Close the Loop upgrades financial forecasts

Close the Loop has upgraded its FY22 revenue and EBITDA prospectus forecasts by 11 per cent and 10.5 per cent respectively, with a current annual revenue run rate of over $100 million. Strong organic revenue growth occurred across all divisions, particularly in Close the Loop in the United States and Europe, O F Pack, O F Flexo and Foster International, where volume increases and operating leverage are driving earnings ahead of plan.

“In our first six months as a listed entity Close the Loop Group has enjoyed considerable organic revenue growth across all divisions…” said Group Chief Executive Officer Joe Foster said. “This is due to our ability to successfully integrate complementary businesses that strengthen our capability as the only ASX-listed company operating in all parts of the circular economy. From product design, manufacturing, collection and recycling and then eventually recovering it as new packaging or secondary products, or simply packaging to packaging. When you take our acquisitions of Crasti & Co and Oceanic Agencies into account, we now have annualised revenue of around $100m.”

Read more: Inside Waste Consultancy Registry

Upgrades to further increase capacity and operating leverage The Close the Loop division is undertaking initiatives to increase production capacity to leverage volume increases across a range of products. This includes upgrades to the TonerPlas line to meet increased demand for the asphalt additive made from soft plastics and waste printer cartridge toner.

The US facility will implement a new automatic optical recognition system to improve efficiency, with the system to then be introduced across Australian and European facilities. In addition, the US plant is installing a new washing and separation line due for completion this calendar year. Further, the Group has launched its European packaging business to handle flexible packaging sales for new and existing customers.

The company has signed an MOU to produce the Resin8 product range in Australia following its launch in other parts of the world. Resin8 is a range of structural and concrete products manufactured for and used in the construction industry. It is manufactured from various consumer waste plastics. The full product range is expected to become available during FY23.