Close the Loop cuts debt after FY26 reset

• Close the Loop reported full-year FY26 results with continuing revenue up 6% to $125.6 million.
• Operating EBITDA for continuing operations increased 34.2% to $12.4 million following portfolio divestments.
• The restructuring aimed to exit underperforming divisions and reduce net debt to focus resources on higher-margin packaging.

Close the Loop (ASX:CLG) reported FY26 continuing operations revenue of $125.6 million, up 6% on the previous corresponding period following a portfolio restructuring.

The revenue increase and 25% growth in gross profit to $46.2 million compare against a $105.1 million loss from exited and discontinued operations during the financial year.

The company sold ISP Tek Services for US$10 million and used cash reserves to pay approximately US$16 million in debt.

Following post-year-end convertible note settlements, Close the Loop reduced its net debt by 52% from $38.1 million to $18.3 million.

"Our priority for FY27 is straightforward: grow the businesses with the strongest economics, improve margins, convert earnings into cash and continue to reduce debt," said Close the Loop CEO Kesh Nair.

Following the announcement, the Close the Loop share price was unchanged at $0.040.

The group's packaging division recorded 16% revenue growth and a 48% increase in EBITDA due to expansion in South Africa and new client wins.

Meanwhile, the resource recovery segment generated $55.4 million in revenue but logged an EBITDA loss of $2.8 million as lower-margin processes were phased out.