LMS Capital PLC 1st Quarter 2017 Update (7375F)

TIDMLMS

RNS Number : 7375F

LMS Capital PLC

22 May 2017

22 May 2017

LMS Capital plc

1st Quarter 2017 Update

LMS Capital plc ("the Company") is issuing the following update covering the period from 1 January 2017 to date.

Gresham House Asset Management Limited ("GHAM") has made good progress in completing the review of the portfolio since August 2016. GHAM continues to execute its mandate to seek to realise cash whilst maximising long term shareholder value. As set out below, this has been evidenced in examples such as reducing the Weatherford International shareholding, the sale of 365iTMS and the realisation of long term investments such as those managed by Weber Capital.

Following the receipt of a fund distribution on the afternoon of Friday 19 May, net realisation proceeds since the change in investment strategy last year now total GBP12.4 million. In accordance with its intentions stated in the Circular to shareholders dated 27 July 2016 to make further tender offers, the Board has now commenced a full review of the Company's liquid resources, future cash requirements, commitments and costs with a view to determining the appropriate amount and timing of a further tender offer. The review will be completed in the near future after which an announcement will be made regarding the details of the proposed tender offer.

Cash proceeds from realisations to date in 2017 are GBP10.4 million, the main components of which are:

   --     GBP3.6 million being the stage 1 payment on the sale of Nationwide Energy Partners; 

-- GBP2.9 million from the liquidation of the Company's interests in funds managed by Weber Capital;

   --     Distributions totalling GBP2.4 million from Brockton Capital; 
   --     Net cash proceeds of GBP0.5 million following the sale of 365iTMS; and 
   --     Proceeds from sales of shares in Weatherford International of GBP0.4 million. 

In addition, the company received 9,826,400 shares (current market value GBP3.4 million) in Coretx plc, as part of the consideration for the sale of 365iTMS.

The Company's unaudited net asset value at 31 March 2017 was GBP66.3 million (31 December 2016: GBP68.1 million), equivalent to 69p per share (31 December 2016: 71p). The decrease of GBP1.8 million reflects a net portfolio valuation decrease based on the latest information from external fund managers and market prices for quoted investments, adverse foreign currency movements and overhead costs.

The NAV at the end of March is based on the valuation of the Company's investments as at 31 December 2016, adjusted for transactions in the three months ended 31 March 2017, price movements on quoted securities, movements in foreign currency exchange rates, cash calls and distributions from funds, latest reports from third party fund managers, purchases and sales of quoted and unquoted securities, and operating expenses. The carrying value at 31 March 2017 includes the following:

-- An increase in the carrying value of 365iTMS of GBP2.1 million to reflect its sale price in early April; and

-- A decrease in the carrying value of the Company's interest in Medhost Inc of GBP2.2 million, based on the latest carrying value reported by the lead investor.

The next full valuation of the portfolio will be for the Company's half year results as at 30 June 2017.

Since the end of March, the strengthening of GBP against the US dollar coupled with a weaker share price of Weatherford International has further reduced the Company's net asset value by an estimated GBP2.2 million to approximately GBP64.1 million (67p per share).

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please contact:

 
 LMS Capital plc 
 Martin Knight, Chairman           020 7935 3555 
 
 Gresham House Asset Management 
  Limited 
 Graham Bird                       020 3837 6270 
 
 J.P. Morgan Cazenove              020 7742 4000 
 Michael Wentworth-Stanley 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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May 22, 2017 02:00 ET (06:00 GMT)