Interim Management Statement

16 November 2011

LMS Capital plc

Interim Management Statement

The Board of LMS Capital ("LMS" 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 2011 to 15 November 2011.

On 7 November 2011, the Company issued a circular to shareholders convening a
General Meeting on 30 November to consider proposals including the amendment of
the Company's investment objective to implement an orderly wind-down of the
business. This IMS and the financial information included herein have been
prepared on the basis of the Company's current investment objective and do not
include adjustments, if any, which would be required if the investment
objective were changed.

The most significant recent developments and financial highlights were as
follows:

  * In September we completed a restructuring and acquisition of certain of the
    profitable trading entities of 365 plc, which provides IT managed services.
    This transaction increased our interest from 23% to 84% for net
    consideration of £1.8 million;
   
  * Also in September Updata entered into a borrowing facility which enabled it
    to return to us £2.85 million of our original investment cost;
   
  * In July we sold our remaining shares in Gulfmark Offshore at a small
    premium to the 30 June 2011 carrying value;
   
  * Also in July we completed on the sale of the last of the 7 fund positions,
    the disposal of which was announced in the first half;
   
  * Uncalled fund commitments at 30 September were £25.2 million - down from £
    27.5 million at the end of June and £40.7 million at the end of 2010;
   
  * Net Asset Value per share was 89 pence at 30 September 2011, a decrease of
    4% from 93 pence at 30 June 2011. The principal factor in this decline was
    the share price of Weatherford International which at the end of September
    was 35% lower than at the end of June. This resulted in an unrealised loss
    for the quarter of £8.5 million before currency effects, reducing NAV per
    share by 3 pence.
   
Consolidated Portfolio subsidiaries

The latest available trading results for our portfolio subsidiaries are to 30
September:

  * Updata enjoyed a strong third quarter. Results were in line with budget and
    revenues for the nine months were 12% ahead of the same period last year.
   
  * Wesupply's revenues in the third quarter were 24% higher than in the
    corresponding period last year and the company has continued to trade
    profitably since the fourth quarter of 2010. A turnaround has been effected
    as this is the first annual profit recorded by the company.
   
  * Entuity experienced difficult trading conditions in the third quarter as
    corporate customers have become cautious of even small spending
    commitments, but for the year to date revenues are 13% ahead of last year
    with EBITDA slightly behind 2010 after the lower Q3 performance.
   
  * ITS increased its revenues but continued to trade at a loss. In October the
    trading subsidiaries were sold for $2.5 million (of which $1 million has
    been received and the balance is due for payment in 2012).
   
  * NEP performed strongly with revenues and EBITDA for the quarter 20% ahead
    of the same period in 2010. A large number of new accounts are being
    contracted and to date new meters under management are up approx 20% year
    on year.
   
Financial information

The Company's unaudited net asset value per share at 30 September 2011 was 89
pence, a 4% decline from 30 June; this decline principally reflects the decline
in the share price of our principal quoted investment, Weatherford
International. The Company's financial position at the end of October was
substantially unchanged.

The carrying value of the portfolio at 30 September 2011 is based on the
valuation of the Company's investment portfolio as at 30 June 2011 with
adjustments for transactions in the three months ended 30 September 2011
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 full year results as at 31 December 2011.

The Company's investment portfolio at 30 September 2011 (and 30 June 2011) was
as follows:

                           30            30
                    September          June    
                         2011          2011
                                           
                        £'000         £'000
                                           
US                                         
                                           
Quoted                 20,806        31,296
                                           
Unquoted               39,378        37,133
                                           
Funds                  71,304        71,666
                                           
US total              131,488       140,095
                                           
UK                                         
                                           
Quoted                    922         1,062
                                           
Unquoted               44,710        45,617
                                           
Funds                  35,542        37,569
                                           
UK total               81,174        84,248
                                           
Total                 212,662       224,343

Details of our largest investments by valuation at 30 September 2011,
representing about 75% of the total portfolio, are set out in the appendix to
this statement.

During the three months ended 30 September 2011 total funds invested by the
Company were £5.6 million in unquoted securities and to meet fund calls.
Proceeds from fund distributions were £4.4 million and from sales of quoted
holdings were £1.4 million.

This statement is a general description of the financial position and
performance of the Company for the period from 1 July 2011 to 15 November 2011.
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.

For further information please contact:

LMS Capital plc 020 7935 3555
Glenn Payne, Chief Executive Officer
Tony Sweet, Chief Financial Officer

J.P. Morgan Cazenove Limited 020 7588 2828
Michael Wentworth-Stanley

Matrix Corporate Capital LLP 020 3206 7175
Paul Fincham / Rob Naylor

Brunswick Group LLP 020 7404 5959
Simon Sporborg

Fiona Micallef-Eynaud
About LMS Capital

LMS Capital is an investment company focused on small to medium sized companies
in our preferred sectors of consumer, energy and business services. We partner
with experienced managers in profitable, growing companies where we believe we
can add value.

LMS Capital plc Appendix

Interim management statement - 16 November 2011

The Company's principal investments by valuation at 30 September 2011 were as
follows:

Name                   Geography         Sector          Date of    Book  
                                                         initial    value 
                                                        investment        
                                                                    £'000 
                                                                          
Quoted investments                                                        
                                                                          
Weatherford               US     Oilfield services         1984     16,052
International                                                             
                                                                          
Chyron Corporation        US     Media/technology          1995      3,446
                                                                          
Direct investments                                                        
                                                                          
Method Products*          US     Consumer products         2004     18,002
                                                                          
HealthTech Holdings       US     Hospital information      2007     16,099
                                 systems                                  
                                                                          
Updata Infrastructure     UK     Wide area networks        2009     12,650
UK                                                                        
                                                                          
Nationwide Energy         US     Energy service            2010     10,517
Partners                         provider                                 
                                                                          
Apogee Group              UK     Digital printing          2010     11,000
                                 solutions                                
                                                                          
Rave Reviews Cinemas      US     Cinema operations         2002      7,328
                                                                          
Yes To*                   US     Consumer products         2008      7,013
                                                                          
Entuity                   UK     Network management        2000      6,500
                                 software                                 
                                                                          
Penguin Computing*        US     Linux server systems      2004      6,055
                                                                          
Luxury Link*              US     Internet commerce         2006      5,374
                                                                          
Fund investments                                                          
                                                                          
Brockton                  UK     Real estate               2006     17,803
                                                                          
(Funds I & II)                                                            
                                                                          
BV Investment Partners    US     Media and                 1996     10,150
                                 communications                           
(Funds V, VI & VII)                                                       
                                                                          
Amadeus Capital           UK     Technology                1998      4,417
                                                                          
(Funds I & II)                                                            
                                                                          
Primus Capital            US     Business services         2000      4,261
                                                                          
(Funds V & VI)                                                            
                                                                          
CMEA Ventures             US     Technology                2000      3,532
                                                                          
(Funds IV & VI)                                                           

*San Francisco Equity Partners manages these investments.

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