Lms Capital Regulatory News (LMS)

14 May 2013

LMS Capital plc ("the Company")

Interim Management Statement

The Board of LMS Capital is pleased to present the Company's Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. This statement relates to the period from 1 January 2013 to 13 May 2013.

LMS Capital is an investment company focused on small to medium sized companies in consumer, energy and business services. Following a General Meeting on 30 November 2011, the Company is undertaking a realisation strategy which aims to achieve a balance between an efficient return of cash to shareholders and optimising the value of the Company's investments.

The Company's unaudited net asset value per share at 31 March 2013 was 89 pence, an increase of 4 pence from 85 pence as at 31 December 2012. The principal factors in this increase were unrealised currency gains as the US dollar strengthened against £ sterling over the period and increases in the prices of the Company's principal US quoted investments. Since the end of March the Company's financial position is substantially unchanged.

There are active sales processes underway on a number of the Company's investments. On 18 March 2013 we announced the sales of two of our unquoted interests - Apogee Group and Pims Group - which together realised £19.3 million. In addition, distributions from funds in the first quarter were £2.0 million and sales of quoted investments were £0.7 million; calls from our outstanding fund commitments were £0.7 million.

At 31 March 2013 the Company had cash of £42.4 million (31 December 2012: £20.1 million) and uncalled commitments to funds of £10.3 million (31 December 2012: £10.4 million).

In current market conditions it is difficult to predict the outcome of sales processes in terms of timing and proceeds. Nevertheless, the Directors remain satisfied with current progress and aim to make a further distribution to shareholders later in the year.

Consolidated Portfolio subsidiaries

The latest available trading results for our portfolio subsidiaries are to 31 March 2013. Consolidated revenues for the first quarter were 40% ahead of the same period last year with significant contributions from Updata whose revenues from rental contracts for the first quarter were approximately 21% ahead of the same period last year and Nationwide Energy Partners where revenues in the first quarter were 50% ahead of last year, reflecting in part the company's slower start to 2012.

Investments

The carrying value of the investment portfolio at 31 March 2013 is based on the valuation of the Company's investments as at 31 December 2012 with adjustments for transactions in the three months ended 31 March 2013 including price movements on quoted securities, movements in foreign currency exchange rates, cash calls and distributions from funds and purchases and sales of quoted and unquoted securities. The next full valuation of the portfolio will be for our half year results as at 30 June 2013.

The Company's investment portfolio at 31 March 2013 (and 31 December 2012) was as follows:

Details of our largest investments by valuation at 31 March 2013, representing approximately 75% of the total portfolio, are set out in the appendix to this statement.

This statement is a general description of the financial position and performance of the Company for the period from 1 January 2013 to 13 May 2013. It does not contain any profit forecast or forward looking information. Future NAV and share price performance are likely to be affected by a number of factors, including (but not limited to) general economic and market conditions and specific factors affecting the financial performance or prospects of individual investments within the Company's portfolio.

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About LMS Capital

LMS Capital is an investment company which, following a general meeting on 30 November 2011, is undertaking a realisation strategy with the aim of achieving a balance between an efficient return of cash to shareholders and optimising the value of the Company's investments. Its investment portfolio consists of small to medium sized companies in the consumer, energy and business services sectors.

www.lmscapital.com

LMS Capital plc Appendix

Interim management statement - 14 May 2013

The Company's principal investments by valuation at 31 March 2013 were as follows:

*San Francisco Equity Partners manages these investments.