REG - LMS Capital PLC - First Quarter 2022 Update

LMS CapitalAnnouncement

27/04/2022 07:16

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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   31 December

                                 2022        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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