LMS Capital announced a strategic review and a shareholder consultation on 13 February 2025. The board has reached the conclusion that this would be most effectively achieved by a managed realisation of the company’s assets and returns of capital over time.

A consideration in this decision was the prevailing and persistent discount to NAV, the lack of liquidity in its shares, and the limited prospects for achieving greater scale in the foreseeable future as well as wider market conditions.

The board intends to publish a shareholder circular towards the end of April 2025 to convene a general meeting at which it will seek approval from shareholders to change the investment policy to permit a managed realisation.

The company is currently exploring an initial distribution to shareholders which it intends, to the extent practicable, to make as a capital distribution. The board is still assessing the amount of any potential distribution in light of working capital and portfolio investment requirements. Further details regarding this will be communicated in due course. During the period of the managed realisation, the company does not intend to pay an annual dividend.

[It’s a case of déjà vu all over again as the now £15m market cap trust reinstates a policy it first adopted on 30 November 2011. Remarkably, its 10-year NAV returns average out at almost -6% per annum.]

LMS : LMS Capital will embark on a managed realisation (again)