Capital Ltd - a provider of drilling, mining, maintenance and geochemical laboratory solutions for the mining industry (eg gold & copper in US & Africa) said today that it "expects 2024 net profit after tax to be in the range of $18m-$20m" (Est 9.8 cents/share), or circa 40% below consensus of $31.6m.
Worst still FY25 revenue guidance has been cut too by 10% to $300m-$320m vs $345m consensus.
As a result CEO Peter Stokes has tendered his resignation which has been accepted by the Board.
Exec Chairman Jamie Boyton adding: "We remain positive about the outlook for the business however we continue to face pressures to profitability, particularly driven by our operations in the US. We do however expect margins to bottom in H125 and expect a resumption of revenue growth in 2026 along with a recovery in margins."
Wrt the numbers, I'm guessing CAPD will deliver FY25 PAT and EPS of roughly $15m & 7.7cents respectively - which on a debt ($73m, or 1.1x EBITDA) adjusted PER of 12x - would generate a fair value for the stock of 86 cents, or 66p.
Surprisingly not too far from today's price of 77p. Maybe most of the bad news had already been factored into investor expectations?