LaserBond (ASX: LBL) is a specialist surface engineering company based in New South Wales, Australia. Its product and services include the application of materials, methodologies and technologies to increase the performance of capital-intensive machinery equipment and components.
In today’s market update, LaserBond released its Fiscal 2019 guidance with revenue expected to range between $21.6 to $22.2 million, demonstrating a 38% to 42% increase from FY18. This increase in revenues is estimated to take the Profits before interest and taxes up by approximately 128% - 150% to range within $3.2 to $3.5 million, compared to the Fiscal Year 2018. It also stated EBITDA to be between $4.3 to $4.6 million, up 95% to 109% from $2.2 million in FY18.
LaserBond has entered the US Steel industry in December 2018 and generated a healthy revenue by exporting products through technology sales. The engineering company have four core divisions research & development, product division, technology division and services division; additionally, marketing and sales focus on productivity and sustainable goals.
Let’s have a quick look at the company’s financials:
For the half year ended 31 December 2018, the company has showcased the optimism around the business, with demonstrated growth of 45% in revenues to $10.489 million compared to six-months ended 31 December 2017.
The company declared the interim dividend of 0.5 cents for the first half of FY19, up by 0.1 cents on FY18 0.4 cents. Moreover, the investors have also been given the option for Dividend Reinvestment Plan. Some of the numbers from 1HFY19 includes:
- Revenues up by 45% to $10.489 million from $7,222 million in 1HFY18
- EBITDA up by 293% to $2.069 million from $0.527 million in the previous corresponding period
- Net profit after tax up by 635% to $1.180 million
- EPS up by 635% to 1.25 cents from 0.17 cents in 1HFY18
- LBL started exporting products to the USA
FY18 – During the financial year 2018, company reported a 13.8% increase in revenue. Board of directors recommended the payment of a final dividend of 0.4 cents per fully-paid ordinary share for the year 2018 up by 0.1 cents (2017 – 0.03 cents). A multinational company based in the UK signed technology agreement with LaserBond which involves the supply of a LaserBond® designed products and training. The agreement is expected to result in 10% increase in revenue that will include the revenue from ongoing royalty fees over a seven-year license term as well as consumable sales.
Philip Suriano, Chairman of LaserBond, shared a couple of positive expectations for the company in FY2019, it includes:
- Ongoing organic growth for the company’s product and services division
- Growth in the technology division
- Appoint an International sales BDM to expand markets
- Identifying acquisition targets
LBL last traded at $0.375, up by 11.94% on 7 May 2019. Over the past 12 months, the stock has gone up by 168.00% despite a dip of 11.84% recorded in the past three months.
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