Publication Announcement

RNS Number : 1901T

LMS Capital PLC

02 June 2009

 



LMS Capital plc

This document is not a prospectus. Investors should not subscribe for any transferable securities referred to in this announcement except on the basis of information in the prospectus.

This announcement is not for release, publication or distribution in or into the united states, australia, Canada, japan or south africa

2 June 2009

LMS Capital plc, ("LMS Capital" or the "Company"), a self-managed closed-ended international investment company, today announces the proposed migration of its ordinary shares (the "Shares") from the London Stock Exchange's AIM market to the Official List of the UK Listing Authority (the "Official List") and the Main Market of the London Stock Exchange. The Company has today published its prospectus, which is available for public inspection on the Company's website and at the Viewing Facility of the UK Listing Authority. J.P. Morgan Cazenove Limited has been appointed as Sponsor and Financial Adviser in connection with the Admission, and is acting as NOMAD in relation to the de-listing from AIM. 

The Board believes that the Company, having gained valuable experience as a public company admitted to AIM since June 2006, has now developed and matured sufficiently as a company for the Main Market to be the most appropriate platform for the Company's continued growth. The Board believes that a listing on the Official List and admission to the Main Market will have the following benefits for Shareholders

• The Main Market represents a larger pool of capital, offering investors greater liquidity;

• The Company will have a potentially broader investor base as the inclusion of the Company in one of the FTSE's Indices will open the Shares up to tracker investors;

• The Company's profile will be raised through greater market making participation and research analyst coverage;

• Shareholders will have access to a more frequent and more detailed understanding of the Company's activities as a result of interim management statements and other disclosure requirements resulting from the Main Market's more expansive regime; and

• Investors may also invest in the Shares through ISAs.

It is expected that the admission of the Company's shares to the Official List and to trading on the Main Market of the London Stock Exchange will take place simultaneously with the de-listing from AIM, and will become effective at 08:00 on Tuesday 30th June 2009.

A copy of the prospectus has been submitted for public inspection at the Document Viewing Facility of the UK Listing Authority, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

For further information, please contact:

Robert Rayne, Chief Executive Officer Martin Pexton, Managing Director Tony Sweet, Chief Financial Officer
LMS Capital plc	[phone]
Michael Wentworth-Stanley  William Simmonds
J.P. Morgan Cazenove Limited	[phone]
Simon Sporborg  Robin Tozer
Brunswick Group	[phone]

This document does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for any securities of LMS Capital plc in any jurisdiction. No offer of securities of LMS Capital plc is being, or will be, made to the public. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes must inform themselves about, and observe any such restrictions on the distribution of this document. In particular, this document and the information contained therein is not for distribution or publication, neither directly nor indirectly, in or into the United States of America, Australia, Canada, Japan or South Africa or any jurisdiction in which such distribution or publication is unlawful.

This announcement is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. No public offering of securities will be made in the United States by the Company in connection with the Company's admission to the Official List and the the Main Market of the London Stock Exchange.

The price of securities and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of the securities. There is no guarantee that the market price of securities in LMS Capital plc will fully reflect their underlying net asset value.

Notes for Editors

About LMS Capital (www.lmscapital.com)

LMS Capital is an international investment company. The investment portfolio comprises investments primarily in the US and the UK, with a spread of early stage revenue-generating technology investments, development capital and mature company buyouts.

The following tables provide summary details of the Company's portfolio as at 30 April 20091.

Top 25 Investments (Excluding fund interests in which the Company has only a minority position)
Rank (% of NAV)	Investment	Geography		Type of Investment	Date of initial investment	Cost £m	Book Value £m	Effective equity interest	% of LMS Capital'snet assets
1	Weatherford International Ltd		US	Quoted	2001	19,923	22,901	<1%	9%
2	Method products		US	Fund portfolio	2004	6,308	21,487	13%	9%
3	Prostrakan Group plc		UK	Quoted	1999	23,717	13,729	8.7%	6%
4	Rave Reviews Cinemas		US	Unquoted	2002	6,406	6,406	13%	3%
5	Cityspace Limited		UK	Unquoted	1997	21,357	6,000	94%	2%
6	Wesupply Limited		UK	Unquoted	2000	18,886	5,500	99%	2%
7	Penguin Computing		US	Fund portfolio	2004	5,088	5,498	19%	2%
8	Gulfmark Offshore Inc		US	Quoted	2008	6,689	4,525	<1%	2%
9	Luxury Link		US	Fund portfolio	2006	2,460	4,143	14%	2%
10	Coppereye Limited		UK	Unquoted	2001	12,711	3,981	76%	2%
11	Elateral Limited		UK	Unquoted	2000	7,160	3,500	40%	1%
12	Healthcare Management Systems Inc		US	Unquoted	2007	2,471	3,365	8%	1%
13	Chyron Corporation		US	Quoted	1995	1,438	3,054	17.8%	1%
14	Entuity Limited		UK	Unquoted	2000	10,757	3,000	68%	1%
15	Venture Production plc		UK	Quoted	2007	2,370	2,810	<1%	1%
16	Yes To, Inc		US	Fund portfolio	2008	2,499	2,657	11%	1%
17	Pims Group		UK	Unquoted	2008	2,905	2,500	10%	1%
18	BJ Services		US	Quoted	2007	3,627	2,333	<1%	1%
19	Telespree Communications		US	Unquoted	1999	3,830	2,185	25%	1%
20	7 Global Limited		UK	Unquoted	2000	20,026	2,000	91%	1%
21	Vio Worldwide Limited		UK	Unquoted	2002	20,350	2,000	84%	1%
22	The Guild		US	Fund portfolio	2006	5,332	2,104	40%	1%
23	Offshore Tool and Energy Corp.		US	Unquoted	1998	12,768	1,976	100%	1%
24	Envestnet Asset Management		US	Unquoted	2001	1,537	1,537	1%	1%
25	Eye-Fi		US	Unquoted	2008	1,005	1,368	5%	1%

(1) This information is based on the latest audited valuatuion of the Company's investment portfolio (as at 31 December 2008) with adjustments  in the four months ended 30 April 2009 for (a) price movements in quoted securities, (b) movements in foreign currency exchange rates, (c) cash calls and distributions from funds, and (d) purchases and sales of quoted securities.  In addition where the Company has invested further amounts in the existing unquoted portfolio, these amounts have been written off as fair value adjustments in the period pending the next full valuation of the portfolio scheduled for 30 June 2009. Investments in new unquoted securities are included at cost pending the next full valuation of the portfolio as at 30 June 2009. 

	Total Portfolio
Sector	%	Value (£m)
Applied technology	28	59.4
Media and leisure	26	54.9
Energy and water	19	40.7
Healthcare and medical	10	19.8
Real estate	8	16.6
Other	9	18.8
Total	100	210.2

	Total Portfolio
Asset Type and Geography	%	Value (£m)
US
Funds	36	75.4
Quoted	17	34.6
Unquoted	8	17.5
Sub-total	61	127.5
UK
UK Funds	14	30.4
UK Quoted	9	18.7
UK Unquoted	16	33.6
Sub-total	39	82.7
Total	100	210.2

Vintage2	Type of investment			Total Portfolio
	Quoted	Unquoted	Funds	%	Value (£m)
2008-9	4.7	4.3	0.8	5	9.8
2006-7	6.5	6.2	24.2	17	36.9
2004-5	1.5	0.2	51.1	25	52.8
Older	40.6	40.4	29.7	53	110.7
Total	53.3	51.1	105.8	100	210.2

(2) "Vintage" means the year the Company first invested into the relevant investment. 

Valuation basis	Total Portfolio
	%	Value (£m)
3 Third Party Valuation	57	118.9
Public Market Quotation	25	53.3
Directors' valuation	18	38.0
Total	100	210.2

(3) Third party valuation includes valuation reports from fund managers regarding the Company's fund positions and co-investments.

Future Commitments

As at 30 April 2009, the Company had the following outstanding commitments in respect of its fund investments:

Future Commitments	Total Portfolio
	%	Value (£m)
US Funds	53	38.7
UK Funds	47	34.4
Total	100	73.1

The commitments to US funds are denominated in US dollars and at 30 April 2009 amounted to $57.4 million; the amount has been converted to pounds sterling at a rate of £1.00: US $1.49 (being the prevailing exchange rate as at 30 April 2009). Included in the commitments to US funds is $15.6 million in respect of San Francisco Equity Partners.

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