Interim Management Statement

3 November 2009

                                LMS Capital plc                                

                         Interim Management Statement                          

LMS Capital plc ("LMS Capital" or "the Company") presents its 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 July 2009 to
31 October 2009.

LMS Capital is an international investment company which aims to produce high
rates of return though a risk diversified portfolio. This diversification is
achieved through geographical spread, primarily the US and UK, and through
investment in assets of varying maturities. The major focus is in small to
medium sized companies in our preferred sectors of energy services, applied
technology, media & consumer, medical & healthcare and real estate.

Despite a strong performance in major stock markets, unemployment in the
western economies has continued to rise and the available liquidity has been
predominantly a function of governments' monetary intervention. Whilst equity
markets have shown short term gains, we believe there has been little evidence
of a sustained recovery. The volume of private equity and real estate
transactions remains low. For the immediate future we remain cautious.

The unaudited net asset value per share at 30 September 2009 was 87 pence, an
increase of 5% since 30 June 2009 and a decrease of 2% from 31 December 2008.
The principal factor in this increase was the recovery in the public markets.
During October we have however seen a weakening in the share prices of our two
largest quoted investments, ProStrakan Group and Weatherford International, and
this, coupled with a slight strengthening of the US dollar over the same
period, means that we estimate that NAV per share at the end of October had
fallen back to its end of June level of 83 pence.

During the three months ended 30 September 2009 funds invested by the Company
were £10.5 million in unquoted securities and to meet fund calls. Proceeds from
realisations of quoted securities and fund distributions were £6.5 million.

The Company's investment portfolio at 30 September 2009 was as follows:

                           US                 UK                  Total      
                                                                             
                       £'000         %    £'000        %       £'000        %
                                                                             
Quoted                39,539       18%   23,730      11%      63,269      29%
                                                                             
Unquoted              16,275        7%   38,785      18%      55,060      25%
                                                                             
Funds                 72,248       33%   29,133      13%     101,381      46%
                                                                             
Total                128,062       58%   91,648      42%     219,710     100%

The carrying value of the portfolio at 30 September 2009 is based on the
valuation of the Company's investment portfolio as at 30 June 2009 with
adjustments for transactions in the three months ended 30 September 2009
including price movements on quoted securities, movements in foreign currency
exchange rates, cash calls and distributions from funds and purchases and sales
of quoted securities. In addition, where the Company has invested further
amounts in its existing unquoted portfolio, such amounts have been written off
as fair value adjustments in the period and investments in new unquoted
securities in the period are included at cost. The next full valuation of the
portfolio will be as at 31 December 2009.

The ten largest holdings at 30 September 2009 (excluding fund interests where
the Company has only a minority position) were as follows:

Name                    Geography          Type        Book value   % of net 
                                                                     assets  
                                                                             
                                                          £'000              
                                                                             
Weatherford                US             Quoted         26,415       11%    
International                                                                
Oilfield services                                                            
                                                                             
Prostrakan Group plc       UK             Quoted         21,650        9%    
Specialty                                                                    
pharmaceuticals                                                              
                                                                             
Method Products            US         Fund portfolio     10,963        8%    
Consumer products                        company                             
                                                                             
Rave Reviews Cinemas       US            Unquoted         6,210        3%    
Cinema operations                                                            
                                                                             
Updata Infrastructure      UK            Unquoted         6,200        3%    
UK Wide area networks                                                        
                                                                             
Kizoom Transport           UK            Unquoted         6,000        3%    
information systems                                                          
                                                                             
Wesupply B2B               UK            Unquoted         5,500        2%    
connectivity software                                                        
                                                                             
Penguin Computing          US         Fund portfolio      5,345        2%    
Linux server systems                     company                             
                                                                             
Gulfmark Offshore          US             Quoted          5,084        2%    
Offshore services                                                            
                                                                             
Yes To Consumer            US         Fund portfolio      3,857        2%    
products                                 company                             
                                                                             
                                                         97,224       45%    

At 30 September 2009 the Company had uncalled commitments to funds of £62.6
million which we expect to be called over the next five years. Cash and other
liquid assets (including the value of our quoted portfolio) were £84.7 million.
The Company has no debt.

Portfolio subsidiaries

The latest available trading results for our portfolio subsidiaries are to 30
September and these indicate that 2009 continues to produce mixed results.
Updata, in which we acquired our interest in July this year, has performed well
and its results to September are ahead of budget. Entuity, our network
management software business, is also trading ahead of budget with
significantly improved profitability. Kizoom and Coppereye have encountered
difficult trading conditions in 2009 and their results for the period have been
disappointing. Members of our investment team are working closely with the
management of these companies to achieve improvements in their operating
performance.

This statement is a general description of the financial position and
performance of the Company for the period from 1 July 2009 to 31 October 2009.
It does not contain any profit forecast or forward looking information. Future
performance and share price 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.