Interim Management Statement

RNS Number : 0283W

LMS Capital PLC

04 November 2014

 



4 November 2014

LMS Capital plc ("the Company")

Interim Management Statement

The Board of LMS Capital is pleased to present the Company's Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. This statement relates to the period from 1 July 2014 to 3 November 2014.

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 across a range of sectors.

In the three months to 30 September 2014 we received proceeds from realisations (principally distributions from our fund interests) of £1.5 million. In the same period calls from our outstanding fund commitments were £0.4 million. Uncalled commitments to funds at 30 September 2014 were £7.1 million. Total realisations in the first nine months of the year were £42.0 million, with fund calls of £1.0 million. The Company had cash of £7.4 million at 30 September 2014, after returning £40 million to shareholders by way of a tender offer in May this year.

The Company's unaudited net asset value per share at 30 September 2014 was 97 pence, up 3 pence (3%) from 94 pence as at 30 June 2014. The principal factor in this increase was the strengthening of the US dollar against £ sterling which resulted in unrealised currency gains of £5.1 million in the third quarter.  

Since the end of September, prices for most of our quoted stocks (in particular Weatherford International) have declined, thereby reducing our net asset value. In the same period, the continued strengthening of the US dollar against £ sterling has resulted in further unrealised foreign currency gains. As a result of these factors, at the date of this report we estimate that the NAV per share has reduced since the end of the third quarter by around 3p per share.

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.

Investments

The carrying value of the investment portfolio at 30 September 2014 is based on the valuation of the Company's investments as at 30 June 2014 with adjustments for transactions in the three months ended 30 September 2014 including price movements on quoted securities, movements in foreign currency exchange rates, cash calls and distributions from funds and purchases 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 2014. 

The Company's investment portfolio at 30 September 2014 (and 30 June 2014) was as follows:

		30 September 2014		30 June  2014
		£'000		£'000
US
Quoted		29,169		28,256
Unquoted		30,988		29,390
Funds		36,740		34,887
US total		96,897		92,533
UK
Quoted		1,765		1,766
Unquoted		15,290		15,140
Funds		27,362		27,558
UK total		44,417		44,464
Total		141,314		136,997

Details of our ten largest investments by valuation at 30 September 2014, representing approximately 71% 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 2014 to 3 November 2014.  It does not contain any profit forecast or forward looking information. Future NAV and share price performance are 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 8794

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 across a range of sectors.

www.lmscapital.com

LMS Capital plc                                                                                                          Appendix

Interim management statement - 3 November 2014

The Company's principal investments by valuation at 30 September 2014 were as follows:

Name	Geography	Type	Sector	Date of initial investment	Book value £'000
Weatherford International	US	Quoted	Energy	1984	23,648
Brockton Capital	UK	Funds	Property	2006	15,168
Medhost Inc (formerly HealthTech)	US	Unquoted	Technology	2007	12,885
Yes To, Inc*	US	Unquoted	Consumer	2008	10,324
Nationwide Energy Partners	US	Unquoted	Energy	2010	10,049
Penguin Computing*	US	Unquoted	Technology	2004	6,361
ICU Eyewear*	US	Unquoted	Consumer	2010	6,143
BV Investment Partners	US	Funds	Buyouts	1996	5,511
ChyronHego Corporation	US	Quoted	Technology	1995	5,080
Entuity	UK	Unquoted	Technology	2000	5,000

*A portfolio company of San Francisco Equity Partners.

 

END

 

 

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