August 31, 2023
Close the Loop Limited (Close the Loop or the Company), an end-to-end solutions provider from design and manufacturing, through to collection and recycling of products, announced its results for the year ended 30 June 2023 (FY23).
Close the Loop reported revenue of AU$135.9 million ($87.9 million/ €80.8 million) for FY23, up 52% on the prior corresponding period (pcp) on the back of strong organic revenue growth across the Group and inclusion of acquisitions.
Close the Loop’s EBITDA for the year totalled AU$24.3 million ($15.7 million/ €14.5 million), up 70% on the pcp, and net profit before tax was AU$14.9 million ($9.6 million/ €8.9 million), up 113% on the pcp.
Commenting on the Company’s financial performance, Group Chief Executive Officer Joe Foster said: “We are delighted to be reporting strong performance across the CTL group. In the financial year, our existing businesses have demonstrated substantial growth, showcasing a 19% increase in revenue. We have also continued to deliver on our inorganic global strategy and achieve the goals we set at the time of our IPO.”
Close the Loop explained that its performance was underpinned by strong growth in both the packaging and resource recovery businesses. The Company is seeing strong demand for recyclable ready packaging and recycled content, which are products that are readily available through the various divisions. With foreign exchange movement and raw material increases putting margins under pressure, these increased costs are being passed on when possible.
The significant increase in full-year profit and EBITDA is a result of this being the first full year of earnings for the merged packaging and recycling businesses, along with the acquisitions from the prior financial year providing a full year’s contribution to the group, the Company added.
Close the Loop expects revenue to be at least AU$200 million ($129 million/ €119 million) in FY24, with EBITDA of at least AU$43 million ($27.8 million/ €25.6 million). The FY24 forecast does not assume the upside to be gained from additional synergies previously identified, nor does it factor in any expansion of contracts and product lines.
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