Highlights

  • First return of capital of GBP 1.6 million made to shareholders in July 2025 following adoption of the managed realisation strategy.
  • Unaudited NAV at 30 September 2025 stood at GBP 29.8 million, a GBP 0.1 million increase after accounting for the capital return.
  • Cash position at the end of the quarter was GBP 8.8 million, adjusted for capital return and Dacian drawdowns.

LMS Capital (LSE:LMS) has released its unaudited Net Asset Value (NAV) and financial update for the period ending 30 September 2025. The quarter marked the first return of capital to shareholders under the company’s managed realisation strategy, alongside continued monitoring and development of its investment portfolio. The update details cash movements, portfolio performance, and ongoing investment plans, including additional support to Dacian.

First Capital Return Under Managed Realisation

In July 2025, LMS returned GBP 1.6 million to shareholders, marking the first distribution under the managed realisation strategy approved at the May 2025 general meeting. Following this payment, the unaudited NAV at 30 September 2025 was GBP 29.8 million, compared with GBP 31.3 million at 30 June 2025. After adjusting for the capital return, the NAV recorded a small net increase of GBP 0.1 million during the quarter.

Portfolio Movements and Investment Performance

Total investments increased from GBP 20.87 million at the end of June to GBP 21.87 million at the end of September, supported by gains from realised and unrealised movements across the portfolio. Key contributions include:

  • Castle View: GBP 0.5 million reduction in value.
  • Dacian: GBP 0.1 million reduction.
  • Weber: GBP 0.2 million increase.
  • Brockton Fund 1: GBP 0.6 million realised gain from a final distribution.

The portfolio also benefitted from GBP 0.2 million of unrealised foreign currency gains due to USD appreciation against GBP. Costs, net of interest income, reduced the NAV by GBP 0.3 million, comprising running and investment costs, partially offset by GBP 0.1 million of interest income.

Cash Position and Dacian Support

Cash at 30 September 2025 was GBP 8.8 million, down from GBP 11.3 million at the end of June, reflecting the capital return, drawdowns against the Dacian loan facility, and operating costs. LMS has provided Dacian with up to USD 5.3 million in additional funding to support its operational turnaround. Approximately 40% of the loan had been drawn by the end of September. The plan includes investment in replacement inventory, maintenance, cost efficiency measures, monetisation of unutilised assets, and exploration of additional development opportunities.

Two experienced US industry executives have joined the Dacian Board to oversee implementation, with progress expected to be reported in Q1 2026.

Cost Management and Outlook

The company expects to meet previously indicated cost run rates of GBP 1.3 million for corporate costs and GBP 0.25 million for investment costs by year-end. The Board will continue to review and optimise the cost base in line with operating requirements and governance standards while progressing the managed realisation strategy.

LMS shares last traded at GBX 15.00 per share on 30 October 2025.