Close the Loop Limited (CLG) investor relations material

Executive summary

• FY 2025 revenue was $195.1 million, with gross profit of $58.3 million, reflecting a challenging year marked by a 26% revenue decline and a 26.1% drop in gross profit, mainly due to ITAD underperformance and unfavorable product mix.

• Net profit before tax was -$20.1 million, impacted by significant one-off expenses, impairments, and a swing from a prior year profit.

• Strategic focus areas include improving cash flow, packaging performance, ITAD volume growth, OEM expansion, and cost efficiencies, with a shift toward organic growth and operational efficiency.

• Leadership changes and restructuring initiatives are underway to drive operational discipline and future profitability, with new management appointments.

• Performance was also affected by the closure of underperforming business units.

Financial highlights

• Adjusted EBITDA was $18.4 million, with $7.6 million in one-off costs added back, and margin dropped to 9.4% from 21.5% year-over-year.

• Underlying adjusted net profit after tax was $7.8 million, while statutory net loss after tax was $16 million due to impairments and one-offs.

• Quick cash conversion ratio improved to 92%, with $11 million net cash generated and an ending cash balance of $32 million.

• CapEx for FY 2025 was $3.3 million, primarily for the Mexicali facility and plastic recycling business, with a significant reduction year-over-year.

• Net debt increased to $53.5 million from $42.7 million, primarily due to lower operating cash flow.

Outlook and guidance

• Management is optimistic for FY 2026, expecting improved profitability as ITAD operations scale, underperforming businesses are streamlined, and new ITAD programs are implemented.

• Expansion into Europe and Asia Pacific is underway, with new operations in Malaysia and Singapore.

• No formal financial guidance provided yet for FY 2026; management will update the market as the year progresses.