LaserBond (LBL) H2 2024 earnings summary

Executive summary

• Achieved 8.7% revenue growth year-over-year to $41.98M, driven by strong Services Division performance and expansion initiatives.

• Acquired a 40% stake in Gateway Equipment Parts & Services in WA, with an option to increase to 51% after three years, supporting national footprint and access to mining, oil & gas, and agriculture sectors.

• Progressed plans for a US manufacturing base, targeting North American market expansion and leveraging proprietary technologies.

• Strengthened leadership with new COO and Head of Sales, and implemented performance-based remuneration schemes for senior executives.

Financial highlights

• Revenue increased 8.7% year-over-year to $41.98M; Services Division revenue up 13.3%, Products Division down 7.2%.

• EBITDA declined 7.3% year-over-year due to higher employment and equipment costs; NPAT down 25.9% to $3.52M.

• Gross margin remained above 50%; EPS decreased 27.7% to 3.14 cents.

• Cash from operations decreased 13% to $6.71M, impacted by acquisition and increased investment.

• Dividend maintained at 1.6 cents per share, fully franked.

Outlook and guidance

• Plans to acquire a North American facility in early 2025 to support further international growth.

• Continued investment in R&D, people, and equipment to drive innovation and productivity.

• Focus on expanding Services Division applications into new industry sectors and increasing modular cell sales.

• Board expects to maintain future dividends, subject to ongoing business development.