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Capital Ltd shares tumbled on Monday after the firm issued a profit warning and announced the departure of its chief executive. The London-headquartered mining services provider said it has made the decision to book non-cash provisions in 2024 in relation to its historical VAT receivables and various laboratory assets in Mali. As a result, it now expects profit after tax for 2024 to be between $18 million and $20 million. This will be down at least 48% from $38.5 million in 2023. Capital shares fell 18% to 63.00 pence on Monday morning in London. This follows the firm’s announcement in January in which it noted a drag on profitability from its new US-based operations. Looking to 2025, Capital said it expects revenue in the range of $300 million and $320 million, with it noting a second-half weighting ‘given the ramp up of new projects’. This compares with the $338.0 million the firm said it achieved for 2024. Mining revenue for 2025 is expected to be down following the conclusion of its contracts in Sukari and Belinga in 2024. Capital is set to report its full 2024 results on March 27, including an updated outlook for 2025. Chief Executive Officer Peter Stokes has tendered his resignation, Capital also said on Monday. Stokes has agreed to a brief transition period for the purposes of business continuity and the handover of responsibilities, said Capital. It said senior managers will report to Executive Chair Jamie Boyton. ‘We remain positive about the outlook for the business; however we continue to face pressures to profitability, particularly driven by our operations in the US,’ Boyton said. ‘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.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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