LMS CAPITAL PLC

Earnings Release • Apr 27, 2022

National Storage Mechanism | Additional information

RNS Number : 4473J

LMS Capital PLC

27 April 2022

27 April 2022

LMS CAPITAL PLC

First Quarter 2022 Update

LMS Capital plc (the "Company"), a listed Investment Company, provides the following update covering the three months ended 31 March 2022.

Financial Highlights

·    Unaudited Net Asset Value ("NAV") at 31 March 2022 was £50.3 million (62.3p per share). This compares to £49.1 million (60.8p per share) at 31 December 2021;

·    Unrealised portfolio gains of £1.3 million, including foreign exchange gains, and accrued interest income of £0.3 million from the Dacian Petroleum investment; and

·    Cash at 31 March 2022 was £19.5 million compared to £20.1 million at 31 December 2021.

Unaudited Net Asset Value at 31 March 2022

The £1.2 million increase in NAV during the first quarter is comprised of the following:

·    Unrealised gains of £0.6 million on the mature investment portfolio;

·    Accrued interest income of £0.3 million on the Dacian Petroleum investment;

·    £0.7 million of portfolio and £0.1 million of non-portfolio foreign exchange gains from the strengthening of the U.S. Dollar against sterling; and

·    £0.4 million of running costs and £0.1 million of investment related costs.

The 31 March 2022 NAV is summarised below:

	Unaudited	Audited
	31 March 2022	31 December  2021
	£ 000s
Mature Investment Portfolio
Quoted Investments	297	383
Unquoted Investments	9,078	8,668
Funds	14,755	13,929
	24,130	22,980
New Investment Portfolio
Quoted Investments	-	-
Unquoted Investments	8,470	7,958
Funds	-	-
	8,470	7,958
Total Investments	32,600	30,938
Cash	19,458	20,113
Other Net Assets/Liabilities	(1,746)	(1,942)
Net Asset Value	50,312	49,109

The NAV at the end of March is based on the valuation of the Company's investments as at 31 December 2021, adjusted for transactions in the three months ended 31 March 2022, 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 £0.6 million and £0.3 million of accrued interest income, excluding foreign exchange movements, are summarised below:

Quoted Investments

The Company's quoted investment valuations decreased by a net £0.1 million during the first quarter of 2022, reflecting underlying market price decreases.

Unquoted Investments

The Company's unquoted investments include our direct holdings in Dacian Petroleum, Medhost and Elateral, assets managed by San Francisco Equity Partners (ICU Eyewear and YesTo), and a convertible debt instrument with IDE Group Holdings.

Total unquoted investment unrealised gains were nil during the first quarter as a £0.1 million gain in Medhost was offset by a £0.1 million loss in Elateral.

Dacian Petroleum had £0.3 million in investment accrued interest income during the first quarter.

Funds

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

Fund unrealised net gains were £0.7 million. The principal movements were:

·    Opus Capital Venture Partners - Unrealised gain of £1.1 million, driven by a significant uplift in the fund manager's valuation of one of the Fund's two principal remaining investments;

·    Brockton Capital Fund 1 - Unrealised gain of £0.4 million, reflecting the unwinding of the discount rate as the investment is valued on a discounted cash flow basis;

·    Eden - Unrealised loss of £0.4 million;

·    Weber Capital Partners - unrealised loss of £0.3 million due to the performance in the U.S. microcap equities held in the fund; and

·    Other unrealised losses on funds of £0.1 million.

The carrying value of the funds is based on the latest available information from the respective fund managers, generally the 31 December 2021 fund valuation reports except for Weber Capital Partners, which is based on 31 March 2022 valuations.

Portfolio Realisations

There were fund distributions of £0.1 million during the first quarter.

Liquidity and Outlook

The Company continues to maintain significant cash balances, £19.5 million at 31 March 2022. The Board is reviewing a number of opportunities with its real estate team, as well as further investment opportunities, but continues to take a cautious stance in the way the company's resources are deployed.

For further information please contact:

LMS Capital PLC

Nick Friedlos, Managing Director

0207 935 3555

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