Laserbond (ASX: LBL) – surface engineering specialist
COMPANY SCOREBOARD
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ABOUT COMPANY
LaserBond (LBL) (https://laserbond.com.au/) is a specialised surface engineering company founded in 1992 that focuses on the development and application of materials using advanced additive manufacturing technologies to increase operating performance and life of wearing components in capital intensive industries.
In December 2021, the company acquired QSP Engineering, a QLD-based specialised surface engineering company for $9m cash. It generated over $3.5m revenue and around $1.1m NPAT in each of the past 3 years. The acquisition metrics represent 5.7x FY21 EBITDA and 9.6x NPAT.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| LBL | 0.685 | 110314303 | 75565297.555 | 11.3/24.5 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 2299 | 62.13% | 63.55% | 11.32% | last raise $12m@87c |
The number of shareholders has increased from 987 to 1,608 while Some Hooper family shares have been offloaded.
Keith Knowles holds 3.4m shares or 3.5%.
BUSINESS
Below is the company’s past five years performance:
| LBL | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 38612 | 30711 | 24664 | 22177 | 22667 |
| Cost of Sale | -18149 | -14010 | -12076 | -10654 | -11924 |
| Gross Revenue | 20463 | 16701 | 12588 | 11523 | 10743 |
| Gross Margin | 0.5300 | 0.5438 | 0.5104 | 0.5196 | 0.4739 |
| Overheads | -10725 | -8480 | -7225 | -5999 | -6394 |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -10725 | -8480 | -7225 | -5999 | -6394 |
| Operation Profit | 9738 | 8221 | 5363 | 5524 | 4349 |
| Other Revenue | 518 | 457 | 1021 | 663 | 548 |
| Interest Expense | -623 | -444 | -464 | -441 | -177 |
| D&A | -3267 | -2902 | -2555 | -1982 | -886 |
| Income Tax | -1608 | -1703 | -527 | -959 | -1025 |
| Net Profit | 4758 | 3629 | 2838 | 2805 | 2809 |
| NOTES | jobkeeper 0.7k | jobkeeper 0.6k |
The company expects to generate $30m revenue in FY22, and commits to achieve $60m revenue target by FY25.
SUMMARY
The share price has been trading at 25x PNAT or 12x forward PNAT, which is very expensive for an industrial company.
The company’s profit has been used for the acquisition.