LMS Capital PLC Portfolio Update (8465X)

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RNS Number : 8465X

LMS Capital PLC

27 December 2023

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.

27 December 2023

LMS Capital plc ("LMS" or "the Company")

Sale of investment

The Company is pleased to announce the sale of its minority interest in Medhost Inc. Net proceeds for LMS are estimated to be approximately $8.6 million, of which $7.0 million will be paid cash at closing and $1.6 million by way of a promissory note that will be settled one year after closing and will accrue interest at 11.25% per annum.

The net proceeds of $8.6 million are some $1.6 million in excess of the book value of Medhost at 30 September 2023, the most recently announced net asset value of the Company. At current exchange rates this represents an increase of approximately GBP1.0 million.

This announcement follows last week's announcement of LMS' acquisition of Castle View Retirement Village, Windsor with the intention of developing an investment platform in the retirement living sector.

Both the acquisition of Castle View and the sale of Medhost represent significant steps forward for the Company.

Background to Medhost

LMS' interest in Medhost was a co-investment with Primus (one if its US fund interests) dating back to 2007. In 2013 Medhost undertook a recapitalisation of its business, borrowing $112 million to fund preferred stock redemptions and dividends to shareholders. LMS received $10.1 million as a result of this exercise, meaning that the current transaction represents a surplus over the initial cost of the investment.

Medhost is a healthcare information technology group that designs, develops, installs and supports integrated hospital information systems and services into a single-source solution for community and specialty hospitals in the US. Its products are cloud-based clinical, financial and operational solutions. As well as software and hardware implementation the company also provides maintenance, support and consulting. The company was founded in 1984 as Healthcare Management Systems and is headquartered in Nashville, Tennessee.

Robert Rayne, Chairman, commented : "I am delighted, following last week's announcement of our acquisition in the retirement living sector, to now be able to report this exit and at a value greater than our book amount. It represents significant progress in the realisation our remaining portfolio of mature assets."

The person responsible for arranging the release of this announcement on behalf of the Company is IQ EQ Corporate Services (UK) Limited, the Company Secretary

For further information please contact:

LMS Capital plc - Nick Friedlos, Managing Director

0207 935 3555

Shore Capital - Robert Finlay/Rose Ramsden

0207 408 4050

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December 27, 2023 02:00 ET (07:00 GMT)