Candy Club (CLB) H2 2024 earnings summary

Executive summary

• Loss after tax of $66,811 for the six months ended 30 June 2024, compared to a profit of $987,202 for the year ended 31 December 2023, which included a $1.2 million gain on debt forgiveness.

• No trading activity during the period; focus was on assessing new project opportunities and preparing for a major acquisition.

• Entered into a binding agreement to acquire Scalare Partners Pty Ltd, subject to shareholder and regulatory approvals.

• Company changed its financial year-end to 30 June to align with the prospective acquisition.

Financial highlights

• Revenue from ordinary activities was nil for the period.

• Net loss of $66,811 for the six months ended 30 June 2024, compared to a profit of $987,202 for the prior year, which was driven by a one-off debt forgiveness gain.

• Basic and diluted loss per share of (0.07) cents for the period, compared to earnings per share of 1.68 cents for the prior year.

• Net cash outflow from operating activities of $70,725 for the period.

• Net tangible assets per share improved to (0.20) cents from (8.60) cents at 31 December 2023.

Outlook and guidance

• Company is seeking to complete the acquisition of Scalare Partners Pty Ltd and a capital raise of $4–8 million.

• Extraordinary general meeting scheduled for 23 September 2024 to approve the acquisition, share consolidation, capital raise, and other corporate actions.

• Prospectus lodged to support capital raising and ASX readmission.