Lms Capital Regulatory News (LMS)

8 February 2018

LMS Capital plc ("LMS" or "the Company")

Sale of investment - estimated net proceeds and increase in estimated 31 December 2017 net asset value of approximately £2.5 million (4%)

The Company is pleased to announce continued progress in the realisation of its portfolio, with the sale of its minority interest in Brockton Capital LLP.

Background

In 2006 LMS, together with 3 other cornerstone investors, backed the establishment of Brockton Capital LLP ("AdviserCo"), a private equity real estate investment adviser, and became an investor in Brockton Capital Fund I LP ("the Fund"), a real estate investment fund. The investment in AdviserCo gave LMS the right to participate in entities that would receive a share of any incentive payable in relation to the performance of the Fund and subsequent Brockton-advised funds (the "Carried Interest").

The interests in Brockton LLP and the Carried Interest, are included in LMS' net asset value at cost being £97,000, and are wholly separate from and additional to the Company's interest in the Fund.

The transaction

The majority owners of AdviserCo have agreed terms for a sale of the business, completion of which is conditional on customary conditions including obtaining regulatory approval. There is a back-stop date to satisfy the conditions of 30 September 2018. Assuming the conditions are met, the sale will result in the realisation by LMS of its minority investment of 6.67% in AdviserCo but it will retain its existing Carried Interest.

The net proceeds and increase in net asset value for LMS are expected to be in the region of £2.5 million.

The sale of AdviserCo does not affect the Company's investment in the Fund which it continues to hold (net asset value £4.5 million at 30 September 2017). Similarly, the Company's interests in the Carried Interest on existing Brockton funds are unaffected.

Impact on estimated 31 December net asset value

In accordance with the Company's valuation methodology and in line with IPEV guidelines, the 31 December 2017 net asset value will be adjusted to reflect the increase resulting from this transaction.

On 24 January 2018, based on information available at that time and subject to further evaluation and completion of the annual audit, the Company announced an estimated 31 December 2017 net asset value in the region of £61 million (75p per share).

Taking account of the information relating to the conditional sale of AdviserCo, which has arisen subsequent to the 24 January 2018 announcement, the Board has adjusted its estimate of net asset value at 31 December 2017 to £[63.5] million (78p per share). This estimate remains subject to further evaluation as well as the completion of the annual audit.

The Company expects to announce its audited results on or around 13 March 2018.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please contact:

LMS Capital PLC 020 3837 6275

Martin Knight, Chairman

Gresham House Asset Management

Graham Bird, Investment Director 020 3837 6275

J.P. Morgan Cazenove

Michael Wentworth-Stanley 0207 742 4000