Capital raises full-year revenue guidance

(Sharecast News) - Capital Limited raised its full-year revenue guidance on Thursday, after reporting a 21.7% increase in group revenue to $87.4m in the second quarter, supported by improved performance in drilling, mining, and laboratory services. The London-listed company said it now expected 2025 group revenue of between $320m and $340m, up from its previous range of $300m to $320m.

Revenue from its MSALABS unit was also expected to rise to between $55m and $65m, compared to earlier guidance of $50m to $60m.

"We have seen improved momentum in the second quarter of 2025 across all business divisions," said executive chair Jamie Boyton.

"Drilling utilisation remained strong, our mining division had a strong start at Reko Diq, and MSALABS delivered a record quarter.

"Our focus remains on delivering new contracts and improving margins and cash flows."

Drilling revenue rose 9.2% from the prior quarter to $63m, with average monthly revenue per rig increasing to $198,000.

Fleet utilisation improved to 74%, near the company's 75% target.

Capital said it secured contract extensions at Allied Gold's Sadiola mine and Barrick's Lumwana copper mine, and started operations under a new three-year contract at Reko Diq.

MSALABS meanwhile delivered record quarterly revenue of $17.4m, up nearly 29% quarter-on-quarter and 58% year-on-year, supported by increased utilisation and the commissioning of new labs in the US and Saudi Arabia.

The division was also awarded a feasibility study by Rio Tinto for a lab at the Oyu Tolgoi mine in Mongolia.

Mining revenue, which had dipped in the first quarter, rebounded sharply to $7m in the second as activities ramped up at Reko Diq.

Capital noted that the tailings storage facility fleet was expected to begin work in the fourth quarter.

The group said its investment portfolio rose in value to $49.5m at the end of June, up from $30.3m at year-end.

Gains were driven by holdings in WIA Gold, Sanu Gold, and Asara Resources.

Capital also marked down its investment in Eco Detection to $0.7m following a slower-than-expected commercialisation timeline, though it had taken a more active role and subscribed to a discounted convertible loan.

Safety performance remained strong, with a total recordable injury frequency rate (TRIFR) of 0.81 per million hours worked in the second quarter, down from 0.99 in the first.

Capital said it expected an improved performance in the second half of the year, supported by high tendering activity, ongoing contract wins, and further margin recovery.

Its half-year results were set to be released on 14 August.

At 1239 BST, shares in Capital Limited were up 3.03% at 88.19p.

Reporting by Josh White for Sharecast.com.