REG - LMS Capital PLC - Third Quarter 2024 Update

LMS CapitalAnnouncement

18/10/2024 07:00

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RNS Number : 6591I  LMS Capital PLC  18 October 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18 October 2024

 

 

LMS CAPITAL PLC

Third Quarter 2024 Update

 

 

LMS Capital plc (the "Company"), the listed Investment Company, provides the
following update covering the period from 30 June 2024 to date and including
the Net Asset Value ("NAV") at 30 September 2024.

 

Financial Highlights

·    Unaudited NAV at 30 September 2024 was £34.9 million (43.3p per
share). This compares to £36.5 million (45.2p per share) at 30 June 2024;

·    Interim dividend of £0.2 million (0.3p per share) paid in September
2024;

·    Overall portfolio net losses were £0.9 million, due entirely to the
strengthening of sterling compared to the US Dollar in Q3. There were no net
underlying gains or losses on the portfolio; and

·    Cash at 30 September 2024 was £12.4 million compared to £13.1
million at 30 June 2024.

 

Unaudited Net Asset Value at 30 September 2024

The unaudited 30 September 2024 NAV is summarised below:

 

                                 Unaudited          Unaudited
                                 30 September 2024  30 June 2024
                                 £ 000s
 Mature Investment Portfolio
 Quoted Investments              107                130
 Unquoted Investments            1,728              1,731
 Funds                           5,450              5,739
                                 7,285              7,600
 Other Investments
 Castle View, Windsor            6,130              6,130
 Dacian                          9,144              9,701
                                 15,274             15,831

 Total Investments               22,559             23,431
 Cash                            12,353             13,050
 Other Net Assets/Liabilities    9                  31
 Net Asset Value                 34,921             36,512

 

The NAV at the end of September is based on the valuation of the Company's
investments as at 30 June 2024, adjusted for transactions in the three months
ended 30 September 2024, 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, generally the
30 June 2024 fund valuation reports, except for Weber Capital Partners which
is based on 30 September 2024 valuations.

 

The overall £1.6 million decrease in NAV during the third quarter is
comprised of the following:

·    No net underlying gains or losses on the investment portfolio;

·    £0.9 million of portfolio unrealised foreign exchange losses from
the strengthening of sterling against the U.S. Dollar;

·    Dividend payments of £0.2 million;

·    £0.1 million of non-portfolio foreign exchange losses;

·    £0.4 million of running costs and £0.2 million of investment
related costs; and

·    £0.2 million on bank interest and other income receivable.

 

Underlying Portfolio movements

There were no net underlying gains or losses on the investment The principal
movements were:

·    Opus Capital Venture Partners - Unrealised loss of £0.05 million;

·    Weber Capital Partners - Unrealised gain of £0.1 million reflecting
market performance of the U.S. microcap equities held in the fund; and

·    Other unrealised losses on funds of £0.05 million.

 

 

 

Dacian

As reported in July and discussed in our half-year report, we are in the
process of obtaining Romanian regulatory clearances for the changes to the
governance and financing structure at Dacian.

 

We continue to monitor progress closely to ensure the business moves towards
the production targets and cost reductions in the financial plan which was
agreed with the team in July. The drop in oil price in August and September
means that cash flow is below plan in the short term, but overall we believe
the company has a clear plan that, in conjunction with the full repayment in
November 2024 of its external debt obligations, will generate a significant
increase in free cash flows in 2025. We intend to provide a full update on
Dacian in the year-end results during Q1 next year.

 

We also continue to monitor progress with the development of opportunities in
alternative energy which are offered by the Dacian estate.

 

Retirement Living - Castle View

In our half-year statement, we reported that the first unit under our
ownership had exchanged contract for sale. This unit duly moved to completion
during August.

 

We currently have reservations on several further units, all of which have
moved to a stage where we would expect them to exchange and complete. Whilst
it is not a certainty, our experience is that transactions at this stage
usually move to completion albeit with some slippage of time, most often due
to delays in the sale of the purchaser's existing home.

 

Our list of potentially interested buyers continues to grow and we have seen a
steady increase in viewings in recent weeks.

 

For further information please contact:

LMS Capital plc

Nick Friedlos, Managing Director

0207 935 3555

 

 

 

 

Appendix 1

Portfolio Breakdown - 30 September 2024

                                 £m     % NAV
 Portfolio total                 22.5   64.5%

 Mature Investment Portfolio
 UK Private                      1.7    4.9%
 Elateral                        1.7    4.9%
 Other                           -      0.0%

 UK Listed                       0.1    0.3%
 Tialis                          0.1    0.3%

 UK Funds                        0.4    1.1%
 Brockton Capital                -      0.0%
 EMAC ILF                        0.3    0.9%
 Simmons                         0.1    0.3%

 US Funds                        5.1    14.6%
 Weber                           2.0    5.7%
 Opus Capital                    3.1    8.9%
 Total Mature Portfolio          7.3    20.9%

 Other investments
 EU Private
 Dacian Petroleum                9.1    26.1%

 UK Private
 Castle View                     6.1    17.5%

 Total New Investment Portfolio  15.2   43.6%

 Cash                            12.4   35.5%
 Other Net Assets/Liabilities    -      0.0%

 Net Asset Value                 34.9

 

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