How Did Close the Loop Limited (ASX:CLG) Reduce Debt While Growing Packaging Earnings?

Aditi Sarkar

02 November 2026 05:15 PM AEDT

How Did Close the Loop Limited (ASX:CLG) Reduce Debt While Growing Packaging Earnings?

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Key Highlights

On 2 November 2026, Close the Loop Limited (ASX:CLG) was last quoted at AUD 0.038, down 2.56% in the available market data. Its reported financial position and principal operating developments are covered alongside the latest company results.
Close the Loop Limited (ASX:CLG) reported FY26 continuing-operations Revenue of AUD 125.6 million, up 6% from the previous corresponding period.
Close the Loop Limited (ASX:CLG) reported net Debt of AUD 38.1 million at 30 June 2026, down AUD 15.3 million or 29% from the prior year.

Close the Loop Limited (ASX:CLG) operates in resource recovery, recycling and sustainable packaging across several international markets. Its FY26 results followed disposal of businesses and a restructuring programme intended to simplify operations and reduce debt. The financial statements separately report results from continuing operations and costs associated with discontinued assets. On 2 November 2026, Close the Loop Limited (ASX:CLG) was last quoted at AUD 0.038, down 2.56% in the available market data. Its operating and financial record includes both completed activities and separately identified future plans.

Continuing operations and earnings

Close the Loop Limited (ASX:CLG) reported FY26 continuing-operations revenue of AUD 125.6 million, up 6% from the previous corresponding period. Gross Profit increased 25% to AUD 46.2 million, lifting the gross Margin to 36.8% from 31.1%. EBITDA rose 34.2% to AUD 12.4 million. Adjusted net profit after tax before Amortisation was AUD 1.4 million, compared with an adjusted loss of AUD 5.4 million previously. These measures exclude different items from the total group statutory result and should not be equated with the company’s overall reported profit. The group separately recognised an AUD 105.1 million loss associated with divested and discontinued businesses and related write-downs.

Packaging and resource recovery businesses

Close the Loop Limited (ASX:CLG) reported 16% revenue growth and 48% EBITDA growth for its Packaging division. The company referred to South African operations and additional customer Business in describing that segment. Resource Recovery generated AUD 55.4 million in revenue but recorded an AUD 2.8 million EBITDA loss. Management identified the restructure of plastics recycling operations and Withdrawal from selected lower-margin processes as part of the division’s performance. The plastics recycling footprint was consolidated from three sites into one, with the retained operations focused on a narrower activity base. The company also identified productivity, automation and cost-efficiency measures as its subsequent operating priorities.

Debt reduction and management guidance

Close the Loop Limited (ASX:CLG) reported net debt of AUD 38.1 million at 30 June 2026, down AUD 15.3 million or 29% from the prior year. Following settlement of convertible notes, net debt fell to AUD 18.3 million at 31 July 2026, a further AUD 19.8 million or 52% reduction from June. The disposal of ISP Tek Services for USD 10 million, combined with existing cash, had enabled repayment of approximately USD 16 million of debt during FY26. The company reconfirmed FY27 EBITDA guidance of AUD 14 million to AUD 16 million, which it described as approximately 13% to 30% above FY26 EBITDA. Guidance is a management expectation, not an achieved FY27 result.

The different amounts disclosed for Close the Loop Limited (ASX:CLG) refer to specified reporting periods or business measures. Annual reported financial results should be kept distinct from quarterly activity information, and a contract pipeline or project estimate should not be described as realised revenue. The stated figures also distinguish financial outcomes already recorded from management plans that remain subject to execution.

Key Insights

Close the Loop Limited (ASX:CLG) reported higher continuing-operations revenue, gross profit and EBITDA alongside a significant divestment-related loss. Debt declined further after the reporting year, while FY27 EBITDA guidance remains forward-looking.

FAQs

Q: What was continuing-operations FY26 revenue?

A: AUD 125.6 million.

Q: How much was FY26 EBITDA?

A: AUD 12.4 million.

Q: How much was net debt at 31 July?

A: AUD 18.3 million.

Q: Which division grew its EBITDA by 48%?

A: Packaging.

Q: What FY27 EBITDA guidance was stated?

A: AUD 14 million to AUD 16 million.

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