REG - Literacy Capital PLC - Portfolio update – Continued activity & progress

Literacy CapitalAnnouncement

29/01/2025 07:00

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RNS Number : 0149V  Literacy Capital PLC  29 January 2025

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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

 

 ●    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.
 ●    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.
 ●    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.
 ●    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.
 ●    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.

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
(https://protect.checkpoint.com/v2/r06/___http:/www.literacycapital.com___.ZXV3MjpuZXh0MTU6YzpvOmVhN2MxMWM0NDhjZGY1Njc2Mzk2ZTlmZWI4MmI3ZDgwOjc6YTg4NTpmN2VhNzY4MjY5MTFkYzhlZDlmMzYzNjVmY2U5ZDc4OTE5NjMyNjk2ZDZmOGQ3N2IyMGU3YjI5OTZlOGVjMTZjOnA6RjpU)
.

 

A copy of this announcement will be available on the Company's website at
www.literacycapital.com
(https://protect.checkpoint.com/v2/r06/___http:/www.literacycapital.com___.ZXV3MjpuZXh0MTU6YzpvOmVhN2MxMWM0NDhjZGY1Njc2Mzk2ZTlmZWI4MmI3ZDgwOjc6YTg4NTpmN2VhNzY4MjY5MTFkYzhlZDlmMzYzNjVmY2U5ZDc4OTE5NjMyNjk2ZDZmOGQ3N2IyMGU3YjI5OTZlOGVjMTZjOnA6RjpU)
.

 

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

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