Last checked at 
5 Nov 2019 12:07
5 November 2019
LMS Capital plc
3rd Quarter 2019 update
LMS Capital plc ("LMS" or "the Company") is issuing the following update covering the period from 1 July 2019 to date.
30 September 2019 Net Asset Value
The Company's unaudited net asset value ("NAV") at 30 September 2019 was £58.7 million (30 June 2019 £59.1 million), equivalent to 72.7p per share (30 June 2019: 73.3p per share). The most significant movements in net asset value during the quarter were:
·; Realised and unrealised movements in the valuation of investments compared to valuations at 30 June 2019 led to a £0.3 million reduction in NAV, excluding the impact of exchange rate movements. The principal items were:
o As announced by the Company on 14 August 2019, an increase of £2.4 million in the net proceeds on the sale of Entuity, with a corresponding increase in NAV, over and above the net proceeds recognised in the 30 June 2019 valuation. This reflected the sale not only of all the Company's shares, but also the repayment of all working capital loans;
o Increases of £0.6 million and £0.4m in the value of quoted shares in IDE Group and Solaredge respectively;
o a reduction in value of Medhost of £2.0 million reflecting a corresponding reduction by Primus, the lead investor, in its latest available fund report;
o a reduction of £2.4 million in value of YesTo following discussions with the third party fund manager. The reduction reflects a deterioration in trading in 2019 and requirement to make consequential changes in the management and operating structure of the company, which changes are already in process of being made;
·; Weakening of sterling against the US Dollar in the period to 30 September 2019 has resulted in an unrealised exchange gain of £0.5 million; and
·; Other net changes amount to a £0.7 million reduction, the main item of which is overhead costs.
Net cash balances at 30 September 2019 were £28.5 million (30 June 2019: £16.4 million), the increase being principally due to the receipt of the sale proceeds on Entuity which were announced by the Company on 14 August 2019. The final proceeds from amounts held in escrow in relation to the sale of Penguin, totaling £0.9 million, were also received.
The NAV at the end of September is based on the valuation of the Company's investments as at 30 June 2019, adjusted for transactions in the three months ended 30 September 2019, price movements on quoted securities, movements in foreign currency exchange rates, cash calls and distributions from funds, latest information from third party fund managers, purchases and sales of quoted and unquoted securities and operating expenses.
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 material impact (either individually or in aggregate) on the Company's NAV as at the end of September.
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