End-to-end solutions provider Close the Loop Group says its latest results show it is on track to become the world’s leading global circular economy business.
Revenue rose by 44 per cent to $58.6m, its EBITDA was up by 28 per cent to $9.5m, with underlying net profit before tax of $6.6m up by 32 per cent on the same period last year.
The company is currently in discussion with ‘a number’ of potential acquisition targets, all of whom are operating in complementary fields. No binding agreements have yet been reached, but several are at advanced stages of talks.
Joe Foster, CEO of the multinational Australian-based business said, “The Group is continuing to deliver on its strategy of growth through its existing businesses and inorganic growth with synergistic acquisitions.”
Foster said the 44 per cent revenue growth could be partially attributed to acquisitions, but said: ”Importantly the strong growth in EBITDA has largely been driven by the core existing operations at IPO.”
Close the Loop’s Resource Recovery (recycling) division saw revenue rise to $21.5m, while its Packaging division achieved $37.1m. Resource Recovery represents 36.7 per cent of revenue, Packaging is 63.3 per cent.
The company managed to generate significant cashflow, which it is using to reinvest into its recent acquisitions, including Alliance Paper, The Pouch Shop, and In-Plas Recycling.
Processing volumes at the Australian recycling business improved throughout the half year, and are now approaching pre-Covid levels.
Close the Loop says the rebuilding of the fire-damaged Somerton facility is on track, with all lines set to be commissioned during the year. Insurance has funded deposits on new and used equipment.
The US business surpassed expectations, while the European business faced setbacks due to equipment failure. It has now returned to normal operating levels. The European business is now being modelled on the US business, with a broader service offering.
The half year saw the acquisitions of thermal paper and products group Alliance Paper, and South African business The Pouch Shop. In January, the Group acquired US operation In-Plas for $4m, with the acquisition expected to settle this Tuesday.
All packaging businesses reported ‘strong sales growth’, with Foster International Packaging delivering record financial results.
