LMS Capital PLC 3rd Quarter 2017 update (6316U)
October 26 2017 - 1:00AM
UK Regulatory
TIDMLMS
RNS Number : 6316U
LMS Capital PLC
26 October 2017
26 October 2017
LMS Capital plc
3rd Quarter 2017 update
LMS Capital plc ("the Company") is issuing the following update
covering the period from 1 July 2017 to today's date.
30 September 2017 Net Asset Value
The Company's unaudited net asset value ("NAV") at 30 September
2017 was GBP59.9 million (30 June 2017: GBP71.7 million),
equivalent to 74p per share (30 June 2017: 74p). The most
significant movements in the quarter were:
1. Completion in August of the tender offer referred to below;
2. An increase of GBP0.4 million in the value of the Company's
holding of shares and warrants in Gresham House plc (the warrants
having a strike price of 323p). This is the result of the
significant increase in the share price of Gresham House plc since
30 June 2017;
3. The Weatherford International share price also improved and
this increased NAV by GBP0.3 million;
4. SFEP reported an increase in value of its assets of GBP0.7
million (excluding currency impact);
5. Against these increases, adverse foreign currency movements,
reflecting the strengthening of sterling against the US dollar in
the quarter, reduced NAV by GBP1.1 million.
The NAV at the end of September is based on the valuation of the
Company's investments as at 30 June 2017, adjusted for transactions
in the three months ended 30 September 2017, 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. The next full valuation of the
portfolio will be for the Company's full year results as at 31
December 2017.
Since the end of September, 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
September.
Portfolio management
Gresham House Asset Management Limited ("GHAM") continues to
make good progress in executing its mandate. As reflected in the
NAV movements above, on 15 August the Company announced the
completion of the tender offer which returned GBP11 million to
shareholders. This was the full amount of the further returns
proposed in the circular sent to shareholders on 27 July 2016 and
represents a significant landmark as the Company implements the
investment strategy approved by shareholders in August 2016.
GHAM is evaluating a recent early stage approach for one of the
Company's investments and continues to monitor opportunities on
others. There were no new investments in the three months to 30
September 2017.
Strategy and outlook
With the final commitment to return capital to shareholders
fulfilled, the Company is now focused on re-investing any future
realization proceeds in line with the new investment policy,
including private equity and alternative, specialist asset classes.
There is a growing pipeline of opportunities in the areas
identified by the investment manager. As well as seeking new
investments the Company continues to focus on managing the cost
base, improvements in investor communication, and managing the
existing portfolio of investments to ensure value is optimised.
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.
For further information please contact:
LMS Capital plc 020 3837 6270
Martin Knight, Chairman
Gresham House Asset Management Limited 020 3837 6270
Graham Bird
J.P. Morgan Cazenove 020 7742 4000
Michael Wentworth-Stanley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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