The information
contained in this announcement is restricted and is not for
publication, release or distribution in the United States of
America, any member state of the European Economic Area, Canada,
Australia, Japan or the Republic of South Africa.
This announcement contains inside
information.
29 January 2025
Literacy Capital plc
Portfolio update - Continued activity
and progress
Literacy Capital plc ("Literacy", "BOOK" or the
"Company"), a listed investment trust primarily focused on
investing directly into private businesses based in the UK, today
provides shareholders with an update on recent activity.
In line with the announcement released on 28
October 2024, the Company is not providing an updated NAV figure or
publishing its usual quarterly factsheet for the three-month period
ending 31 December 2024. However, the Company expects to publish
its Q4 factsheet around the end of February 2025, and its audited
results for the year ended 31 December in early March.
Recent
Highlights:
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Confidence and business activity across the UK
was clearly adversely affected both in the run up to, and
subsequent to, the government's Budget announcement on 30 October
2024. However, very few of our businesses are in sectors
significantly impacted by the Budget.
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In January 2025, one of BOOK's portfolio
companies, Halsbury Travel, bought two profitable outdoor activity
centres based in Devon. Literacy funded this acquisition after the
parent of the centres, Kingswood Learning and Leisure Group (part
of Inspiring Learning Group), entered administration.
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We continue to be focused on generating cash
inflows in order to i) fund new investment activity; ii) reduce the
Company's RCF debt; iii) return capital to shareholders.
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In relation to the above, the refinancing of
two portfolio companies is on track. Both companies are performing
strongly and both had very conservative levels of leverage due to
their strong earnings growth and cash generation, hence the
opportunity to refinance them. The first refinancing completed in
January 2025, and we expect the second to do so in
February.
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Literacy is currently appraising several new
investment opportunities and has two new platform investments in
exclusivity. The amount of capital invested into these two
transactions will be more than covered by the amounts received from
the two refinancings mentioned above. Discussions relating to the
sale of assets owned by BOOK continue to progress.
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Comment from
Richard Pindar, CEO of BOOK's investment manager:
"We are pleased with
the continued activity and progress within Literacy's portfolio.
Based on the performance of portfolio companies in Q4, we are not
expecting a material movement to the last published NAV, being net
assets of £303.7 million; or 504.7p per share as at Q3.
Acknowledging that
BOOK shares are currently trading at a discount to NAV, which has
not historically been the case, it may provide an opportunity for
the Company to consider accretive share buy backs in due
course.
We look forward to
announcing the Q4 factsheet in approximately a month and year end
results in March, whilst providing further updates on the portfolio
throughout 2025."
-ENDS-
For further
information, please contact:
Literacy
Capital plc / Book Asset Management LLP
Richard Pindar / Aasha Tailor
+44 (0) 20 3960 0280
MHP
Group
Reg Hoare / Ollie Hoare / Matthew
Taylor
book@mhpgroup.com
+44 (0) 7817 458 804 / + 44 (0) 7827 662
831
Singer Capital
Markets Securities Limited
Alaina Wong
+44 (0) 20 7496 3000
About
Literacy Capital plc
Literacy Capital (BOOK.L) is a closed-end
investment company that was co-founded by Paul Pindar and Richard
Pindar in 2017 with £54m of capital. Literacy listed on the London
Stock Exchange's Main Market in June 2021, before gaining
Investment Trust status on 1 April 2022. The Company focuses on
opportunities to invest for the long-term in growing private
businesses where a clear route to creating additional value can be
seen with its support.
It also has a unique charitable objective, to
donate 0.5% of annual NAV to charities focused on improving UK
literacy in children. £10.6 million has been donated or reserved
for donation to charities since the trust's creation in 2017. For
more information, please visit our website:
www.literacycapital.com.
A copy of this announcement will be available on
the Company's website at
www.literacycapital.com.
The information contained in this announcement
regarding the Company's investments has been provided by the
relevant underlying portfolio company and has not been
independently verified by the Company. The information contained
herein is unaudited.
This announcement is for information purposes
only and is not an offer to invest. All investments are subject to
risk. Past performance is no guarantee of future
returns. Prospective investors are advised to seek expert
legal, financial, tax and other professional advice before making
any investment decision. The value of investments may
fluctuate. Results achieved in the past are no guarantee of
future results. Neither the content of the Company's website, nor
the content on any website accessible from hyperlinks on its
website for any other website, is incorporated into, or forms part
of, this announcement nor, unless previously published by means of
a recognised information service, should any such content be relied
upon in reaching a decision as to whether or not to acquire,
continue to hold, or dispose of, securities in the
Company.
LEI: 2549006P3DFN5HLFGR54
