Close the Loop Limited (ASX: CLG), a leader in the circular economy, today released its results for the full year ended 30 June 2026. The company, which operates across Australia, Europe, South Africa, and the United States, creates innovative products and sustainable packaging, while also collecting, sorting, reclaiming and reusing resources that would otherwise go to landfill. FY26 marked a period of significant strategic reset for CLG, focused on simplifying its portfolio, exiting underperforming businesses, reducing debt, and strengthening its operational foundations.
The company reported key financial highlights from its continuing operations, with revenue increasing by 6% to $125.6 million compared to the previous corresponding period (pcp). Gross profit rose significantly by 25% to $46.2 million, pushing the gross profit margin to 36.8% from 31.1% in pcp. EBITDA saw a substantial uplift of 34.2% to $12.4 million, and Adjusted NPATA moved to a profit of $1.4 million from a loss of $5.4 million in pcp. Net debt was reduced to $38.1 million at 30 June 2026, a 29% decrease, further dropping to $18.3 million by 31 July 2026 after the settlement of convertible notes.
The strategic repositioning included the sale of ISP Tek Services for US$10 million, facilitating approximately US$16 million in debt repayment during FY26. This portfolio reshaping resulted in a $105.1 million loss from divested and discontinued businesses, leaving the company more focused on higher-margin operations. The Packaging Division was a standout, delivering 16% revenue growth and 48% EBITDA growth. In contrast, the Resource Recovery Division recorded a revenue of $55.4 million and an EBITDA loss of $2.8 million, attributed to restructuring and the deliberate exit of lower-margin processes.
Looking ahead, Close the Loop’s priority for FY27 is firmly on execution. The company is focused on growing its quality businesses, improving profitability through margin and cost efficiency, and enhancing cash conversion. CEO Kesh Nair commented that the significant debt reduction provides greater flexibility, allowing management to focus on improving underlying business performance and delivering consistent earnings and sustainable value for shareholders. CLG has reconfirmed its FY27 EBITDA guidance of $14 million to $16 million, representing growth of 13% to 30%.
