17/11/20 2020 AGM CEO's Presentation
Decent update from LBL at the AGM last week. Revenue for FY21YTD is up 10% despite on-going challenges from travel restrictions for engaging new customers (particularly in the US for steel mill rolls). Management once again stuck to their $40m FY22 revenue target.
What interested me most was the company yet again remaining very tight lipped before revealing a new product as a result of R&D. Both Micro-Clad and Nano-Clad were announced as new products on top of E-Clad (trying to replace hard chrome plating) and steel mill rolls and rotary feeders. While the Services segment will remain the core for some time, it is clear developing new Products will be a major engine for growth.
Analyst: Daniel Ireland, firstname.lastname@example.org, +61 2 9238 8239
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18/8/20 Laserbond 2020 Annual Report
LBL released their FY20 annual report. Revenue decline of 2% was already flagged in the update provided in the announcement of the United Surface Technologies acquisition, but profits held up better than I expected to be flat on last year driven by strong gross margins in the Services division.
The Products result was disappointing given it was expected to be the big earnings driver in FY20, but the outlook remains positive with management confirming orders up 10% with shipment delays meaning revenue recognition was deferred to FY21. Tracking US exports suggests this is true with a number of shipments already sent in FY21 with some customers having multiple orders already.
Technology segment also didn't register a licensing sale which was originally budgeted, but given how conservative management is I expect they will record at least one in FY21.
A Technology sale combined with pent up Products growth and a $4m contribution from United Surface Technologies means FY21 should record extremely strong revenue growth on FY20. Margins are a bit trickier to forecast but even if they stay flat it means LBL will do $4m NPAT which would be extremely cheap on the current market cap of $48m