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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