities
Continue expanding Services Division
applications for a broader range of
industry sectors, including cement,
beverages, clean and wastewater, and
renewable energy
Technology
Licensing
Achieved revenue recognition for three
laser cladding cells in FY24
Progressed design for modular laser
cladding cells to increase opportunities for
sale under license agreements
Sell a laser cladding cell to Gateway in WA
(not under license)
Finalise construction of the first modular
laser cladding cell design for sales support
services and reintroduce business
development activities
Incorporate modular elements and
software into existing internal laser
cladding cells to increase efficiencies and
improve cross-training across all aspects of
the laser cladding process
P E R F O R M A N C E A N D F Y 2 5 P L A N S
8
A N N U A L R E P O R T
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
C H A I R ’ S L E T T E R
Dear Shareholder
Highlights this year have been to make a significant investment
in WA and strengthen the skill level of the senior leadership team
to ensure we have a great team to execute the company’s next
stage of growth.
Firstly, our WA investment in The Gateway Group has been in the
planning stage for several years, and the full benefit will not be seen
in our financial statements until we can consolidate our share of the
revenue, as distinct from just earnings, in our reports.
Our view is that it was much more important to join with a strong
business that has excellent management in the first instance to
maximise our opportunities in the large WA market. Hence, we
agreed to an initial 40% ownership with the right to 51% within
three years. Gateway is an equipment, parts and services business
in Perth that services industrial markets in Western Australia via a
strong industry network and customer base consistent with that
of LaserBond. As with every good acquisition, the business case
was founded on the combination of the two businesses, equaling
more than the sum of the parts. Gateway’s valuable client base
and strength of operating track record, combined with LaserBond’s
proprietary surface engineering technologies and services, enables
significant up-selling and business expansion opportunities.
Gateway is a relatively large business, with 2023/24 revenue of
$40.28 m (an increase of 23.6% over 2022/23) and a pretax profit
of $3.30 m in the 2023/24 year. Once we are able to consolidate,
shareholders will readily appreciate a group with over $80 million
in current revenues.
We purchased our 40% for $10.0m in cash and scrip, and Gateway’s
2022/23 adjusted EBITDA was $5.58 m. (EBITDA was adjusted to suit
accounting standard requirements related to AASB 16: Right of Use
Assets and AASB 119: Employee Entitlements.)
Secondly, to enhance the senior leadership team, LaserBond has
appointed a new head of engineering, a sales head, and a COO. To
ensure we could attract the best talent, we engaged The Rewards
Practice to develop a performance-based remuneration scheme,
which our Remuneration Committee has been actively working on.
The plan, set to be implemented in 2024/25 pending shareholder
approval, includes Total Fixed Remuneration (TFR), Short-Term
Incentives (STI), and Long-Term Incentives (LTI) for senior executives.
The STI is tied to profit performance, while the LTI depends on
achieving specific EPS growth and ROCE targets over three years.
These measures are designed to align management’s success with
long-term shareholder value, avoiding conflicts of interest seen in
other cases.
While LaserBond made strong progress with several important
investments and initiatives to advance its operational performance
and the execution of its strategy, the year also presented some
operational challenges with the later than expected arrival of the
next group of skilled visa applicants and some ongoing process
issues by a large OEM customer. The late arrival of this newest group
of migrant workers hindered our plans to increase capacity at all sites,
while the OEM issues saw a reduction in normal ordering levels.
However, with the progressive arrival of the additional workforce over
the past few months, capacity constraints will soon be alleviated,
and the OEM issues are now largely resolved with normal ordering
levels restored.
EXPANDING MARKETS
Much was also achieved in the investigations into establishing a
US manufacturing base. As we build our business case for a US
manufacturing site, we are discovering a range of additional market
opportunities for all three of our operating divisions. While the
genesis of these plans lies in a large OEM customer requesting
LaserBond to assist with wear problems on significant components
constrained by logistics via a US manufacturing base, the demand
for other LaserBond branded products has also become apparent.
With a local US base, LaserBond branded steel mill rolls have a
significant growth opportunity. Furthermore, there is ample scope
to leverage the strength of customer relationships in Australia
with larger divisions or head offices in North America for increased
sales in the region. This is a particularly attractive prospect given
the encouragement from large customers who believe that there
is no alternative globally to LaserBond’s technology, especially
given the bespoke nature of our solutions, our range of proprietary
technologies and our ability and willingness to design solutions for
almost any situation.
Our investigations into these additional opportunities are continuing,
and we are working closely with a large consultancy to assist us in
assessing the options for where and how best to establish a local
base. We plan to acquire a facility in North America early in the 2025
calendar year.
I am pleased to present this report on our FY24 performance and an update on
our ambitious national and international expansion strategy.
Chair’s
Letter
9
A N N U A L R E P O R T
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
However, these undertakings and our aggressive offshore expansion
plans cannot be undertaken without the absolute commitment of a
highly competent and engaged team of people working across the
organisation to achieve a common goal.
LaserBond is fortunate to have such a team to assist the Board and
management in taking advantage of the many opportunities to
expand the business and realise the LaserBond vision for growth.
I thank them for their loyalty and dedication.
The continued support of our shareholders is equally critical to
achieving our plans, and I thank you for your ongoing trust in
the future of our business as we embark on a period of
significant growth.
I look forward to updating you on the next six months
of an exciting phase in our evolution.
Philip Suriano | Chairman
CAPITALISING ON INNOVATION
Our confidence in our geographic expansion plans is also founded
on the value that we know is embedded in our business with our
protected, exclusive LaserBond technologies. These technologies
are the result of a commitment to technical development that spans
more than three decades and are not surpassed in sophistication.
As with all development initiatives at LaserBond, technologies are
designed to reduce customer costs, provide greater operational
efficiency, and help reduce environmental impact.
We operate with a long-term mindset, which over time has delivered
a range of solutions to the problems our customers are facing today
and tomorrow. It is this unwavering focus on innovation that has
positioned us so solidly for overseas expansion, with North American
customers requesting our operating presence in closer proximity to
their operations for logistical and efficiency reasons.
RETURNING VALUE TO SHAREHOLDERS
The Board has determined to pay a final dividend of 0.8 cents
per share, bringing the full year’s dividend to 1.6 cents per share.
This level is in line with the FY23 dividend, with returns to
shareholders increasing by a compounding growth rate from
FY20 of 9.8% per annum.
LOOKING AHEAD
Australia’s economic outlook remains positive, driven by strong
commodity exports, renewable energy investments and resilient
consumer spending. Challenges include inflationary pressures,
housing affordability and global economic uncertainties.
A continued focus on innovation, sustainability and trade
diversification is crucial for sustained growth against continually
evolving global dynamics, all of which are key aspects of
LaserBond’s operations and plans.
Considering the Gateway Group’s
FY24 revenue of $40.3 million,
if we were able to consolidate their
revenue for the four months since
our acquisition, LBL’s revenue would
have totaled $56.6 million in FY24.
By implementing our technology in
Gateway, combined with our organic
growth and overseas expansion
plans, we aim to continue the strong
growth of the business.
10
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
C E O ’ S R E V I E W O F O P E R A T I O N S
Dear Shareholder
While a year passes quickly, there is much to update you about the significant
headway we have made on several fronts. Following the Chair’s briefing on
our strategic moves into the Western Australian market and our plans for a US
manufacturing base, I will update you on strategic operational matters that will
continue to deliver the strong growth of the business.
STRENGTHENING OPERATIONS
The need for a responsive turnaround for our existing and prospective
customers has driven our geographic expansion. Almost without
exception, our customers need to receive remanufactured and
surface-engineered components within a short lead time to allow
them to return high-value equipment to service promptly, reducing
the costs of lost production, inventory and WIP. In a “jobbing”
environment, where every job is nominally different, and day-to-day
order intakes can be unpredictable, this can be a challenge. We
continue to focus on strategically increasing the capability of each
site to deliver our range of products and services in a timely manner,
knowing this, along with our superior technology and business
development, will drive the future organic growth of the business.
Our capacity to deliver quickly has been enhanced by fully utilising
our production facilities. To date, shift work has only been regularly
carried out on two sites, the main hurdle being having sufficient fully
trained staff to work shifts. Recruiting, upskilling and cross-functional
training of employees continue to be a focus. Within our workforce
of approximately 150 personnel across the four wholly owned sites,
we currently have 31 employees in formal training (apprentices,
trainees, undergraduate and postgraduate interns). The Gateway
group in Perth has similar training objectives, with 14 apprentices in
its workforce of 94.
In addition, we have recruited strongly, including the appointment
of 15 additional skilled migrants (predominantly machinists) in 2H24.
The significant expense of recruitment, migration, accommodation,
onboarding, and training skilled migrants must be borne up front
but will yield substantial benefits in increasing our capacity across
the business.
In addition to investing in people, we enhanced the plant capacity
on each site, mainly through larger machining equipment, again
with a focus on reducing lead times and delivering for our customers.
Capex during FY24 was approximately $2.5m across the four wholly
owned sites.
We are currently in the process of forming Quick Response Teams
(QRTs) at LaserBond sites to ensure a focus at all levels of the
organisation on shorter turnaround times for major customers.
The QRTs will work with larger customers to effect a faster
turnaround on critical equipment components without
compromising quality, providing increased opportunity for additional
sales based on timing and efficiency factors.
STRENGTHENING SALES & BUSINESS DEVELOPMENT
Our geographically dispersed sales team members have had dual
roles of account management and new business development, with
the latter often taking a “back seat” mainly due to the natural increase
in existing customer requirements as we have grown our customer
base. We have enhanced this by employing a technical team,
without specific geographic territories, to work closely with the R&D
team and focus purely on business development in new industries
and applications. This is progressing well and will deliver growth in
the business domestically and opportunities globally whilst reducing
customer and industry dependencies.
STRENGTHENING SENIOR LEADERSHIP
We have grown from two sites to five in the last four years. Revenue
from four sites (with the 5th yet to be consolidated) has essentially
doubled, and we plan to continue that growth globally. To support
LaserBond’s growth plans, a new position of COO has recently been
established, and Michael Tyler commenced on 1 July this year.
Michael brings a wealth of experience in leadership positions with
global manufacturing organisations, including in the steel industry,
complemented by an honours degree in Metallurgy and an MBA.
His expertise and leadership experience will be a significant asset as
he provides leadership in streamlining processes, driving efficiencies,
and improving performance across our multiple sites. Along with
our entire leadership team, Michael will assist in driving our culture of
safety and engagement and identifying development opportunities
for high performers.
A new Head of Sales and Marketing, Keith Allen, has also been
appointed and will drive a more ambitious agenda and provide
direction and cohesion for our sales, business development
and marketing team spread around Australia with a focus on
international and domestic customers.
Effective leadership is critical at a time when a large team needs to
be aligned and engaged in executing our substantive expansion
plans. It is also critical in maintaining stability in the team, reducing
turnover and the additional work needed to replace key staff. As one
CEO’s Review
of Operations
11
A N N U A L R E P O R T
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
of the business’s identified key risks, skillful leadership is a mitigating
strategy for staff turnover, protecting against loss of productivity, the
potential impact on quality, and additional time and cost associated
with recruiting and training new employees.
UNDERLYING FINANCIAL STRENGTH
The business achieved a solid revenue performance, increasing total
revenue by 8.7%. (Note that the Gateway Group revenue cannot be
consolidated at this stage due to the minority interest.)
EBITDA experienced a modest decrease of 7.3% compared with FY23,
as expected considering the planned increased expenses associated
with recruitment and equipment upgrades. After-tax profit was
affected by a sizeable increase in the tax rate from 25% to 30% due
to the acquisition of our 40% share of the Gateway Group.
However, the balance sheet remained strong, and cash flow was
robust. Net assets increased by 23.7% to $44 million, and net tangible
assets increased by 30.1% to $30.93 million.
COMMERCIALISING R&D & TECHNOLOGY
Our Projects team is responsible for delivering the LaserBond®
cladding equipment for our own use as well as our licensees.
Under the management of our Projects Manager, Grant Wyber, the
team has completed the design of modular cells with common
electromechanical and control modules that can be added or
removed as required. The aim of this project was to tie together
the best features of earlier designs whilst reducing lead times and
costs. This helps us fill a gap in the market by enabling smaller
surface engineering businesses the opportunity to use sophisticated
LaserBond technology outside of bespoke units that require a
lengthy period for manufacture with a higher price tag.
The modular units are designed to handle the different needs
of smaller service providers, but they can also be enhanced in a
modular fashion to accommodate broader customer needs where
required. The units are sold under long-term license agreements,
providing ongoing subscription revenue for LaserBond. The first of
these latest design modular cells is currently being manufactured for
sale to The Gateway Group on commercial terms.
In FY24, the direct investment in the R&D program was almost
doubled. Amongst several priorities, the team collaborated with
renowned universities and industry partners in the publicly funded
SEAM Training Centre, supported by the Australian Research
Council. With Swinburne University and an industrial partner from
the defence industry, the team developed lightweight surface-
engineered fibre composite components, combining the lightweight
and high strength of composites with extreme wear resistance.
A demonstrator part has been developed and is currently
undergoing mechanical testing.
A second SEAM project involved the development of novel in-situ
process monitoring systems that detect potential flaws within
claddings as they are being applied. These systems thereby
dramatically reduce the probability that completed parts will have
flaws and reduce rework costs.
One of SEAM’s aims is to train early-career researchers in an industrial
context, and we were pleased that two of the project partners
successfully completed their Ph. Ds, one of which was directly
supervised by LaserBond staff.
Internal R&D focused on the development of solutions
and demonstration of the performance of our surface
engineering in many industrial applications,
including:
Grinding & comminution
Slurry handling
Screening
Iron ore processing
Agriculture
General qualification of existing
processes for new customers.
ENHANCING SUSTAINABILITY
FOR INDUSTRY
The global focus on sustainability, the drive towards Net
Zero, and the progressive introduction of a reporting regime
against the Sustainability Accounting Standards Board (SASB)
standards provide LaserBond with enhanced market prospects.
By providing remanufacturing of components and major
improvements to the life of wearing components, LaserBond
allows our customers to reduce their scrap and waste and, in many
circumstances, improve the efficiency of their operations, thereby
improving their own sustainability.
We are not required to report on identified areas of sustainable
operating practices under the SASB standard that are relevant for
sectors classified under the Industrial Machinery and Goods category
until 1 July 2027. LaserBond has been implementing systems and
processes to enable the capture of relevant data and understand our
baseline in several areas and begin reporting against sustainability.
In summary, the opportunities in front
of LaserBond are substantial and
exciting, and there is much vital activity
in preparing and progressing our
strategic objectives to capture the value
they offer. As noted by the Chair, we
are fortunate to have the right team
of people to help bring these plans to
fruition and deliver the company to the
next phase of its growth.
Wayne Hooper | Chief Executive Officer and Executive Director
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A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
O P E R A T I N G A N D F I N A N C I A L R E V I E W
Group Performance | Earnings
While our gross margin remained above the targeted 50% level,
several factors impacted earnings performance. As a result of the
Gateway acquisition, LaserBond is now taxed at a higher rate, given
its increased revenue, as the ATO requires the accounts to
be consolidated.
Furthermore, while total revenue increased, lower orders from
a significant OEM customer affected the Products Division
performance, as explained in the segmental reporting section of
this report.
Lastly, increased employment expenses and planned costs for plant
and equipment improvements, thereby increasing depreciation
costs, impacted earnings performance.
Revenue
8.7% growth on pcp
7.0% growth in the second half
Strong growth in Services Division revenue of 13.3% partly
offset by 7.2% decline in Products Division revenue
Technology Division revenue of $2.0m with recognition of
several laser cladding cell sales
EBITDA
7.3% decline on pcp
25.0% growth in the second half
5.8% increase in gross profit offset by planned increase in
expenses of 23.7%, driven by:
- upgrading of laser cladding equipment
- increased staff costs from maintenance of market
wages and increased headcount
Net
Profit
before
Tax
18.1% decline on pcp
41.7% growth in the second half
6.0% increase in depreciation and amortisation due to the
increasing PP&E base
Increased interest costs
Net
Profit
after Tax
Reduction of 26.0% on pcp
ATO requires consolidation of Gateway Group’s accounts
for tax purposes
The resulting increase in profit promoted LaserBond into
the 30% company tax rate category, compared to 25% in
previous years
Earnings
per Share
Decrease in EPS of 27.7% on pcp driven by:
- NPAT reduction of 26.0% on pcp
- increase in shares on issue at end of year of 6.2%
compared to start of year and 2% increase in weighted
number of shares on issue
Move to 30% company tax category, on tax consolidation
of Gateway Group.
$M
FY20
FY21
FY22
FY23
FY24
10.92
12.87
17.33
19.96
11.26
13.38
18.65
21.70
20.28
11.80
1H
2H
$M
FY20
FY21
FY22
FY23
FY24
3.44
3.29
5.31
5.58
3.10
3.37
4.62
5.25
4.20
2.75
1H
2H
$M
FY20
FY21
FY22
FY23
FY24
1.65
1.65
2.11
2.76
1.19
1.52
2.00
1.83
1.69
1.16
1H
2H
$M
2.19
1.67
3.47
3.63
1.70
1.86
2.74
3.06
2.16
1.58
1H
2H
FY20
FY21
FY22
FY23
FY24
Cents
FY20
FY21
FY22
FY23
FY24
1.72
1.72
1.96
2.51
1.24
1.57
1.83
1.61
1.53
1.22
1H
2H
Operating and
Financial Review
13
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Group Performance | Cash, Debt and Working Capital
While working capital and cash have decreased, the balance sheet
remains solid, given that these funds were always earmarked for
acquisitive or organic growth.
Cash from operations was lower due to the planned increases in
employee costs and plant and equipment improvements to increase
capacity for future growth, while net cash flows were impacted by
the payment of $4.9 million for the Gateway Group acquisition
in 2H24.
Working capital of $13.4 million remains adequate to fund the
existing and planned operations.
The business continues to rely on equipment finance facilities
without the need for additional bank facilities.
Decrease of 13.0% on pcp
4.6% increase in receipts from customers offset by
10.0% increase in payments to suppliers and employees
Cash
Flows from
Operations
197.7% reduction in net cash flows on pcp, primarily
due to $5.0 million used for acquisition of 40% of
Gateway Group
Excluding the effect of the Gateway acquisition,
net cash flows were $1.83 million, down 43.6% on pcp
Equipment finance payments increased by 46.5%
to $2.8 million
Net Cash
Flows
Decrease of $3.2million for FY24
Closing balance of $5.8 million adequate for ongoing
requirements
Cash on
Hand
18.6% reduction on pcp to $13.4 million due to cash
purchase of stake in Gateway Group
9.1% increase on FY22 level
Working capital remains adequate for ongoing
requirements
Working
Capital
Lease liabilities refer to the right-of-use assets impacted
by the renewal of the facility lease for the Altona, Victoria
premises as of 1 July 2024.
Equipment finance decreased marginally (3.5%) on pcp
Debt
$M
FY20
FY21
FY22
FY23
FY24
3.69
3.02
1.67
3.75
1.73
2.57
3.96
3.22
3.49
0.58
1H
2H
$M
FY20
FY21
FY22
FY23
FY24
-0.31
-0.29
0.47
0.50
1.20
0.31
2.74
-4.45
1.28
2.12
1H
2H
$M
FY20
FY21
FY22
FY23
FY24
8.79
12.27
16.45
13.39
7.26
$M
4.91
5.68
8.93
5.76
4.00
FY20
FY21
FY22
FY23
FY24
$M
FY20
FY21
FY22
FY23
FY24
4.91
4.79
4.54
7.84
5.91
4.75
3.99
9.71
3.85
3.57
HP & Finance Leases
Lease Liabilities
14
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
O P E R A T I N G A N D F I N A N C I A L R E V I E W ( c o n t i n u e d )
Services Division Performance
The Services Division offers customers reclamation of worn industrial components using LaserBond® cladding and
thermal spraying, as well as high-capacity welding, machining, and heat treatment. This provides a complete service
suite, thereby extending the service life of plant and equipment by between 5 and 10 times.
Revenue from the Services Division achieved a healthy increase,
culminating in a four-year compound annual growth rate of 16.2%.
However, earnings before interest tax and depreciation declined
marginally by 5.8%, largely due to increased employee costs.
The 13.3% revenue increase is despite some unrealised revenue
caused by the late arrival of the next group of skilled migrants.
The planned arrival in March would have enabled workers to
become operational from 4Q24 and the subsequent introduction
of additional shifts at all sites.
Under a fully commercial arrangement, LaserBond is currently
manufacturing a newly designed modular cell for installation
and commissioning at the Gateway site in WA. The cell will
enable LaserBond® technology to be offered in valuable market
sectors with its superior claddings located closer to the customer,
which has shorter lead times, reduced downtime, and lower costs.
Both the NSW and QLD sites performed strongly, while the
Victorian site is expected to improve its performance with the
commencement of a new business development lead to build
the customer base and optimise the opportunities in the Victorian
surface engineering market.
The strong performance and growth of the QLD site have warranted
relocation to a larger site to accommodate the full spectrum of
LaserBond technologies and services, increase production capacity,
and reduce customer lead times. The new site is expected to be
operational in FY26.
REVENUE
EBITDA
Revenue ($m)
FY20
FY21
1H
2H
FY22
FY23
FY24
0
5
10
15
20
25
30
35
40
5.94
6.19
7.92
10.95
6.89
5.78
9.69
12.20
11.19
5.45
EBITDA ($m)
FY20
FY21
1H
2H
FY22
FY23
FY24
0
2
4
6
8
2.08
1.44
2.33
3.43
1.55
1.31
3.04
3.10
2.99
1.94
Growth in 2H24
3.7%
Growth in 2H24
8.1%
Growth on pcp
13.3%
Decline on pcp
5.8%
Operating and
Financial Review
15
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Products Division Performance
The Products Division manufactures parts and products incorporating LaserBond® cladding applications, such as
steel mill rolls, rotary feeders and a range of OEM consumables required by customers spanning the breadth of
heavy industries.
Revenue ($m)
FY20
FY21
1H
2H
FY22
FY23
FY24
0
5
10
15
20
4.81
6.62
7.46
8.89
4.36
8.94
8.67
7.88
8.67
7.50
EBITDA ($m)
FY20
FY21
1H
2H
FY22
FY23
FY24
0
2
4
6
8
1.73
2.09
2.68
2.46
1.99
2.34
2.09
2.25
1.63
1.23
The decline in Products Division revenue was driven by lower
demand from a large OEM. A $2 million revenue shortfall was
reported in the half-year report due to a change in the OEM
authorised supplier for components we surface engineer and deliver.
At that time, there were orders and capacity but no supply for critical
components. A new OEM-approved supplier was made available,
ready to fulfil orders in 2H24 using the increased capacity of skilled
migrant workers. However, they arrived later than expected, and
the situation was further exacerbated by a change in the OEM’s ERP
software in 2H24, causing delays in orders flowing through, with
normal ordering levels only being restored in late June.
Mitigating this situation to some extent, however, was a 38% increase
in orders from international customers for steel mill rolls and some
margin improvements in 2H24 owing to price increases instituted
late in FY23.
The Board and management have strategies to diversify revenues so
that they are not critically impacted by key customer dependencies.
These strategies include developing a wider base of ‘tenant’
customers to dilute the risk and business development plans
to target new customers in new markets. New monitoring and
reporting processes have also been introduced to keep track of
customer dependencies. The new group of skilled visa workers will
also add capacity with additional shifts to support the targeted
increase in customer base and workload to mitigate critical customer
dependency risk.
REVENUE
EBITDA
Growth in 2H24
38.0%
Decline in 2H24
9.2%
Decline on pcp
7.2%
Decline on pcp
14.6%
16
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
O P E R A T I N G A N D F I N A N C I A L R E V I E W ( c o n t i n u e d )
Technology Division Performance
The Technology Division offers LaserBond® cladding technology for customer use under long-tail licensing
agreements that cover equipment supply, technology usage, and the supply of associated consumables.
Revenue for the business unit was up by $1.91 million on FY23
due to the ability to recognise revenue from laser cladding cells for
Swinburne University in Melbourne and Curtin University in Perth, as
well as ongoing licensing fees and consumables for the UK and NZ
licensees. Revenue was also generated from the sale of components
of a cell to an Indian customer with ongoing licensing fees. The
revision to the operational scope for the North American licensee
has progressed to a solution developed by LaserBond, subject to
our customer conducting production trials to validate this solution.
On successful production trials, factory acceptance will be gained
resulting in the revenue recognition of this equipment.
A Board review of the Technology Division earlier in the year
determined its focus should be on two priorities. The first priority is
to support the internal requirements of its sites with the acceleration
of planned installations of proprietary LaserBond cells or major
upgrades at all facilities. The second priority is to better respond to
market demand by offering a small range of standardised modular
LaserBond cladding cells that are produced cost-effectively with
short lead times, thus enabling an option for smaller surface
engineering businesses to expand into the area of laser technology.
During the second half of the year, design and development were
completed on a set of three modular laser cladding cells using
various combinations of the same modules.
The first purchase order for a modular laser cladding cell has been
received from the Gateway Group in Perth, which is now 40% owned
by LaserBond. The cell is currently being manufactured, and revenue
recognition is expected in FY25.
REVENUE
EBITDA
FY20
FY21
1H
2H
FY22
FY23
FY24
0
0.5
1.0
1.5
2.0
2.5
Revenue ($m)
2.19
1.67
1.95
0.02
0.05
0.10
0.12
1.62
0.42
0.18
Increase on pcp
Increase on pcp
$1.91M
$0.72M
0
25
50
EBITDA ($m)
FY20
FY21
1H
2H
FY22
FY23
FY24
25
-0.04
-0.02
0.52
-0.30
-0.06
-0.02
-0.14
0.35
-0.07
-0.04
Operating and
Financial Review
17
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Research and Development Division Update
Consistent with the third tenet of its strategy - innovate, build R&D capability and stay ahead of the market - LaserBond
has pioneered the advancement of surface engineering for decades, investing in solutions to customer-specific and
industry problems. As a result of this innovation, it is the only business of its type in Australia with any substantive level
of sophisticated proprietary technology.
From day one, LaserBond has
been an innovator committed to
developing leading-edge products
and technologies that anticipate
market direction and demand.
The business has also built
collaborative relationships with
universities and research institutions
to leverage its R&D investment
and achieve third-party
validation of its work.
Increase in R&D investment
77.6%
Throughout FY24, LaserBond increased its focus on its innovation
agenda, almost doubling its investment in R&D and expanding
its team with a PhD student to increase momentum on an
ambitious development program directed at a range of international
and local customers.
During the year, the LaserBond R&D team developed very thin
but highly wear-resistant coatings that require no or minimal
post-processing. These coatings are aimed at two specific
applications in the minerals processing and oil and gas industries,
respectively. Case studies have been conducted and one product
is already in use with a customer.
Coating systems were also developed for use in grinding and
crushing equipment used in minerals processing. An international
customer successfully tested the first test parts, while test parts
for a market-leading European customer have recently been
shipped for intensive testing at its technical centre in Germany.
The first results are expected during 1H25.
Further development work was carried out on steel and water
industry applications, including investigating applications for Super
Duplex steel coatings. One promising application was identified,
which is currently undergoing field testing.
In addition to pursuing technologies that produce improved
quality, a key feature of these developments is minimising the
impact of industrial operations on the environment through
significantly increased wear life, lower maintenance requirements,
and reduced reliance on critical resources such as energy and water.
These processes assist customers in meeting rigorous compliance
requirements and achieving their sustainability targets.
R&D Investment ($m)
FY20
FY21
FY22
FY23
FY24
0
25
50
75
00
0.68
0.51
045
0.81
0.68
18
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
S U S T A I N A B I L I T Y R E P O R T
Health and Safety
With safety as a mainstay of the LaserBond culture, the business has not had a serious injury since it began
operating in 1992. The Board and leadership team embrace a ‘safety first’ agenda with health and safety a feature of
every meeting or gathering at every level of the organisation.
LOST TIME INJURIES
LOST TIME INJURY FREQUENCY RATE
Safety – LTI
FY22
FY23
FY24
0
.25
.50
.75
.00
8.00
3.00
6.00
Safety – LTIFR
FY22
FY23
FY24
0
7.5
5.0
2.5
0.0
29.08
10.10
26.01
Down from 8 in FY23 to 3 in FY24
Down from 29.075 in FY23 to 10.096 in FY24
62.5%
65.3%
LaserBond’s widely promoted policies and procedures and its long-
term certification to ISO 45001, the international standard for an
occupational health and safety management system are testimony
to its rigorous safety approach. The FY24 safety performance,
driven by its Zero Harm value, reflects the business’ commitment
to protecting its people. Operations are regularly tested for health
hazards, including dust, fumes and noise and employees are given
hearing tests to ensure no detriment to hearing.
MENTAL HEALTH
LaserBond prioritises the wellbeing and psychological safety
of its workforce with strong leadership and a culture of open
communication, respect and inclusion. An employee assistance
program is available to all employees and managers and team
leaders remind people of their availability and benefit. An open and
trusting environment also means that issues and problems can be
raised without fear of judgement or detriment to jobs.
PREVENTION MEASURES
Near-miss reporting is used to strengthen processes in a pre-emptive
manner to protect people from the potential incidents in future.
Similarly, health and safety processes are introduced and
strongly promoted at acquisition sites with appropriate levels
of communication to ensure the proliferation of the LaserBond
safety focus at these new sites. While the business acquired new
operations and sites in 2021, 2022 and 2024, its safety performance
was not impacted due to the attentiveness of management in
promoting and training the LaserBond safety framework.
LASERBOND HAS JAS-ANZ CERTIFICATIONS
ISO 9001 – quality management systems
ISO 14001 – environmental management system
ISO 45001 – internationally recognised standard for managing OHS risks
Sustainability
Report
19
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Environmental Commitment
As a business that operates in industrial markets, LaserBond understands its impact on the environment and
is acutely conscious of its responsibilities in preserving the earth’s finite natural resources. Outside of its own
operations, LaserBond is in the enviable position of offering its customers a range of solutions to their operational
problems that also deliver cost benefits, greater efficiency and, not least, reductions in the environmental impact of
their businesses.
FY24 revenue aligned with SASB Standard
SASB INDUSTRIAL MACHINERY
AND GOODS STANDARDS
Notably, the ‘Remanufacturing Design and Services’ topic encourages
businesses to design products with remanufacturing in mind,
offering services that extend product life, reduce waste and lower
the need for new raw materials. This concept is already core business
for LaserBond and the products and services that it offers to its
customers, with approximately 50% of revenue derived from surface
engineering technologies applied to restore equipment to a better
than new quality in terms of wear life.
Thus, under this new reporting regime, LaserBond’s services and
technologies have become even more critical to heavy industry
businesses that operate large industrial machinery and equipment as
they endeavour to align with a key component of SASB’s regulatory
framework. These best-in-breed services and technologies,
which have no equal in Australia, and possibly further afield, can
assist with compliance by reducing the need for new materials in
manufacturing new parts and equipment, reducing the cost of plant
and equipment, and minimising environmental impact.
ENERGY MANAGEMENT
LaserBond’s operations require energy as a critical input for its
manufacturing and services processes. However, for FY24 the total
cost of electricity formed only 1.1% of total group costs, which
was also in line with electricity costs in FY23. The Queensland site
generates its own energy via a solar system, while consideration is
currently being given to the feasibility of renewable energy sources
at other LaserBond sites.
RESPONSIBLE SOURCING
Supply chain sustainability is also a critical element of LaserBond’s
operations. The business treats its suppliers respectfully, fairly
and ethically, aiming for a collaborative approach to negotiations
and interactions. Effectively as partners, all suppliers are expected
to source responsibly, operate sustainably and minimise waste
through reduction and recycling. Through these supplier partners,
in Australia and overseas, the business seeks to manage its risk
with respect to such issues as human rights, modern slavery and
child labour.
LaserBond’s services and technologies
have become even more critical
to heavy industry businesses that
operate large industrial machinery
and equipment as they endeavour to
align with a key component of SASB’s
regulatory framework.
50%
20
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
S U S T A I N A B I L I T Y R E P O R T ( c o n t i n u e d )
People
In accordance with the second tenet of its strategy – invest in people and equipment to build margins and improve
productivity – LaserBond has recruited new leadership team members as well as additional skilled employees to
augment capacity at sites where operational equipment can be optimised with additional production time, and to
help drive its growth plans.
* Of these 40, there has been only one skilled migrant resignation and it was due to family reasons.
Employees
at end FY24,
up 6% on FY23
147
Skilled
Migrant Workers
recruited*
40
Employees
gaining satisfaction
at work
87%
New leadership
members
(COO and Head of Sales)
2
SATISFIED EMPLOYEES
Ultimately, LaserBond relies on a team of highly skilled people who
are utterly committed and engaged in what they do. In the latest
employee engagement survey,
86% of employees intend to be in their roles in 12 months time.
84% have positive relationships with co-workers,
87% gain a sense of personal achievement from their work.
The business also supports diversity and inclusion. It has
demonstrated its success in this area with the welcoming
environment for skilled migrant workers and the high retention
rate for these groups.
ENHANCED CAPABILITY
In further initiatives to support current priorities, a new COO and
a new Head of Sales and Marketing were recently added to the
leadership team. Both executives have excellent track records and
experience relevant to LaserBond’s current growth agenda.
In FY24, $93k was spent on external training, augmented by an
internal training program for cross-site training whereby trainers and
trainees travel to spread and increase capability at all sites.
This initiative has the benefit of providing more options closer to
a site’s customers and ensures that the training programs remain
relevant and tailored to LaserBond’s requirements.
ADDITIONAL CAPACITY
A continuing challenge for LaserBond is hiring appropriately
skilled people to optimise production time on its equipment and
maximise output. Two initiatives are countering the shortage of local
skilled labour.
The first program involves our Training and Development manager
engaging with schools and training institutions, educating students
(and teachers) around our site localities about the appeal and
benefits of acquiring trade or other STEM qualifications for work in
surface engineering.
The second initiative involves the hiring of skilled migrants. Over
several years up to and including FY24, forty such workers have
been recruited with successful results once fully trained. In FY24,
LaserBond recruited 15 skilled migrants, with six arriving in mid-June,
three months later than expected. A further six arrived in July, with
the final three about to arrive. Once fully trained, these workers will
enable afternoon shifts to occur across all sites
20
Sustainability
Report
21
21
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Invest in
people and
equipment to
build margins
and improve
productivity.
22
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
D I R E C T O R S ’ R E P O R T
The directors present their report together with the financial
statements of LaserBond Limited for the financial year ended
30th June 2024.
PRINCIPAL ACTIVITY
LaserBond is a specialist surface engineering company that
focuses on developing and applying materials, technologies and
methodologies to increase operating performance and wear life of
capital-intensive machinery components. Within these industries, the
wear of components can have a profound effect on the productivity
and total cost of ownership of their capital equipment. As almost
all components fail at the surface due to material removal through
abrasion, erosion, corrosion, cavitation, heat and impact, and any
combinations of these wear mechanisms, tailored surface metallurgy
will extend its life and enhance its 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 Review of Operations from page 10.
DIRECTORS AND COMPANY SECRETARY
Details of the Company’s directors who have held office during the
current financial year are:
INFORMATION ON DIRECTORS AND COMPANY
SECRETARY (CURRENTLY HOLDING OFFICE)
Philip Suriano GAICD – Chairman / Non-Executive Director, Audit,
Risk, Nomination and Remuneration Committee member
Philip’s professional career spans corporate banking, finance and
media. He commenced his career in corporate banking with the
Commonwealth Bank (formerly the State Bank of Victoria). Philip
then moved across into the Australian media industry, working in
roles spanning operations, sales and marketing with Network Ten
in Melbourne, followed by an in-house marketing/sales role within
the Victor Smorgon Group before moving to Sydney as the National
Sales Director at MCN (the sales and marketing arm of Foxtel). Since
then, Philip has held various board roles for the last 17 years in
corporate advisory/finance.
Ian Neal BCom Sf Fin – 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 a member of the first
Corporate Governance Council that established the Corporate
Governance Guidelines. Ian was a director of Prime Media Group Ltd
from July 2008 to May 2021. He holds a Bachelor of Commerce and a
Graduate Diploma from the Securities Institute of Australia.
Dagmar Parsons GAICD – Non-Executive Director, Audit, Risk,
Nomination and Remuneration Committee member
Dagmar has worked with major national and multinational entities in
senior executive and non-executive director positions, driving critical
market success by providing strategic direction, visionary leadership,
and innovative thinking. As a mechanical engineer, she has an
in-depth knowledge of engineering, manufacturing, construction
and service industry environments in the infrastructure, oil and gas,
power, paper and steel sectors. Dagmar has considerable experience
in transforming and growing complex businesses across diverse
corporate, operational, and entrepreneurial roles in Australia, Asia
and Europe. Ms Parsons is the Non-Executive Chairman of Advanced
Braking Technology Limited [ASX:ABV] and a Non-Executive Director
of Gateway Equipment Parts & Services Pty Ltd. She holds Masters
Degrees in Mechanical Engineering and Environmental Engineering
Technologies, and a Masters in Business Administration.
Wayne Hooper GAICD – Executive Director, Chief Executive Officer
Wayne is a professional engineer with more than 40 years of diverse
management and technical experience. His background spans
engineering design, maintenance, contracts, large engineering
project management and financial analysis, beginning in the
electricity generation sector and extending to FMCG production
and high-volume manufacturing. Prior to joining the Company in
1994, Wayne held senior marketing roles in the building products
manufacturing industry. Since the company’s infancy, Wayne
has had a hands-on role in driving its growth and adoption of
technology. As CEO, Wayne utilises his experience, engineering
expertise, financial insight, and effective communication to lead
the Company. He is a graduate of the Australian Institute of
Company Directors and holds degrees in science, engineering
(Honours Class 1), and an MBA.
Director
Position Held
In Office Since
Philip Suriano
Chairman /
Non-Executive Director
6 May 2008
Ian Neal
Non-Executive Director
9 May 2022
Dagmar Parsons
Non-Executive Director
30 January 2023
Wayne Hooper
CEO / Executive Director
21 April 1994
Matthew Twist
CFO / Executive Director
30 June 2020
Matthew Twist
Company Secretary
30 March 2009
Directors’
Report
23
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Matthew Twist GIA (Cert) – Executive Director, Chief Financial Officer
and Company Secretary.
Matthew Twist studied Commerce, becoming a highly experienced
management accountant who provides financial expertise and
insights at all business levels to support best practice decision-
making, strategic formulation, and financial and operational control
systems development in manufacturing. He believes in the power of
information, focusing on data integrity and availability to proactively
influence business performance. Matthew has been the Company’s
Chief Financial Officer since March 2007, was appointed Company
Secretary in March 2009 and an Executive Director in June 2022.
Matthew has a Certificate in Governance Practice and is an affiliated
member of the Governance Institute of Australia. He is also a Justice
of the Peace in New South Wales.
REMUNERATION REPORT
The directors present the LaserBond Limited 2024 remuneration report,
outlining key aspects of our remuneration policy, framework, and
remuneration awarded this year. The report is structured as follows:
a. Key management personnel (KMP) covered in this report
b. Conflicts of Interests or Duties
c. Director Independence
d. Remuneration policy and link to performance
e. Elements of Remuneration
f. Link between remuneration and performance
g. KMP remuneration
h. Contractual arrangements for executive KMP’s
i. Non-executive director arrangements
(a) Key management personnel (KMP) covered in this report
All directors of the Company and the Company Secretary are
considered key management personnel (KMPs) for the management
of its affairs and are covered by this report.
(b) Conflicts of Interest or Duties
No directors have external interests that place that person in a
position to be influenced or appear to be influenced by their private
or other interests when conducting their duties for LaserBond.
This ensures all directors always:
a. Exercise their powers and discharge their duties with
reasonable care and diligence.
b. Act in good faith in the Company’s best interest or for a
proper purpose.
c. Not use their position to obtain an advantage for either
themselves or a third party or cause detriment to the Company,
d. Not improperly use information gained through their position
as a director to obtain an advantage for either themselves or a
third party or to cause detriment to the Company.
(c) Director Independence
The Board has adopted a definition of independence that sets out
the interests and relationships to be considered when assessing each
director’s independence. Each Director assesses this independence
upon appointment and annually through a testimonial.
The Company is committed to maintaining an appropriate level
of independent and executive directors, ensuring a majority of
independent directors. The value of executive directors for the
company is their deep understanding of the business, ensuring
the Board is informed of important issues. The current executive
directors have:
a. A deep knowledge of the business, its strategy and direction.
b. A deep knowledge of the industry and competitive pressures.
c. Critical technical expertise.
d. Greater access to company information than the
non-executive directors.
The independence assessment guidelines are set based on the
ASX Corporate Governance Principles and Recommendations:
a. Is, or has been, employed in an executive capacity by the
business, and there has not been a period of at least three years
between ceasing such employment and serving on the board,
receives performance-based remuneration (including options
or performance rights) from, or participates in an employee
incentive scheme of, the business.
b. Is or has been within the last three years a principal of a
material customer, supplier, subcontractor, professional adviser,
or consultant to the Company, or has an indirect association
with same.
c. Is, represents, or has been a substantial shareholder within
the last three years or associated directly with a substantial
shareholder.
d. Has close personal ties with any person who falls within any of
the categories described above or
e. Has been a director of the entity for such a period that their
independence from management and substantial shareholders
may have been compromised.
The existing non-executive directors, based on this assessment,
continue to be deemed independent.
(d) Remuneration policy and link to performance
Remuneration levels are reviewed annually by the Board through
the Remuneration Committee aiming to ensure that remuneration
practices are:
a. Competitive and reasonable, enabling the Company to attract
and retain key talent,
b. Aligned to the Company’s strategic and business objectives and
the creation of shareholder value,
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
D I R E C T O R S ’ R E P O R T ( c o n t i n u e d )
c. Transparent and easily understood, and
d. Acceptable to shareholders.
The remuneration committee assesses performance against KPIs
and intends to adopt STI and LTI policies for 2025. To assist in this
assessment, the committee reviews detailed reports on performance
from management and external market trends.
(e) Elements of Remuneration
a. Fixed Remuneration
Key management personnel receive their fixed remuneration in
cash or cash with non-monetary benefits such as motor vehicle
allowances. This is reviewed annually, benchmarking against
market data for comparable roles of companies in a similar
industry and/or similar market capitalisation. The Board aims to
position executives at or near the median, with the flexibility
to consider capability, experience, value to the Company and
performance of the individual.
b. Tax-Exempt Employee Share Plan (ESP)
The Company has an existing ESP, which was last approved
by shareholders at the 2021 Annual General Meeting. Eligible
persons are entitled to up to $1,000 of fully paid ordinary shares
annually. Eligible persons are full- or part-time employees of the
Company, Australian residents for tax purposes, and have been
directly employed for at least 36 continuous months. Non-
executive directors and Executive Directors who are substantial
shareholders or who participate in any other form of non-cash
incentive are ineligible from being a participant.
c. Short-Term Incentives (STI)
No KMP was entitled to remuneration in the form of an STI.
The remuneration committee has been considering the
introduction of STIs for KMPs for 2025. The STI policy remains
subject to consideration by the remuneration committee;
however, a policy will be implemented. The STI policy will be
based on performance to certain key performance indicators
(KPIs), which will include a profit performance gateway as part
of the financial performance hurdles, safety, and individual KPIs.
It is expected to be payable annually in cash.
d. Long-Term Incentives (LTI)
No KMP was entitled to remuneration in the form of an LTI. The
remuneration committee has been considering the introduction
of LTIs for KMPs for 2025. The LTI remains subject to final
consideration by the remuneration committee; however, a
policy will be implemented, subject to all necessary approvals.
The LTI policy will focus on achieving long-term goals and
supporting the retention of KMPs based on performance
metrics, including earnings per share growth and return on
capital employed measures. This policy is expected to be based
on a three-year performance period, with annual vesting in cash
or equity (at the Board’s discretion). An equity-based scheme
that is developed will be placed before shareholders to seek
their approval.
(f) Link between remuneration and performance
The Company only pays remuneration to non-executive directors
through fixed cash fees. The following table shows the company’s
gross revenue, profits, and dividends paid during the financial
year for the last five years, as well as the share prices at the end
of the respective financial years. The Board and remuneration
committee consider financial and non-financial issues when making
remuneration decisions.
2024
$
2023
$
2022
$
2021
$
2020
$
Revenue
41,983,590
38,612,404
30,711,118
24,664,453
22,177,264
Net Profit after Tax
3,738,469
4,758,549
3,628,751
2,838,114
2,805,061
Share price at year-end (Cents)
71.00
75.00
66.00
94.50
39.50
Dividends paid (Cents)
1.6
1.6
1.2
1.2
1.0
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Directors’
Report
25
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
(g) KMP Remuneration
The following table shows details of the remuneration expense recognised for the Company’s key management personnel (KMP) for the
current and previous financial years. KMPs received a fixed remuneration during the year ended 30 June 2024 and 30 June 2023.
Short-Term Benefits
Benefits
Long-Term Benefits
Salaries & Fees
STI
Super
ESP
LTI
Long Service
Total
Non-Executive Directors
Philip Suriano1
2024
60,000
-
-
-
-
-
60,000
2023
90,000
-
-
-
-
-
90,000
Ian Neal1
2024
60,000
-
-
-
60,000
2023
60,000
-
-
-
-
-
60,000
Dagmar Parsons1
2024
60,000
-
-
-
60,000
2023
25,000
-
-
-
-
-
25,000
Total NED
2024
180,000
-
-
-
-
-
180,000
2023
175,000
-
-
-
-
-
175,000
Executive Directors
Wayne Hooper
2024
356,787
-
38,585
-
-
-
395,372
2023
340,308
-
34,335
-
-
-
376,643
Matthew Twist
2024
220,728
-
24,039
1,000
-
-
245,767
2023
182,914
-
19,093
1,000
-
-
203,007
Total Executive &
Other KMPs
2024
577,515
-
72,920
1,000
-
-
651,435
2023
523,222
-
53,428
1,000
-
-
577,650
Total
2024
757,515
-
62,624
1,000
-
-
831,435
2023
698,222
-
53,428
1,000
-
-
752,650
1 Non-Executive Director remuneration includes only fees related to their non-executive director remuneration. Any additional consulting fees related to the support of executive functions
are reported in Note 16 (b).
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
D I R E C T O R S ’ R E P O R T ( c o n t i n u e d )
(k) Loans to key management personnel
The company can allow its employees to take short-term loans
of limited amounts for specific purposes, and this facility is also
available to key management personnel. The Company’s loans to
key management personnel during the year were $Nil (2023: $Nil).
If approved loans to key management personnel are generally
short-term, unsecured and interest-free.
(l) Use of Remuneration Consultants
During 2024, the Company appointed The Rewards Practice to
conduct an independent review of all remuneration components,
including supporting the development of STI and LTI policies.
End of the Remuneration Report.
(h) Contractual arrangements for executive KMPs
KMPs who are active employees of the Company are hired following current human resources policies and procedures. Each is required to
have employment contracts, job descriptions, and key performance indicators relevant to their roles and responsibilities.
(i) Non-executive director arrangements
For the year ended 30 June 2024, each non-executive director
received a Board fee of $60,000 per annum. They do not receive
performance-based pay or other benefits such as superannuation.
These fees include responsibilities as members of the Board or any
Board Committees. Fees are reviewed annually against comparable
roles and market data.
All non-executives enter into a service agreement in the form of a
Letter of Appointment and Remuneration Agreement. The letter
summarises the terms of the appointment relevant to the office
of Director, including remuneration. There is no notice period for
termination stipulated in the letter.
Arrangements with non-executive directors are based on the Company’s
commitment to developing a board with a blend of skills, experience,
and attributes appropriate for business goals and strategic plans.
(j) Shares held by key management personnel
The number of ordinary shares in the Company during the 30 June
2024 financial year held by each of the Company’s key management
personnel, including their related parties, is set out below:
Name
Position
Contract
Duration
Notice
Period
Fixed Remuneration
(for the year ended 30 June 2024)
Wayne Hooper
Executive Director / CEO
Unspecified
12 months by either party
$351,415 per annum, plus superannuation.
Matthew Twist
Executive Director /
Company Sec. / CFO
Unspecified
1 month by either party
$220,000 per annum, plus superannuation.
Name
Balance
30 June 2023
Granted as
remuneration
Bought /
(Sold)
Dividend
Reinvestment
Balance
30 June 2024
Wayne Hooper
11,399,295
-
-
-
11,399,295
Philip Suriano
913,029
-
-
20,107
933,136
Ian Neal
25,000
-
40,000
-
65,000
Dagmar Parsons
-
-
-
-
-
Matthew Twist
115,163
1,111
-
-
116,274
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Directors’
Report
27
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Director
Board
Meetings
Audit and Risk
Committee
Nomination and Remuneration
Committee
Eligible
Attended
Eligible
Attended
Eligible
Attended
Philip Suriano
13
13
3
3
2
2
Ian Neal
13
13
3
3
2
2
Dagmar Parsons
13
13
3
3
2
2
Wayne Hooper
13
12
-
-
-
-
Matthew Twist
13
13
-
-
-
-
DIRECTOR’S MEETINGS
During the financial year ended 30th June 2024, the number of meetings held, and attended, by each director were as follows:
Please refer to the Corporate Governance Statement at
http://www.laserbond.com.au/investor-relations/governance-
statement.html for further information.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
a) 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.
b) Sustainability Disclosure Standards
One of the Company’s core values is ‘Zero Harm.’ We believe that the
health and safety of our people and a sustainable environment are
the first priorities for everyone.
Reporting against the new sustainability disclosure (SASB) standards
does not become an obligation for the Company until the first
annual reporting period commencing 1 July 2027. The Company
will endeavour to progressively report against these standards each
reporting period up to the 2028 financial year.
c) Industry Classification and Metrics
As per the Sustainable Industry Classification System, part of the
Sustainable Accountability Standards, LaserBond is classified under
‘Industrial Machinery & Goods’. The relevant disclosure topics for this
industry classification include:
a. Energy Management
Energy is a critical input in the Company’s technologies and
application process. The Company currently only grid-sources
electricity at three of our sites, with alternative energy, through
installed solar panels at our current Bethania, Queensland
premises. Electricity, however, does not account for a large part
of the Company’s costs. For FY2024, electricity costs were 1.1%
of the total group reported revenue (1.0% FY2023).
b. Workplace, Health & Safety
The Company is committed to maintaining the highest levels
of safety for our people, including managing psychosocial risks
and fostering mentally healthy workplaces. The Company’s main
risk is exposure to heavy machinery and moving equipment,
among other things. Our safety culture is critical to proactively
mitigating safety incidents. Our WHS risk is managed through
strong safety protocols, certified safety management systems
and processes, and continually promoting workplace safety
culture throughout the organisation.
Since its inception in 1992, the Company has had zero serious injuries.
Metric
FY2024
FY2023
Fatality Rate
0.0
0.0
Total Recordable Incident Rate (TRIR)
10.8
9.4
c. Fuel Economy & Emissions
The industry classification metrics require reporting against
fuel emissions and efficiencies for stationary generators, non-
road equipment, and medium- and heavy-duty vehicles. The
Company does not currently use any of these.
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
D I R E C T O R S ’ R E P O R T ( c o n t i n u e d )
d. Materials Sourcing
Supply chain risks may exist when the Company uses critical
materials for which there are few or no available substitutes,
and many are sourced in only a few countries that may be
subject to geopolitical uncertainty. The Company’s main
sourcing needs include raw materials for our products and
metal powders used during surface engineering applications.
Part of our Research & Development team’s core responsibilities
is researching and qualifying the performance of alternate
suppliers for all critical materials. These sourcing activities aim to
reduce supply chain risk and ensure that materials sourced are
of the highest quality at the best price to remain competitive.
e. Remanufacturing Design & Services
LaserBond’s core business mitigates the impact of our
customer’s operations on the environment, improving their
sustainability performance. We facilitate the circular economy
by enabling components to be reclaimed and further reducing
scrap by ensuring longer service life from wearing components.
Increasing wear life reduces the need for additional
manufacturing and scrapping of worn components, associated
energy usage, carbon emissions and waste.
The Company’s services segment, which offers the reclamation
of worn industrial components using LaserBond® cladding and
thermal spraying, as well as high-capacity welding, machining,
and heat treatment, is largely remanufacturing services. The
sustainability standard classifications define remanufacturing
services as ‘repairing, restoring or remanufacturing end-of-lie
goods to original working condition’. For FY2024, our
reclamation of worn industrial components revenue
represented 50.0% of total reported revenue (FY23: 47.8%).
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
During the financial year there was no significant change in the
company’s state of affairs other than that referred to in the financial
statements of notes thereto.
FUTURE DEVELOPMENTS
Any future developments required to be disclosed as per the
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
rule requirements.
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 have arisen that have 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 that have not already been reflected in the financial report.
DIVIDENDS
During the year, 2023 final dividends of 0.8 cents per share and 2024
interim dividends of 0.8 cents per share were paid. The directors have
recommended the payment of a final dividend for FY2024 of 0.8 cents
per fully paid ordinary share (FY2023: 0.8c), fully franked based on the
tax paid at 30.0%. The dividend will be paid on September 27th, 2024.
The Board expects to continue to maintain future dividends,
subject to the Company continuing to develop in accordance with
its future plans.
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 have 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 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 from the court under section 237 of the
Corporations Act 2001.
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Directors’
Report
29
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
AUDIT AND NON-AUDIT SERVICES
The Audit and Risk Committee is satisfied that LNP Audit and
Assurance, the Company’s auditor, did not provide non-audit services
for the financial year ended 30 June 2024, and therefore, the auditor’s
independence requirements of the Corporations Act 2001 have not
been compromised.
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 31.
Signed in accordance with a resolution of the Board of Directors.
Wayne Hooper | Director
Dated this 23rd day of August 2024
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 were optimised to reflect industry best practice.
In compliance with the “if not, 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
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30
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
D I R E C T O R S ’ D E C L A R A T I O N
THE DIRECTORS OF THE COMPANY DECLARE THAT:
1. The financial statements and notes, as set out on pages 36 to 56 are in accordance with the
Corporations Act 2001 and:
a. Comply with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements;
b. Comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board as described in note 1 to the financial statements; and
c. Give a true and fair view of the financial position as of 30th June 2024 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.
3. LaserBond Limited is not required by Australian Accounting Standards to prepare consolidated
financial statements and as a result subsection 295(3A)(a) of the Corporations Act 2001 to
prepare a Consolidated Entity Disclosure Statement does not apply to the Company
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.
Wayne Hooper | Director
Dated this 23rd day of August 2024
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
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ĂǀŝĚ^ŝŶĐůĂŝƌ
ŝƌĞĐƚŽƌ
^LJĚŶĞLJDĞůďŽƵƌŶĞƌŝƐďĂŶĞ
ϮϮƵŐƵƐƚϮϬϮϰ
Eϲϱϭϱϱϭϴϴϴϯϳ
>ϴϯϬϵ<ĞŶƚ^ƚƌĞĞƚ^LJĚŶĞLJE^tϮϬϬϬ
>ϮϰϱϳϬŽƵƌŬĞ^ƚƌĞĞƚDĞůďŽƵƌŶĞs/ϯϬϬϬ
>ϭϰϭϲϳ ĂŐůĞ^ƚƌĞĞƚƌŝƐďĂŶĞY>ϰϬϬϬ
>ϮϴϭϰϬ^ƚ'ĞŽƌŐĞƐdĞƌƌĂĐĞWĞƌƚŚtϲϬϬϬ
ϭϯϬϬϱϱϭϮϲϲ
ǁǁǁ͘ůŶƉĂƵĚŝƚ͘ĐŽŵ
Directors’
Declaration
Auditor’s Independence
Declaration
32
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
A U D I T O R ’ S R E P O R T
/E W E Edh/dOR’SZ WKZd
dKd, D D Z^K&>^ ZKE>/D/d
Z WKZdKEd, h/dK&d, &/EE/>Z WKZd
KƉŝŶŝŽŶ
tĞŚĂǀĞĂƵĚŝƚĞĚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨ>ĂƐĞƌŽŶĚ>ŝŵŝƚĞĚ;ƚŚĞŽŵƉĂŶLJͿ͕ǁŚŝĐŚĐŽŵƉƌŝƐĞƐƚŚĞƐƚĂƚĞŵĞŶƚŽĨ
ĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂƐĂƚϯϬ:ƵŶĞϮϬϮϰ͕ƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͕ƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶ
ĞƋƵŝƚLJĂŶĚƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐĂƐŚĨůŽǁƐĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚĂŶĚŶŽƚĞƐƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐ
material accounting policy information and the directors’ declaration.
/ŶŽƵƌŽƉŝŶŝŽŶƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨƚŚĞŽŵƉĂŶLJ͕ŝƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚ
ϮϬϬϭ͕ŝŶĐůƵĚŝŶŐ͗
ĂͿ ŐŝǀŝŶŐĂtrue and fair view of the Company’s financial position as at 30 June 20ϮϰĂŶĚŽĨŝƚƐĨŝŶĂŶĐŝĂů
ƉĞƌĨŽƌŵĂŶĐĞĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͖ĂŶĚ
ďͿ ĐŽŵƉůLJŝŶŐǁŝƚŚƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐĂŶĚƚŚĞŽƌƉŽƌĂƚŝŽŶƐZĞŐƵůĂƚŝŽŶƐϮϬϬϭ͘
ĂƐŝƐĨŽƌKƉŝŶŝŽŶ
tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘KƵƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐƵŶĚĞƌƚŚŽƐĞ
ƐƚĂŶĚĂƌĚƐĂƌĞĨƵƌƚŚĞƌĚĞƐĐƌŝďĞĚŝŶƚŚĞAuditor’s Responsibilities for the Audit of the Financial ZĞƉŽƌƚƐĞĐƚŝŽŶŽĨ
ŽƵƌƌĞƉŽƌƚ͘tĞĂƌĞŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚĞŽŵƉĂŶLJŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĂƵĚŝƚŽƌŝŶĚĞƉĞŶĚĞŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ
ƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭĂŶĚƚŚĞĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞĐĐŽƵŶƚŝŶŐWƌŽĨĞƐƐŝŽŶĂůĂŶĚ ƚŚŝĐĂů^ƚĂŶĚĂƌĚƐ
Board’s APESϭϭϬŽĚĞŽĨ ƚŚŝĐƐĨŽƌWƌŽĨĞƐƐŝŽŶĂůĐĐŽƵŶƚĂŶƚƐ;ŝŶĐůƵĚŝŶŐ/ŶĚĞƉĞŶĚĞŶĐĞ^ƚĂŶĚĂƌĚƐͿ;ƚŚĞŽĚĞͿ
ƚŚĂƚ ĂƌĞ ƌĞůĞǀĂŶƚ ƚŽ ŽƵƌ ĂƵĚŝƚ ŽĨ ƚŚĞ ĨŝŶĂŶĐŝĂů ƌĞƉŽƌƚ ŝŶ ƵƐƚƌĂůŝĂ͘ tĞ ŚĂǀĞ ĨƵůĨŝůůĞĚ ŽƵƌ ŽƚŚĞƌ ĞƚŚŝĐĂů
ƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽĚĞ͘
tĞďĞůŝĞǀĞƚŚĂƚƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞǁĞŚĂǀĞŽďƚĂŝŶĞĚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌ
ŽƉŝŶŝŽŶ͘
<ĞLJƵĚŝƚDĂƚƚĞƌƐ
<ĞLJĂƵĚŝƚŵĂƚƚĞƌƐĂƌĞƚŚŽƐĞŵĂƚƚĞƌƐƚŚĂƚ͕ŝŶŽƵƌƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐŵĞŶƚ͕ǁĞƌĞŽĨŵŽƐƚƐŝŐŶŝĨŝĐĂŶĐĞŝŶŽƵƌĂƵĚŝƚ
ŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨƚŚĞĐƵƌƌĞŶƚLJĞĂƌ͘dŚĞŵĂƚƚĞƌǁĂƐĂĚĚƌĞƐƐĞĚŝŶƚŚĞĐŽŶƚĞdžƚŽĨŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƌĞƉŽƌƚĂƐĂǁŚŽůĞ͕ĂŶĚŝŶĨŽƌŵŝŶŐŽƵƌŽƉŝŶŝŽŶƚŚĞƌĞŽŶ͘tĞĚŽŶŽƚƉƌŽǀŝĚĞĂƐĞƉĂƌĂƚĞŽƉŝŶŝŽŶŽŶƚŚĞŵĂƚƚĞƌ͘&Žƌ
ƚŚĞŵĂƚƚĞƌďĞůŽǁ͕ŽƵƌĚĞƐĐƌŝƉƚŝŽŶŽĨŚŽǁŽƵƌĂƵĚŝƚĂĚĚƌĞƐƐĞĚƚŚĞŵĂƚƚĞƌŝƐƉƌŽǀŝĚĞĚŝŶƚŚĂƚĐŽŶƚĞdžƚ͘
Eϲϱϭϱϱϭϴϴϴϯϳ
>ϴϯϬϵ<ĞŶƚ^ƚƌĞĞƚ^LJĚŶĞLJE^tϮϬϬϬ
>ϮϰϱϳϬŽƵƌŬĞ^ƚƌĞĞƚDĞůďŽƵƌŶĞs/ϯϬϬϬ
>ϭϰϭϲϳ ĂŐůĞ^ƚƌĞĞƚƌŝƐďĂŶĞY>ϰϬϬϬ
>ϮϴϭϰϬ^ƚ'ĞŽƌŐĞƐdĞƌƌĂĐĞWĞƌƚŚtϲϬϬϬ
ϭϯϬϬϱϱϭϮϲϲ
ǁǁǁ͘ůŶƉĂƵĚŝƚ͘ĐŽŵ
33
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
<ĞLJƵĚŝƚDĂƚƚĞƌ
,ŽǁŽƵƌƵĚŝƚĚĚƌĞƐƐĞĚƚŚĞDĂƚƚĞƌ
ĐƋƵŝƐŝƚŝŽŶ ŽĨ ĂŶĚ ĐĐŽƵŶƚŝŶŐ ĨŽƌ /ŶǀĞƐƚŵĞŶƚ ŝŶ
ƐƐŽĐŝĂƚĞ
dŚĞƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶŽĨƚŚĞŽŵƉĂŶLJ
ŝŶĐůƵĚĞƐĂŶŝŶǀĞƐƚŵĞŶƚŝŶĂƐƐŽĐŝĂƚĞǁŝƚŚĂĐĂƌƌLJŝŶŐ
ĂŵŽƵŶƚŽĨΨϭϬ͕ϱϬϮ͕ϰϰϴ͕ĂƐĚŝƐĐůŽƐĞĚŝŶEŽƚĞϳ͘dŚĞ
ŝŶǀĞƐƚŵĞŶƚǁĂƐĂĐƋƵŝƌĞĚĚƵƌŝŶŐƚŚĞĐƵƌƌĞŶƚĨŝŶĂŶĐŝĂů
LJĞĂƌ ĂŶĚ ǁĂƐ ŝŶŝƚŝĂůůLJ ŵĞĂƐƵƌĞĚ Ăƚ ŝƚƐ ĐŽƐƚ ŽĨ
ĂĐƋƵŝƐŝƚŝŽŶ͘ /ƚ ƌĞƉƌĞƐĞŶƚƐ Ă ƐŝŐŶŝĨŝĐĂŶƚ ĂƐƐĞƚ ŽĨ ƚŚĞ
ŽŵƉĂŶLJ͘
ƵƐƚƌĂůŝĂŶ
ĐĐŽƵŶƚŝŶŐ
^ƚĂŶĚĂƌĚƐ
ƌĞƋƵŝƌĞ
ƚŚĞ
ĚŝƌĞĐƚŽƌƐ ƚŽ ĚĞƚĞƌŵŝŶĞ ǁŚĞƚŚĞƌ ƚŚĞ ŽŵƉĂŶLJ
ĐŽŶƚƌŽůƐƚŚĞŝŶǀĞƐƚĞĞ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ϭϬ
ŽŶƐŽůŝĚĂƚĞĚ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐŽƌŚĂƐƐŝŐŶŝĨŝĐĂŶƚ
ŝŶĨůƵĞŶĐĞ ŽǀĞƌ ŝƚ͕ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ^ ϭϮϴ
/ŶǀĞƐƚŵĞŶƚƐŝŶƐƐŽĐŝĂƚĞƐĂŶĚ:ŽŝŶƚsĞŶƚƵƌĞƐ(“AASB
128”)͘
dŚŝƐ ĂƐƐĞƐƐŵĞŶƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ĂƐ ŝƚ ĚĞƚĞƌŵŝŶĞƐ ƚŚĞ
ĂƉƉƌŽƉƌŝĂƚĞƉŽƐƚͲĂĐƋƵŝƐŝƚŝŽŶŵĞƚŚŽĚŽĨĂĐĐŽƵŶƚŝŶŐ
ĨŽƌ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚ͘ dŚĞ ĚŝƌĞĐƚŽƌƐ ĚĞƚĞƌŵŝŶĞĚ ƚŚĂƚ
ƚŚĞŽŵƉĂŶLJĚŽĞƐŶŽƚĐŽŶƚƌŽůƚŚĞŝŶǀĞƐƚĞĞ͕ďƵƚĚŽĞƐ
ŚĂǀĞ ũŽŝŶƚ ĐŽŶƚƌŽů͘ ,ĞŶĐĞ͕ ƚŚĞ ĞƋƵŝƚLJ ŵĞƚŚŽĚ ŽĨ
ĂĐĐŽƵŶƚŝŶŐŚĂƐďĞĞŶĂƉƉůŝĞĚ͘
ƵƐƚƌĂůŝĂŶ ĐĐŽƵŶƚŝŶŐ ^ƚĂŶĚĂƌĚƐ ĂůƐŽ ƌĞƋƵŝƌĞ ƚŚĞ
ŽŵƉĂŶLJƚŽĂƐƐĞƐƐǁŚĞƚŚĞƌƚŚĞƌĞĂƌĞŝŶĚŝĐĂƚŽƌƐŽĨ
ŝŵƉĂŝƌŵĞŶƚŝŶƌĞƐƉĞĐƚŽĨƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨƚŚĞ
ŝŶǀĞƐƚŵĞŶƚ;^ϭϮϴͿ͘
Ɛ
ƚŚĞ
ĚĞƚĞƌŵŝŶĂƚŝŽŶ
ŽĨ
ƚŚĞ
ĂĐĐŽƵŶƚŝŶŐ
ŵĞƚŚŽĚŽůŽŐLJƌĞƋƵŝƌĞĚũƵĚŐĞŵĞŶƚ͕ŝƚǁĂƐĐŽŶƐŝĚĞƌĞĚ
ƚŽďĞĂŬĞLJĂƵĚŝƚŵĂƚƚĞƌ͘
KƵƌĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐŝŶƌĞůĂƚŝŽŶƚŽƚŚĞŝŶǀĞƐƚŵĞŶƚŝŶ
ĂƐƐŽĐŝĂƚĞ ŝŶĐůƵĚĞĚ͕ ďƵƚ ǁĞƌĞ ŶŽƚ ůŝŵŝƚĞĚ ƚŽ ƚŚĞ
ĨŽůůŽǁŝŶŐ͗
•
Reviewed management’s aƐƐĞƐƐŵĞŶƚ ŽĨ ƚŚĞ
ĞdžŝƐƚĞŶĐĞŽĨĐŽŶƚƌŽůĂŐĂŝŶƐƚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ
^ϭϬ͖
•
Reviewed management’s aƐƐĞƐƐŵĞŶƚ ŽĨ ƚŚĞ
ĞdžŝƐƚĞŶĐĞŽĨƐŝŐŶŝĨŝĐĂŶƚŝŶĨůƵĞŶĐĞŽƌũŽŝŶƚĐŽŶƚƌŽů
ĂŐĂŝŶƐƚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ^ϭϮϴ͖
•
ƐƐĞƐƐĞĚ ƚŚĞ ŵĞƚŚŽĚŽůŽŐLJ ƵƐĞĚ ďLJ ƚŚĞ
ŽŵƉĂŶLJ ƚŽ ƌĞĐŽŐŶŝƐĞ ĂŶĚ ŵĞĂƐƵƌĞ ƚŚĞ
ŝŶǀĞƐƚŵĞŶƚ ĂŐĂŝŶƐƚ ƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ^
ϭϮϴ͖
•
ZĞĐŽŶĐŝůĞĚ ƚŚĞ ƐŚĂƌĞ ŽĨ ƉƌŽĨŝƚ ŽĨ ĂƐƐŽĐŝĂƚĞ
ƌĞĐŽŐŶŝƐĞĚ ďLJ ƚŚĞ ŽŵƉĂŶLJ ŝŶ ƚŚĞ ĨŝŶĂŶĐŝĂů
ƌĞƉŽƌƚƚŽƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŽĨƚŚĞĂƐƐŽĐŝĂƚĞ
ĂŶĚĂƐƐĞƐƐĞĚĐŽŵƉůŝĂŶĐĞǁŝƚŚ^ϭϮϴ͖
•
ǀĂůƵĂƚĞĚ management’s assessment ŽĨ ƚŚĞ
ĞdžŝƐƚĞŶĐĞŽĨŝŵƉĂŝƌŵĞŶƚŝŶĚŝĐĂƚŽƌƐŝŶƌĞƐƉĞĐƚŽĨ
ƚŚĞŝŶǀĞƐƚŵĞŶƚ͖ĂŶĚ
•
ƐƐĞƐƐĞĚƚŚĞĂĚĞƋƵĂĐLJŽĨƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐŝŶ
EŽƚĞϳƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
KƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ
dŚĞ ŝƌĞĐƚŽƌƐ ĂƌĞ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ƚŚĞ ŽƚŚĞƌ ŝŶĨŽƌŵĂƚŝŽŶ͘ dŚĞ ŽƚŚĞƌ ŝŶĨŽƌŵĂƚŝŽŶ ĐŽŵƉƌŝƐĞƐ ƚŚĞ ŝŶĨŽƌŵĂƚŝŽŶ
ŝŶĐůƵĚĞĚŝŶƚŚĞĂŶŶƵĂůƌĞƉŽƌƚĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϬ:ƵŶĞϮϬϮϰ͕ďƵƚĚŽĞƐŶŽƚŝŶĐůƵĚĞƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂŶĚƚŚĞ
auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do
ŶŽƚĞdžƉƌĞƐƐĂŶLJĨŽƌŵŽĨĂƐƐƵƌĂŶĐĞĐŽŶĐůƵƐŝŽŶƚŚĞƌĞŽŶ͘
/ŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŽƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽƌĞĂĚƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĂŶĚ͕ŝŶ
ĚŽŝŶŐƐŽ͕ĐŽŶƐŝĚĞƌǁŚĞƚŚĞƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶŝƐŵĂƚĞƌŝĂůůLJŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌŽƵƌ
ŬŶŽǁůĞĚŐĞŽďƚĂŝŶĞĚŝŶƚŚĞĂƵĚŝƚŽƌŽƚŚĞƌǁŝƐĞĂƉƉĞĂƌƐƚŽďĞŵĂƚĞƌŝĂůůLJŵŝƐƐƚĂƚĞĚ͘
/Ĩ͕ďĂƐĞĚƵƉŽŶƚŚĞǁŽƌŬǁĞŚĂǀĞƉĞƌĨŽƌŵĞĚ͕ǁĞĐŽŶĐůƵĚĞƚŚĂƚƚŚĞƌĞŝƐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚŝƐŽƚŚĞƌ
ŝŶĨŽƌŵĂƚŝŽŶ͕ǁĞĂƌĞƌĞƋƵŝƌĞĚƚŽƌĞƉŽƌƚƚŚĂƚĨĂĐƚ͘tĞŚĂǀĞŶŽƚŚŝŶŐƚŽƌĞƉŽƌƚŝŶƚŚŝƐƌĞŐĂƌĚ͘
ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐŽĨƚŚĞŝƌĞĐƚŽƌƐĨŽƌƚŚĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ
Independent Auditor’s
Report
34
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
A U D I T O R ’ S R E P O R T
dŚĞŝƌĞĐƚŽƌƐŽĨƚŚĞŽŵƉĂŶLJĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨ͗
ƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƚŚĂƚŐŝǀĞƐĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐ
ĂŶĚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͖ĂŶĚ
ĨŽƌƐƵĐŚŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂƐƚŚĞŝƌĞĐƚŽƌƐĚĞƚĞƌŵŝŶĞŝƐŶĞĐĞƐƐĂƌLJƚŽĞŶĂďůĞƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞ
ĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƚŚĂƚŐŝǀĞƐĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁĂŶĚŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽ
ĨƌĂƵĚŽƌĞƌƌŽƌ͘
/ŶƉƌĞƉĂƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ƚŚĞŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂƐƐĞƐƐŝŶŐƚŚĞCompany’sĂďŝůŝƚLJƚŽĐŽŶƚŝŶƵĞ
ĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͕ĚŝƐĐůŽƐŝŶŐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ŵĂƚƚĞƌƐƌĞůĂƚĞĚƚŽŐŽŝŶŐĐŽŶĐĞƌŶĂŶĚƵƐŝŶŐƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐ
ŽĨĂĐĐŽƵŶƚŝŶŐƵŶůĞƐƐƚŚĞŝƌĞĐƚŽƌƐĞŝƚŚĞƌŝŶƚĞŶĚƚŽůŝƋƵŝĚĂƚĞƚŚĞ ŽŵƉĂŶLJŽƌĐĞĂƐĞŽƉĞƌĂƚŝŽŶƐ͕ŽƌŚĂǀĞŶŽ
ƌĞĂůŝƐƚŝĐĂůƚĞƌŶĂƚŝǀĞďƵƚƚŽĚŽƐŽ͘
Auditor’s Responsibilities for the Audit of the Financial ZĞƉŽƌƚ
KƵƌŽďũĞĐƚŝǀĞƐĂƌĞƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĂďŽƵƚǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂƐĂǁŚŽůĞŝƐĨƌĞĞĨƌŽŵ
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
ZĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŝƐĂŚŝŐŚůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞ͕ďƵƚŝƐŶŽƚĂŐƵĂƌĂŶƚĞĞƚŚĂƚĂŶĂƵĚŝƚĐŽŶĚƵĐƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞ
ǁŝƚŚƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐǁŝůůĂůǁĂLJƐĚĞƚĞĐƚĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚǁŚĞŶŝƚĞdžŝƐƚƐ͘DŝƐƐƚĂƚĞŵĞŶƚƐĐĂŶ
ĂƌŝƐĞĨƌŽŵĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚĂƌĞĐŽŶƐŝĚĞƌĞĚŵĂƚĞƌŝĂůŝĨ͕ŝŶĚŝǀŝĚƵĂůůLJŽƌŝŶƚŚĞĂŐŐƌĞŐĂƚĞ͕ƚŚĞLJĐŽƵůĚƌĞĂƐŽŶĂďůLJ
ďĞĞdžƉĞĐƚĞĚƚŽŝŶĨůƵĞŶĐĞƚŚĞĞĐŽŶŽŵŝĐĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚŝƐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘
ƐƉĂƌƚŽĨĂŶĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͕ǁĞĞdžĞƌĐŝƐĞƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐŵĞŶƚĂŶĚ
ŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐĐĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĂƵĚŝƚ͘tĞĂůƐŽ͗
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/ĚĞŶƚŝĨLJĂŶĚĂƐƐĞƐƐƚŚĞƌŝƐŬƐŽĨŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌ
ĞƌƌŽƌ͕ĚĞƐŝŐŶĂŶĚƉĞƌĨŽƌŵĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƌĞƐƉŽŶƐŝǀĞƚŽƚŚŽƐĞƌŝƐŬƐ͕ĂŶĚŽďƚĂŝŶĂƵĚŝƚĞǀŝĚĞŶĐĞƚŚĂƚŝƐ
ƐƵĨĨŝĐŝĞŶƚ ĂŶĚ ĂƉƉƌŽƉƌŝĂƚĞ ƚŽ ƉƌŽǀŝĚĞ Ă ďĂƐŝƐ ĨŽƌ ŽƵƌ ŽƉŝŶŝŽŶ͘ dŚĞ ƌŝƐŬ ŽĨ ŶŽƚ ĚĞƚĞĐƚŝŶŐ Ă ŵĂƚĞƌŝĂů
ŵŝƐƐƚĂƚĞŵĞŶƚƌĞƐƵůƚŝŶŐĨƌŽŵĨƌĂƵĚŝƐŚŝŐŚĞƌƚŚĂŶĨŽƌŽŶĞƌĞƐƵůƚŝŶŐĨƌŽŵĞƌƌŽƌ͕ĂƐĨƌĂƵĚŵĂLJŝŶǀŽůǀĞ
ĐŽůůƵƐŝŽŶ͕ĨŽƌŐĞƌLJ͕ŝŶƚĞŶƚŝŽŶĂůŽŵŝƐƐŝŽŶƐ͕ŵŝƐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ŽƌƚŚĞŽǀĞƌƌŝĚĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘
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KďƚĂŝŶĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚƚŽƚŚĞĂƵĚŝƚŝŶŽƌĚĞƌƚŽĚĞƐŝŐŶĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐ
ƚŚĂƚĂƌĞĂƉƉƌŽƉƌŝĂƚĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ďƵƚŶŽƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĞdžƉƌĞƐƐŝŶŐĂŶŽƉŝŶŝŽŶŽŶƚŚĞ
ĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨƚŚĞCompany’sŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘
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ǀĂůƵĂƚĞ ƚŚĞ ĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐ ŽĨ ĂĐĐŽƵŶƚŝŶŐ ƉŽůŝĐŝĞƐ ƵƐĞĚ ĂŶĚ ƚŚĞ ƌĞĂƐŽŶĂďůĞŶĞƐƐ ŽĨ ĂĐĐŽƵŶƚŝŶŐ
ĞƐƚŝŵĂƚĞƐĂŶĚƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐŵĂĚĞďLJƚŚĞŝƌĞĐƚŽƌƐ͘
•
Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting ĂŶĚ
ďĂƐĞĚŽŶƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚ͕ǁŚĞƚŚĞƌĂŵĂƚĞƌŝĂůƵŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐƌĞůĂƚĞĚƚŽĞǀĞŶƚƐĂŶĚ
ĐŽŶĚŝƚŝŽŶƐƚŚĂƚŵĂLJĐĂƐƚƐŝŐŶŝĨŝĐĂŶƚĚŽƵďƚŽŶƚŚĞCompany’sĂďŝůŝƚLJƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘/Ĩ
we conclude that a material uncertainty exists, we are required to draw attention in the auditor’s report
ƚŽƚŚĞĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌ͕ŝĨƐƵĐŚĚŝƐĐůŽƐƵƌĞƐĂƌĞŝŶĂĚĞƋƵĂƚĞ͕ƚŽŵŽĚŝĨLJŽƵƌŽƉŝŶŝŽŶ͘
Our conclusions are based on the evidence obtained up to the date of our auditor’s report. ,ŽǁĞǀĞƌ͕
ĨƵƚƵƌĞĞǀĞŶƚƐŽƌĐŽŶĚŝƚŝŽŶƐŵĂLJĐĂƵƐĞƚŚĞŽŵƉĂŶLJƚŽĐĞĂƐĞƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘
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ǀĂůƵĂƚĞ ƚŚĞ ŽǀĞƌĂůů ƉƌĞƐĞŶƚĂƚŝŽŶ͕ ƐƚƌƵĐƚƵƌĞ ĂŶĚ ĐŽŶƚĞŶƚ ŽĨ ƚŚĞ ĨŝŶĂŶĐŝĂů ƌĞƉŽƌƚ͕ ŝŶĐůƵĚŝŶŐ ƚŚĞ
ĚŝƐĐůŽƐƵƌĞƐ͕ĂŶĚǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƌĞƉƌĞƐĞŶƚƐƚŚĞƵŶĚĞƌůLJŝŶŐƚƌĂŶƐĂĐƚŝŽŶƐĂŶĚĞǀĞŶƚƐŝŶĂ
ŵĂŶŶĞƌƚŚĂƚĂĐŚŝĞǀĞƐĨĂŝƌƉƌĞƐĞŶƚĂƚŝŽŶ͘
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WůĂŶ ĂŶĚ ƉĞƌĨŽƌŵ ƚŚĞ 'ƌŽƵƉ ĂƵĚŝƚ ƚŽ ŽďƚĂŝŶ ƐƵĨĨŝĐŝĞŶƚ ĂƉƉƌŽƉƌŝĂƚĞ ĂƵĚŝƚ ĞǀŝĚĞŶĐĞ ƌĞŐĂƌĚŝŶŐ ƚŚĞ
ĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶŽĨƚŚĞĞŶƚŝƚŝĞƐŽƌďƵƐŝŶĞƐƐĂĐƚŝǀŝƚŝĞƐǁŝƚŚŝŶƚŚĞ'ƌŽƵƉƚŽĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞ
'ƌŽƵƉĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘tĞĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞĚŝƌĞĐƚŝŽŶ͕ƐƵƉĞƌǀŝƐŝŽŶĂŶĚƌĞǀŝĞǁŽĨƚŚĞĂƵĚŝƚǁŽƌŬ
ƉĞƌĨŽƌŵĞĚĨŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨƚŚĞ'ƌŽƵƉĂƵĚŝƚ͘tĞƌĞŵĂŝŶƐŽůĞůLJƌĞƐƉŽŶƐŝďůĞĨŽƌŽƵƌĂƵĚŝƚŽƉŝŶŝŽŶ͘
35
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
tĞĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚƚŚĞŝƌĞĐƚŽƌƐƌĞŐĂƌĚŝŶŐ͕ĂŵŽŶŐŽƚŚĞƌŵĂƚƚĞƌƐ͕ƚŚĞƉůĂŶŶĞĚƐĐŽƉĞĂŶĚƚŝŵŝŶŐŽĨƚŚĞĂƵĚŝƚ
ĂŶĚƐŝŐŶŝĨŝĐĂŶƚĂƵĚŝƚĨŝŶĚŝŶŐƐ͕ŝŶĐůƵĚŝŶŐĂŶLJƐŝŐŶŝĨŝĐĂŶƚĚĞĨŝĐŝĞŶĐŝĞƐŝŶŝŶƚĞƌŶĂůĐŽŶƚƌŽůƚŚĂƚǁĞŝĚĞŶƚŝĨLJĚƵƌŝŶŐŽƵƌ
ĂƵĚŝƚ͘
tĞĂůƐŽƉƌŽǀŝĚĞƚŚĞŝƌĞĐƚŽƌƐǁŝƚŚĂƐƚĂƚĞŵĞŶƚƚŚĂƚǁĞŚĂǀĞĐŽŵƉůŝĞĚǁŝƚŚƌĞůĞǀĂŶƚĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐ
ƌĞŐĂƌĚŝŶŐ ŝŶĚĞƉĞŶĚĞŶĐĞ͕ ĂŶĚ ƚŽ ĐŽŵŵƵŶŝĐĂƚĞ ǁŝƚŚ ƚŚĞŵ Ăůů ƌĞůĂƚŝŽŶƐŚŝƉƐ ĂŶĚ ŽƚŚĞƌ ŵĂƚƚĞƌƐ ƚŚĂƚ ŵĂLJ
ƌĞĂƐŽŶĂďůLJďĞƚŚŽƵŐŚƚƚŽďĞĂƌŽŶŽƵƌŝŶĚĞƉĞŶĚĞŶĐĞ͕ĂŶĚǁŚĞƌĞĂƉƉůŝĐĂďůĞ͕ĂĐƚŝŽŶƐƚĂŬĞŶƚŽĞůŝŵŝŶĂƚĞƚŚƌĞĂƚƐ
ŽƌƐĂĨĞŐƵĂƌĚƐĂƉƉůŝĞĚ͘
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these matters in our auditor’s report unůĞƐƐůĂǁŽƌƌĞŐƵůĂƚŝŽŶƉƌĞĐůƵĚĞƐƉƵďůŝĐĚŝƐĐůŽƐƵƌĞĂďŽƵƚƚŚĞŵĂƚƚĞƌŽƌ
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ZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚ͕ďĂƐĞĚŽŶŽƵƌĂƵĚŝƚĐŽŶĚƵĐƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘
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Independent Auditor’s
Report
36
36
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
Financial Report
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
37
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30th June 2024
2024
2023
Note
$
$
Revenue
24
41,983,590
38,612,404
Cost of sales
(20,341,627)
(18,149,392)
Gross Profit
21,641,963
20,463,012
Other income
3
262,333
517,538
Share of Profit of associate
7
503,329
-
Administration expenses
4
(4,836,275)
(4,535,120)
Depreciation & amortisation
(3,463,881)
(3,267,536)
Employment expenses
(6,655,175)
(5,443,711)
Finance Costs
(864,102)
(622,980)
Research & development
(805,402)
(453,537)
Other expenses
(567,717)
(290,551)
Profit before income tax expense
5
5,215,073
6,367,115
Income tax expense
5
(1,692,316)
(1,608,566)
Profit after income tax expense
3,522,757
4,758,549
Other comprehensive income
-
-
Total comprehensive income attributable to
members of LaserBond Limited
3,522,757
4,758,549
Earnings per share for profit attributable to members:
Basic and diluted earnings per share
(cents)
6
3.138
4.341
This Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
Financial
Report
38
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
Statement of Financial Position
As of 30th June 2024
2024
2023
Note
$
$
CURRENT ASSETS
Cash and cash equivalents
5,759,153
8,929,215
Trade and other receivables
8
9,677,020
9,442,622
Inventories
9
6,800,803
7,343,427
Total current assets
22,236,976
25,715,264
NON-CURRENT ASSETS
Property, plant, and equipment
10
20,227,472
18,798,257
Deferred tax assets
12a
1,152,369
759,123
Rental Bond
45,557
43,777
Investment in associate
7
10,502,448
-
Intangible assets
11
6,501,206
6,516,030
Total non-current assets
38,429,052
26,117,187
TOTAL ASSETS
60,666,028
51,832,451
CURRENT LIABILITIES
Trade and other payables
13
3,292,799
4,689,060
Current Tax Liabilities
1,043,828
254,710
Employee benefits
2,262,055
1,994,607
Financial liabilities
15
2,248,100
2,325,409
Total current liabilities
8,846,782
9,263,786
NON-CURRENT LIABILITIES
Financial liabilities
15
11,310,217
9,508,197
Deferred Tax Liabilities
12b
1,849,098
1,834,342
Employee benefits
224,465
155,568
Total non-current liabilities
13,383,780
11,498,107
TOTAL LIABILITIES
22,230,562
20,761,893
NET ASSETS
38,435,466
31,070,558
EQUITY
Issued capital
14
24,434,722
18,782,492
Retained earnings
14,000,744
12,288,066
TOTAL EQUITY
38,435,466
31,070,558
This Statement of Financial Position should be read in conjunction with the accompanying notes.
39
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Statement of Cash Flows
for the Year Ended 30th June 2024
2024
2023
Note
$
$
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers
44,294,192
42,356,033
Payments to suppliers and employees
(36,198,003)
(32,911,005)
Interest paid
(202,776)
(622,980)
Interest received
93,354
60,733
Income taxes paid, net
(1,281,688)
(1,178,455)
Net cash inflow from operating
activities
20
6,705,079
7,704,326
CASH FLOWS FROM INVESTING
ACTIVITIES
Payments for plant and equipment
(828,729)
(1,328,688)
Payment for acquisition
7
(4,999,021)
-
Loans to employees
44,916
(1,261)
Net cash outflow from investing
activities
(5,782,834)
(1,327,427)
CASH FLOWS FROM FINANCING
ACTIVITIES
Payments for share issue costs
(34,588)
(10,738)
Payments for hire purchase assets and
finance leases
(2,787,476)
(1,903,146)
Dividends paid
(1,270,243)
(1,217,612)
Net cash (outflow) / inflow from
financing activities
(4,092,307)
(3,131,496)
INCREASE IN CASH AND CASH
EQUIVALENTS
(3,170,062)
3,245,403
Cash and cash equivalents at the
beginning of the year
8,929,215
5,683,812
CASH AND CASH EQUIVALENTS AT
END OF YEAR
5,759,153
8,929,215
This Statement of Cash Flows should be read in conjunction with the accompanying notes.
Financial
Report
40
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
This Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Statement of Changes in Equity
for the Year Ended 30th June 2024
Issued
capital
Retained
earnings
Total
equity
$
$
$
Opening Balance at 1st July 2022
18,226,957
9,281,155
27,508,112
Profit for the year
-
4,758,549
4,758,549
Issue of Share Capital, net of cost
555,535
-
555,535
Dividends paid/payable during the
year
-
(1,751,638)
(1,751,638)
Closing Balance at 30th June 2023
18,782,492
12,288,066
31,070,558
Profit for the year
-
3,522,757
3,522,757
Issue of Share Capital, net of cost
5,652,230
-
5,652,230
Dividends paid/payable during the
year
-
(1,810,079)
(1,810,079)
Closing Balance at 30th June 2024
24,434,722
14,000,744
38,435,466
41
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
Corporate Information
LaserBond Limited is a for-profit listed public Company, incorporated and domiciled in Australia. The nature of the
operations and principal 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 23rd August 2024. 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 MATERIAL ACCOUNTING POLICIES
a) Revenue and other income
Revenue from the sale of goods and services
Revenue from the sale of goods and services to customers is recognised when control of the products or components
being serviced has been transferred to the customer, which is the point in time when the goods are received or ready for
the customer to pick up.
b)
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-makers, who have been identified as the board. These decision-makers are responsible for allocating resources
and assessing the performance of the operating segments. The segments reported are Products, Services, Technology, and
Research and Development.
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.
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.
e) Cash and Cash Equivalents
For cash flow statement presentation purposes, cash and cash equivalents include 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.
f) Investments in Associates
Investments in associates are accounted for using the equity method.
Financial
Report
42
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
NOTE 1 (i): STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
g) Financial Instruments
Financial instruments are recognised initially on the date that the Company becomes a 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. The Company's financial assets measured at amortised cost comprise trade and
other receivables and cash and cash equivalents in the statement of financial position. Subsequent to initial recognition,
these assets are carried at amortised cost using the effective interest rate method less provision for impairment.
Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or loss on
derecognition is recognised in profit or loss.
Impairment of financial assets
Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assets measured at amortised
cost. The Company considers reasonable and supportable information that is relevant and available without undue cost or
effort, and is based on the Company's historical experience and informed credit assessment and including forward-looking
information.
Impairment of trade receivables has 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 assets 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. The 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, including internal costs related to commissioning, 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% - 75%
- 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 10% per annum.
43
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
NOTE 1 (i): STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
Goodwill
Goodwill on acquisitions of a business 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. Significant estimates and assumptions have been made concerning the
carrying value, based 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.
k) Leases
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 costs. The finance cost is
charged to the income statement over the lease period to produce a constant periodic rate of interest on the remaining
liability balance for each period.
Right of use assets
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 value of the lease liability recognised. The
recognised right-of-use assets are depreciated on a straight-line basis over 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.
NOTE 1 (i): STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
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 its facility premises leases, the Company can 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 are within its
control and affect its ability to exercise (or not to exercise) the option to renew (i.e., a change in business strategy).
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 is used as a base rate in the Company’s
judgment.
Financial
Report
44
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
l)
Employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave 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. Long service leave covers all unconditional entitlements where employees have completed the required
period of service and those where employees are entitled to pro-rata payments in certain circumstances.
All other short-term employee benefit obligations are presented as payables.
The liability for employee entitlements that are not expected to be settled within 12 months after the end of the period are
measured as the present value of expected future payments, using discount rates based on the market yield on
Commonwealth Government Securities.
m) 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 the reporting date.
45
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
NOTE 2: SEGMENT REPORTING
The Company has identified its operating segment based on internal reports reviewed and used by the executive directors
(chief decision-makers) to assess performance and determine resource allocation. 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, 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 2024
Services
Products
Technology
R&D
Total
Revenue
23,387,254
16,549,141
2,047,195
-
41,983,590
Gross Profit
53.6%
50.9%
33.6%
-
51.5%
EBITDA
6,098,466
3,882,231
276,415
(807,410)
9,449,702
Interest
(451,358)
(319,390)
-
-
(770,748)
Depreciation & Amortisation
(2,011,226)
(1,423,171)
-
(29,484)
(3,463,881)
Profit Before Income Tax
3,635,882
2,139,670
276,415
(836,894)
5,215,073
Income tax expense
(1,179,861)
(694,333)
(89,698)
271,576
(1,692,316)
Profit after Income Tax
2,456,021
1,445,337
186,717
(565,318)
3,522,757
Assets
60,666,028
Liabilities
(22,230,562)
30 June 2023
Services
Products
Technology
R&D
Total
Revenue
20,644,496
17,827,054
140,854
-
38,612,404
Gross Profit
55.7%
49.8%
53.9%
-
53.0%
EBITDA
6,471,969
4,544,418
(445,644)
(373,865)
10,196,878
Interest
(301,701)
(260,526)
-
-
(562,227)
Depreciation & Amortisation
(1,726,016)
(1,490,465)
-
(51,055)
(3,267,536)
Profit Before Income Tax
4,444,252
2,793,427
(445,644)
(424,920)
6,367,115
Income tax expense
(1,122,780)
(705,721)
112,585
107,350
(1,608,566)
Profit after Income Tax
3,321,472
2,087,706
(333,059)
(317,570)
4,758,549
Assets
51,832,451
Liabilities
(20,761,893)
Financial
Report
46
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
NOTE 3: OTHER INCOME
2024
2023
$
$
Grant Income
-
58,948
Government Rebates / Subsidies
60,360
205,234
Other
201,973
253,356
262,333
517,538
NOTE 4: AUDITOR REMUNERATION
Profit before Income Tax from continuing operations includes the
following specific expenses:
Auditors Remuneration
Audit Services – audit and review of Financial Reports
114,561
109,477
Non-Audit Services
30,000
-
144,561
109,477
The non-audit services provided relate to the financial due diligence process for the Gateway Group equity purchase.
NOTE 5: INCOME TAX
Reconciliation of Income Tax Expense from continuing operations
Profit before Income Tax expense
5,215,073
6,367,115
Prima Facie Tax at the Australian tax rate of 30.0% (2023: 25.0%)
1,564,522
1,591,779
Change in corporate tax rate to 30.0% (2023: 25.0%)
215,044
-
R&D Tax Concession
(57,342)
(40,869)
Share of Profit in Associate’s Tax
(150,999)
-
Net Non-Deductible Expenses
79,050
63,268
Other Deductible Expenses
(10,377)
(2,685)
Net adjustment relating to prior year income tax provisions (a)
52,418
(2,927)
Total income tax expenses
1,692,316
1,608,566
As per the aggregated turnover rules of the Tax Act, direct control of an entity is deemed to occur with at least 40% of
the voting power for tax purposes. Our recent purchase of 40% equity in the Gateway Group now requires the Company
to apply the 30% company tax rate. As per international accounting standards, control is deemed to occur at greater than
50% of the voting power. Therefore, Gateway’s financial position and performance are not consolidated with the
Company’s for reporting purposes.
NOTE 6: EARNINGS PER SHARE
Profit after tax
3,522,757
4,758,549
Basic and diluted earnings per share (cents)
3.138
4.341
There are no current options to affect diluted earnings per share.
(a) Weighted Average Shares on Issue
No. of Shares
Weighted No.
Opening Balance as of 1st July 2023
109,971,995
109,971,995
Shares issued on 6th October 2023
283,006
207,796
Shares issued 20th December 2023
59,302
31,357
Shares issued on 5th March 2024
5,974,729
1,915,187
Shares issued on 28th March 2024
467,301
120,346
Closing Balance as of 30th June 2024
116,756,333
112,246,681
47
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
NOTE 7: INVESTMENT IN ASSOCIATES
On 5th March 2024, LaserBond settled the 40% equity purchase in Gateway Equipment Parts & Services Pty Ltd (Gateway).
This purchase was part of the Company’s strategic plan to expand domestically, with Western Australia as our last target
location after Victoria in August 2020 and Queensland in February 2022. The purchase consideration was in cash and scrip,
escrowed for twelve months.
Gateway offers customers refurbished components such as hydraulics, cylinders, powertrain components, undercarriage
parts, front attachments and hydraulic pumps and valves. LaserBond’s surface engineering technology and capabilities will
enhance Gateway’s offerings by allowing the reclamation and extension of wear life for these refurbished components.
The decision to invest in Gateway was based on several factors:
a)
Gateway is firmly founded in large WA industrial markets, with a strong industry network consistent with
LaserBond’s customer profile.
b)
Gateway’s excellent management team has a track record of delivering strong growth and are now shareholders
in LaserBond.
c)
Gateway needs LaserBond’s capabilities, and we share the strong desire to introduce our specialised surface
engineering technologies to other customers in the region.
d)
It allows the Company to comprehensively service WA customers by providing shorter lead times, reduced
downtime, and lower costs, allowing for growth in WA.
LaserBond currently holds 40% equity in Gateway. Accordingly, this interest in associate has been equity accounted in
accordance with Australian Accounting Standards where LaserBond only reports its share of Gateway's net profit after tax
in the Statement of Profit or Loss. Since acquisition of interest in Gateway in March 2024, the Company has recognised
$503,329 in the current year financial statements representing 40% of LaserBond’s share of profit after tax in Gateway.
As per the purchase agreements between LaserBond and Gateway:
a)
LaserBond has a right to obtain 51% equity in Gateway on or after the third anniversary of purchase.
b)
The original Gateway shareholders have a right to provide LaserBond with any level of equity at any time.
a)
Principal Place of Business
110 Nardine Close, High Wycombe Western Australia 6057
b) Summarised financial information for associates
Statement of Profit or Loss
Mar-Jun 24
(post-
Settlement)
2024
2023
(Unaudited)
$
$
$
Revenue
14,585,647
40,283,443
32,589,920
Cost of Sales
(10,556,133)
(30,603,100)
(24,321,743)
Gross Profit
4,029,514
9,680,343
8,268,177
Expenses
(2,231,409)
(6,138,541)
(5,373,688)
Profit before income tax expense
1,798,105
3,541,802
2,894,489
Financial
Report
48
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
2024
2023
(Unaudited)
Statement of Financial Position
$
$
Current Assets
17,570,266
15,425,406
Non-Current Assets
16,672,782
15,890,160
34,243,048
31,315,566
Total Assets
Current Liabilities
5,741,479
7,652,414
Non-Current Liabilities
11,460,602
11,672,014
Total Liabilities
17,202,081
19,324,428
Net Assets
17,040,967
11,991,138
Total Equity
17,040,967
11,991,138
2023 balances have been adjusted to incorporate the correct reporting of transactions related to AASB 119: Employee
Entitlements and AASB 16: Right of Use Assets & Liabilities.
c) Interests in Associates
2024
2023
$
$
Opening Balance 1 July
-
-
Investment in Gateway
9,999,119
Share of Profits from Continuing Operations
503,329
-
10,502,448
-
NOTE 8: TRADE AND OTHER RECEIVABLES
Trade Receivables
8,525,330
8,685,547
Provision for expected credit losses
(125,000)
(105,000)
Loans – Employees
6,151
31,760
Prepayments and other receivables (a)
1,270,539
830,315
9,677,020
9,442,622
(a) Balances include progress payments on raw material supply, patent applications and insurance.
Within Trade Terms (not impaired)
Total
Gross
Amount
Past due
(and
impaired)
<30
31-60
61-90
>90
$,000
$,000
$,000
$,000
$,000
$,000
$,000
2024
Trade receivables
8,400
125
3,114
2,978
799
1,384
8,400
Other receivables
1,277
-
1,277
-
-
-
1,277
9,677
125
4,391
2,978
799
1,384
9,677
2023
Trade receivables
8,581
105
3,260
2,916
1,077
1,223
8,581
Other receivables
862
-
862
-
-
-
862
9,443
105
4,122
2,916
1,077
1,223
9,443
Standard customer credit terms are 30 to 90 days, depending on the customer. The simplified approach to expected credit
losses as prescribed by AASB9 has been applied. The expected credit loss rate has been estimated and determined based on
historic experience of sales and bad debts.
49
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
NOTE 10: PROPERTY, PLANT & EQUIPMENT
Work in Progress
551,128
377,546
Prepayments of Plant and Equipment
28,765
415,691
Plant & Equipment
At Cost
20,200,736
20,643,180
Less Accumulated Depreciation
(9,578,573)
(10,179,395)
10,622,163
10,463,785
Office Equipment
At Cost
350,352
350,352
Less Accumulated Depreciation
(258,614)
(263,849)
91,738
86,503
Motor Vehicles
At Cost
830,536
830,836
Less Accumulated Depreciation
(576,120)
(537,471)
254,416
293,365
Right of Use Assets
At Cost
12,561,734
10,505,756
Less Accumulated Depreciation
(3,882,472)
(3,344,389)
8,679,262
7,161,367
TOTAL PROPERTY, PLANT & EQUIPMENT
20,227,472
18,798,257
(a) Movements in Carrying
Amounts
Work in
Progress
Plant &
Equipmen
t
Office
Equipment
Motor
Vehicles
Right of Use
Assets
Total
2024 Financial Year
$
$
$
$
$
$
Balance at the beginning of the
year
377,546
10,879,476
86,503
293,365
7,161,367
18,798,257
Additions / Transfer In
173,582
1,957,931
46,700
41,481
2,693,401
4,913,095
Disposal of Asset / Transfer Out
-
(42,019)
(3,625)
(14,859)
-
(60,503)
Depreciation Expense
-
(2,144,460)
(37,840)
(65,571)
(1,175,506)
(3,423,377)
Carrying Amount at the end of
the year
551,128
10,650,928
91,738
254,416
8,679,262
20,227,472
2023 Financial Year
$
$
$
$
$
$
Balance at the beginning of the
year
1,540,668
10,518,053
107,908
148,014
4,052,653
16,367,296
Additions / Transfer In
-
2,407,859
28,796
190,459
4,195,234
6,822,348
Disposal of Asset / Transfer Out
(1,163,122)
(2)
(7)
-
-
(1,163,131)
Depreciation Expense
-
(2,046,434)
(50,194)
(45,108)
(1,086,520)
(3,228,256)
Carrying Amount at the end of
the year
377,546
10,879,476
86,503
293,365
7,161,367
18,798,257
NOTE 9: INVENTORY
2024
2023
$
$
Stock on Hand – Raw Materials
3,947,340
3,746,311
Stock on Hand – Finished Goods
1,062,666
247,752
Work in Progress
1,790,797
3,349,364
6,800,803
7,343,427
Financial
Report
50
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
(b) Asset Additions financed
2024
2023
$
$
The values of assets purchased utilising finance leases or hire
purchase agreements during the year:
1,050,677
550,469
NOTE 11: INTANGIBLES
Goodwill
6,260,968
6,260,968
Patents and Trademarks
At Cost
267,760
267,760
Less Accumulated Amortisation
(60,338)
(36,932)
207,422
230,828
Software
At Cost
88,528
62,845
Less Accumulated Amortisation
(55,712)
(38,611)
32,816
24,234
TOTAL INTANGIBLES
6,501,206
6,516,030
(a) Movements in Carrying Amounts
Goodwill
Patents &
Trademarks
Software
Total
2024 Financial Year
$
$
$
$
Balance at the beginning of the year
6,260,968
230,828
24,234
6,516,030
Additions
-
-
25,683
25,683
Depreciation Expense
-
(23,406)
(17,101)
(77,439)
Carrying Amount at the end of the year
6,260,968
207,422
32,816
6,501,206
2023 Financial Year
$
$
$
$
Balance at the beginning of the year
6,260,968
117,253
40,390
6,418,611
Additions
-
142,897
-
142,897
Disposal of Asset
-
(6,198)
-
(6,198)
Depreciation Expense
-
(23,124)
(16,156)
(39,280)
Carrying Amount at the end of the year
6,260,968
230,828
24,234
6,516,030
Significant estimates and judgement – Carrying value of Goodwill
The company determines whether goodwill is impaired at least at each reporting date. Based on management’s
assessment and impairment modelling as at 30 June 2024, using specific input providing a weighted average cost of
capital of 9.9%, the conclusion is that no current impairment risk exists. Some of these inputs include a long-term growth
rate of 2.6%, a company tax rate of 30.0% and a cost of equity of 14.9%.
NOTE 12: DEFERRED TAX
a) Deferred Tax Asset
2024
2023
Deferred tax assets comprise temporary differences attributable to:
$
$
Employee Benefits
745,956
537,544
Accruals
406,413
221,579
1,152,369
759,123
Deferred tax assets expected to be recovered within 12 months
802,359
519,356
Deferred tax assets expected to be recovered after 12 months
350,010
239,767
1,152,369
759,123
51
A N N U A L R E P O R T
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
Employee
Benefits
Expense
Accruals
Total
$
$
$
At June 2022
478,259
154,139
632,398
(Charged) / credited
- to profit or loss
59,285
67,440
126,725
At June 2023
537,544
221,579
759,123
(Charged) / credited
- to profit or loss
208,412
184,834
393,246
At June 2024
745,956
406,413
1,152,369
b) Deferred Tax Liability
2024
2023
Deferred tax liabilities comprise temporary differences attributable to:
$
$
Depreciation of fixed assets
1,849,098
1,834,342
NOTE 13: TRADE AND OTHER PAYABLES
Trade Payables
1,438,949
1,794,269
Superannuation
108,817
94,322
Dividends
28,157
28,157
Deferred Income
898,590
1,905,689
Other payables and accrued Expenses
818,286
866,623
3,292,799
4,689,060
NOTE 14: CONTRIBUTED EQUITY
Issued and Paid-Up Capital
2024
2024
2023
2023
Shares
$
Shares
$
Opening Balance
109,971,995
18,782,493
109,301,609
18,226,957
Issued Shares
6,784,338
5,652,229
670,386
555,536
116,756,333
24,434,722
109,971,995
18,782,493
(a)
Ordinary Shares
Date
Details
No. Shares
Issue Price
(Cents per
Share)
$
1st July 2023
Opening Balance
109,301,609
18,226,957
7th October 2022
Dividend Reinvestment Plan
314,034
85.48
266,275
13th February 2023
Employee Share Plan
45,534
84.00
28,963
31st March 2023
Dividend Reinvestment Plan
310,818
85.54
260,298
30th June 2023
Closing Balance
109,971,995
18,782,493
6th October 2023
Dividend Reinvestment Plan
283,006
81.97
218,241
20th December 2023
Employee Share Plan
59,302
90.00
41,502
5th March 2024
Share Issue on Investment
5,974,729
85.34
5,089,379
28th March 2024
Dividend Reinvestment Plan
467,301
65.88
303,107
30th June 2024
Closing Balance
116,756,333
24,434,722
Issue costs above are less transactional fees arising from the issue.
Financial
Report
52
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
(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 dividends paid to shareholders, return capital to shareholders,
issue new shares, or sell assets to reduce debt.
NOTE 15: FINANCIAL LIABILITIES
2024
2023
$
$
Current Liabilities
Hire purchase and finance lease
1,322,897
1,688,563
Lease Liabilities (AASB 16)
925,203
636,846
2,248,100
2,325,409
Non-Current Liabilities
Hire purchase and finance lease
2,525,382
2,302,556
Lease Liabilities (AASB 16)
8,784,835
7,205,641
11,310,217
9,508,197
13,558,317
11,833,606
The lease liabilities balances exclude finance costs of $3,058,693 (2023: $2,664,531).
NOTE 16: 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. (2023: $245,102).
The Company has committed to $57,530 of fixed asset purchases, of which $28,765 has been recognised in Prepayments
of Assets classified in Property, plant, and equipment (Note 10) as at 30 June 2024.
The Company had no contingent liabilities or capital commitments as at 30 June 2024.
NOTE 17: 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
2024
2023
Employment benefits
$
$
Payroll persons related to executive directors
181,425
153,287
Contribution to superannuation funds on behalf of other related
parties
25,776
37,880
207,201
191,167
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
Dagmar Parsons
13,625
-
Hawkesdale Group (Philip Suriano)
6,341
5,368
Management Abroad (Ian Neal)
7,800
-
27,766
5,368
53
A N N U A L R E P O R T
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
These consultant fees are paid to non-executive director-related entities and relate to services those non-executive
directors provide 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. Consultancy services were provided by the non-
executive directors personally, and not a related party or representative of a related party. The support provided relate to
sales, strategy development, recruitment and remuneration framework development support.
NOTE 18: 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
The remuneration report within the Directors' Report of this Annual Report includes details regarding the
remuneration of the Company's key management personnel for managing its affairs.
(b) Options Held
No options were held on 30 June 2024 or 30 June 2023, and no options were issued during the financial year.
(c) Shares Held
Interest
Shares Held as
of 30th June
2023
Issued
Purchased
(DRP)
Purchased /
(Sold)
Shares Held
as of 30th
June 2024
Wayne Hooper
Direct
9,433,797
-
-
-
9,433,797
Wayne Hooper
Indirect
1,965,498
-
-
-
1,965,498
Philip Suriano
Indirect
913,029
-
20,107
-
933,136
Ian Neal
Indirect
25,000
-
-
40,000
65,000
Dagmar Parsons
Indirect
-
-
-
-
-
Matthew Twist
Direct
115,163
1,111
-
-
116,274
12,452,487
1,111
20,107
40,000
12,513,705
Interest
Shares Held as
of 30th June
2022
Issued
Purchased
(DRP)
Purchased /
(Sold)
Shares Held
as of 30th
June 2023
Wayne Hooper
Direct
9,768,797
-
-
(335,000)
9,433,797
Wayne Hooper
Indirect
1,295,498
-
-
670,000
1,965,498
Philip Suriano
Indirect
896,182
-
16,847
-
913,029
Ian Neal
Indirect
25,000
-
-
-
25,000
Dagmar Parsons
Indirect
-
-
-
-
-
Matthew Twist
Direct
113,973
1,190
-
-
115,163
12,099,450
1,190
16,847
335,000
12,452,487
Financial
Report
54
A N N U A L R E P O R T
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
NOTE 19: DIVIDENDS
2024
2023
$
$
Declared 2024 fully franked interim ordinary dividend of 0.8
(2023: 0.80) cents per share franked at the tax rate of 30.0%
(2023: 25.0%)
879,767
877,290
Declared 2023 fully franked final ordinary dividend of 0.80
(2022: 0.80) cents per share franked at the tax rate of 25.0%
(2022: 25.0%)
930,312
874,348
Total dividends per share for the period
1.60 cents
1.60 cents
Dividends paid in cash or satisfied by the issues of shares
under the dividend reinvestment plan during the year were as
follows:
Paid in cash
1,270,225
1,217,213
Satisfied by the issue of shares
539,854
534,425
1,810,079
1,751,638
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
(2023: 0.8) fully franked based on tax paid at 30.0%. The aggregate amount of the proposed dividend expected to be paid
on the 27th of September 2024 out of retained earnings as of 30 June 2024 but not recognised as a liability at year-end is
$934,051. The debit expected to the franking account arising from this dividend is $280,215.
Franking credits
Franking credits available for subsequent periods based on a tax
rate of 30.0% (2023: 25.0%)
4,569,421
4,029,203
NOTE 20: CASH FLOW INFORMATION
Reconciliation of profit after income tax to net cash flows from
operating activities
Profit after Income Tax for the year
3,522,757
4,758,549
Non-cash flows in operating surplus
Depreciation, Amortisation & Impairment
3,463,881
3,267,536
(Profit) / loss on disposal of property, plant & equipment
59,503
8,030
Changes in assets and liabilities
(Increase)/Decrease in trade and other receivables
(234,398)
461,818
Decrease/(Increase) in inventories
542,624
(1,753,528)
(Increase)/Decrease in deferred tax assets
(393,246)
(126,725)
(Decrease)/Increase in trade and other payables
(1,396,261)
294,671
Increase / (Decrease) in current provisions
267,448
171,340
Increase / (Decrease) in current tax liabilities
789,118
144,696
Increase / (Decrease) in non-current provisions
68,897
65,799
Increase / (Decrease) in deferred tax liabilities
14,756
412,140
Net cash provided by operating activities
6,705,079
7,704,326
55
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
NOTE 21: FINANCIAL INSTRUMENTS
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 the financial risk exposures of the Company and reviews the effectiveness
of internal controls relating to 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 on 30th June 2024
Within 1 Year
Greater than 1
Year
Total
$
$
$
Trade and other payables
3,292,799
-
3,292,799
Hire Purchase / Finance Lease
1,322,897
2,525,382
3,848,279
Lease Liabilities (AASB16)
925,203
8,784,835
9,710,038
Total financial liabilities
5,540,899
11,310,217
16,851,116
Maturity of financial liabilities on 30th June 2023
Within 1 Year
Greater than 1
Year
Total
$
$
$
Trade and other payables
4,689,060
-
4,689,060
Hire Purchase / Finance Lease
1,688,563
2,302,556
3,991,119
Lease Liabilities (AASB16)
636,846
7,205,641
7,842,487
Total financial liabilities
7,014,469
9,508,197
16,522,666
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.
Net fair value of financial assets and liabilities
The carrying amount of cash, cash equivalents, and non-interest-bearing monetary financial assets and liabilities (e.g.,
accounts receivable and payable) are at approximate net fair value.
Sensitivity Analysis
The Company has performed a sensitivity analysis of its interest rate and foreign currency risk exposure. 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:
As of 30 June 2024, the company had cash on hand in an interest-bearing bank account. The Directors do not consider that
any reasonably possible movement in interest rates would have 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 from bulk buying
power overseas. The Company continues to expand its operation and has some overseas customers. The US dollar exchange
rate movement affects 100% of overseas customers invoiced in foreign currency and 95% of overseas suppliers paid in
foreign currency. The Company has a US dollar bank account to mitigate foreign currency risk for US dollar transactions.
Payments made from this US dollar account are from foreign customer deposits or cash transfers at a time the exchange
Financial
Report
56
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
S H A R E H O L D E R I N F O R M A T I O N
rate is deemed positive (which is reviewed daily). The Directors do not consider that any reasonably possible movement in
foreign currency rates would have a material effect on profit or equity.
NOTE 22: 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 or part-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 Company's closing price 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.
2024
2023
Number of new shares issued under the plan to participating
employees: (refer to Note 14 (a) for details of the issue)
59,302
45,534
b)
Non-Executive Director Remuneration (Non-Cash)
Non-Executive Directors were paid fixed cash fees, which are reviewed annually. They do not receive performance-based
pay or other non-cash benefits.
c)
Expenses arising from share-based payment
transactions
2024
$
2023
$
Shares Issued under the employee share plan
41,502
28,963
NOTE 23: MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
a) Dividends
The directors have recommended a final dividend of 0.8 cents per fully paid ordinary share (2023: 0.8) fully franked based
on tax paid at 30.0%. The aggregate amount of the proposed dividend is expected to be paid on the 27th of September,
2024.
The Board expects to continue to maintain future dividends, subject to the Company continuing to develop in accordance
with its future plans.
No other matters or circumstances have arisen since the end of the financial year that significantly affected or could
significantly affect the Company's operations, the results of those operations, or its state of affairs.
NOTE 24: ECONOMIC DEPENDENCY
Revenues of $16,490,790, or 39.3% of reported revenue (2023 - $16,793,974, 43.5%) that are contributed largely to the
products segment are derived from two independent customers. The Company has established strong relationships with
these customers for over ten years. Supply agreements include fixed prices that can be adjusted upon providing appropriate
supporting evidence for any changes. These agreements have no fixed period, reflecting the collaborative nature of our
relationship. LaserBond remains committed to continually delivering the best long-wear life solutions for these customers'
products.
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
1.
Substantial Shareholders on 28th July 2024
Holder LaserBond Limited
Number of
Ordinary
Fully Paid
Shares Held
%
Ms Diane Constance Hooper
9,433,797
8.080
Mr Wayne Edward Hooper
9,433,797
8.080
Mr Wayne Edward Hooper (W&D Hooper Investments Pty Ltd)
1,965,498
1.683
Mr Rex John Hooper
6,883,916
5.896
2.
Distribution of Shareholders as of 29th July 2024
Holdings Ranges
Holders
Total Units
%
1-1,000
568
295,222
0.25
1,001-5,000
1,101
2,766,250
2.37
5,001-10,000
409
2,940,062
2.52
10,001-100,000
692
20,748,653
17.77
100,001-9,999,999,999
114
90,006,146
77.09
Totals
2,884
116,756,333
100.000
Holdings less than a marketable parcel 129
8,085
0.00692
3.
Twenty Largest Shareholders as of 28th July 2024
Holder LaserBond Limited
Number of Ordinary Fully
Paid Shares Held
%
Ms Diane Constance Hooper
9,433,797
8.080%
Mr Wayne Edward Hooper
9,433,797
8.080%
Mr Rex John Hooper
6,883,916
5.896%
Mrs Lillian Hooper
5,542,928
4.747%
Lornat Pty Ltd
4,943,344
4.234%
HSBC Custody Nominees (Australia) Limited
4,925,343
4.218%
BNP Paribas Noms Pty Ltd
4,579,103
3.922%
Mr Ian Davies
2,847,907
2.439%
Mr Francis Joseph Maher & Mrs Sharon Jane Maher
2,361,194
2.022%
BNP Paribas Nominees Pty Ltd
2,115,043
1.812%
Mr Keith Knowles
1,900,000
1.627%
Myall Resources Pty Ltd
1,836,777
1.573%
Mr Brendan Thomas Birthistle
1,674,457
1.434%
Dixson Trust Pty Limited
1,534,582
1.314%
W&D Hooper Investments Pty Ltd
1,295,498
1.110%
Gemblue Nominees Pty Ltd
1,259,303
1.079%
Mining and Civil Management Services Pty Ltd
1,246,186
1.067%
Mr Makram Hanna & Mrs Rita Hanna
1,240,700
1.063%
Mrs Julia Catherine Moore & Mr James Edward Moore
1,180,597
1.011%
Fortitude Enterprises Pty Ltd
1,084,737
0.929%
Totals for Top 20
67,319,209
57.658
Security Totals
116,756,333
Shareholder
Information
58
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Snapshot
Strategic
Update
Chair’s
Letter
CEO’s Review
of Operations
Operating and
Financial Review
Sustainability
Report
Directors’
Report
4.
Voting Rights
The voting rights attached to each class of equity securities are:
a)
Ordinary shares - every member present at a meeting in person or by proxy shall have one vote by a poll, and
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
Escrow Release Date 1
Escrow Release Date 2
Escrow Release Date 3
15,409
7 Feb 2025 – 15,409 shares
31,720
1 Feb 2025 – 15,880 shares
1 Feb 2026 – 15,840 shares
67,771
18 Dec 2024 – 22,570 shares
18 Dec 2025 – 22,570 shares
18 Dec 2026 – 22,631 shares
59
59
Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
A N N U A L R E P O R T
2 0 2 4 | L A S E R B O N D
59
A N N U A L R E P O R T
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Directors’
Declaration
Auditor’s Independence
Declaration
Independent Auditor’s
Report
Financial
Report
Shareholder
Information
Corporate
Directory
C O R P O R A T E D I R E C T O R Y
DIRECTORS:
Mr. Philip Suriano
Chairman / Non-Executive Director
Mr. Ian Neal
Non-Executive Director
Ms. Dagmar Parsons
Non-Executive Director
Mr. Wayne Hooper
Executive Director & CEO
Mr. Matthew Twist
Executive Director & CFO
COMPANY SECRETARY:
Mr. Matthew Twist
REGISTERED OFFICE,
PRINCIPAL PLACE OF BUSINESS: 2 / 57 Anderson Road
SMEATON GRANGE NSW 2567
Phone: +61 2 4631 4500
SOUTH AUSTRALIA DIVISION:
112 Levels Road
CAVAN SA 5094
Phone: +61 8 8262 2289
VICTORIA DIVISION:
26-32 Aberdeen Road
ALTONA VIC 3018
Phone: +61 3 9398 5925
QUEENSLAND DIVISION:
74 High Road
BETHANIA QLD 4205
Phone: +61 7 3200 9733
WEBSITE:
www.laserbond.com.au
WESTERN AUSTRALIA:
The Gateway Group
110 Nardine Close
HIGH WYCOMBE WA 6057
Phone: +61 8 9209 2700
Website: www.gatewaygroup.net
SHARE REGISTRY:
Boardroom Pty Ltd
Level 8, 210 George Street
SYDNEY NSW 2000
Phone: 1300 737 760
AUDITOR:
LNP Audit and Assurance Pty Ltd
Level 8, 309 Kent Street
SYDNEY NSW 2000
SOLICITOR:
HWL Ebsworth Lawyers
Level 14, Australia Square
264-278 George Street
SYDNEY NSW 2000
Phone: +61 2 9334 8555
BANKERS:
Commonwealth Bank of Australia
Major Client Group
Level 8, CBP South, 11 Harbour Street
SYDNEY NSW 2000
STOCK EXCHANGE LISTING:
LaserBond Ltd shares are listed
on the Australian Securities
Exchange (ASX) under LBL.
Corporate
Directory
info@laserbond.com.au
www.laserbond.com
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 Australia
p. +61 8 8262 2289
VIC: 26-32 Aberdeen Road,
Altona, Victoria 3018 Australia
p. +61 3 9398 5925
QLD: 74 High Road, Bethania,
Queensland 4205 Australia
p. +61 3 9398 5925
WA: The Gateway Group, 110 Nardine Close,
High Wycombe, WA 6057 Australia
p. +61 8 9209 2700
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