REG - Literacy Capital PLC - Portfolio Realisation

Literacy CapitalAnnouncement

21/01/2026 07:00

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RNS Number : 6824P  Literacy Capital PLC  21 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The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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.

 

21 January 2026

 

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

 

Portfolio Realisation

 

Literacy Capital announces sale of Tyrefix at 59% premium to carrying value,

generating cash proceeds of £14.7m

 

Transaction highlights

 

 ·                     Sale of Tyrefix to Nordic private equity-backed acquirer at a 59% premium to
                       carrying value
 ·                     Transaction generates £14.7m of cash for BOOK and a 2.5x MoM return (IRR of
                       25.0%)
 ·                     Cash inflows in Q1'26 will exceed all other quarters in BOOK's history,
                       following the previous high set in Q3'25
 ·                     Proceeds received from the sales of Tyrefix and Wifinity will move BOOK's
                       balance sheet into a net cash position
 ·                     Aggregate value of BOOK's interests in last three realisations was £81.2m,
                       compared to a combined reported carrying value of £58.6m (a premium of 39%)

 

Literacy Capital is pleased to announce the sale of Tyrefix to Citira AB, a
tyre management provider based in the Nordics, backed by Norvester. Tyrefix is
the market leading provider of plant tyre repair and replacement services in
the UK.

 

Literacy Capital acquired a majority stake in Tyrefix in November 2020 to
support the founder's retirement plans. During Literacy Capital's ownership,
the management team was strengthened with new senior recruits. Tyrefix also
expanded into a new, larger headquarters and acquired two businesses, enabling
the group to double revenue, grow market share and broaden its service
offering to customers.

 

This transaction results in the Fund selling its entire stake for £14.7m, a
substantial 59% premium to the previously reported carrying value, with 100%
of this consideration payable in cash at completion. The total return for BOOK
shareholders from this investment, after all transaction related costs, is
2.5x MoM (IRR of 25.0%). Signing and unconditional exchange have taken place,
with completion expected in early February 2026.

 

As at 30 September 2025 (the date of BOOK's most recently published NAV),
Tyrefix was the Fund's 12(th) largest holding by value, with its interest
valued at £9.3m, equating to 3.0% of NAV.

 

This sale is the second transaction announced in January 2026, which will
result in Q1'26 cash proceeds exceeding any previous quarterly amount received
by BOOK, with the previous record set in Q3'25.

 

It is also the third significant transaction announced within the last six
months, with two of the three disposals generating a premium to carrying value
of more than 50%. BOOK's combined reported carrying value of the three
businesses prior to their sale was £58.6m, whilst the aggregate value
ascribed to BOOK's interests in these three businesses by acquirers was
£81.2m, a premium across the three disposals of 39%.

 

The cash received by BOOK from the sales of Tyrefix and Wifinity will be used
to repay the Fund's Revolving Credit Facility in full, leaving the balance
sheet in a net cash position.

 

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

 

"We are pleased to announce another successful sale, which realises meaningful
cash for BOOK at a 59% premium to the previously reported carrying value.

 

Tyrefix has been part of Literacy Capital's portfolio for over five years,
with CEO and CFO, Oliver and Jon expanding the business and gaining market
share during that period, resulting in strong interest in Tyrefix from
strategic acquirers. The Tyrefix team has been a pleasure to work with, and we
wish them the very best as they work with Citira to continue the expansion of
Tyrefix.

 

Despite a challenging M&A environment in the mid-market, Literacy Capital
has generated a substantial amount of cash since July 2025. In the nine months
to 31 March 2026, we expect BOOK to generate more than £65m in cash from
asset sales and refinancings, whilst retaining a valuable stake in Velociti.
These transactions demonstrate our ability to realise value across the
portfolio, with each of the three recent disposals attracting interest from
financial sponsors or PE-backed acquirers, due to the calibre of the platforms
and their management teams.

 

The Tyrefix disposal is in line with our previously stated intention to
generate cash, reduce the number of holdings in the portfolio, whilst enabling
an enhanced focus of time and capital on assets that can contribute to
outperformance.

 

The values consistently delivered from realisations, relative to reported
valuations, demonstrate Literacy's conservative valuation methodology. This
leaves us well placed to deploy capital in the existing portfolio and future
transactions to generate further strong returns for investors."

 

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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