Interim Management Statement

RNS Number : 5930E

LMS Capital PLC

14 May 2013

LMS Capital plc ("the Company")

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 January 2013 to 13 May 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.

The Company's unaudited net asset value per share at 31 March 2013 was 89 pence, an increase of 4 pence from 85 pence as at 31 December 2012. The principal factors in this increase were unrealised currency gains as the US dollar strengthened against £ sterling over the period and increases in the prices of the Company's principal US quoted investments. Since the end of March the Company's financial position is substantially unchanged.

There are active sales processes underway on a number of the Company's investments. On 18 March 2013 we announced the sales of two of our unquoted interests - Apogee Group and Pims Group - which together realised £19.3 million. In addition, distributions from funds in the first quarter were £2.0 million and sales of quoted investments were £0.7 million; calls from our outstanding fund commitments were £0.7 million.

At 31 March 2013 the Company had cash of £42.4 million (31 December 2012: £20.1 million) and uncalled commitments to funds of £10.3 million (31 December 2012: £10.4 million).

In current market conditions it is difficult to predict the outcome of sales processes in terms of timing and proceeds. Nevertheless, the Directors remain satisfied with current progress and aim to make a further distribution to shareholders later in the year.

Consolidated Portfolio subsidiaries

The latest available trading results for our portfolio subsidiaries are to 31 March 2013. Consolidated revenues for the first quarter were 40% ahead of the same period last year with significant contributions from Updata whose revenues from rental contracts for the first quarter were approximately 21% ahead of the same period last year and Nationwide Energy Partners where revenues in the first quarter were 50% ahead of last year, reflecting in part the company's slower start to 2012.

Investments

The carrying value of the investment portfolio at 31 March 2013 is based on the valuation of the Company's investments as at 31 December 2012 with adjustments for transactions in the three months ended 31 March 2013 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 half year results as at 30 June 2013.

The Company's investment portfolio at 31 March 2013 (and 31 December 2012) was as follows:

	31 March 2013	31 December 2012
	£'000	£'000

US
Quoted	19,433	16,114
Unquoted	40,685	38,178
Funds	46,699	46,638
US total	106,817	100,930

UK
Quoted	897	1,014
Unquoted	28,540	47,476
Funds	30,075	29,879
UK total	59,512	78,369

Total	166,329	179,299

Details of our largest investments by valuation at 31 March 2013, representing approximately 75% 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 January 2013 to 13 May 2013. 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
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 - 14 May 2013

The Company's principal investments by valuation at 31 March 2013 were as follows:

Name	Geography	Type	Sector	Date of initial investment	Book value £'m

HealthTech Holdings	US	Unquoted	Technology	2007	23.8
Weatherford International	US	Quoted	Energy	1984	16.4
Updata Infrastructure UK	UK	Unquoted	Technology	2009	14.5
Brockton Capital	UK	Funds	Property	2006	13.0
Nationwide Energy Partners	US	Unquoted	Energy	2010	10.7
Yes To, Inc*	US	Unquoted	Consumer	2008	8.5
BV Investment Partners	US	Funds	Buyouts	1996	8.3
Penguin Computing*	US	Unquoted	Linux server systems	2004	5.5
Primus Capital	US	Funds	Business services	2000	5.4
Voreda Capital	UK	Fund	Property	2008	5.3
Luxury Link*	US	Unquoted	Internet commerce	2006	4.7
Opus Capital	US	Funds	Technology	2006	4.1
Entuity	UK	Unquoted	Technology	2000	4.0