REG - Literacy Capital PLC - Final results for the 9 months to 31 December 2022

Literacy CapitalAnnouncement

22/03/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230322:nRSV7722Ta&default-theme=true

RNS Number : 7722T  Literacy Capital PLC  22 March 2023

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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

 

 

22 March 2023

 

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

 

Final results and audited financial statements for the nine months to 31
December 2022

 

Focus on helping to build great businesses to generate superior returns

 

Literacy Capital, the listed investment trust, is pleased to release its final
results for the nine months ended 31 December 2022.

 

A PDF copy of the results can be viewed at:
www.literacycapital.com/investors/reports-and-results
(http://www.literacycapital.com/investors/reports-and-results) and a live
investor webinar will be broadcast online at 14.00 GMT today. A link for this
can be found here (https://bit.ly/BOOK_FY22webinar) with the webinar ID for
this being: 891 9742 8157.

 

Performance highlights

 

·    NAV per ordinary share of 420.6p

o  Net assets of £252.4m, unchanged compared to the unaudited Q4 figure
contained in the quarterly trading update. An increase of 31.4% net of all
costs and charitable donations, in the nine months to 31 December 2022

o  BOOK's share price increased 23.9% over the same period

 

·    The portfolio is well-positioned, weighted towards profitable
businesses enjoying strong trading momentum

o  Year-on-year revenue growth of Literacy's buyout investments in its top
ten holdings exceeded 100% at the end of 2022 (calculated on a weighted
average basis). This is the highest figure reported since Literacy Capital's
listing, demonstrating the strength of the momentum across these businesses

o  Since listing, BOOK has focused its capital and rebalanced its portfolio
towards buyouts of profitable, cashflow positive businesses, away from earlier
stage, more risky growth capital investments

 

·    Significant activity to find new investment opportunities and to
create value across existing portfolio

o  Completed two new platform investments, as well as several bolt-on
acquisitions on behalf of four BOOK portfolio companies. Literacy's pipeline
of new investment opportunities remains buoyant

o  Have helped to build and strengthen the management teams of a number of
portfolio companies through several senior hires

 

·    Portfolio companies are maturing, positioning the Company for further
uplifts and additional cash generation

o  Cash proceeds received by BOOK amounted to £7.3m in the nine-month
period, with £6.8m received in the final quarter. More cash is expected to be
received in 2023 than 2022, which will be recycled into new investment
opportunities

o  The sale of Kernel Global announced recently is the first involving a BOOK
portfolio company to generate significant cash for Literacy. It was at a
significant premium to carrying value, demonstrating the attractiveness of
Literacy's assets and conservative approach to valuations

 

·    Increasing charitable donations, helping disadvantaged children
across the UK get a fair chance

o  £1,879k of charitable donations provided for in the nine-month period, up
43% on the same period a year earlier, driven by growth in NAV

o  Total donations now amount to £5.8m since inception of Literacy Capital

 

 

Performance to 31 December 2022

 

 % total return                 3 months  9 months  1 year   3 years  Since Inception
 BOOK Net asset value           +9.3%     +31.4%    +51.7%   +280.2%  +367.3%
 BOOK Share Price               (5.2)%    +23.9%    +24.7%   n/a      n/a
 FTSE Investment Company Index  +4.2%     (8.8)%    (16.6)%  +10.9%   +30.7%
 FTSE All-Share Index           +8.3%     (2.7)%    (3.2)%   (2.9)%   (1.3)%

 

Inception: 30 April 2018

 

 

Comparison to prior periods

 

                         At 31 December 2022  At 31 March 2022
 Net asset value         £252.4m              £192.0m
 NAV per ordinary share  420.6p               320.0p

 

                                Nine months to 31 December 2022  Nine months to 31 December 2021
 Capital invested               £20.3m                           £11.4m
 Cash realised                  £7.3m                            £6.9m
 Charitable donation provision  £1,879k                          £1,310k

 

 

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

"We are pleased with the performance of BOOK's portfolio in this nine-month
period, with the continued strong trading across its portfolio companies,
contributing to a NAV uplift of 31.4%.

"The portfolio enters 2023 demonstrating strong tailwinds and momentum. We are
optimistic regarding the composition of the portfolio and its weighting
towards buyouts of smaller, private businesses, which have outperformed and
contributed strongly to Literacy's performance in recent years.

"We are very aware of the current macroeconomic environment and challenges for
businesses and consumers that are likely to persist into 2023. Despite this,
we are confident that our businesses are well-positioned to overcome these
challenges and to prosper."

 

 

 

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:                                              +44 (0) 20 3128 8276

   Reg Hoare / Ollie Hoare / Matthew Taylor                         book@mhpgroup.com (mailto:book@mhpgroup.com)

   Singer Capital Markets Securities Limited:

   Robert Peel                                                      +44 (0) 20 7496 3000

 

 

About Literacy Capital:

 

Literacy Capital (BOOK.L) is an investment trust that was launched in 2017 by
Paul and Richard Pindar, before it 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 can be seen. It also has a unique charitable objective to
donate 0.9% of annual NAV to charities focused on improving literacy in UK
children. £5.8 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) .

 

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.

 

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.

 

This announcement may include "forward-looking statements". All statements
other than statements of historical facts included in this announcement,
including, without limitation, those regarding the Company's financial
position, business strategy, plans and objectives of management for future
operations (including development plans and objectives relating to the
Company's products and services) are forward-looking statements.
Forward-looking statements are subject to risks and uncertainties and
accordingly the Company's actual future financial results and operational
performance may differ materially from the results and performance expressed
in, or implied by, the statements. These factors include but are not limited
to those described in the formal Prospectus. These forward-looking statements
speak only as at the date of this announcement. The Company expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect actual results or any
change in the assumptions, conditions or circumstances on which any such
statements are based unless required to do so by the Financial Services and
Markets Act 2000, the Listing Rules or Prospectus Regulation Rules made under
Part VI of the Financial Services and Markets Act 2000 of the Financial
Conduct Authority or other applicable laws, regulations or rules.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. 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/)
.

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  ACSJBMPTMTJTBIJ