Shares in mining services group Capital Limited (LSE:CAPD) slumped 22% in early trading on Monday after the company warned of lower-than-expected profits and announced the departure of its CEO.
The company now expects net profit after tax to come in at between $18 million and $20 million, hit by one-off accounting provisions for VAT receivables and laboratory assets in Mali.
Looking ahead to 2025, Capital expects revenue to be between $300 million and $320 million, with a stronger second half as new mining projects ramp up.
The drilling business will focus on improving profitability, especially in the US, while revenue from mining operations is expected to dip as key contracts at Sukari and Belinga wind down.
MSALABS, its laboratory services division, is forecast to grow revenue to $50 million-$60 million.
CEO Peter Stokes has resigned, with chairman Jamie Boyton stepping in to oversee the business while a replacement is found.
The stock fell 16.6p to 60.4p.