Close the Loop (CLG) H2 2024 earnings summary

Executive summary

• Achieved FY24 revenue of $219m, up 59% year-over-year, surpassing guidance and driven by North American expansion and Renew Solutions acquisition.

• EBITDA reached $45m, up 85% year-over-year, within guidance range.

• NPATA increased 87% to $26m; EPSA grew 36% to 4.9c.

• Strong cash position of $41m after acquisition-related payments and working capital investment.

• Consistent record results driven by organic and inorganic growth, notably the ISP Tek Services (Renew Solutions) acquisition.

Financial highlights

• Gross profit margin improved to 37.6% from 35.0% year-over-year.

• EBITDA margin rose to 21.4% from 17.9% year-over-year.

• EBIT margin at 11.0%, impacted by business combination amortisation.

• Cash from operations was $32m, up 57% year-over-year, with a cash conversion rate of 71%.

• Borrowings reduced by $4m, with ongoing debt restructuring discussions.

Outlook and guidance

• FY25 growth to be driven by global expansion of HP Certified Refurbished, new facilities in Mexicali and Middle East, and increased engagement with Tier-1 packaging customers.

• Focus on reducing customer concentration and expanding multi-vendor programs in Europe.

• Reuse of soft plastic waste remains a critical initiative.

• Strong macro, regulatory, and social tailwinds support continued growth in FY25.

• Identified potential acquisition targets to complement current offerings, with no binding agreements yet.