LaserBond (ASX:LBL) Delivers Resilient Performance in 1H, Ups Dividend

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Summary

  • LaserBond delivered a solid financial performance for 1H, on the back of its innovative technologies.
  • The company is focused on the domestic market, as well as international opportunities.
  • LaserBond expects its 2H performance to be stronger than the first half of FY21.  

Specialist surface engineering company LaserBond Limited (ASX:LBL) registered growth in all key metrics during the six-month period ended 31 December 2020, highlighting that the business withstood the pandemic effects. The company tapped various growth opportunities in the first half of FY21 to expand its footprint.

LaserBond has attributed its stable financial performance to innovative technologies designed to meet diverse needs across sectors that remained relevant amid adversity and economic uncertainty.

Copyright © 2021 Kalkine Media Pty Ltd., Data Source: LBL ASX Update, dated 22 Feb 2021

All Key Metrics Positive in 1H

LaserBond has unveiled a strong financial position for the first half.  

  • Revenue:Sales revenue totalled AUD 11.80 million, up by 4.8% from AUD 11.26 million in the same period a year ago.

The products division contributed significantly to this growth, registering a 45.2% increase backed by higher demand and higher unit revenues due to changed specifications needed by a major customer. However, the growth was offset by the reduced sales from the services division, down 21% due to economic uncertainty and domestic and international travel restrictions.

  • Earnings: EBITDAstood at AUD 3.10 million, reflecting an increase of 13.4% year-on-year from AUD 2.73 million in the year-ago period.

NPBT was AUD 1.70 million, up by 7.8% on PCP when it was AUD 1.58 million. NPAT was AUD 1.19 million, up by 2.8% on the PCP, when it was AUD 1.16 million.

  • Cash Flow:Cash Flow from operations was AUD 1.73 million for the half-year period. H1 FY21 witnessed higher cash outflow as LBL invested significantly in equipment for long-term future growth. Net cash flow decreased by 7.1 per cent to AUD 3.71 million.

While the company remains committed to innovative products and services, R&D investment decreased to AUD 0.45 million or by 12%, mostly due to the retirement of one of the founding directors who is providing his services as a consultant. 

  • Dividend: The Board has declared an interim dividendof 0.6 cents per share, a 20% increase on interim dividend during PCP.

The Outlook

Short-term plans focused on the growth of services division and the development of global products business have experienced challenges due to the ongoing uncertainty in the global economy. However, the company remains committed to its AUD 40 million revenue target by FY2022.

LaserBond has extended its business strategy out to 2025 with key tenets being:

  • For the services division, the company is focused on expansion with acquisitions to increase facilities across the country.
  • Growing the products division through improved international marketing.
  • LBL is advancing the technology division with the licensing of its proprietary technologies.
  • Continued R&D investments focused on innovation ahead of the market.
  • Investment in relevant resources to expand capacity and capabilities.

LBL traded at AUD 0.550 on 23 February 2021 (AEDT 11:43 AM), down 8.334% from its last closing price.  

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