I'm a bit short on time today but read through the LBL results briefly. This is from their presentation:

Another interesting segment was from their commentary on the Gateway Acquisition:

Given that there was no further mention of their target of hitting $60m revenue, I think it can be assumed that this won't be hit due to the fact that they are unable to including the revenue from Gateway.

As a result the long term thesis is breaking but I will take a few days to fully digest the results before deciding on what to do next.

Disc: Held IRL and on Strawman.

Laserbond announced that has made an acquisition of Gateway Group in order to expand their business into WA.

The details of the acquisition are not very clear...

• LBL will acquire an initial 40% equity interest in Gateway Group which will reach a minimum of 51% in 3 years from settlement date
• This will be paid in part cash and part scrip
• LBL is valuing Gateway at 4.5x EBITDA although this is the "enterprise value"
• Gateway had EBITDA of $5.6m
• The cash component will be funded from current cash reserves and will leave the business with $4.8m remaining
• LBL had cash reserves of $10.2m as at 31 Dec 2023

So based on what they've provided, the cash component of the transaction will be around $5.4m with the remaining in scrip. I'm hoping management give some further clarification as to the exact details of the transaction given that this is their way of achieving their guidance of achieving $60m in revenue by FY25.

Full announcement here.

Disc: Held IRL and on Strawman.