Candy Club (CLB) H2 2024 earnings summary

Executive summary

• Loss after tax of $66,811 for the six months ended 30 June 2024, compared to a profit of $987,202 for the year ended 31 December 2023, which included a $1.2 million gain on debt forgiveness.

• No trading activity during the period; focus was on assessing new project opportunities and preparing for a potential acquisition.

• Entered into a binding agreement to acquire Scalare Partners Pty Ltd, subject to shareholder approval and ASX re-compliance.

• Company changed its financial year-end to 30 June to align with the target acquisition.

Financial highlights

• Revenue from ordinary activities was nil for the period, down 100% from the prior year.

• Net loss of $66,811 for the six months ended 30 June 2024, compared to a profit of $987,202 for the prior year.

• Basic and diluted loss per share of (0.07) cents, compared to earnings per share of 1.68 cents in the prior year.

• Net tangible assets per share were (0.20) cents at 30 June 2024, compared to (8.60) cents at 31 December 2023.

• Cash and cash equivalents at period end were $685.

Outlook and guidance

• Extraordinary general meeting scheduled for 23 September 2024 to approve acquisition, share consolidation, capital raise, and other resolutions.

• Prospectus lodged to raise between $4 million and $8 million and seek ASX readmission.

• Ongoing financial support from major shareholder and Scalare Partners via interest-free loans.