18th Jul 2025 12:59
(Alliance News) - Capital Ltd on Thursday raised full-year targets and noted strong performance in the second quarter, but acknowledged "suppressed" margins in the first half of 2025.
The London-based firm provides drilling, analysis and management services to the mining sector.
Capital has increased full-year guidance, targeting a revenue range between USD320 million and USD340 million, up from previous guidance for between USD300 million and USD320 million. However, this reflects a decline on-year, as reported revenue was GBP348.0 million in 2024.
For the MSALABS division, which tests drilling samples, Capital expects revenue between USD55 million and USD65 million, rather than the previously guided USD50 million to USD60 million. This is higher than the previous year, when MSALABS revenue was USD43.6 million.
During the three months that ended June 30, Capital estimated total revenue of USD87.4 million, down 2.0% on-year from USD89.2 million, but up 22% on-quarter from USD71.8 million. MSALABS revenue was USD17.4 million in the second quarter, up from USD11.0 million the previous year and USD13.5 million in the first quarter.
In the first half of 2025, total revenue was USD159.2 million, 6% lower than USD169.4 million in 2024. MSALABS revenue was USD30.9 million, 49% higher than USD20.8 million.
The company anticipates stronger performance in the second-half based on recent contract wins and the ramp-up of US operations.
As of June 30, Capital estimated the total value of investments was USD49.5 million versus USD30.3 million at December 31. This excludes Eco Detection, whose value Capital marked down to USD700,000 from USD6.3 million, due to slower-than-expected progress towards commercialisation.
Capital noted that drilling at gold mines in Nevada had improved after a management reshuffle in the second-quarter, but maintained "further work is required to sustain these improvements and deliver targeted performance levels".
"Whilst margins remain suppressed [...] our focus is on the delivery of new contracts and driving improvements at existing operations across the group, which will sustain the current momentum and the recovery in margins and cash flows," commented Chair Jamie Boyton.
The company's shares were 1.1% higher at 91.00 pence on Friday afternoon in London.
By Holly Munks, Alliance News reporter
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