Equity Research, Broker Reports, and media content on Capital Drilling

  • Access the latest forecasts, broker valuations, multiples, and video content from the city about Capital Drilling
  • See live updates from analysts, company announcements, and other news in a personalised/single dashboard
Login
  • 15 Oct 19

Flash Update: Q3 Trading Update

Capital Drilling (LSE: CAPD) this morning provided its Q3/2019 trading update. The key ARPOR (average monthly revenue per operating rig) metric (see fig 1.) is below our forecasts but revenue is slightly ahead (due to non-drill revenue from other businesses including MSA labs). There are also new contract wins starting in Q4 which has led us to slightly upgrade our FY/2019 revenue forecasts to US$115.5 million.

Companies: Capital Drilling
  • 10 Oct 19

'New phase' for Capital Drilling with first comprehensive mining services contract

-new-phase-for-capital-drilling-with-first-comprehensive-mining-services-contract
  • 09 Oct 19

Diversified Mining Services Contract Win

Capital Drilling (LSE: CAPD) this morning announced the signing of binding agreements to provide a full range of mining services at Allied Gold’s Bonikro Gold Mine in Côte d'Ivoire alongside a US$3 million strategic investment. The new contract win marks a strategic move for the company, including for the first time providing load and haul operations, with control of the mine’s heavy mining fleet alongside five drill and blast rigs. Capital is working with Bonikro management to refine the mine plan following Allied’s recent acquisition, with a view to transitioning the agreement to a five year contract in H1/2020.

Companies: Capital Drilling
  • 22 Aug 19

H1 Results: Another Strong Performance

Net Income after tax of US$5.1 million was 39% higher than our forecast of US$3.7 million, primarily due to a lower than expected depreciation charge for the half year and lower financing charges. EBITDA for the half year of US$12.6 million was 5% below our forecast of US$13.2 million. Capital’s EBITDA margin of 23% is in line with both Tamesis estimates and H1/2018 despite the additional overheads in establishing the West African business. Cash from operations of US$10.5 million was 22% lower than our expected US$13.3 million – attributable to a larger than expected change in working capital.

Companies: Capital Drilling
  • 17 Jul 19

Flash Update: Q2 and H1 Trading Update

Capital reiterated it is on track to achieve full year revenue guidance of US$110-120 million, and whilst the headline revenue number for the half year is slightly below our expectations, we are confident that the company will be able to achieve guidance. The newly announced contract wins (described below), and some H1 seasonal effects in West Africa, imply a stronger H2 for the company. We are assuming an EBITDA margin of 24.2% for the half year, implying H1/2019 EBITDA of US$13.2 million, or 3.0x current EV on an annualised basis. We estimate US$5.5 million of free cash flow generated for the half year, equivalent to a 12.1% yield, which well covered the US$2.0 million dividend payment in May.

Companies: Capital Drilling
  • 18 Apr 19

Flash Update: Q1 Trading Update Release

Capital reported it is on track to achieve full year revenue guidance and we are confident that the company will be able to deliver the US$29.3 million quarterly average revenue for the remainder of 2019 to hit the mid-point of guidance (US$110-120 million). The quarterly result is slightly below our forecast at the revenue level due to seasonal effects in Q1. Encouragingly, the company reported increased profitability from key contracts over the period – reinforcing our investment thesis from the FY/2018 results that Capital continues to outperform at blue-chip contracts with top tier mining companies including Kinross, Anglogold Ashanti, Resolute, Acacia, and Centamin. The West African hub continues to grow, highlighted by an exploration contract win with Golden Rim Resources (ASX: GMR) in Burkina Faso. The company is seeing robust tendering activity – any further contract wins will be incremental to the published guidance. Metals prices remain strong, and Capital is best placed to take advantage of any increased exploration spending by the majors and mid-tiers to replace depleting ounces or tonnes. We value Capital Drilling at 91p/share, representing 5x forecast 2019 EV/EBITDA of US$29.3 million and a 1.8x multiple on the current share price. Our forecast 2019 free cash flow is US$13.9 million, implying a 15.7% yield which easily covers the current dividend yield of 3.2%. At the current share price, Capital feels materially undervalued – trading at 2.7x 2019 EV/EBITDA, a strong balance sheet, covered dividend and further growth opportunities in the pipeline.

Companies: Capital Drilling
  • 27 Mar 19

Capital Drilling - Video Update

capital-drilling-video-update-27-03-2019
  • 14 Mar 19

FY Results – Profitability driving cashflow

Capital Drilling (LSE: CAPD) this morning provided its FY 2018 annual financial results, having already provided a trading update on 17 January 2019 announcing revenue and utilisation figures.

Companies: Capital Drilling
  • 17 Jan 19

Flash Update: Cash Generation is King

Capital Drilling (LSE: CAPD) this morning announced its Q4/2018 trading update. Revenue for the quarter of US$30.5 million led to full year revenues of US$116.0 million, above the top end of 2018 revenue guidance of US$105 to US$115 million and Tamesis estimates of US$110.2 million. ARPOR decreased to US$181,000 for Q4/2018 from US$198,000 in Q3/2018, primarily reflecting new contract commencements utilising the exploration fleet, however this decrease was offset by increased utilisation, rising to 59% in Q4/2018 from 53% in Q3/2018.

Companies: Capital Drilling
  • 25 Oct 18

New contract wins

The Company has announced two contract awards with Centamin and Sama Resources, which are both highly significant for different reasons. The contract extension with Centamin underwrites continuity of a substantial proportion of group revenues over a 5-year period, while the new contract with Sama is the first in the Cote d’Ivoire and highlights the potential of West Africa, since the Company strategically repositioned one-third of its rigs in this growth region. While we retain existing forecasts, these contracts greatly improve revenue visibility and therefore should increase investor confidence. Further contract awards would have a significant drop through to profits and offer potential forecast upside. The shares offer good upside to our 85p price target. These contract awards should be taken well.

Companies: Capital Drilling
  • 25 Oct 18

Morning Note – 25 October 2018

Alumasc (ALU): Corp AGM update – trading in line | ANGLE (AGL): Corp Update on ANG-002 FDA study | Capital Drilling (CAPD): Corp New contract wins

Companies: ALU CAPD AGL

  • 25 Oct 18

Flash Update: Sukari Contract Extension

Capital Drilling (LSE: CAPD) this morning announced that its drilling contract at the Sukari mine operated by Centamin (LSE: CEY) has been extended for five years through to 2023. The company provides blast hole and grade control drilling in the open pit operations and has worked on site since 2005. Flash Update: Sukari Contract Extension

Companies: Capital Drilling
  • 24 Oct 18

Small Cap Feast

Renalytix AI—developer of artificial intelligence ("AI") decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings (AIM-EKF). total fundraising in the range £21 - 25 m. Mkt cap - c. £67.5- £71.0m. Due 2 Nov. Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October. Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.

Companies: PVG PHTM CAPD ANG SCHO SCLP ENET ERIS AUTG TLY

  • 11 Oct 18

Q3 update – on track

The group has announced a strong Q3 and YTD revenue, suggesting that the company is on track to achieve its guidance range of $105-115m. We maintain our existing forecasts based on revenues of $111.1m. West Africa now accounts for 1/3 of the fleet, with new contracts starting to kick in and utilisation for the group rising. There is plenty of scope to increase utilisation from further contract wins, with a significant profit drop through from additional contract revenues. The shares remain attractively rated and we view today’s announcement as being encouraging for the shares.

Companies: Capital Drilling
  • 11 Oct 18

Morning Note – 11 October 2018

Capital Drilling (CAPD): Corp Q3 update – on track | Chariot Oil & Gas (CHAR): Corp Live to fight another day | discoverIE (DSCV): Corp Increasing organic sales growth and rising margins

Companies: DSCV CAPD CHAR

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Capital Drilling. We currently have 64 research reports from 4 professional analysts.

Open
71.5p
Range Today
70.0/72.5p
52 Week
37.5/73.0p
Daily Volume
35.9k
# Shares
136.2m
Daily Liquidity
(0.03%)
Pension Liability
£0m
Enterprise Value
£77.0m
Market Cap
£98.8m
Latest PE (hist)
8.90
Div Yield
3.25

Latest News/RNS

(more news)
Date Source Announcement
21Oct19 07:00 RNS Notification of Major Holdings
17Oct19 07:00 RNS PDMR Dealings
16Oct19 11:04 RNS Result of placing of shares in Capital Drilling
16Oct19 07:00 RNS Proposed placing of shares in Capital Drilling
15Oct19 07:00 RNS Q3 Trading Update
09Oct19 17:08 RNS Holding(s) in Company
09Oct19 07:03 RNS Long Term Incentive Plan and Initial Grant
Get free RNS email alerts

  • Frequency of research reports

     

  • Research reports on

    Capital Drilling

  • Providers covering

    Capital Drilling

  • 14 Nov 19

Evolving investment case - the next phase

While the FY20 interims are in-line, this does not tell the whole story with the investment case for Volex evolving away from the recovery mode of the last few years to a growth business which now focuses on cash generative, higher margin customers in new markets. The business is substantially de-risked with the top three customers now accounting for 25% of revenues – down from 47% in FY15 and when combined with a re-iteration of our PBT growth forecast of 47% for FY20, an upgrade to our expected net cash estimate from US$17m to US$23m at March 2020, a restored dividend and with it trading on a FY20 PE rating of just 10x, we re-iterate our buy recommendation with a price target of 160p.

Companies: Volex
  • 14 Nov 19

Strong interim results

Volex has announced results for the 26 weeks to 29th September 2019 that reflect management’s focus on operational efficiency, cost control and margin analysis to drive business at acceptable margins. Adjusted PBT and EPS(FD) rose 69.3% and 48.3% respectively with benefit captured from targeted acquisitions. The Group has also returned to the dividend list with the payment of a 1p interim dividend, the first since 2013. On a calendarised basis the shares currently trade at a 34% PER and 36% EV/EBITDA discount to a comparable peer group for 2020. The Board has reiterated its confidence in delivering its full year expectations and in its ability to drive shareholder value.

Companies: Volex
  • 13 Nov 19

Full year results, first look

Avon Rubber has announced FY results comfortably ahead of consensus with the Group describing a transformational year in 2019 which sets it up well for the medium term. We see the Group as well positioned given its end markets and product development which should be attractive for investors but the recent stock run-up has been strong and valuation appears full. Neutral.

Companies: Avon Rubber
  • 14 Nov 19

LIBERUM: Luceco* - Initiation - Entering a new growth phase

Structural changes now enable Luceco’s business model to generate higher FCF levels & transform the balance sheet from high to low debt. Thus, for the first time since IPO, regular M&A is now possible.

Companies: Luceco
  • 13 Nov 19

LIBERUM: Speedy Hire* - Strategy delivering growth and increasing resilience

Speedy delivered a 20% increase in underlying H1 PBT; a 4% beat on our forecast basis. Revenue growth of 6% was driven by contributions from powered access and training acquisitions, market share gains among smaller customers (SMEs) and strong organic growth in services, offsetting lost sales to Carillion and some softness in the market.

Companies: Speedy Hire
  • 21 Oct 19

Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP SRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF

  • 11 Nov 19

Concept now proven!

Thruvision’s ultra-sensitive ‘body-heat’ cameras can detect hidden items (guns, drugs, money or stolen goods) without intrusive or time-consuming searches, and without revealing personal anatomical details. The products are gaining acceptance in a range of key markets, and the group’s financial performance is beginning to show the fruits of this labour. This note summarises the product, its advantages, and goes on to describe the markets which appear to hold most promise, and the growing evidence of success.

Companies: Thruvision Group
  • 12 Nov 19

LIBERUM: Ricardo* - Growth to accelerate in FY20

We continue to see significant upside in Ricardo shares. Organic growth is set to accelerate in FY20, and this will be complemented by almost a full year’s contribution from both Transport Engineering and PLC Consulting, which together will add over 10% to group earnings this year.

Companies: Ricardo
  • 14 Nov 19

Strong interim results

Volex has announced results for the 26 weeks to 29th September 2019 that reflect management’s focus on operational efficiency, cost control and margin analysis to drive business at acceptable margins. Adjusted PBT and EPS(FD) rose 69.3% and 48.3% respectively with benefit captured from targeted acquisitions. The Group has also returned to the dividend list with the payment of a 1p interim dividend, the first since 2013. On a calendarised basis the shares currently trade at a 34% PER and 36% EV/EBITDA discount to a comparable peer group for 2020. The Board has reiterated its confidence in delivering its full year expectations and in its ability to drive shareholder value.

Companies: Volex
  • 15 Nov 19

Back to basics

We believe now is an interesting time to invest in Northgate, with a new executive board and a capable management team in place who have already delivered progress on an ongoing turnaround as we await a full strategic review. The group now has a clear and well communicated capital allocation strategy in place and improved earnings quality, in our view. We believe that the growth opportunity in the UK, the value of the Spanish business and the progress made to date with the turnaround are not being reflected in the share price, which is currently 15.9% below book value (414p per share in FY19A rising to 468p in FY22E). We use a variety of valuation methods including P/B, SOTP, DDM and DCF modelling and arrive at an average implied share price of 450p, 29.0% above the current share price.

Companies: Northgate
  • 10 Sep 19

1H reveals quality growth

Interim results confirm that the integration of Defaqto has and continues to progress well and the enlarged Group significantly increasing the scale of the Group. The Group now serves >6,000 intermediaries and >350 financial institutions. The statement notes that, including the 3-month contribution from Defaqto, there has been material P&L growth:  Group revenues rose 20% 1H on 1H to £29.1m (1H18 revenue: £24.2m);  Adj EBITDA grew 30% to £6.8m (1H18 adj EBITDA: £5.2m);  Adj PBT rose 34% to £5.9m (1H18: £4.4m);  Adj PAT rose 41% to £4.9m;  Adj EPS was 5.23p and the Board declared an interim DPS of 1.41p. Group net debt was £30.1m at 30 June 2019. This is “in line with expectations, after scheduled payment of a £1.6m dividend in April” and after the capital raising and payments for the Defaqto acquisition in March.

Companies: Simplybiz
  • 13 Nov 19

H1: increase in the EPS guidance

SSE realised a good set of H1 19 results, driven by new renewables capacity and favourable weather conditions. However, the transmission and distribution activites decreased sharply, but were partially compensated by the good results in gas distribution. The group increased by 3.6% the mid-point of the FY20e EPS guidance.

Companies: SSE
  • 13 Nov 19

Capital Markets Day takeaways. Reiterate Buy.

We provide our three key takeaways from yesterday’s CMD. Strong legal precedent: Anexo’s unique model hinges upon an individual’s right to replacement vehicle following a road traffic accident that was not their fault. More specifically, Anexo services the impecunious customer who would be unable to pay the up-front costs of vehicle hire, enabling Anexo to reclaim commercial hire rates. At yesterday’s event we were provided an overview of the various developments in case law that have occurred over the last 25 years, each evolution further supporting the model, in our view. Further details within.

Companies: Anexo
  • 15 Nov 19

LIBERUM: Kier Group - Re-assuring statement and no change to earnings or debt

AGM trading statement guides to trading in line with expectations, but now indicates at least £55m of savings in FY 2021. We continue to expect average net debt of £374m for FY 2020, which is clearly key.

Companies: Kier Group
  • 18 Nov 19

Headwinds lead to a downgrade

Following a trading update which highlighted trading conditions in the UK and Hong Kong (between them they account for c50% of net fees), have deteriorated, we have downgraded our 2019 and 2020 PBT forecasts from £3.6m and £3.9m respectively to £3.0m in each year. Our revised dividend forecast is now 1.6p in both 2019 and 2020 (originally 1.7p and 2.0p). This still represents dividend growth in 2019 of 7% as Hydrogen will retain a net cash position of over £5.5m. On these revised PBT estimates Hydrogen is now trading on PE rating of 5x for 2020 and offers a dividend yield of 4%. We recognise the immediate outlook lacks visibility though given management’s proven capability of guiding the business through previous downturns and the inherent cyclical nature of the recruitment sector, the current share price does represent an opportunity with it now trading at a 12 month low. We retain our buy recommendation with a price target of 75p – previously 100p.

Companies: Hydrogen Group