I'm all for a conservative management team but LBL taking that to a new level today by sneaking in a new Tech sale in their presentation released to the ASX this morning. On slide 13 ("Technology Division Overview") the following dot points are the bottom of the page:
Some real momentum behind the Tech division now, gives a lot more confidence to managements FY22 $40m revenue target.
LBL seem to have a number of factors going for them, they have patented technology, exposure to a sector with a tailwind (mining), family owned and family retain an ownership position and they're been executing well over the past number of years. Doing what they say they're going to do.
Since their repair function operates from workshops I was hesitant on them for two reasons (I work for a major NZ equipment company) and workshops can be delicate beasts to run. Workshop managers need to understand how mechanics tick and have their respect, not an easy consideration to scale labour on i.e. open new or expand workshops. The second is the labour component of their service won't scale like, say, a Fintech company.
However, with the pivot of licencing their IP to offshore companies they can scale much quicker and avoid roadblocks that they'd otherwise have to clear themselves (i.e. the above mentioned reasons & companies from foreign jurisdictions trying to navigate North American unions etc etc).
Interested whether others see the licencing of their IP as the key to growth for LBL as i do?
Disc: I hold.
https://youtu.be/lvHDvsfen1w?t=4739
Wayne (CEO) presented at the ASX Small and Mid Cap conference today. Good overview of the business in 15 mins.