News: LaserBond expects significant growth in profit

LaserBond (ASX:LBL) should trade higher after advising strong anticipated results from continuing operations.

The company operates a repair and restoration business for metallic machinery parts, with clients that include BHP Billiton (ASX:BHP).

Revenue is forecast to be $9.8 million, which represents an increase of approximately 5% over FY2013, and profit before tax is expected in the range of $1.05 million to $1.1 million.

This represents an increase of more than 100% over that reported for continuing operations for FY2013 after adjusting for  non-recurring factors in that year.

As previously reported, the Queensland division was closed in the first half of this financial year, with a loss before tax adjustment of approximately $200,000.

As a consequence of the above, the reportable consolidated profit before tax for FY2014 is expected to be in the range of $850,000 to $900,000.

The company is capitalised at around 8 million.

LaserBond has been able to increase focus on the core profitable business including research and application development activities.

These activities are expected to yield significant increases in profitability during FY2015 and beyond.