This ASX growth stock just leapt 6% on international expansion plans

ASX growth stock Close The Loop Ltd (ASX: CLG) is showing its growth potential today.

Shares in the company, which provides reuse, recycling, and sustainability solutions, closed on Friday trading for 34 cents. Shares leapt to 36 cents apiece shortly after market open today, up 5.9%.

After some likely profit-taking, shares are currently swapping hands for 35 cents, up 2.9%.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.1% at this same time.

Here’s what’s spurring investor interest in the ASX growth stock today.

ASX growth stock expanding its reach

Investors are bidding up Close The Loop shares on Monday after the company reported on a range of potential growth opportunities.

The ASX growth stock said it is looking into opportunities to expand its footprint in the United States, Europe and the Middle East. Over the next 12 months, the company expects to establish new facilities in these locations to support its expanding operations.

The planned expansions are focused on providing enhanced IT refurbishment services and solutions. That includes a new IT refurbishment plant in Mexicali, Mexico. Close The Loop expects that plant will be operational by October.

The company also highlighted its growing HP Inc relationship, noting that IT refurbishment opportunities have been identified with HP Renew Solutions.

And in Europe, the ASX growth stock is expanding its European print consumables program, Circular Planet, into Spain and Portugal.

Commenting on the growth plans, Close The Loop CEO Joe Foster said: “We are excited about the potential opportunities that lie ahead and are dedicated to ensuring a smooth and successful implementation of this expansion plan.”

According to Foster:

We acknowledge the importance of effectively managing our resources to support our growth objectives without impacting on the FY 2024 guidance or expected financial results as previously advised to the market. As we move forward, we will diligently leverage our existing working capital and debt facilities to achieve our strategic milestones.

Foster added:

FY 2024 has seen Close the Loop focus and refine its growth strategy in the IT refurbishment space. We have an opportunity to expand into new geographies, work deeper into the consumer business electronic product lifecycle and nurture new OEM [original equipment manufacturer] relationships.

These growth opportunities are a validation and realisation of the ISP Tek Services acquisition and the synergies we expected to flow from the combined businesses.

Close the Loop share price snapshot

With today’s intraday moves factored in, the ASX growth stock is down around 7% in 2024.

The post This ASX growth stock just leapt 6% on international expansion plans appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Close The Loop. The Motley Fool Australia has recommended Close The Loop. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.