LMS Capital PLC 1st Quarter 2018 update (3135M)
April 27 2018 - 2:00AM
UK Regulatory
TIDMLMS
RNS Number : 3135M
LMS Capital PLC
27 April 2018
27 April 2018
LMS Capital plc
1st Quarter 2018 update
LMS Capital plc ("LMS" or "the Company") is issuing the
following update covering the period from 1 January 2018 to
date.
31 March 2018 Net Asset Value
The Company's unaudited net asset value ("NAV") at 31 March 2018
was GBP60.2 million (31 December 2017 GBP64.5 million), equivalent
to 75p per share (31 December 2017: 80p per share). The most
significant movements in the quarter were:
-- A strengthening of sterling against the US Dollar and
decreases in prices of quoted securities in the period from I
January 2018 to 31 March 2018 account for GBP3.8 million of the
reduction in NAV. The principal items within this are:
o IDE Group plc share price reduction GBP1.4 million;
o Weatherford share price reduction GBP0.7 million
o An adverse change of approximately 3.7% in the sterling/US
Dollar exchange rate over the period has resulted in a reduction in
NAV of GBP1.5 million
-- Other net changes amount to a GBP0.5 million reduction. In
addition to operating costs, the main items are:
o Gain on sale of Brockton Capital LLP of GBP0.6 million. As
announced by the Company on 26(th) March, actual proceeds were
GBP3.1m. This amount, which included a distribution of surplus cash
in the vehicle sold, exceeded by GBP0.6 million, the estimate used
in the 31 December 2017 NAV;
o Reduction of GBP0.7 million in the carrying value of Medhost,
a co investment with Primus Capital which is the lead manager. The
reduction is based on Primus Capital's most recent reported
carrying value published late March.
The reduction in share price of IDE Group between the end of
December 2017 and end of March 2018 followed a number of
announcements in the first quarter. However, the company has
confirmed that trading for the year to 31 December 2017 was broadly
in line with expectations, although cash generation was weaker than
expected. Full year results are due for release in early May.
The NAV at the end of March is based on the valuation of the
Company's investments as at 31 December 2017, adjusted for
transactions in the three months ended 31 March 2018, 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.
Since the end of March, further movements in the prices of the
Company's quoted investments and changes in the sterling/US Dollar
exchange rate have not had a significant impact (either
individually or in aggregate) on the Company's NAV as at the end of
March.
Portfolio management
Gresham House Asset Management ("GHAM") continues to manage the
portfolio through its board representation on those investments
where LMS has board rights and through maintaining regular dialogue
and meetings with third party managers and others.
During the period since 1 January 2018 the principal portfolio
events have been the conclusion of the sale of the Company's
interest in Brockton Capital LLP and an investment of GBP600,000 in
Northbridge Industrial Services PLC ("Northbridge"), an AIM quoted
company that hires and sells specialist industrial equipment to
utilities, public sector and oil and gas industries. The
Northbridge investment is via a participation in an 8% p.a.
yielding convertible loan instrument. The investment was sourced by
GHAM and is the Company's first investment, other than follow on
investments in the existing portfolio, since the conclusion of its
realisation strategy and adoption of its new investment policy in
August 2016.
Strategy and outlook
Liquidity events on the Company's larger investments are
controlled by third party managers, however, based on the
information available, the Company believes there is the reasonable
prospect of liquidity from the existing portfolio over the next 18
months. The proceeds from the sale of Brockton Capital LLP have
provided the Company with some liquidity to commence new investment
activities.
The Board and the manager continue to evaluate strategic options
for the Company to increase scale and enhance shareholder
value.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
regulations (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
Martin Knight, Chairman 0203 837 6270
Gresham House Asset Management Limited
Graham Bird 0203 837 6270
J.P. Morgan Cazenove
Michael Wentworth-Stanley 0207 742 4000
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDPGURPCUPRGMQ
(END) Dow Jones Newswires
April 27, 2018 02:00 ET (06:00 GMT)
Lms Capital (LSE:LMS)
Historical Stock Chart
From Apr 2024 to May 2024
Lms Capital (LSE:LMS)
Historical Stock Chart
From May 2023 to May 2024
