Announcement to the market that Supply Chain Delays will lead to lower Revenue Expectations for 2022 Fiscal Year.

8% sell off today as a result of this announcement could be seen as a long-term buying opportunity in my opinion.

In the half-year financial report (to end December 2021), LaserBond advised revenue expectations of approximately $35 million for this fiscal year. However, due to supply chain delays, LaserBond expects to recognise revenue of between $30 and $31 million representing growth of 22% to 26% over FY21. 

LaserBond is confident of delivering solid growth in FY23 and remains committed to our $60 million revenue target for FY25.

LBL_Market-Update_FY22-Revenue.pdf

Laserbond Announcement to the market 28th January 2022

1H22 Revenue LaserBond Limited announced unaudited revenue for the half year ended 31 December 2021 was $13.38 million, reflecting solid growth of 13.4% over the previous corresponding period.

Additional organic growth in the second half of the fiscal year to be delivered through a number of channels. They include the recently commissioned LaserBond cladding system in Victoria, the automated LaserBond cladding cell being commissioned in NSW, the Technology Division sales, growth in sales of Products and increasing sales of E-CladTM, MicroCladTM, and NanoCladTM .

Completion of Queensland Acquisition The completion of the acquisition of 100% of the assets of QSP Engineering Pty Ltd (“QSP”) will occur on Monday 31 January. In the five months remaining in FY22 this acquisition is expected to provide additional revenue in excess of $2.0 m. LaserBond’s business development and technical backing, combined with greater proximity to Queensland customers, is expected to deliver strong organic growth from this acquisition in FY23 and beyond.

Completion of Share Purchase Plan Following the successful institutional share placement in December raising $10.0 million, the Share Purchase Plan offered to all shareholders was completed on Monday 24/1/22, raising a further $1.127 million at a share issue price of 87c. Further details are contained in the “Appendix 2A” announcement released today. The funds raised will be utilised for the acquisition of QSP as well as well as general working capital.

LaserBond has executed an agreement with Curtin University in WA for the design, construction and supply of a LaserBond Laser Metal Deposition system. The system will provide Curtin with flexibility to provide research, training, demonstration and delivery of complex 3D metal printing, laser additive manufacturing, laser cladding, laser welding, and laser heat treating with associated materials development. It will provide revenue of $0.96 million in FY22 with consumables sales in the future. The ongoing collaboration will assist LaserBond in R and D of materials and applications as well as provide a demonstration facility for LaserBond technology to potential WA industry partners.

LBL FY21 Performance Summary and Outlook Statement

Earnings for FY2021 released by Laserbond today were characterised as being stable by the company. It is a decent yearly result, in my opinion, given the on-going limitations on travel and their customers' business activity.

Outlook Statement

Given the new trading paradigm under Covid conditions, the Laserbond Board and management have revised the company’s strategy with a major focus on penetrating lucrative markets for Laser Bond, products, services and technologies in North American, European and Asian countries. They intend to deliver new products and technologies that were originally solutions for individual customers and have been further developed for broader market application.

To realise this growth, Key aspects of their strategy include:

·       domestic expansion of the Services Division via acquisition

·       growth in the Products Division through increased international marketing with likely warehousing, distribution and possibly manufacturing offshore

·       growth in the Technology Division through licensing the new E Clad technology and other proprietary technologies

·       a continued commitment to research and development to innovate ahead of the market

The founding CEO, Mr Hooper said they were gearing up their sales and marketing function to monetise the products and technologies that they’ve invested greatly in over the years.