Close the Loop (CLG) investor relations material

Executive summary

• FY26 marked a strategic reset with divestments of ISP Tek, Alliance Paper, and O F Flexo, restructuring of US plastics recycling, and a focus on sustainable earnings growth and shareholder value creation.

• The business now concentrates on Packaging and Resource Recovery, with disciplined management, a lower cost base, and a platform for organic growth.

• Strategic initiatives included debt reduction, cost efficiencies, and expansion of OEM client relationships.

Financial highlights

• Revenue from continuing operations grew 5.9% year-over-year to $125.6m, with gross margin improving to 36.8% from 31.1% and gross profit rising 25% to $46.2m.

• EBITDA increased 34.2% to $12.4m, with margin rising to 9.9%; NPATA improved to $1.4m from a $5.4m loss.

• Net profit after tax was a small profit of AUD 31,000 despite restructuring costs.

• Net debt reduced by 29% to $38.1m at year-end, and further to $18.3m post year-end, a 52% reduction.

• Loss from discontinued operations totaled $105.1m due to write-off of intangibles from divested businesses.

Outlook and guidance

• FY27 EBITDA guidance set at $14m–$16m (pre-AASB 16), representing 13%–30% growth, with strong free operating cash flow expected.

• Focus remains on organic growth in Packaging and Resource Recovery, with capital allocated based on strict return criteria.

• Net debt/EBITDA expected to fall to 1.0x–2.0x in FY27; capex to remain between $1m–$3m.

• Board is considering capital management options, including dividends and share buybacks.

• Positive start to FY27, with strong order book and trading momentum in the first six weeks.