Close the Loop Group reports strong H1 results
February 24, 2023
Close the Loop Group reported a 44% increase in revenue year-on-year for the first six months of its fiscal year 2023.
Revenue for H1 FY23 was AU$58.6 million ($39.76 million/ €37.55 million), up 44% on the prior corresponding period (pcp) on the back of strong organic and inorganic revenue growth across all divisions.
Close the Loop’s performance was underpinned by strong growth in both the packaging and resource recovery businesses. The Company continues to see strong demand for recyclable ready packaging and recycled content, which are products that are readily available through the various divisions.
During the reporting period, the Close the Loop recycling division introduced several new collection programmes in cosmetics, storage solutions, eyeglasses, phone case covers and cookware, complementing its traditional imaging consumables business. The company expects to see the benefits of the revenue in the second half of FY23.
The Australian recycling division, Close the Loop Operations, generated improved financial results compared to the pcp. The company added that processing volumes have continued to improve during the reporting period and are approaching preCOVID levels.
Commenting on the company’s financial performance, Group Chief Executive Officer Joe Foster said: “The Group is continuing to deliver on its strategy of growth through its existing businesses and inorganic growth with synergistic acquisitions. The Group has started 2023 well with a number of the business units continuing to grow and outperform compared to January 2022.
“The Company’s strong growth in revenue has had some benefit from recent acquisitions, however importantly the strong growth in EBITDA has largely been driven by the core existing operations at IPO.
“We are excited about the progress that Close the Loop is making in becoming the leading global circular economy business.”
In response to the June 2022 fire at the Somerton facility, the company has implemented a number of processing efficiencies in the business. The rebuilding of this facility is progressing as planned. The company said that it expects all processing lines and the TonerPlas manufacturing line will be commissioned and fully functional during the course of the year.
During the reporting period, Close the Loop’s US business unit demonstrated stable performance, meeting expected levels and surpassing the results of the prior corresponding period. The unit has adeptly managed inflationary pressures and is poised to leverage upcoming growth opportunities for positive business outcomes.
Close the Loop’s European operation has continued to broaden its service offering, aiming to integrate further into its customers’ supply chain to provide comparable recycling services to its US counterpart. The European business faced setbacks during the reporting period, with equipment failure causing an increase in operating costs while the equipment underwent repairs and the product backlog was processed. The business returned to normal operating levels in early 2023 and has a number of exciting new business opportunities that can lead to significant growth of the European operations in the medium term.
In December 2021, Close the Loop Group acquired Oceanic Agencies, on 30 August 2022, the company settled the acquisition of thermal paper and paper products group, Alliance Paper Pty Ltd, and its wholly owned subsidiary, Sustain Paper Ltd (Alliance), on 1 October 2022 it acquired The Pouch Shop and in January this year, Close the Loop announced the acquisition of US recycling company, In-Plas Recycling.
The company concluded that it pleased to advise that a number of business units have continued to show strong growth in January 2023 compared to the previous corresponding period.
Categories : City News
Tags : Acquisitions Business Close the Loop Group Financials Growth