Interim Management Statement

RNS Number : 1561Q

LMS Capital PLC

02 November 2012

 



2 November 2012

LMS Capital plc

Interim Management Statement

The Board of LMS Capital ("LMS" or "the Company) is pleased to present the Company's Interim Management Statement ("IMS") as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. This statement relates to the period from 1 July 2012 to 1 November 2012.

LMS Capital is an investment company focused on small to medium sized companies in consumer, energy and business services.  Following a General Meeting on 30 November 2011, the Company is undertaking a realisation strategy which aims to achieve a balance between an efficient return of cash to shareholders and optimising the value of the Company's investments.

The Company's unaudited net asset value per share at 30 September 2012 was 85 pence, down 3 pence from 88 pence as at 30 June 2012. The principal factor in this decrease was unrealised currency losses as the US dollar weakened against £ sterling over the period.

In the three months to 30 September 2012 we received proceeds from realisations (principally distributions from our fund interests) of £21.4 million, including £17.9 million ($28.4 million) from San Francisco Equity Partners following its sale of Method Products. In the same period calls from our outstanding fund commitments were £1.1 million. Total realisations in the first nine months of the year were £31.5 million, with fund calls of £4.9 million.

Uncalled commitments to funds at 30 September 2012 were £10.6 million and the Company had cash of £51.5 million.

The Directors have previously stated their aim to announce a first distribution to shareholders before the end of this year. Today we have also made a separate announcement explaining that we have published and sent a circular to shareholders setting out details of a proposed tender offer in relation to a return of up to £40 million to shareholders.

Consolidated portfolio subsidiaries

The latest available trading results for our portfolio subsidiaries are to 30 September:

·     Updata grew revenues by 6% in the first nine months of the year compared to 2011 and revenues from rental contracts in the same period were approximately 16% ahead of the previous year;

·     Nationwide Energy Partners continues to perform well with revenues for the first nine months 22% ahead of the same period last year and a large pipeline of potential new accounts;

·     Wesupply's revenues were 13% ahead of the corresponding period last year resulting in a significantly improved  EBITDA performance;

·     Entuity has continued its improving trend after difficult trading conditions in the second half of 2011 - revenues are 4% ahead of 2011 for the nine months and in the third quarter were 37% ahead of the same period last year;

·     365iTMS is performing in line with our expectations at the time of our investment a year ago.

Financial information

The Company's unaudited net asset value at 30 September 2012 was £232.8 million a 3% decline from 30 June, which principally reflects the weakening of the US dollar against £ sterling in the quarter. There was also a slight decline in overall fund values reported by general partners. The Company's financial position at the end of October was substantially unchanged.

The carrying value of the portfolio at 30 September 2012 is based on the valuation of the Company's investment portfolio as at 30 June 2012 with adjustments for transactions in the three months ended 30 September 2012 including price movements on quoted securities, movements in foreign currency exchange rates, cash calls and distributions from funds and sales of quoted and unquoted securities. The next full valuation of the portfolio will be for our full year results as at 31 December 2012. 

The Company's investment portfolio at 30 September 2012 (and 30 June 2012) was as follows:

		30 September 2012		30 June  2012
		£'000		£'000
US
Quoted		18,786		20,380
Unquoted		46,300		47,748
Funds		48,944		70,233
US total		114,030		138,361
UK
Quoted		1,002		961
Unquoted		44,576		44,576
Funds		28,992		30,958
UK total		74,570		76,495
Total		188,600		214,856

Details of the Company's largest investments by valuation at 30 September 2012, representing about 72% of the total portfolio, are set out in the appendix to this statement.

This statement is a general description of the financial position and performance of the Company for the period from 1 July 2012 to 1 November 2012.  It does not contain any profit forecast or forward looking information. Future NAV and share price performance is likely to be affected by a number of factors, including (but not limited to) general economic and market conditions and specific factors affecting the financial performance or prospects of individual investments within the Company's portfolio.

For further information please contact:

LMS Capital plc                                                                                                   020 7935 3555 

Nick Friedlos, Executive Director

Tony Sweet, Chief Financial Officer

J.P. Morgan Cazenove                                                                                   020 7742 4000

Michael Wentworth-Stanley

MHP Communications                                                                                  020 3128 8791

Tim McCall

Katie Hunt

About LMS Capital

LMS Capital is an investment company which, following a General Meeting on 30 November 2011, is undertaking a realisation strategy with the aim of achieving a balance between an efficient return of cash to shareholders and optimising the value of the Company's investments. Its investment portfolio consists of small to medium sized companies in the consumer, energy and business services sectors.

www.lmscapital.com

LMS Capital plc                                                                                                          Appendix

Interim management statement - 2 November 2012

The Company's principal investments by valuation at 30 September 2012 were as follows:

Name	Geography	Type	Sector	Date of initial investment	Book value £'000
HealthTech Holdings	US	Unquoted	Technology	2007	24,445
Weatherford International	US	Quoted	Energy	1984	16,069
Apogee Group	UK	Unquoted	Technology	2010	13,500
Brockton Capital	UK	Fund	Property	2006	11,686
Updata Infrastructure UK	UK	Unquoted	Technology	2009	12,650
Nationwide Energy Partners	US	Unquoted	Energy	2010	10,084
BV Investment Partners	US	Funds	Buyouts	1996	7,904
Yes To, Inc*	US	Unquoted	Consumer	2008	7,969
Rave Reviews Cinemas	US	Unquoted	Consumer	2002	6,187
Penguin Computing*	US	Unquoted	Technology	2004	5,159
Primus Capital	US	Funds	Business services	2000	5,101
Voreda Capital	UK	Fund	Property	2008	5,263
Luxury Link*	US	Unquoted	Internet commerce	2006	4,855
Entuity	UK	Unquoted	Technology	2000	4,000

*San Francisco Equity Partners manages these investments.

 

END

 

 

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