• Revenue of $99.2m down 4% from pcp
• EBITDA of $12.2m down 46% from pcp
• NPATA of $5.7m down 58% from pcp

Close the Loop Limited (ASX: CLG), the circular economy industry leader, has released its results for the half year ended 31 December 2024. The company's 1H25 results have primarily been impacted by the performance of its Resource Recovery business in North America, which experienced a decline in revenue and profitability. The decline in financial performance was due to reduced 30-day customer returns during the period and a growing inventory of ITAD products coupled with a delay in the opening of the Mexicali facility. Post the reporting period, the volume of 30-day customer return products has improved and the company's operating licence for the Mexicali plant is expected to be issued imminently, allowing work on the inventory stockpile to accelerate thereafter. The company expects an improvement in the second half of the year from the Resource Recovery division, particularly in North America. The addition of ITAD, typically products three years and older which will largely be processed in both the Mexicali and Southlake facilities, will help to diversify the Resource Recovery business in North America, making it less reliant on 30-day customer return products and open new OEM relationships. Revenue from Resource Recovery in Europe continues to grow strongly as the company continues to invest into its multi-vendor take back programme called 'Circular Planet'. The company's packaging businesses in Australia and South Africa have performed well, achieving 11% sales growth compared to the previous corresponding period ('pcp'), driven by a focus on winning and onboarding larger clients with global operations. The company has generated $2.6m cash from operations for the half year, however, with ongoing investment into the Mexicali facility and Information Technology Asset Disposition ('ITAD') inventory, as well as plant and equipment across the resource recovery businesses and the packaging manufacturing facility in Melbourne, there was a net decrease in cash of $3.1m. Net debt, which is calculated as total borrowings less cash on hand, has increased by $8.4m to $50.9m during the period. The company has regularly received inbound interest in the past 12 months regarding a potential change of control transaction and will continue to assess any proposals received with a view to maximizing shareholder value.