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Close the Loop Ltd (ASX:CLG)

ALERT: Price-sensitive ASX Announcement for CLG
Current share price for CLG : $0.028 -0.003 (-9.68%)+
Announcement
Release
23 Feb 2026 9:45AM
Price at Release
$0.031
Full Release
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Summary
Close the Loop Limited (CLG), an industry leader in the circular economy, reported its 1H26 financial results with a revenue of AUD 92.3 million, marking a 2% increase compared to the prior corresponding period. However, key financial metrics such as Underlying EBITDA and NPATA declined by 23% and 61% respectively, attributed to operational challenges in the North American refurbishment and ITAD segment, including lower processing volumes and a shift in product mix. The company's packaging division showed resilience with double-digit growth due to expanding Tier-one customer accounts and new corporate clients. A strategic review led to divesting non-core business units like Alliance Paper Pty Ltd and O F Flexo Pty Ltd. While facing softer demand in some areas, the company is focusing on core businesses that are cash-generative and aligning with long-term strategic goals. Debt levels increased due to lower operating cash flow, but steps have been taken to stabilize and refocus the business for sustainable future growth.
Key Points
  • Close the Loop Ltd reported a revenue increase to AUD 92.3 million in 1H26.
  • Underlying EBITDA and NPATA fell by 23% and 61% respectively.
  • Operational challenges in North America impacted performance.
  • The Mexicali facility ramp-up is improving efficiencies.
  • Packaging division experienced strong growth and resilience.
  • Strategic divestment of non-core assets like Alliance Paper Pty Ltd.
  • Focus remains on core cash-generative businesses.
  • Debt increased but restructuring efforts are underway for sustainability.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.