Interim Management Statement

RNS Number : 9697S
LMS Capital PLC
14 November 2013
 



   

 

14 November 2013

 

LMS Capital plc

Interim Management Statement

 

The Board of LMS Capital ("LMS Capital" 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 2013 to 13 November 2013.

 

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.

 

In the three months to 30 September 2013 we received proceeds from realisations (principally distributions from our fund interests) of £5.2 million. In the same period calls from our outstanding fund commitments were £0.6 million. Uncalled commitments to funds at 30 September 2013 were £8.3 million. Total realisations in the first nine months of the year were £35.1 million, with fund calls of £3.1 million.

 

The Company had cash of £10.4 million at 30 September 2013, having completed its second tender offer (£35 million) in early August, bringing amounts returned so far to shareholders since the commencement of the realisation strategy to £75 million. This equates to around 31% of the net asset value at the end of 2011 and approximately 50% of the Company's market capitalisation at the time of the November 2011 General Meeting.

 

The Company's unaudited net asset value per share at 30 September 2013 was 87 pence, down 3 pence (3.3%) from 90 pence as at 30 June 2013. In the third quarter improvements in the prices of our quoted portfolio were outweighed by unrealised currency losses as the US dollar weakened against £ sterling during that period. 

 

Since the end of September, further improvements in the prices of our quoted stocks (in particular Weatherford International) and recent strengthening of the US dollar against £ sterling have resulted in a reversal of most of the third quarter unrealised losses such that current unaudited net asset value per share is 89 pence.

 

There continue to be active sales processes underway on a number of the Company's investments. Although these are not at a stage where the Board can have certainty on realisation timing or proceeds, the Directors remain satisfied with current progress and with the exit opportunities under consideration.

 

Consolidated portfolio subsidiaries

 

The latest available trading results for our portfolio subsidiaries are to 30 September 2013. Consolidated revenues for the first nine months were 38% ahead of the same period last year with significant contributions from Updata and Nationwide Energy Partners; the results for both these companies to date in 2013 reflect the impact of their success in continuing to win new business.  

 

Investments

 

The carrying value of the portfolio at 30 September 2013 is based on the valuation of the Company's investment portfolio as at 30 June 2013 with adjustments for transactions in the three months ended 30 September 2013 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 2013. 

 

The Company's investment portfolio at 30 September 2013 (and 30 June 2013) was as follows:

 



30 September 2013


30 June

 2013



£'000


£'000

US





Quoted


22,035


20,830

Unquoted


37,528


39,980

Funds


41,977


46,581

US total


101,540


107,391






UK





Quoted


1,334


1,152

Unquoted


31,554


32,090

Funds


26,147


26,170

UK total


59,035


59,412






Total


160,575


166,803

 

Details of the Company's largest investments by valuation at 30 September 2013, representing 74% 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 2013 to 13 November 2013.  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

 

Tim McCall

Katie Hunt

020 3128 8794

 

 

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 - 14 November 2013

 

The Company's principal investments by valuation at 30 September 2013 were as follows:

 

Name

Geography

Type

Sector

Date of initial investment

Book value

£'000

 

 

 

 

 

 

HealthTech Holdings

 

US

Unquoted

Technology

2007

21,022

Weatherford International

 

US

Quoted

Energy

1984

19,422

Updata Infrastructure UK

 

UK

Unquoted

Technology

2009

17,000

Brockton Capital

 

UK

Fund

Property

2006

12,550

Nationwide Energy Partners

US

Unquoted

Energy

2010

10,074

Yes To, Inc*

US

Unquoted

Consumer

2008

9,479

BV Investment Partners

 

US

Funds

Buyouts

1996

6,100

Penguin Computing*

US

Unquoted

Technology

2004

5,311

Primus Capital

 

US

Funds

Business services

2000

5,035

Entuity

 

UK

Unquoted

Technology

2000

5,000

Luxury Link*

US

Unquoted

Internet commerce

2006

4,224

ICU Eyewear*

US

Unquoted

Consumer

2010

4,199

 

*San Francisco Equity Partners manages these investments.

 

 

 


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