REG - Capital Limited - Company update

CapitalAnnouncement

10/03/2025 07:00

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RNS Number : 9744Z  Capital Limited  10 March 2025

 
 
Capital
Limited

("Capital", the "Group" or the "Company")

 

Company Update

 

Capital (LSE: CAPD), a leading mining services company, today provides an
update on anticipated profitability for FY 2024, the outlook for 2025 and news
of management changes.

 

Trading update for FY2024:

In addition to our recent Trading and Operational Update where we indicated an
adverse impact to Group profitability particularly driven by our new
operations in the USA, the Board has taken the decision, to book non-cash
provisions in 2024 primarily relating to historical VAT receivables and
various laboratory assets in Mali. The Company now expects net profit after
tax ("NPAT") for 2024 to be in the range of $18 - 20 million.

The Company will announce FY 2024 results on the 27(th) March 2025.

Revenue Outlook for FY 2025:

FY 2025 revenue is expected to be in the range of $300 - 320 million. Revenues
will be H2 weighted given the ramp up of new projects, predominantly in our
mining business, and margins will follow a similar weighting.

·      Across our drilling business, the focus for 2025 will be on core
profitability particularly in the USA.

·      In mining, revenues will be down YoY given the conclusion of our
contracts at Sukari and Belinga in 2024, while operations at Reko Diq are
expected, as per our previously announced letter of intent, to commence
ramping up through 2025.

·      MSALABS is expected to generate revenues of ~$50-60 million (up
from $43.6 million in 2024). We are consolidating our existing platform in key
strategic locations to improve profitability. This includes the construction
of a state-of-the-art laboratory at Nevada Gold Mines ("NGM") that will add
wet chemistry and multi-element capabilities from 2026. Looking forward we
continue to see revenues over $80 million for MSALABS driven by the hybrid
laboratory at NGM and the rollout of further laboratories.

Executive Management Changes:

The Company's CEO, Peter Stokes, has tendered his resignation which has been
accepted by the Board. He has agreed a brief transitional period to hand over
responsibilities and to ensure business continuity. The senior management team
will report to Jamie Boyton in his role as Executive Chairman.

Commenting on the update, Jamie Boyton, Executive Chairman, said:

"The Board has taken the decision to make non-cash provisions that have
negatively impacted our 2024 results and driven our trading update today.

We remain positive about the outlook for the business however we continue to
face pressures to profitability, particularly driven by our operations in the
USA. We do however expect margins to bottom in H1 2025 and expect a resumption
of revenue growth in 2026 along with a recovery in margins. We look forward to
providing the market with a comprehensive update on the 27(th) March in
conjunction with our FY 2024 results.

I would like to thank Peter for his tireless efforts during this challenging
time and we wish him the best of success in his future endeavours."

 

- ENDS -

 

 

 

 

For further information, please visit Capital's website www.capdrill.com or
contact:

 

Capital Limited
 
investor@capdrill.com

Jamie Boyton, Executive Chairman
 

Rick Robson, Chief Financial Officer

Conor Rowley, Corporate Development & Investor Relations

 

Tamesis Partners LLP
 
+44 20 3882 2868

Charlie Bendon

Richard Greenfield

 

Stifel Nicolaus Europe Limited
 
+44 20 7710 7600

Ashton Clanfield

Callum Stewart

Rory Blundell

 

FTI
Consulting
+44 20 3727 1000

Ben
Brewerton
capitallimited@fticonsulting.com

Nick Hennis

Lucy Wigney
 

 

About Capital Limited

 

Capital Limited is a leading mining services company that provides a complete
range of drilling, mining, maintenance and geochemical laboratory solutions to
customers within the global minerals industry. The Company's services include
exploration, delineation and production drilling; load and haul services;
maintenance; and geochemical analysis. The Group's corporate headquarters are
in the United Kingdom and it has established operations in Canada, Côte
d'Ivoire, Democratic Republic of Congo, Egypt, Gabon, Ghana, Guinea, Kenya,
Mali, Mauritania, Pakistan, Saudi Arabia, Tanzania, United States of America
and Zambia.

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