Recycling operation Close the Loop saw its FY24 revenue and profits soar on the back of its US operations, although numbers in its Australian packaging business were down.
Total revenue was $219m, up 59 per cent on the prior year, while EBITDA hit $45m, up by 85 per cent on the previous 12 months.
Revenue in Australia was down by nine per cent, with EBITDA down by six per cent on the previous year. Australia now represents 32 per cent of the company’s revenue and 18 per cent of its EBITDA.
Close the Loop says its Australian packaging business did not achieve expected growth in FY24, however, it says there was an improvement in the second half, from a revenue perspective, following a realignment and restructure programme in the second half of the year.
It says there has been an uptick in the Australian packaging business for its sustainable packaging, and it says while profitability was lower in the second half, it expects a return to planned profitable growth in the current financial year.
Close the Loop has been awarded a Federal government grant of some $2.2m to commission a second TonerPlas facility, which will be constructed outside of Victoria. It will also relocate its existing Melbourne TonerPlas line to a new site to avoid any risks of operating the line in the same site as its print consumables line.
Joe Foster, Group CEO, said, “Close the Loop, has met its financial guidance for FY24 by achieving a total revenue of $219m and an EBITDA of $45m. Revenue and EBITDA have grown in line with their expectations.
“Since listing in December 2021, Close the Loop has proven to be a responsible custodian of shareholder capital, generating consistent revenue and earnings growth through organic and inorganic strategies. Profitable growth remains our goal.”
North America now represents 58 per cent of the company’s revenue and 74 per cent of its EBITDA, with IT refurbishment its main business there, with the company having a key partnership with HP Inc.
The South African packaging operations have grown revenue by 10 per cent, while EBITDA is up by 19 per cent. It now represents six per cent of the company’s revenue and five per cent of its EBITDA. The year saw several successful bids for new contracts with multi-national companies there.
Close the Loop sees “significant potential” to grow its business in Europe, which currently represents four per cent of revenue and three per cent of EBITDA.
The company is currently pursuing acquisition opportunities and has identified potential targets that are complimentary to the current service offerings of the Group. No binding agreements on the targets have yet been signed.
Foster said, “Following the acquisition of ISP tech services, renamed Close The Loop Renew Solutions, the strategic rationale for the acquisition to open significant new revenue opportunities in the IT refurbishment space across multiple geographies is clear and present.”
