Net Asset Value(s)

RNS Number : 3336O

LMS Capital PLC

29 January 2019

 

29 January 2019

LMS Capital plc

Net Asset Value Estimate as at 31 December 2018

LMS Capital plc (the "Company") is a listed Investment Company focused on investing in private equity and illiquid asset classes. The Company's portfolio is managed by Gresham House Asset Management Limited ("GHAM").

The Company has commenced the year end valuation review process which is based on the latest performance updates from portfolio companies and third-party fund manager valuations. The Board currently estimates that the year-end net asset value will be in the region of £60 million (74.3p per share); this compares with £63.8 million (79.0p per share) at 30 June 2018.

This estimate reflects information currently available to the Board on the performance and prospects of individual investments in the Company's portfolio and is subject to further evaluation as well as completion of the annual audit.

The valuation methodology and policy adopted is consistent with prior years and is in line with IPEV guidelines. 

The reduction in the net asset value since the half year reflects

·    a downward revision, based on information received from the third party fund manager, to the estimated future proceeds to be received following the sale of Penguin Computing in June 2018. As a result, the Company does not now expect to recover its pre-exit carrying value of the investment. In addition, there was a significant reduction in the price of two of the Company's quoted securities, Weatherford and IDE Group. The movements on Penguin Computing and the quoted investments together, amounted to a reduction of approximately £5.1 million;

·    partially offset by a net increase of £1.3 million which includes increases and decreases in values of other portfolio assets, unrealised foreign exchange movements, realised gains on sales and operating costs.

Further information on the performance of the portfolio, underlying investment valuations and changes during the current year will be included in the Company's audited results for the year ended 31 December 2018, which it expects to announce in mid-March 2019.

Group cash balances at 31 December 2018 were £17.7 million, an increase of £13.7m during the year, following continued strong realisations. Proceeds from the sale of Penguin Computing and the sale of the Company's interest in Brockton Capital LLP were reported at the half year. In the second half of the year the Company sold back to NEP's founder shareholder, its remaining debt interest in NEP. Proceeds were $4.6 million (£3.6 million), a surplus of £0.6 million compared to the carrying value.

The availability of cash during the second half of the year has allowed GHAM to focus on a pipeline of new investment opportunities for the Company. The Board expects this pipeline to result in new investments during the first half of 2019. As well as seeking new investments GHAM continues to focus on managing the existing portfolio of investments to ensure value is optimised. 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please contact: 

LMS Capital PLC                                                                                                        020 3837 6275

Martin Knight, Chairman

Gresham House Asset Management

Graham Bird, Investment Director                                                                         020 3837 6275

J.P. Morgan Cazenove

Michael Wentworth-Stanley                                                                                   0207 742 4000

 

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