LMS’s portfolio remains stable through 2022

LMS Capital (LMS) has released its final results for its financial year ending 31 December 2022.

  • Over the year LMS reported an NAV decrease of -3.9%, or £1.9m. LMS’s portfolio was however flat over the year, as an increase in value of £2.2m on its new energy investment, Dacian Petroleum, was offset by an equal decrease in valuation on its mature asset portfolio. The NAV decrease was due to the combination of running costs and dividend payments.
  • There was in effect one new investment for 2022 – Dacian, the oil and gas producer. LMS’s investment was completed in November 2021, making 2022 its first full year of operation. The LMS team comment that the company was profitable and cash generative in its first year and we expect it to meet or exceed the target investment returns.
  • Conversely two of LMS’s mature investments were significant detractors to LMS’s performance, third-party managed funds San Francisco Equity Partners and Eden Ventures – both of which were due to downwards valuations of their remaining assets at time of exit. Both funds are now in the process of being wound up.
  • A final dividend of 0.625p per share is recommended by the board, this is in addition to the interim dividend of 0.3p already paid.
  • LMS has, at the time of its year-end, a cash balance equal to 38.5% of its NAV, a 2.5% fall on the year prior.

Robert Rayne, chairman, commented:

“Although delayed in its execution, we are pleased to see Dacian’s first year of operation successfully behind it and now look forward to the delivery of the business plan delivering growth in production levels through the extension of life of its portfolio of production assets. As we enter 2023, we are focused on bringing forward the real estate opportunities in our current pipeline and expanding our energy portfolio.”


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