LMS Capital, an investment company specialising in small- to medium-sized companies in the consumer, energy and business services, intends to return up to 40m pounds to shareholders, it announced on Friday.
The £40m marks the first chunk of what is hoped will be ongoing distributions to shareholders. To qualify shareholders must be on the register by the end of November 22nd.
This is the latest step in a strategic move as it attempts to gradually realise the value of its portfolio, much of it invested in unlisted companies, and return cash to shareholders.
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In the three months to September 30th, it received proceeds from 'realisations' (principally distributions from its fund interests) of £21.4m, including £17.9m from San Francisco Equity Partners following its sale of Method Products. In the same period calls from its outstanding fund commitments were £1.1m.
Total realisations in the first nine months of the year were £31.5m, with fund calls of £4.9m.
Uncalled commitments to funds at September 30th were £10.6m and the company had cash of £51.5m.
The company's unaudited net asset value per share at September 30th was 85p, down 3p from 88p as at June 30th, mainly due to unrealised currency losses as the US dollar weakened against pound sterling.
As of March 15th, Shroders held 18.12% of the company and Jupiter Asset Management 8.11%.
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