RCS - Literacy Capital PLC - Portfolio update

Literacy CapitalAnnouncement

28/12/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221228:nRSb9576Ka&default-theme=true

RNS Number : 9576K  Literacy Capital PLC  28 December 2022

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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.

 

28 December 2022

 

Literacy Capital plc ("Literacy" or the "Company")

 

Literacy completes sale of stake in Hometree, in line with carrying value,
realising £3.8m in cash

 

Portfolio update

 

Literacy has completed the sale of its interest in Hometree in full, which
generates £3.8 million of cash for the Company. The sale price agreed was in
line with the carrying value that the asset was held at in recent factsheets,
so has no impact on the Company's NAV.

 

The transaction, which legally completed last week, delivered a 1.30x return
and an IRR of 6.8%. Literacy received the final tranche of cash consideration
on 23 December, allowing the Company to pay down borrowings and recycle this
cash into alternative investments in due course.

 

This represents a profitable exit for Literacy, demonstrating the team's
commitment to actively managing the portfolio and recycling proceeds to fund
new investments in the pipeline.

 

Richard Pindar, CEO of the Investment Manager and Director of Literacy Capital
plc, commented:

 

"This sale sees Literacy exit one of its few remaining growth capital
investments. This is in line with Literacy's stated objective to focus for new
investment activities and its capital on the buyout of profitable, private
businesses, rather than more risky investments into earlier stage, growth
capital or venture investments.

 

At the end of Q3 2021, 15.4% of Literacy's net assets were invested in growth
capital assets. By the close of Q3 2022, growth capital assets equated to 7.5%
of the value of Literacy's investments. Removing the asset sold in this
transaction, this Q3 2022 figure would have been just 5.9%.

 

This cash will be recycled and used to fund new investments in line with the
Company's investment approach to optimise returns for shareholders."

 

 

Enquiries

For further information, please contact:

 

   Literacy Capital plc / Literacy Capital Asset Management LLP:

   Richard Pindar / Tom Vernon                                      +44 (0) 20 3960 0280

   MHP Communications:

   Reg Hoare / Ollie Hoare / Matthew Taylor                         +44 (0) 20 3128 8276

   Singer Capital Markets Securities Limited:

   Robert Peel                                                      +44 (0) 20 7496 3000

 

About Literacy Capital:

 

Literacy Capital (BOOK.L) is a closed-end investment company launched in 2017
by Paul Pindar and Richard Pindar and listed on the London Stock Exchange's
main market in June 2021. The Company focuses on opportunities to invest for
the long-term in growing private businesses where a clear route to creating
additional value. It also has a unique charitable objective to donate 0.9% of
annual NAV to charities focused on improving UK literacy in children. More
than £5 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 (http://www.literacycapital.com) .

 

 

Website:

www.literacycapital.com

 

LEI: 2549006P3DFN5HLFGR54

 

A copy of this announcement will be available on the Company's website at
www.literacycapital.com (http://www.literacycapital.com) .

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRABLBDDLDDDGDX