LMS.GB LMS Capital Plc

TIDMLMS

RNS Number : 2227W

LMS Capital PLC

31 July 2018

31 July 2018

LMS Capital plc

Net Asset Value Estimate at 30 June 2018

and update on the sale of Penguin

LMS Capital plc ("LMS" or "the Company") has commenced the valuation review process for its half year ended 30 June 2018, which is based on the latest performance updates from portfolio companies and third-party fund manager valuations.

The Board estimates that the unaudited net asset value as at 30 June 2018 will be in the region of GBP64 million (31 March 2018: GBP60.2 million; 31 December 2017: GBP64.5 million) equating to 79p per share (31 March 2018: 75p per share; 31 December 2017: 80p per share)

The estimated unaudited 30 June 2018 net asset value reflects information currently available to the Board on the performance and prospects of individual investments in the Company's portfolio and is subject to further evaluation as well as completion of the half year review.

The valuation methodology and policy adopted is consistent with prior years and is in line with IPEV guidelines.

Further information on performance of the portfolio, underlying investment valuations and movements year to date will be included in the Company's preliminary results for the six months to 30 June 2018, which the Company expects to announce by mid-September.

Sale of Penguin

On 13 June 2018 the Company announced that it had received notification from the general partner of San Francisco Equity Partners Fund 1 (SFEP 1) of the sale of Penguin Computing Inc. ("Penguin"). The Company held its interest in Penguin principally via its interest in SFEP 1, and also through a directly held co-investment. The carrying value for the Company's combined interests in Penguin as at 31 March 2018 was GBP12.6 million.

The sale consideration was structured as an initial payment, followed by potential further amounts from an earn out arrangement and the release of amounts retained in escrow.

The initial payments received by the Company during the second half of June, by way of a distribution from SFEP 1 and a payment for its directly held co-investment, were in total $11.9 million, representing 68% of the underlying US Dollar carrying value of the Penguin investments as at 31 March 2018. This was ahead of the preliminary indications given to the Company. Based on information currently available, the Company estimates that further amounts, from the release of the escrow plus payments under the performance related elements of the price, should approximately equal the remaining 32% of its carrying value, and hence, other than currency translation gains, there is no estimated impact on the net asset value as at 30 June 2018. The Company expects the remaining amounts to be settled during the first half of 2019.

The proceeds from the sale of Penguin, together with GBP3.1 million of proceeds received in March 2018 from the sale of its interest in Brockton Capital LLP, have significantly increased the Company's cash balances, which as at 30 June 2018 were GBP14 million (31 December 2017 GBP2.3 million). This cash provides the Company with some liquidity to commence new investment activities.

As noted above, the Company expects to announce its preliminary results for the six months to 30 June 2018 by mid-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 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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July 31, 2018 02:02 ET (06:02 GMT)

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