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Capital Ltd on Thursday reported higher interim profit despite a decline in revenue, benefitting from a big fair value gain on financial assets. The London-based provider of drilling and other mining services reported pretax profit of $22.5 million in the six months that ended June 30, up from $16.3 million a year before. Revenue fell 6.0% to $159.2 million from $169.4 million in the first half of 2024, but Capital booked a $19.3 million fair value gain on financial assets, compared to a $493,000 such loss a year before. Partly offsetting that gain was a $5.6 million impairment of Capital’s investment in Eco Detection Pty Ltd, an Australian company that makes analysis systems for monitoring water quality. This was due to ‘slower progress towards commercialisation’. Capital commented: ‘We remain supportive of the technology and have now taken a more active role within the business.’ Earnings before interest, tax, depreciation and amortisation, adjusted for the accounting treatment of leases and for exceptional items, was $32.1 million, down 25% from $42.9 million. Adjusted Ebitda margin was 20.2%, narrowed from 25.3%. Net debt on June 30 was $55.4 million, reduced by 36% from $86.4 million, due to less capital expenditure. For all of 2025, Capital on Thursday said capex will be at the lower end of its $45 million to $55 million guidance. ‘We are excited by the outlook for the group and the opportunities ahead of us, but nevertheless, while we finalise the delivery of our new contracts, we have kept tight control on our capital spend,’ explained Executive Chair Jamie Boyton. Capital declared a 1.3 cent interim dividend, unchanged from a year before. Looking ahead, Capital confirmed its recently raised annual revenue guidance of $320 million to $340 million. This would be down from $348.0 million in 2024. Capital shares were down 6.7% to 87.86 pence on Thursday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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