2nd Aug 2019 14:21
(Alliance News) - Private equity firm LMS Capital PLC said Friday its asset value fell as US investments performed "very poorly", despite network software firm Entuity Ltd jumping amid its acquisition.
For the six months ended June, net asset value per share fell 1.5% to 73.3 pence from 74.4p six months earlier. This was after net assets fell 2.0% to GBP59.1 million from GBP60.3 million six months earlier.
Shares in LMS were 2.5% higher at 51.50 pence in London on Friday.
"The net asset value, disappointingly, has declined by GBP1.2 million, approximately 2%," LMS Chair Martin Knight said.
"Within this overall decline there are both positives and negatives," Knight added. "Most significantly, Entuity has shown a positive result, a contract for sale was exchanged on 25 July, the proceeds of which at completion will produce an uplift in carrying value of some 76% compared to the to the previously reported value. Completion is expected before 30 September 2019 and should generate further cash proceeds in excess of GBP8 million."
"On the negative side the US investments, particularly YesTo, performed very poorly," Knight continued, resulting in a GBP4.1 million unrealised loss.
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