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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 $320 million and $340 million, up from previous guidance for between $300 million and $320 million. However, this reflects a decline on-year, as reported revenue was £348.0 million in 2024. For the MSALABS division, which tests drilling samples, Capital expects revenue between $55 million and $65 million, rather than the previously guided $50 million to $60 million. This is higher than the previous year, when MSALABS revenue was $43.6 million. During the three months that ended June 30, Capital estimated total revenue of $87.4 million, down 2.0% on-year from $89.2 million, but up 22% on-quarter from $71.8 million. MSALABS revenue was $17.4 million in the second quarter, up from $11.0 million the previous year and $13.5 million in the first quarter. In the first half of 2025, total revenue was $159.2 million, 6% lower than $169.4 million in 2024. MSALABS revenue was $30.9 million, 49% higher than $20.8 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 $49.5 million versus $30.3 million at December 31. This excludes Eco Detection, whose value Capital marked down to $700,000 from $6.3 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. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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