LMS Capital PLC GBP · LSE:LMS
LMS Capital PLC GBP — LMS Capital — FY2021 Earnings Presentation
17 slides from LMS Capital PLC GBP's earnings presentation, March 2022
Slide 1: March 2022 update: Results 31 December 2021
March 2022 update + Results 31 December 2021
Slide 2: Contents
Contents Page 3 Overview 4 Mature investments • Directly held unquoted investments • Fund and other investments 7-10 Dacian 11 Our approach to investing 12 Deal Characteristics 13 Real Estate 14 Other Private Equity 15 LMS Co-Invest Co 16 Our Team 17 Summary 2
Slide 3: LMS - Our goals and priorities
LMS - Our goals and priorities NAV at a Glance Our Goal • To deliver, over the longer term, value to our shareholders through share price appreciation and dividends Our Priorities to be able to achieve this • Managing our mature portfolio towards successful realization • Nurturing our new investment
Slide 4: Mature investments
Mature investments • £21.5m NAV – mature assets remaining from pre-2012 investment strategy • Managed to optimise exit value – we may commit further capital where the investment case justifies • Target to be substantially realized over 1-3 years • Most of this portfolio managed by third parties – va
Slide 5: Directly held unquoted investments
Directly held unquoted investments Medhost REGION: US Medhost is a healthcare information technology group that • US fund manager Primus is lead YEAR: 2008 provides cloud-based enterprise, departmental and investor. NAV: £6.0m healthcare engagement solutions to over 1,000 community and specialty hos
Slide 6: Fund and other investments
Fund and other investments Brockton REGION: UK Brockton is a UK real estate fund with one remaining investment in a “Super • Hold YEAR: 2008 Prime” London residential development. The Company’s investment NAV: £5.6m represents its share of preferred debt investments via the Brockton fund. LMS holdin
Slide 7: Dacian – investment
Dacian – investment • Investment by LMS • $9.1m senior loan notes • “Pinhead” equity in Dacian Petroleum 32% • Part of an overall $14.2m investment comprising LMS and LMS Co investors (inc. LMS Directors) led by LMS • Acquisition Finance $6m - Raised by Dacian in addition to investor group capital A
Slide 8: Dacian – operating business
Dacian – operating business • Romanian oil and gas production company focused on mature production assets (“Sunset” assets) • Its first acquisition is a business comprising • 40 onshore oil fields in Romania • c.90 active wells • Production currently c.1000 barrels of oil equivalent per day (boepd)
Slide 9: Dacian – Summary
Dacian – Summary Our first major new investment in one of our chosen themes Attractive returns profile: • Repayment of debt For LMS • Dividends • Entry pricing based around 2020 “lows” • Positive Day 1 operating cash • Operational enhancement potential Foundation for further acquisitions and develop
Slide 10: Dacian - returns
Dacian - returns "We expect the investment to meet or exceed our long-term criteria for returns of 12-15% p.a. net of all costs" Overview - Dacian application of Operating Cash Flows Net Operating Cash First - Acquisition Finance Instalments Due Second - Performance Guarantee Instalments Prudent pro
Slide 11: Our approach to investing
Our approach to investing • Invest our chosen sectors – where we have competitive advantage • To generating attractive risk adjusted returns • And providing the opportunity to scale the investment, bringing in 3rd party capital Track record of success + Access to teams and deals + Knowledge and expe
Slide 12: Our deal characteristics
Our deal characteristics Invest in opportunities in three broad areas where we have demonstrable knowledge and success over 40+ years investing • Real estate • Energy • Other late stage opportunities – typically with some “cross over” to real estate or energy Investing in outstanding management team
Slide 13: Real Estate
Real Estate • The LMS team has a long and successful track record having both operated or provided the seed capital to create real estate businesses • Since its return to self management LMS has worked with two real estate teams with complementary skills: o “Value Add” investment - property investme
Slide 14: Other Private Equity
Other Private Equity • Seeking LMS’ competitive advantage in a very wide sector • Typically this means some “cross over” with Energy or Real Estate • Established businesses rather than start ups • Exploiting opportunities to take market share in existing or adjacent markets • EV up to £50m, but larg
Slide 15: LMS Co-Invest Co
LMS Co-Invest Co • Wholly owned FCA authorized subsidiary • Introduces and arranges participation by co-investors, alongside LMS, in its investment opportunities • Builds on LMS history of investing with partners • For LMS • Diversification • “Punch above weight” • Participates in larger deals • Spr
Slide 16: Our Team
Our Team Board & Investment Committee Robbie Rayne Nick Friedlos Advisory Groups James Wilson Peter Harvey Graham Stedman Core Team Nick Friedlos Doug Mills Aimee Fraser Chris Garrod Private Equity Real Estate Energy Richard Fidler LMS Co-Invest Chris Dancer Bernard Duroc-Danner Tim Willis Tim Willi
Slide 17: In summary
In summary 2020 – Foundations • Preserving assets and liquidity in the face of the Coronavirus pandemic • Ensuring we had the resources and systems to operate successfully as a self-managed investment business • Building our pipeline of investment opportunities 2021 – Building in energy and real est