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Share Name Share Symbol Market Type Share ISIN Share Description
Lms Capital Plc LSE:LMS London Ordinary Share GB00B12MHD28 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.50 1.63% 31.10 30.00 32.20 32.20 32.20 32.20 5,024 16:35:15
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 -4.5 -5.5 - 25

LMS Capital PLC Net Asset Value(s) 3rd Quarter 2020 update

28/10/2020 7:00am

UK Regulatory (RNS & others)


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TIDMLMS

RNS Number : 3998D

LMS Capital PLC

28 October 2020

   28   October 2020 

LMS Capital plc

Third Quarter 2020 Update

LMS Capital plc ("LMS" or "the Company"), the investment company, is issuing the following update covering the period from 1 July 2020 to date.

Financial Highlights

-- Unaudited Net Asset Value ("NAV") at 30 September 2020 was GBP47.0 million (58.2p per share). This compares to GBP46.5 million (57.6p per share) at 30 June 2020;

-- At the half year the Company announced the initiation of a progressive annual dividend policy targeting a dividend equal to approximately 1.5% of each financial year's closing NAV, subject to the Company's liquidity, investment income generated, distributable profits and market conditions. The first interim dividend under this policy, of GBP0.2 million (GBP0.3p per share) was paid to shareholders in September 2020;

-- Cash at 30 September was GBP22.0 million. This is after having funded GBP7.0 million of cash for its previously announced $9 million investment in Dacian petroleum ("Dacian") - see below.

Investment in Dacian

-- On 12 August 2020 the Company announced that it was leading an investor group which has conditionally agreed to finance the acquisition by Dacian from OMV Petrom, the Romanian oil company, of a business operating 40 onshore oil and gas fields located in Romania;

-- Completion of the acquisition by Dacian is conditional upon Dacian obtaining certain Romanian Government regulatory approvals. During September, in accordance with the investment agreement, the investor group were called to deposit funds to be held pending conclusion of the approval process;

-- The Dacian team has reported to the investor group that, whilst not yet completed, the approval process is proceeding well and it is their current expectation that the necessary approvals will be obtained and the transaction will complete before the current contractual backstop date in early January 2021; and

-- LMS will provide a further update to the market once the approval process is completed.

Unaudited Net Asset Value at 30 September 2020

The increase in the NAV over the quarter arises from GBP1.7 million of unrealised gains on the investment portfolio, offset by GBP0.5 million of portfolio foreign exchange losses from the weakening of the US Dollar against the sterling, overheads of GBP0.4 million and other non-portfolio foreign exchange losses of GBP0.1 million.

The 30 September 2020 NAV is summarised below:

 
                                     Unaudited           Unaudited 
                                    30 June 2020      30 September 2020 
                                               GBP millions 
                                 --------------------------------------- 
 Quoted Investments                           0.5                    0.4 
                                 ----------------  --------------------- 
 Unquoted Investments                         8.8                    8.3 
                                 ----------------  --------------------- 
 Funds                                       10.0                   10.8 
                                 ----------------  --------------------- 
 Subtotal Investment portfolio               19.3                   19.5 
                                 ----------------  --------------------- 
 
 Cash                                        29.0                   22.0 
                                 ----------------  --------------------- 
 Dacian Investment - Funds 
  Deposited                                     -                    7.0 
                                 ----------------  --------------------- 
 Other Net Assets/Liabilities               (1.8)                  (1.5) 
                                 ----------------  --------------------- 
 Net Asset Value                             46.5                   47.0 
                                 ----------------  --------------------- 
 
 
 

The NAV at the end of September is based on the valuation of the Company's investments as at 30 June 2020, adjusted for transactions in the three months ended 30 September 2020, price movements on quoted securities, movements in foreign currency exchange rates, cash calls and distributions from funds, and latest information from third party fund managers.

The following table summarises the change in NAV for the third quarter:

 
                                             GBP millions 
 Unaudited NAV as at 30 June 2020                      GBP 46.5 
   Unrealised Portfolio Gains                               1.7 
   Unrealised Portfolio Foreign 
    Exchange Losses                                       (0.5) 
   Overheads                                              (0.4) 
   Unrealised Other Foreign Exchange 
    Losses                                                (0.1) 
   Interim Dividend                                       (0.2) 
                                       ------------------------ 
 
 Unaudited NAV as at 30 September                      GBP 47.0 
  2020 
 

The portfolio net unrealised gains of GBP1.7 million,excluding foreign exchange movements, are summarised below.

Quoted Investments

The Company ' s quoted investment valuations reduced by a net GBP 0.2 million during the third quarter of 2020. This comprised unrealised underlying market price reductions of GBP0.2 million during the quarter, primarily from a decline in the market price of IDE Group Holdings plc.

Unquoted Investments

The Company ' s unquoted investments include assets managed by SFEP, YesTo and ICU Eyewear, and our direct holdings in Medhost, Elateral and Northbridge Industrial Services plc.

Total unquoted investment unrealised gains were GBP0.7 million for the quarter. Primus Capital, the lead fund manager on Medhost, increased its latest valuation resulting in an unrealised gain of GBP0.6 million for the third quarter on the Company's holding in Medhost. Other net gains were GBP0.1 million.

Funds

The Company's fund investments include its holding in Brockton Capital Fund 1, Opus Capital and three other smaller fund interests.

Total fund unrealised gains were GBP1.2 million for the third quarter as fund valuations increased, primarily from Opus, and an escrow distribution from a previous exit. The carrying value of the funds is based on the latest information from the respective fund managers, generally the 30 June 2020 fund valuation reports.

Portfolio Realisations

Realisations from the portfolio during the quarter were GBP1.0 million, comprising a loan repayment from ICU Eyewear of GBP0.8 million plus other fund distributions and escrow proceeds of GBP0.2 million from a previous exit.

Liquidity and Outlook

The Company continues to maintain significant cash balances, GBP22.0 million at 30 September, after depositing cash to fund the Dacian transaction, and remains highly cautious about the way its liquid resources are deployed.

The Company is reviewing opportunities with its real estate teams, George Capital and Cavera, but capital has not yet been deployed. The Company has a pipeline of opportunities for other investments.

Movements in prices of quoted securities and foreign exchange rates since 30 September 2020 have not been material.

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 now considered to be in the public domain.

For further information, please contact:

LMS Capital PLC

Robert Rayne, Chairman

Nick Friedlos, Managing Director

Tel +44 207 935 3555; +44 7802 686584

Shore Capital

Robert Finlay

Tel +44 207 408 4050

Notes to Editors

LMS Capital plc is a fully listed investment company which aims to preserve and create wealth through investment and co-investment from family offices, high net worth investors and others. LMS expects to deliver an overall total return, net of costs, over the longer term of 12%-15% per annum, of which an element will include an annual distribution.

LMS focuses on investing in real estate, energy and late-stage private equity, areas in which the company has had demonstrable success for over 40 years, derived from a long history of investing, a depth of understanding and long-term relationships.

LMS works with experienced management teams to deliver exceptional opportunities and 'hard to access' assets not available via larger funds, enabling wealth creation through nurturing and careful management. LMS' philosophy of co-investment has led to the establishment of a formal network of partners, LMS Co-invest Co., which is a wholly owned subsidiary and is resourced to develop co-investment relationships and activity. This model harnesses experience, capital and access to specialist investment teams to create enhanced returns.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

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October 28, 2020 03:00 ET (07:00 GMT)

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