Lms Capital Regulatory News (LMS)

17 May 2012

LMS Capital plc

Interim Management Statement

LMS Capital is holding its Annual General Meeting today and the Board 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 2012 to 16 May 2012.

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 2012 was 88 pence, down two pence from 90 pence as at 31 December 2011. The principal factor in this decrease was unrealised currency losses as the US dollar weakened against £ sterling over the period. Since the end of March the decline in the share price of Weatherford International has reduced net asset value per share by approximately one pence.

In the first three months of the year we received distributions from our fund interests of £4.7 million against £1.5 million of calls from our outstanding fund commitments. Total uncalled commitments to funds at 31 March 2012 were £16.7 million (31 December 2011: £18.9 million). At 31 March 2012 the Company had cash of £31.6 million (31 December 2011: £30.6 million).

We are implementing the realisation plan set out in the Operating Review in the Company's 2011 Annual Report. The Company's performance to date in 2012 (including its revised cost structure) is in line with that plan. The investments are continuing to perform well and our focus is on transforming this performance into suitably timed realisations at appropriate valuations.

There are active sales processes underway on certain of the Company's investments. In current market conditions it is particularly difficult to predict the outcome in terms of timing and proceeds. However the directors remain satisfied with progress to date.

Consolidated Portfolio subsidiaries

The latest available trading results for our portfolio subsidiaries are to 31 March 2012 and are summarised below.

Investments

The carrying value of the investment portfolio at 31 March 2012 is based on the valuation of the Company's investments as at 31 December 2011 with adjustments for transactions in the three months ended 31 March 2012 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 2012.

The Company's investment portfolio at 31 March 2012 (and 31 December 2011) was as follows:

Details of our largest investments by valuation at 31 March 2012, representing approximately 76% 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 2012 to 16 May 2012. 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.

For further information please contact:

LMS Capital plc Appendix

Interim management statement - 17 May 2011

The Company's principal investments by valuation at 31 March 2012 were as follows:

*San Francisco Equity Partners manages these investments.