Close the Loop Group (ASX: CLG) has reported stronger first-quarter performance for FY26, alongside several board and leadership changes outlined in its AGM trading update.
The circular-economy company delivered improved revenue and EBITDA across both its Resource Recovery and Packaging divisions for the quarter ending 30 September 2025. The uplift was supported by operational efficiencies, cost controls, and the divestment of non-core assets.
CLG said its Resource Recovery division recorded higher recycling revenue and EBITDA compared with the prior corresponding period, excluding the ITAD contribution. ITAD revenue and earnings also improved quarter-on-quarter, reflecting new product lines, headcount rationalisation and better margin management.
North America showed a recovery in refurbishment and ITAD performance, with new management strategies gaining traction. The company also accelerated volume growth with a key OEM partner, supported by additional supply channels.
Packaging delivers stronger results
The Packaging division reported higher revenue and EBITDA, driven by “stronger South African and Australian performance” and the exit of loss-making operations.
As part of its broader restructuring program, CLG completed the sale of Alliance Paper on 27 October and finalised the management buyout of Melbourne-based flexible packaging business O F Flexo in November.
Chairman Grant Carman said the group has made “encouraging” progress against the five strategic objectives set in August 2025, noting that early gains were flowing through from a more focused operating model. He added that reducing debt remains a key priority for the board.
Board and finance team changes
The company announced the retirement of non-executive director John Chambers, who did not stand for re-election at the AGM. Director Joe Foster has also withdrawn his consent to act as a director, with the board acknowledging his role as a founding member and inaugural CEO following CLG’s 2021 ASX listing.
Carman paid tribute to Foster’s “passion, vision and unwavering commitment”, calling his contribution a cornerstone of the company’s achievements. The board is now undertaking a review process to appoint replacement Non-Executive Directors.
CFO Chris Dimitriadis will step down on 19 December 2025. CLG is recruiting to strengthen its finance team and assessing alternative structures for senior financial leadership.
