REG - Literacy Capital PLC - Portfolio update following FY25 year-end

Literacy CapitalAnnouncement

28/01/2026 07:00

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RNS Number : 6035Q  Literacy Capital PLC  28 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The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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.

 

28 January 2026

Literacy Capital plc

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

 

Portfolio update following FY25 year-end

 

Significant cash inflows recently announced and a modestly positive NAV return
expected for FY25

 

Literacy Capital plc, 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.

 

The Company expects to publish its Q4 net asset value ("NAV") and quarterly
factsheet for the three-month period ending 31 December 2025 before the end of
February 2026, and its audited results for the year ended 31 December 2025 in
late March 2026.

 

Recent Highlights:

 

 ●    Three significant exits announced in the past six months, including two
      earlier in January 2026. These transactions involved Velociti (14.8x MoM; 70%
      IRR), Wifinity (5.2x MoM; 22% IRR) and Tyrefix (2.5x MoM; 25% IRR). Each sale
      generated strong returns and significant cash proceeds. Importantly, in
      aggregate £81.2m of value was realised, at a 39% premium to the combined
      reported carrying value of £58.6m.
 ●    Cash inflows in Q1'26 will exceed all other quarters in BOOK's history,
      enabling the Company to fully repay its revolving credit facility. As a
      result, BOOK has moved into a net cash position, materially strengthening the
      balance sheet and reducing financing costs.
 ●    The total NAV return in FY25 is expected to be modestly positive. A decline is
      expected in the Q4 NAV, primarily due to softer trading in the quarter at RCI
      and Grayce, resulting in their carrying values being reduced. Positive
      contributions are expected from Red Sky Food Group, Tyrefix, Bright Ventures
      and Trinitatum.
 ●    In November 2025, Red Sky Food Group completed the significant acquisition of
      Delenco Foods, meaning the group now has two manufacturing sites and revenue
      of approximately £35m. Bolt-on M&A activity is expected to remain a
      priority for several Literacy portfolio companies in 2026 to build further
      scale and value.
 ●    Literacy completed its first capital distribution to shareholders in November
      2025, returning approximately £6m via the Company's B Share scheme. BOOK does
      not currently expect to make a further return of capital until additional
      exits complete.
 ●    BOOK announced the appointment of Deutsche Numis as the Company's sole broker
      and financial adviser with immediate effect on 17 November 2025. Since then,
      the bid-offer spread has materially reduced, with trading volumes and the
      share price having improved. Further marketing initiatives are planned during
      2026 to increase shareholder interest and reduce the discount further.

Comment from Richard Pindar, CEO of BOOK's investment manager:

 

"We are pleased to have announced the recent, successful disposals, having
been a strategic focus for the team during 2025. These transactions generated
a healthy premium to their previously reported carrying values, despite
M&A activity more broadly remaining subdued. The absolute returns and
premiums delivered upon these realisation events demonstrate the value that
can be generated by BOOK's methods and the prudent approach to valuing these
businesses.

 

Economic growth and business activity in the UK remained fragile and
unpredictable in 2025, which had an impact on the organic revenue growth and
the performance that the overall portfolio could deliver. Despite this
backdrop, we expect to report a modestly positive NAV return in 2025.

 

The discount to NAV has reduced slightly in recent months. Whilst the positive
news flow in relation to the two transactions announced in January is helpful,
the bid offer spread has more than halved since the change of broker in
November, which also helps to improve the attractiveness of BOOK's shares. We
will continue our efforts to reduce this discount, which we consider
excessively wide, given BOOK's track record and prospects.

 

We look forward to publishing the Q4 factsheet in approximately a month and
year end results in late March."

 

Master Investor Show

 

Paul Pindar (Chair) and Richard Pindar (CEO) of Literacy's Investment Manager
will be presenting at the Master Investor Show at the Business Design Centre
on 25 April 2026.

 

More information on this event can be found here:
https://www.masterinvestorshow.com/ (https://www.masterinvestorshow.com/)

 

Investor Meet Company presentation

 

Paul Pindar (Chair) and Richard Pindar (CEO) of Literacy's Investment Manager
will provide a live presentation and update on 27 April 2026 at 14:00 BST.
This will follow the publication of BOOK's Q1 2026 factsheet.

 

The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
26 Apr 2026 09:00 BST, or at any time during the live presentation. Investors
can sign up for free at the following link:
https://www.investormeetcompany.com/literacy-capital-plc/register-investor
(https://url.uk.m.mimecastprotect.com/s/cybZC9O0AtYpYiofqHqjnNv?domain=investormeetcompany.com)
.

 

-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

 

Deutsche Numis

Hugh Jonathan / George Shiel

+44 (0) 20 7260 1000

 

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 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. £12.4m 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___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzphNjUwYWQxZDUwODhlOWQ3MmI2NDdhYTkzOTJmNjA0Mzo2OmViNjk6ZTY1ZGRjZjU4MjE2YTJmMjU5YmYzMWZjOTYwMDBjMTI4MzY0YTIxYzQ1YzZkODczYzMwNzQ1YzM1YzI0NTg5YTpwOlQ6Tg)
.

 

A copy of this announcement will be available on the Company's website at
www.literacycapital.com
(https://protect.checkpoint.com/v2/___http:/www.literacycapital.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzphNjUwYWQxZDUwODhlOWQ3MmI2NDdhYTkzOTJmNjA0Mzo2OmViNjk6ZTY1ZGRjZjU4MjE2YTJmMjU5YmYzMWZjOTYwMDBjMTI4MzY0YTIxYzQ1YzZkODczYzMwNzQ1YzM1YzI0NTg5YTpwOlQ6Tg)
.

 

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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