LMS Capital PLC First Quarter 2021 Update (9899W)

TIDMLMS

RNS Number : 9899W

LMS Capital PLC

29 April 2021

29 April 2021

LMS CAPITAL PLC

First Quarter 2021 Update

LMS Capital plc (the "Company") the listed investment company provides the following update covering the period from 1 January 2021 to date.

Financial Highlights

-- Unaudited Net Asset Value ("NAV") at 31 March 2021 was GBP47.5 million (58.9p per share). This compares to GBP47.9 million (59.4p per share) at 31 December 2020; and

-- Cash at 31 March 2021 was GBP21.5 million compared to GBP20.6 million at 31 December 2020 and increased due to GBP1.6 million of portfolio distributions.

Unaudited Net Asset Value at 31 March 2021

The GBP0.4 million decrease in NAV during the first quarter arises from GBP0.3 million of unrealised gains on the investment portfolio, offset by GBP0.2 million of portfolio foreign exchange losses from the weakening of the U.S. Dollar against the sterling and GBP0.5 million of running costs and investment costs.

NAV at 31 March 2021 is summarised below:

 
                                    Unaudited           Audited 
                                   31 March 2021    31 December 2020 
                                             GBP millions 
                                 ----------------------------------- 
 Quoted Investments                          0.6                 0.2 
                                 ---------------  ------------------ 
 Unquoted Investments                        7.5                10.1 
                                 ---------------  ------------------ 
 Funds                                      12.7                11.9 
                                 ---------------  ------------------ 
 Subtotal Investment portfolio              20.8                22.2 
                                 ---------------  ------------------ 
 
 Cash                                       21.5                20.6 
                                 ---------------  ------------------ 
 Dacian Investment - Funds 
  Deposited                                  6.6                 6.6 
                                 ---------------  ------------------ 
 Other Net Assets/Liabilities              (1.4)               (1.5) 
                                 ---------------  ------------------ 
 Net Asset Value                            47.5                47.9 
                                 ---------------  ------------------ 
 

NAV at the end of March is based on the valuation of the Company's investments as at 31 December 2020, adjusted for transactions in the three months ended 31 March 2021, price movements on quoted securities, movements in foreign currency exchange rates, cash calls and distributions from funds, and the latest information available from third party fund managers.

Portfolio Unrealised Net Gains

The portfolio net unrealised gains of GBP0.3 million, excluding foreign exchange movements, are summarised below:

Quoted Investments

The Company's quoted investment valuations increased by a net GBP0.4 million during the first quarter of 2021, reflecting underlying market price increases.

Unquoted Investments

The Company's unquoted investments include assets managed by San Francisco Equity Partners (ICU Eyewear and YesTo) and our direct holdings in Medhost, Elateral and Northbridge Industrial Services plc.

Total unquoted investment unrealised losses were GBP1.1 million. This relates to Medhost where Primus Capital, the lead fund manager on Medhost, reduced its valuation resulting in an unrealised loss of GBP1.1 million for the first quarter on the Company's holding in Medhost.

Funds

The Company's fund investments include its holding in Brockton Capital Fund I, Opus Capital Partners ("Opus"), Weber Capital Partners ("Weber") and five other smaller fund interests.

Total fund unrealised gains were GBP1.0 million, primarily from Opus and Weber. The carrying value of the funds is based on the latest available information from the respective fund managers, generally the 31 December 2020 fund valuation reports except for Weber, which is based on 31 March 2021 valuations.

Portfolio Realisations

Realisations from the portfolio during the quarter were a GBP1.5 million distribution from ICU Eyewear plus other fund distributions of GBP0.1 million.

Liquidity and Outlook

The Company continues to maintain significant cash balances, GBP21.5 million at 31 March, and remains cautious about the way its liquid resources are deployed. The Company continues to review opportunities with its real estate teams, Cavera and George Capital, and has a pipeline of opportunities for other investments.

Dacian

Our investment in Dacian, the Romanian oil and gas production company, is in the final stage of its approval process with the Romanian authorities. The Dacian team continues to believe the approval process will conclude satisfactorily. Once the approvals have been obtained and the transaction completes, we will issue updated information on the investment.

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

29 April 2021

For further information please contact:

LMS Capital PLC

Nick Friedlos, Managing Director

0207 935 3555

Shore Capital

Robert Finlay

0207 408 4050

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April 29, 2021 02:00 ET (06:00 GMT)