Close the Loop Limited ABN: 91 095 718 317 Half-year report for the period ended 31 December 2023

Close the Loop Limited (ASX: $CLG) has reported a 139% increase in EBITDA for the half-year ending 31 December 2023, reaching $22,689,000 compared to $9,491,000 in the previous corresponding period. The growth is attributed to the full impact of the ISP Tek Services, Alliance Paper, and Close the Loop Plastic Recycling acquisitions. The profit for the consolidated group after providing for income tax and non-controlling interest amounted to $4,927,000, impacted by the amortisation of intangible assets of $8,245,000. The company has generated $12,324,000 cash from operations, invested in the upgraded TonerPlas manufacturing line in Melbourne, and reduced the overall debt position by $11,810,000 to $26,246,000 since the last reporting date on 30 June 2023.

Executive commentary on strategic growth and financial performance

The profit growth and increased EBITDA reflect the successful integration of recent acquisitions and the strategic focus on expanding our capabilities in recycling and packaging solutions. The investments in TonerPlas manufacturing line and working capital demonstrate our commitment to sustainable growth and innovation. The strong financial performance positions us well for future expansion and continued leadership in the circular economy. We are pleased with the progress made and remain focused on delivering value to our stakeholders.

Outlook and future plans

Close the Loop Limited's half-year report demonstrates a significant increase in EBITDA, driven by strategic acquisitions and investments in key manufacturing capabilities. The company's focus on sustainability and the circular economy has resulted in strong financial performance and reduced debt position. The successful integration of recent acquisitions and the expansion of recycling and packaging solutions indicate a positive outlook for future growth. Close the Loop remains committed to delivering value to its stakeholders and maintaining its leadership in sustainable and innovative solutions.