Half-year Financial Report

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT MAY CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE UK'S MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

LEI: 2138004UJ1TW8UCELX08

29 July 2026

LMS CAPITAL PLC
Half year results for the six months ended 30 June 2026

Financial Update

• Net Asset Value (“NAV”) at 30 June 2026 of £26.6 million (33.0p per share), a decrease of £2.4 million as compared to £29.0 million (35.9p per share) at 31 December 2025;
• The net reduction in NAV of £2.4 million comprises:
  • Return of capital in February 2026 of £1.6 million;
  • Realised and unrealised underlying portfolio losses of £0.2 million.
  • Unrealised foreign exchange gains, due to the devaluation of sterling against the US Dollar, of £0.2 million;
  • Running costs of £0.6 million; and
  • Investment related costs of £0.2 million.
• Group cash at 30 June 2026 was £2.6 million (31 December 2025: £6.8 million).

Managed Realisation Strategy

• The Company made its second return of capital to shareholders of 2 pence per share, in February 2026;
• Realisation of the legacy private equity portfolio continues, it is hoped that current exit processes underway will produce realisation on Opus and Elateral by year end.
• In respect of Dacian and the retirement living investment the Board continue to evaluate realisation strategies that potentially produce a materially better return for shareholders than immediate sale;

James Wilson, Chairman, commented:

“The Board continues to focus on realising the portfolio. Our ambition remains to have a clear path to liquidity in 2027 in relation to our two main assets. We hope our current efforts will enable us to bring greater clarity later in the year and as we enter 2027.”

29 July 2026

Enquiries: LMS Capital plc
020 7935 3555
James Wilson, Chairman
Nicholas Friedlos, Managing Director

Chairman and Managing Director’s Statement

The financial results of the Company for the first six months of the year and an update on the portfolio and the direction of the business are set out below.

OVERVIEW

Managed realisation strategy
At the Company’s General Meeting in May 2025, shareholders approved the Board’s recommendation to adopt a strategy of managed realisation of the Company’s assets, over time, and the return of capital to shareholders.

The Board is focused on managing the portfolio to deliver this strategy in a manner which balances the optimisation of realisation proceeds with the time and cost of implementation.

The company’s second return of capital of 2p per share (£1.6 million) was made in February 2026, bringing the total returned since the start of the managed realisation to 4p per share (£3.2 million).

The Company will make further returns of capital as and when appropriate in line with the timing and amount of proceeds from the realisation of the portfolio.

Portfolio update
The Company’s investments range from its legacy private equity investments, which are more readily realisable, to its energy and retirement living investments which are less liquid.

Legacy private equity investments – three principal holdings

• Weber Fund (valuation £0.25 million). This is the most liquid investment in the portfolio being a fund of listed US micro-cap stocks. This fund is now largely realised with a further $1.8 million (£1.3 million) having been realised in the first six months of 2026;
• Opus (valuation £3.0 million). The manager of this early-stage technology fund is optimistic that liquidity can be achieved within a reasonable time frame for the fund’s two principal remaining assets, and is actively engaged in seeking to achieve this; and
• Elateral (valuation £1.1 million). An investment adviser with specialist knowledge of the sector in which Elateral operates was appointed in Q1 2026 and a process is underway which is expected to enable LMS to realise its investment during 2026.

Dacian (valuation £10.8 million)

Operational
In August 2025 LMS announced that it was investing up to $5.3 million in Dacian by way of a new loan, to be advanced in stages during 2025 and 2026. Other Dacian founder investors would invest an additional $0.24 million.

The investment was to provide funding for a plan developed by Dacian’s team, the key elements of which are:

• Investment in inventory of replacement components and implementation of a maintenance plan to reduce the frequency of equipment failures and consequent interruptions to production;
• Carrying out a programme of well workovers and interventions to enhance production over the next 12 months;
• Implementation of cost efficiencies;
• Taking opportunities to monetise some unutilised land and equipment held by Dacian;
• Evaluating and presenting to external providers of capital, an identified set of additional development projects within Dacian’s existing fields; and
• Continuing to work with partners in the development of other opportunities including in clean energy initiatives.

Progress against the plan put forward in July 2025 has been satisfactory:

• There continue to be steady month on month increases in production as a result of the workover programme, reversing the pattern of natural decline in 2024 and 2025;
• Additional development projects, identified by the Dacian team, are currently being technically evaluated by external consultants. It is anticipated that this work will be concluded by late 2026 with a view to commencing discussions with external capital in 2027; and
• Discussions with potential partners on clean energy initiatives continue.

The additional loan was substantially drawn at 30 June 2026.

Increased oil prices for much of 2026 have helped the company’s cash position. Dacian’s current estimate is that some funding may be required in the remainder of 2026, but currently this is not expected to exceed $500,000. It is expected that LMS, as lead investor, will provide this funding.

Valuation
The Board continues to believe that its strategy of supporting the Dacian team to improve operating returns from the existing wells and to identify and promote new opportunities is attractive and will offer investors the prospect of a materially better overall financial outcome on realisation rather than seeking an immediate sale.

The underlying valuation of the Dacian investment at 30 June 2026 is $14.3 million (31 December 2025 $13.0 million). The movement since the year end comprises:

• Additional loan funding of $1.4 million;
• Unrealised loss of $0.1 million from valuation adjustments.

Retirement Living (valuation £9.4 million)

Operational
There has been good operational progress at Castle View in the first 6 months of the year. Three further rentals were agreed in the period to 30 June 2026 and two additional units have gone under offer for rental during July.

With the rentals now contracted, and assuming the two under offer complete, of the 15 units available when LMS acquired Castle View in December 2023, only one will remain vacant.

Additionally, there has been an increase in activity for residents wishing to resell their apartments. There is clearly a risk that transactions do not proceed to completion, but if the current transactions which have exchanged along with those under offer, proceed to completion there will be few, if any, vacant units at Castle View which is a positive both operationally for the village and also for sales and rentals.

Financing
As previously discussed, the current debt facility at Castle View, which is due for repayment in full in December 2026, is not structured to allow rentals. To facilitate the rental programme LMS has to date paid down debt on rental units. A new 5-year finance facility on the rental units has been signed and the legal formalities are being concluded to allow completion. Once completed, the balance of the Terido facility, £1.54 million at 30 June 2026, will be paid down, which will allow an initial drawdown of £1.25 million on the first 5 rental units and a further £1.17 million on the remaining units once they are rented.

Valuation
The Company’s investment in Castle View has a valuation of £9.4 million at 30 June 2026 (31 December 2025 £7.5 million), net of the Terido debt facility of £1.54 million (31 December 2025 £3.3 million). The movement since the year end predominately represents the £1.9 million additional investment in rental units;

Costs
The Board will continue to look to reduce the Company’s cost base, consistent with operating requirements of the business and maintaining appropriate governance as the managed realisation progresses.

Cash
Cash balances at 30 June 2026 were £2.6 million (31 December 2025: £6.8 million). Outflows in the first half year were:

• Return of capital February 2026 £1.6 million;
• Dacian loan investment £1.0 million;
• Repayment of debt on Castle View rental units £1.9 million;
• Costs £0.8 million;
• Other net outflows £0.2 million; and
• Inflows were £1.3 million from Weber.

Drawdown of the new Castle View debt facility should produce net cash inflows of £0.9 million.

FINANCIAL SUMMARY
The NAV of the Company at 30 June 2026 was £26.6 million, 33.0 pence per share (31 December 2025: £29.0 million, 35.9 pence per share) and is summarised below:

	30 June		31 December
	2026 (unaudited)		2025 (audited)
	£’000		£’000
Dacian	10,760		9,669
Castle View	9,409		7,526
Opus	3,039		3,092
Elateral	1,100		1,100
Weber	249		1,495
Other	242		300
Total Investments	24,799		23,182
Cash	2,593		6,761
Other net assets / (liabilities/provisions)	(771)		(926)
Net Assets	26,621		29,017

The overall NAV in the half year has decreased by £2.4 million. Adjusting for the £1.6 million reduction from the return of capital in February 2026, there has been an overall decrease in NAV of £0.8 million. This comprises:

• Underlying portfolio valuation movements (excluding any foreign exchange effect) – net reduction £0.2 million summarised below:
  • Dacian £0.1 million loss;
  • Weber £0.1 million gain;
  • Simmons £0.1 million loss; and
  • Opus £0.1 million loss.
• Unrealised foreign exchange gains £0.2 million;
• Running costs of £0.6 million; and
• Investment related costs were £0.2 million.

James Wilson
Chairman

Nicholas Friedlos
Managing Director
29 July 2026

Portfolio Management Review

The movement in NAV during the six months ended 30 June was as follows:

	Six months ended 30 June
	2026		2025
	£’000		£’000
Opening NAV	29,017		36,155
Income and fair value adjustments on investment portfolio	(43)		(3,537)
Dividends	-		-
Return of capital	(1,615)		-
Overheads and other net movements	(738)		(1,304)
Closing NAV	26,621		31,314

Cash realisations and new and follow-on investments from the portfolio were as follows:

	Six months ended 30 June
	2026		2025
	£’000		£’000
Distributions from funds	1,333		-
Proceeds from the sale of investments	-		121
Total – gross cash realisations	1,333		121
Follow-on investments	(2,915)		(1,049)
Fund calls	(78)		-
Total – net	(1,660)		(928)

Below is a summary of the investment portfolio of the Company and its subsidiaries, which reflects all investments held by the Group:

	30 June 2026				31 December 2025
Mature investment portfolio	GBP denominated £’000	USD denominated £’000	Total £’000		GBP denominated £’000	USD denominated £’000	Total £’000
Quoted	-	10	10		-	44	44
Unquoted	1,100	-	1,100		1,100	-	1,100
Funds	232	3,288	3,520		256	4,587	4,843
	1,332	3,298	4,630		1,356	4,631	5,987
Other investments	GBP denominated £’000	USD denominated £’000	Total £’000		GBP denominated £’000	USD denominated £’000	Total £’000
Dacian	-	10,760	10,760		-	9,669	9,669
Castle View	9,409	-	9,409		7,526	-	7,526
	9,409	10,760	20,169		7,526	9,669	17,195
Total investments	10,741	14,058	24,799		8,882	14,300	23,182

Basis of valuation:

Quoted investments
Quoted investments for which an active market exists are valued at the closing bid price at the reporting date.

Unquoted direct investments
Unquoted direct investments for which there is no active market are valued using the most appropriate valuation technique with regard to the stage and nature of the investment.

Valuation methods that may be used include:

• investments in an established business are valued using revenue multiples depending on the stage of development of the business and the extent to which it is generating sustainable revenue or earnings; and
• investments in an established business which is generating sustainable revenue or earnings but for which other valuation methods are not appropriate are valued by calculating the discounted value of future cash flows.

Funds
Investments in managed funds are valued at fair value. The general partners of the funds will provide periodic valuations on a fair value basis, the latest available of which the Company will adopt provided it is satisfied that the valuation methods used by the funds are not materially different from the Company’s valuation methods. Adjustments will be made to the fund valuation where the Company believes the evidence available supports an alternative valuation.

Performance of the investment portfolio
The return on investments for the six months ended 30 June was as follows:

	Six months ended 30 June 2026			Six months ended 30 June 2025
	Realised	Unrealised		Realised	Unrealised
	gains/(losses)	gains/(losses)	Total	gains/(losses)	gains/(losses)	Total
Asset type	£'000	£'000	£'000	£'000	£'000	£'000
Quoted	-	(34)	(34)	(12)	-	(12)
Unquoted	-	(164)	(164)	23	(3,126)	(3,103)
Funds	-	(68)	(68)	-	(580)	(580)
	-	(266)	(266)	11	(3,706)	(3,695)
Accrued interest income			223			158
Income and fair value adjustments on investment portfolio			(43)			(3,537)

Approximately 57% of the portfolio at 30 June 2026 is denominated in US Dollars (31 December 2025: 62%) and the above table includes the impact of currency movements. In the first six months of 2026, the strengthening of the US Dollar against sterling resulted in an unrealised foreign currency gain of £0.2 million. (2025: unrealised loss of £1.3 million). As is common practice in private equity investment, it is the Board’s current policy not to hedge the Company’s underlying non-sterling investments.

Quoted investments

		30 June		31 December
		2026		2025
Company	Sector	£’000		£’000
Arsenal Digital Holdings Inc	US energy	10		44
		10		44

The changes in valuation on the quoted portfolio arose as follows:

		Six months ended 30 June
		2026		2025
Fair value increases/(decreases)		£’000		£’000
Realised
Tialis Essential IT plc		-		(12)
		-		(12)
Unrealised
Arsenal Digital Holdings Inc		(35)		-
Unrealised foreign currency gains		1		-
		(34)		-
Total net (losses)/gains		(34)		(12)

Unquoted investments

		30 June		31 December
		2026		2025
Company	Sector	£’000		£’000
Dacian	Romanian energy	10,760		9,669
Castle View	Retirement living	9,409		7,526
Elateral	UK technology	1,100		1,100
		21,269		18,295

The changes in valuation on the unquoted portfolio arose as follows:

		Six months ended 30 June
		2026		2025
Fair value increases/(decreases)		£’000		£’000
Realised
Medhost		-		23
		-		23
Unrealised
Dacian		(59)		(1,763)
Castle View		(244)		(553)
Cresco		-		1
Unrealised foreign currency gains/(losses)		139		(811)
		(164)		(3,126)
Total net losses		(164)		(3,103)
Income movements
Interest on Castle View investment		223		158
		223		158

Valuations are sensitive to changes in the following inputs:

• the operating performance of the individual businesses within the portfolio;
• changes in the revenue and profitability multiples and transaction prices of comparable businesses, which are used in the underlying calculations;
• changes in the estimated future cash flows of the individual businesses which are derived based on judgemental inputs; and
• the discount rates applied to all valuations.

Fund interests

		30 June		31 December
		2026		2025
General partner	Sector	£’000		£’000
Opus Capital Venture Partners	US venture capital	3,039		3,092
GW 2001 Fund	US quoted micro-caps	249		1,495
EMAC ILF	Europe real estate	231		256
Simmons Parallel Energy	UK energy	1		-
		3,520		4,843

The changes in valuation on the Company’s fund portfolio arose as follows:

		Six months ended 30 June
		2026		2025
Fair value increases/(decreases)		£’000		£’000
Unrealised
Opus Capital Venture Partners		(96)		(5)
GW 2001 Fund		91		(94)
Simmons Parallel Energy		(72)		-
Others (net)		-		(11)
Unrealised foreign currency gains/(losses)		31		(470)
Total net losses		(46)		(580)

Costs
Group costs for the period (including £0.7 million incurred by the Company and £0.1 million by subsidiaries) were £0.8 million (2025: £1.4 million) which included running costs of £0.6 million and investment related costs, being support costs for the Dacian and Castle View investments, of £0.2 million.

Taxation
The Group tax provision for the period is £nil (2025: £nil).

Financial Resources and Commitments
At 30 June 2026 cash holdings, including cash in subsidiaries, were £2.6 million (31 December 2025: £6.8 million) and neither the Company nor any of its subsidiaries had any external debt.

At 30 June 2026, subsidiary companies had commitments of £0.4 million (31 December 2025: £1.5 million) to meet outstanding capital calls from fund interests.

LMS CAPITAL plc
29 July 2026

Unaudited Company Income Statement

		Six months ended 30 June
		2026		2025
	Notes	£’000		£’000
Net losses on investments	5	(652)		(4,554)
Interest income		504		645
Total losses on investments		(148)		(3,909)
Operating expenses		(680)		(968)
Foreign currency exchange differences		16		(21)
Loss before tax		(812)		(4,898)
Taxation		-		-
Loss for the period		(812)		(4,898)
Attributable to:
Equity shareholders		(812)		(4,898)
Loss per ordinary share – basic	6	(1.0p)		(6.1p)
Loss per ordinary share – diluted	6	(1.0p)		(6.1p)

Unaudited Company Statement of Other Comprehensive Income

		Six months ended 30 June
		2026		2025
		£’000		£’000
Loss for the period		(812)		(4,898)
Other comprehensive income		-		-
Total comprehensive loss for the period		(812)		(4,898)
Attributable to:
Equity shareholders		(812)		(4,898)

Unaudited Company Statement of Financial Position

		30 June 2026		31 December 2025
	Notes	£’000		£’000
Assets
Non-current assets
Investments	8	3,439		4,091
Amounts receivable from subsidiaries		22,035		18,541
Total non-current assets		25,474		22,632
Current assets
Operating and other receivables		94		106
Cash and cash equivalents		1,926		6,565
Total current assets		2,020		6,671
Total assets		27,494		29,303
Liabilities
Current liabilities
Operating and other payables		(133)		(285)
Amounts payable to subsidiaries		(740)		(1)
Total current liabilities		(873)		(286)
Total liabilities		(873)		(286)
Net assets		26,621		29,017
Equity
Share capital		8		8
Share-based equity		441		410
Retained earnings		26,172		28,599
Total equity shareholders’ funds		26,621		29,017
Net asset value per ordinary share	11	32.98p		35.94p

Unaudited Company Statement of Changes in Equity

Six months ended 30 June 2026

		Share-
	Share	based	Retained	Total
	capital	equity	earnings	equity
	£'000	£'000	£'000	£'000
Balance at 1 January 2026	8	410	28,599	29,017
Comprehensive loss for the period
Loss for the period	-	-	(812)	(812)
Equity after total comprehensive loss for the period	8	410	27,787	28,205
Contributions by and distributions to shareholders
Share-based payments	-	31	-	31
Issue of B share capital	1,615		(1,615)	-
Return of capital	(1,615)	-	-	(1,615)
Dividends (note 7)	-	-	-	-
Balance at 30 June 2026	8	441	26,172	26,621

Six months ended 30 June 2025

			Capital	Share-
	Share	Share	redemption	based	Retained	Total
	capital	premium	reserve	equity	earnings	equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2025	8,073	508	24,949	322	2,303	36,155
Comprehensive loss for the period
Loss for the period	-	-	-	-	(4,898)	(4,898)
Equity after total comprehensive loss for the period	8,073	508	24,949	322	(2,595)	31,257
Contributions by and distributions to shareholders
Share capital reduction	(8,065)	(508)	(24,949)	-	33,522	-
Share-based payments	-	-	-	57	-	57
Dividends (note 7)	-	-	-	-	-	-
Balance at 30 June 2025	8	-	-	379	30,927	31,314

Unaudited Company Cash Flow Statement

		Six months ended 30 June
		2026		2025
	Notes	£’000		£’000
Cash flows from operating activities
Loss before tax		(812)		(4,898)
Adjustments for non-cash income and expenses:
Equity settled share-based payments		31		57
Depreciation of right-of-use assets		-		14
Interest expense on lease		-		1
Losses on investments	5	652		4,554
Interest income		(504)		(645)
Exchange differences on cash balances		(16)		20
		(649)		(897)
Changes in operating assets and liabilities
(Increase)/decrease in operating and other receivables		(8)		87
Decrease in operating and other payables		(152)		(173)
Increase in amounts receivable from subsidiaries		(3,494)		(1,684)
Increase in amounts payable to subsidiaries		739		21
Net cash used in operating activities		(3,564)		(2,646)
Cash flows from investing activities
Interest received		524		660
Net cash from investing activities		524		660
Cash flows from financing activities
Dividends paid	7	-		-
Return of capital		(1,615)		-
Repayment of principal lease liabilities		-		(8)
Repayment of lease interest		-		(1)
Net cash used in financing activities		(1,615)		(9)
Net decrease in cash		(4,655)		(1,995)
Exchange gains/(losses) on cash balances		16		(20)
Cash at the beginning of the period		6,565		11,646
Cash at the end of the period		1,926		9,631

Notes to the unaudited financial information

1. Reporting entity
LMS Capital plc (“the Company”) is a public limited company limited by shares incorporated in the United Kingdom under the Companies Act and registered in England and Wales. These unaudited condensed interim financial statements are presented in pounds sterling because that is the currency of the principal economic environment of the Company’s operations.

The Company was formed on 17 March 2006 and commenced operations on 9 June 2006 when it received the demerged investment division of London Merchant Securities.

2. Statement of compliance and basis of preparation
These condensed interim financial statements have been prepared in accordance with IAS 34: ‘Interim Financial Reporting’. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2025 which were prepared in accordance with UK adopted International Financial Reporting Standards.

The financial information presented in these interim results has been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial information in these interim results are primarily unchanged from those used in the Company’s financial statements for the year ended 31 December 2025 and are consistent with those that the Company expects to apply in its financial statements for the year ended 31 December 2026.

The Directors acknowledge that, at a General Meeting held on 14 May 2025, shareholders approved a change to the Company's investment policy requiring a Managed Realisation of the assets held within the Group and a return of capital over time to the shareholders.

Following the approval by the shareholders, it is expected that the Managed Realisation of the Company will take place over time which is expected to be a period greater than 12 months from the date of this report.

Based on the above, the Directors intend to cease trade of the Company at the conclusion of the Managed Realisation process. Therefore, the Directors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. On this basis, the Directors have prepared the financial statements on a basis other than going concern.

These condensed interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2025 were approved by the Board of Directors on 18 March 2026 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain any statement under section 498 of the Companies Act 2006, but did contain an emphasis of matter paragraph in relation to the fact that the financial statements were prepared on a basis other than going concern. The financial information for the periods ended 30 June 2025 and 30 June 2026 are unaudited and have not been reviewed by the Company’s auditors.

3. Estimates and management judgements
The preparation of the unaudited condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these unaudited condensed interim financial statements, the significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation were the same as those that applied to the Company financial statements as at and for the year ended 31 December 2025.

4. Financial risk management
The Company’s financial risk management objectives and policy are consistent with those disclosed in the Company financial statements as at and for the year ended 31 December 2025.

The principal risks and uncertainties remain the same as those that applied to the Company financial statements as at and for the year ended 31 December 2025.

5. Net losses on investments

The losses on investments were as follows

	Six months ended 30 June 2026			Six months ended 30 June 2025
	Realised	Unrealised		Realised	Unrealised
	gains/(losses)	gains/(losses)	Total	gains/(losses)	gains/(losses)	Total
Asset type	£'000	£'000	£'000	£'000	£'000	£'000
Quoted	-	(34)	(34)	(12)	-	(12)
Unquoted	-	(164)	(164)	23	(3,126)	(3,103)
Funds	-	(68)	(68)	-	(580)	(580)
	-	(266)	(266)	11	(3,706)	(3,695)
Net operating (losses)/income of subsidiaries			(386)			(859)
			(652)			(4,554)

6. Loss per ordinary share

The calculation of the basic and diluted loss per share, in accordance with IAS 33, is based on the following data:

		Six months ended 30 June
		2026		2025
Losses
Losses for the purpose of net loss per ordinary share attributable to equity holders of the parent (£’000)		(812)		(4,898)
Number of ordinary shares
Weighted average number of ordinary shares for the purposes of basic loss per ordinary share		80,727,450		80,727,450
Loss per ordinary share
Basic		(1.0p)		(6.1p)
Diluted		(1.0p)		(6.1p)

7. Dividends

No dividends were declared during the periods ending 30 June 2026 or 30 June 2025 as the Company has commenced its managed realisation and distributions to shareholders will be made by returns of capital.

8. Investments

The Company’s investments comprised the following:

	30 June		31 December
	2026		2025
	£’000		£’000
Total investments	3,439		4,091
These comprise:
Investment portfolio of subsidiaries	24,799		23,182
Other net liabilities of subsidiaries	(21,360)		(19,091)
	3,439		4,091

The carrying amounts of the investments of the Company’s subsidiaries were as follows:

	30 June		31 December
Investment portfolio of subsidiaries	2026		2025
Asset type	£’000		£’000
Quoted	10		44
Unquoted	21,269		18,295
Funds	3,520		4,843
Investment portfolio of subsidiaries	24,799		23,182
Other net liabilities of subsidiaries	(21,360)		(19,091)
	3,439		4,091

The movement in the investment portfolio were as follows:

	Quoted securities	Unquoted securities	Funds	Other net assets/ (liabilities) of subsidiaries	Total
	£’000	£’000	£’000	£’000	£’000
Balance at 1 January 2025	59	17,547	5,877	(15,641)	7,842
Accrued interest	-	339	-	-	339
Purchases	-	4,642	-	-	4,642
Proceeds from disposals	(40)	(79)	-	-	(119)
Distributions from partnerships	-	-	(1,325)	-	(1,325)
Fair value adjustments	25	(4,154)	291	-	(3,838)
Dividends paid	-	-	-	(2,498)	(2,498)
Other movements	-	-	-	(952)	(952)
Balance at 31 December 2025	44	18,295	4,843	(19,091)	4,091
Balance at 1 January 2026	44	18,295	4,843	(19,091)	4,091
Accrued interest	-	223	-	-	223
Purchases	-	2,915	-	-	2,915
Distributions from partnerships	-	-	(1,333)	-	(1,333)
Contributions to partnerships	-	-	78	-	78
Fair value adjustments	(34)	(164)	(68)	-	(266)
Other movements	-	-	-	(2,269)	(2,269)
Balance at 30 June 2026	10	21,269	3,520	(21,360)	3,439

The following table analyses investments carried at fair value at the end of the period, by the level in the fair value hierarchy into which the fair value measurement is categorised. The different levels have been defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets;

Level 2: inputs other than quoted prices included within level 1 that are observable for the asset, either directly (ie as prices) or indirectly (ie derived from prices); and

Level 3: inputs for the asset that are not based on observable market data (unobservable inputs such as trading comparables and liquidity discounts).

Fair value measurements are based on observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information.

The significant unobservable inputs used at 30 June 2026 in measuring investments categorised as level 3 are considered below:

1. Unquoted securities (carrying value £21.3 million) are valued using the most appropriate valuation technique such as a revenue-based approach, an earnings-based approach, or a discounted cash flow approach. These investments are sensitive to both the overall market and industry specific fluctuations that can impact multiples and comparable company valuations. In most cases the valuation method uses inputs based on comparable quoted companies for which the key unobservable inputs are:

• revenue multiples of 1.5 times, also dependent on attributes at individual investment level; and

• Discounts applied of up to 50%, to reflect the illiquidity risk of the unquoted companies. The discount used requires the exercise of judgement taking into account factors specific to individual investments such as size and rate of growth compared to other companies in the sector.

2. Investments in funds (carrying value £3.5 million) are valued using the reported NAV from the general partners of the fund interests with adjustments made for calls, distributions and foreign currency movements since the date of the report (if prior to 30 June 2026). The reported NAVs of the funds are fair value based. The Company also carries out its own review of individual funds and their portfolios to satisfy ourselves that the underlying valuation bases are consistent with our basis of valuation and knowledge of the investments and the sectors in which they operate. However, the degree of detail on valuations varies significantly by fund and, in general, details of unobservable inputs used are not available.

The valuation of the investments in subsidiaries makes use of multiple interdependent significant unobservable inputs and it is impractical to sensitise variations of any one input on the value of the investment portfolio as a whole. Estimates and underlying assumptions are reviewed on an ongoing basis however inputs are highly subjective. Changes in any one of the variables, earnings or revenue multiples or illiquidity discounts could potentially have a significant effect on the valuation.

The Company’s investments are analysed as follows:

	30 June		31 December
	2026		2025
	£’000		£’000
Level 1	-		-
Level 2	-		-
Level 3	3,439		4,091
	3,439		4,091

Level 3 includes:

	30 June		31 December
	2026		2025
	£’000		£’000
Investment portfolio of subsidiaries	24,799		23,182
Other net liabilities of subsidiaries	(21,360)		(19,091)
	3,439		4,091

The investment portfolio of subsidiaries includes quoted investments of £10,000 (2025: £44,000). There were no transfers between levels during the period ending 30 June 2026.

9. Capital commitments

	30 June		31 December
	2026		2025
	£’000		£’000
Outstanding commitments to funds	348		428
Publicly committed funding to Dacian	22		1,029
	370		1,457

The outstanding commitments to funds comprise unpaid capital calls in respect of funds where a subsidiary of the Company is a limited partner.

As of 30 June 2026 the Company has no other contingencies or commitments to disclose (2025: £nil).

10. Related party transactions

The related parties of LMS Capital plc are its Directors.

The salaries paid to the Directors of the Company for the period were £226,091 (30 June 2025: £240,612).

As at 30 June 2026, the Directors of the Company had the following beneficial interests in the ordinary shares of the Company:

	30 June 2026		31 December 2025
Director	Number of shares		Number of shares
J Wilson	1,041,905		1,041,905
R Rayne	3,887,211		3,887,211
N Friedlos	661,410		661,410
P Harvey	20,000		20,000
G Stedman	20,000		20,000

During the period, the Company paid rent of £10,000 (30 June 2025: £16,390) to The Rayne Foundation for its office space. Robert Rayne has previously been the Chairman of The Rayne Foundation.

11. Net asset value per ordinary share

The net asset value per ordinary share in issue is as follows:

	30 June		31 December
	2026		2025
Net assets (£’000)	26,621		29,017
Number of ordinary shares in issue	80,727,450		80,727,450
Net asset value per ordinary share (pence)	32.98		35.94

12. Subsequent events

There are no subsequent events that would materially affect the interpretation of these Financial Statements.

Statement of Directors’ responsibilities

The Directors listed on pages 17 and 18 of the Company’s Annual Report for the year ended 31 December 2025 continued in office during the six months ended 30 June 2026.

We confirm that to the best of our knowledge:

a the condensed interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority; and

b the interim management report includes a fair review of the information required by:

1. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the current financial year and their impact on the condensed interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and

1. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.

Nicholas Friedlos
Director

29 July 2026