REG - Literacy Capital PLC - Portfolio Realisation

Literacy CapitalAnnouncement

07/01/2026 07:00

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RNS Number : 8727N  Literacy Capital PLC  07 January 2026

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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

 

7 January 2026

 

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

 

Portfolio Realisation

 

Literacy Capital completes transaction to exit Wifinity,

generating a total expected return of 5.2x MoM

 

Transaction highlights

 

·    Total return of 5.2x MoM expected, in line with previous carrying
value, and an IRR of 22.3%

·    £15.0m of cash due to be received at completion, with a further
£0.4m expected during 2026

·    Sale of BOOK's oldest and eighth largest holding (5.0% of Q3'25 NAV)

·    Cash proceeds will be used to repay the RCF, with further cash
inflows expected in 2026

 

Literacy Capital is pleased to announce the sale of its portfolio company,
Wifinity, to Arcus Infrastructure Partners, a European-focused infrastructure
fund. Wifinity is a UK-based internet managed service provider delivering
connectivity to organisations and consumers.

 

Wifinity was one of Literacy Capital's earliest investments, with the Fund
originally acquiring a stake in December 2017. In September 2021, the business
was sold to a private equity investor, Lloyds Development Capital ("LDC"),
with BOOK reinvesting its proceeds alongside LDC. The eight-year hold period
demonstrates the Fund's long-term, patient approach to value creation. Since
BOOK's investment, Wifinity's sales organisation was significantly
strengthened alongside material enhancements to both finance and operations.
As a result, the business delivered strong organic growth through market
expansion and the securing of numerous new long-term contracts. Complementary
bolt-on acquisitions further accelerated this growth, and consequently EBITDA
increased five-fold during BOOK's period of investment.

 

As at 30 September 2025 (the date of BOOK's most recently published NAV),
Wifinity was one of the Fund's ten largest holdings, equating to 5.0% of NAV
at the end of Q3. This transaction sees the Fund sell its entire stake in line
with the previously reported carrying value.

 

Under the terms of the transaction, £15.0m will be received in cash at
completion, with a further £0.4m expected around the end of 2026 subject to a
specific milestone. The total return for BOOK shareholders from this
investment, including cash distributions previously received and the
contingent consideration (expected to be received within 12 months) is 5.2x
MoM (IRR of 22.3%).

 

Signing and exchange have taken place, with regulatory clearance and
completion expected during Q1 2026.

 

The cash received by BOOK following completion will be used to repay amounts
drawn under its Revolving Credit Facility.

 

Richard Pindar, CEO of BOOK's Investment Manager, commented:

 

"The sale of Wifinity marks a significant milestone, both for Wifinity and
Literacy Capital, with the business having been a longstanding and successful
holding for the Fund.

 

We are grateful to the CEO, Costas Demetriou, for his excellent leadership and
development of the business since joining following our original investment in
December 2017, and for his role in helping to achieve this successful outcome
and exit.

 

This transaction represents another notable realisation event for BOOK. Again,
the counterparty or buyer is a substantial institutional investor,
demonstrating the marked enhancement of Wifinity's attractiveness to larger
investors since Literacy Capital's original investment eight years ago.

 

As has been widely discussed, M&A conditions were difficult during 2025,
resulting in many transactions being delayed or cancelled. Despite this, we
are pleased to be able to announce this sale and hope to announce further
successful realisation events soon.

 

Our priority remains generating cash proceeds from longer held, more mature
assets to focus capital and management bandwidth on less mature holdings that
have significant potential."

 

Notes

 

This announcement does not constitute or describe an updated NAV for the
Company. Shareholders should take note that the calculation of the NAV per
share as at 31 December 2025 will take account of the latest valuations of all
the Company's investments as at this date.

 

Enquiries

For further information, please contact:

 

 Literacy Capital plc / Book Asset Management LLP  +44 (0) 20 3960 0280

 Richard Pindar / Aasha Tailor

 MHP Group                                         +44 (0) 7817 458804

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

 Deutsche Numis                                    +44 (0) 20 7260 1000

 Hugh Jonathan / George Shiel

 

About Literacy Capital:

 

Literacy Capital (BOOK.L) is an investment trust that was co-founded by Paul
Pindar and Richard Pindar in 2017 with £54 million of capital. Literacy
subsequently listed on the London Stock Exchange in June 2021. The Fund
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. The fund structure is evergreen, allowing it to be more flexible
and to accommodate the wishes or needs of founders.

 

It also has a unique charitable objective, to donate 0.5% of annual NAV to
charities focused on improving UK literacy in children. £12.4 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
(https://protect.checkpoint.com/v2/___http:/www.literacycapital.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzowNGJmYTYxZGIxMTNhZmFhMTU5MzYyMGE2ZGIxNjlmNTo2OjkzMDc6OTVmMmE3MGRjNmU3MzM5NTJjNjYyZDY2NjllZGI5YjMwNTExZjZhNGQ1YTJiZjI3ZmEzYWUzYWZhZDhhMWY3MDpwOkY6Tg)
.

 

Website:

www.literacycapital.com
(https://protect.checkpoint.com/v2/___http:/www.literacycapital.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzowNGJmYTYxZGIxMTNhZmFhMTU5MzYyMGE2ZGIxNjlmNTo2OjkzMDc6OTVmMmE3MGRjNmU3MzM5NTJjNjYyZDY2NjllZGI5YjMwNTExZjZhNGQ1YTJiZjI3ZmEzYWUzYWZhZDhhMWY3MDpwOkY6Tg)

 

LEI: 2549006P3DFN5HLFGR54

 

A copy of this announcement will be available on the Fund's website
at www.literacycapital.com
(https://protect.checkpoint.com/v2/___http:/www.literacycapital.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzowNGJmYTYxZGIxMTNhZmFhMTU5MzYyMGE2ZGIxNjlmNTo2OjkzMDc6OTVmMmE3MGRjNmU3MzM5NTJjNjYyZDY2NjllZGI5YjMwNTExZjZhNGQ1YTJiZjI3ZmEzYWUzYWZhZDhhMWY3MDpwOkY6Tg)
.

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