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Close the Loop (CLG) investor relations material
Close the Loop H1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue increased 2% year-over-year to $92.3 million in H1 FY2026, driven by strong Packaging division growth, while Resource Recovery faced product mix challenges.
Statutory loss after tax was $26.9 million, impacted by a $23.2 million intangible asset impairment and $6.2 million amortisation; underlying net profit after tax (excluding one-offs) was $2.3–$2.5 million, down from $5.7 million.
Strategic review led to divestment of Alliance Paper and OF Flexo businesses, with a focus on core, higher-margin and sustainable operations.
Stabilization period emphasized debt reduction, cost control, and strengthening the balance sheet.
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 was $9.3 million, down 23% year-over-year, with margin at 10.1%.
Net profit before tax was a loss of $28.6 million, compared to a $1.3 million loss in the prior year.
Net finance costs increased to $5.0 million due to higher interest rates from prior covenant breaches.
Net debt increased to $57.0 million, mainly due to cash outflows for discontinued operations and working capital.
Cash on hand at period end was $24 million.
Outlook and guidance
Packaging division expected to drive future growth, with expansion into New Zealand, South Africa, and robust demand for sustainable solutions.
European contracts delayed, with material impact now expected in FY2027.
Positive cash flow anticipated in H2, with ongoing focus on debt reduction and operational efficiency.
Management targeting global OEM relationship expansion and reverse supply chain logistics.
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