Close the Loop Ltd (ASX: CLG), an Australian company dedicated to creating innovative products and packaging solutions while recovering and reusing a wide range of electronic products, print consumables, cosmetics, and plastics to advance the circular economy, has reported a significant net loss for the financial year ended June 30, 2026. While revenue from continuing operations increased by six percent to $125.6 million, the company posted an overall net loss of $105.3 million attributable to members, a substantial increase from the prior year’s $22.2 million loss.
This considerable loss was primarily attributed to costs associated with discontinued operations and a comprehensive business reorganisation. Key divestments during the period included the sale of ISP Tek Services LLC on May 19, 2026, alongside the disposal of Alliance Paper Pty Ltd and O F Flexo Pty Ltd. These strategic exits led to significant write-offs of intangible assets and one-off restructuring costs within the resource recovery division. The company’s EBITDA from continuing operations for the year stood at $12.4 million, reflecting a decrease from the previous corresponding period.
Throughout the year, Close the Loop also faced challenges with its banking covenants, which were breached during the period but subsequently brought into compliance with amended agreements by June 30, 2026. The company successfully secured a covenant waiver and revised terms, with its bank debt classified as current due to expected refinancing by December 31, 2026. Management has confirmed ongoing support from its bankers, with debt facilities extending to 2029.
Post-reporting period, the company further strengthened its financial position through the conversion of convertible notes into 60.35 million shares on July 10, 2026, alongside a new loan deed arrangement. The divestments and restructuring efforts are intended to sharpen Close the Loop’s focus on its core, higher-performing Packaging and Resource Recovery divisions, positioning the company for future organic and inorganic growth opportunities.
