Candy Club (CLB) H2 2023 earnings summary

Executive summary

• Achieved a net profit after tax of $987,202 for the year ended 31 December 2023, reversing a prior year loss of $1,771,955, primarily due to a $1.2 million gain on debt forgiveness.

• Disposed of its wholly owned US subsidiary on 31 January 2023, resulting in a shift to stand-alone financial statements and a focus on new project opportunities for ASX re-quotation.

• Company shares remain suspended on the ASX, and the business is seeking to re-enter the market through acquisition and capital raising.

Financial highlights

• Revenue and other income totaled $1,250,925, including $1,200,050 from debt forgiveness and $49,886 from foreign exchange gains.

• Operating expenses included $238,476 in corporate/admin costs, $232,368 in employee benefits, and $13,021 in finance costs.

• Net cash used in operating activities was $386,202; cash at year-end was $1,636.

• Net liabilities improved to $132,352 from $1,317,729 the previous year.

Outlook and guidance

• Entered into a binding agreement to acquire Scalare Partners Pty Ltd, subject to shareholder and ASX approval, with a planned capital raise of $4–8 million.

• Scalare Partners provided a $125,000 interest-free loan post-year-end to fund creditor payments and ASX readmission costs.

• Directors believe the company can continue as a going concern, contingent on successful fundraising and support from its majority shareholder.