Capital Limited (LON: CAPD), which provides drilling, mining services and geochemical laboratory analysis to mining companies, saw its shares jump 11.6% on 20 August after unaudited first-half results beat expectations. The rally has since largely unwound, with the stock giving back roughly half its gain as markets weigh a cash-flow squeeze and a slowdown flagged at its biggest contract.
Shares closed at 120p on 20 August, up from 107.5p the previous session, on volume of around 1.27 million shares against a typical range of 100,000 to 300,000. By yesterday the stock had eased to 112p, and it traded around 110p to 111p in early dealing today, still above pre-results levels but well below its 52-week high of 157.77p.
Capital published H1 2026 results before the London open on 20 August, reporting revenue up 37.6% to $219.0m and Adjusted EBITDA, earnings before interest, tax, depreciation and amortisation adjusted for one-off items, up 70.4% to $54.7m. The group raised full-year revenue guidance to $430m-$450m from $410m-$440m. Executive Chair Jamie Boyton said: “Capital delivered a strong first half performance, with revenue increasing 37.6% year-on-year to $219.0 million, and Adjusted EBITDA increasing 70.4% to $54.7 million. This performance was underpinned by improved drilling contract productivity, continued momentum from MSALABS and solid execution across our mining services contracts.”
The headline growth masked weaker cash conversion: adjusted cash from operations fell 24.3% on an unfavourable working-capital swing, even as net debt decreased 21.8% on the $55.4m reported at H1 2025. Boyton also flagged that Barrick had “noted a slowdown in capital expenditure at Reko Diq,” a project where Capital is a key mining services contractor, adding that the company “remains a well-established key contractor at the project and will continue to support its development going forward.” Investors appear to be weighing whether the weaker cash conversion and the customer concentration risk at Reko Diq could complicate the guidance raise, even as underlying revenue and margin growth stand.
The company kept its interim dividend unchanged at 1.3 cents per share, payable on 5 October, with shares going ex-dividend on 27 August.