Close the Loop (CLG) investor relations material

Executive summary

• Revenue increased 2% year-over-year to $92.3 million in 1H26, driven by strong growth in the Packaging division, while Resource Recovery faced margin pressure and product mix challenges.

• Statutory loss after tax was $26.9 million, primarily due to a $23.2 million impairment of ISP Tek Services intangibles and $6.2 million in amortisation; underlying NPATA (excluding one-offs) was $2.5 million, down from $5.7 million.

• Strategic review led to divestment of Alliance Paper and OF Flexo, with a focus on core, higher-margin, and sustainable operations.

• Stabilization efforts emphasized debt reduction, cost control, and operational improvements.

Financial highlights

• Gross profit rose 10% to $32.2 million, with gross margin improving to 34.9% from 32.4% year-over-year.

• EBITDA from continuing operations declined 23% to $9.3 million, with EBITDA margin at 10.1%.

• Net profit before tax was a loss of $28.6 million, impacted by impairment charges.

• Net debt increased to $57.0 million, mainly due to cash outflows and working capital needs.

• Cash on hand at period end was approximately $24 million.

Outlook and guidance

• Packaging division expected to drive future growth, with expansion in New Zealand, South Africa, and robust demand for sustainable solutions.

• Full financial impact of new European contracts and expanded collection programs anticipated in FY2027.

• Management targeting operational efficiency, global OEM relationship expansion, and divestment of non-core assets.

• Positive cash flow anticipated in H2, with ongoing focus on debt reduction.