REG - Literacy Capital PLC - Quarterly trading update and NAV announcement

Literacy CapitalAnnouncement

27/10/2025 07:00

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RNS Number : 8389E  Literacy Capital PLC  27 October 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The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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.

 

 

27 October 2025

Literacy Capital plc

 

Quarterly trading update and NAV announcement for Q3 2025

 

BOOK receives significant cash proceeds in Q3, with NAV remaining broadly
stable

 

Literacy Capital plc ("Literacy", "BOOK", the "fund", or the "Company"), a
listed investment trust primarily focused on investing directly into private
businesses based in the UK, today announces its quarterly trading and NAV
update for the three months ending 30 September 2025 (Q3'25).

 

Q3 Highlights:

 

 ●    Q3'25 net asset value ("NAV") of £311.6m, equating to NAV of 517.8 pence per
      share. This represents a 0.3% decrease in NAV per share in the quarter.
 ●    BOOK completed the sale and reinvestment into its second largest holding,
      Velociti, at a 52% premium to carrying value as at 31 March 2025 (already
      reflected in the Q2 NAV) and delivering a 14.8x MoM (70% IRR) return (as
      announced 28 July 2025).
 ●    Another portfolio company refinancing completed in the period, with Literacy
      remaining focused on actively managing and recycling capital from the
      portfolio to maximise returns. Further refinancing activity is expected before
      the end of 2025.
 ●    Together, these portfolio transactions enabled BOOK to generate its strongest
      quarterly cash inflow since inception (£28.7m).
 ●    Techpoint was the largest positive contributor in the period, with recent
      investments, particularly Trinitatum, again contributing positively and
      continuing to show encouraging early signs.
 ●    Total charitable donations since the inception of Literacy Capital now amount
      to £12.4m, including a charitable donation provision of £397k in Q3'25.

 

Commenting on the Q3 performance, CEO of BOOK's investment manager, Richard
Pindar, said:

 

"There has been a lot of activity in Q3 and several milestones achieved. We
completed our most successful exit to-date in July, which helped BOOK to
generate its strongest quarterly cash inflow (£28.7m) since inception. This
was achieved despite M&A volumes remaining relatively low against
historical levels.

 

Whilst NAV in the quarter was stable, we believe we have laid important
foundations for progress in the next 12 months. We have continued to
strengthen our senior management teams within the portfolio, whilst also
positioning certain companies for exit over the next 12 months, which would
deliver further cash inflows for the fund.

 

Our long-term focus remains on delivering strong NAV growth for shareholders,
and we are committed to increasing investor awareness of the track record,
points of difference and prospects of BOOK, along with other initiatives to
reduce the frustrating discount to NAV."

 

Net Asset Value

 

The Company announces that, as at 30 September 2025, the NAV per ordinary
share was 517.8 pence. This represents a 0.3%, or 1.7p per share decrease
since 30 June 2025, when NAV per ordinary share was 519.5p.

                                 At 30 Sep 25  At 30 Jun 25  At 30 Sep 24
 Net asset value (£m)            311.6         312.6         303.7
 NAV per ordinary share (pence)  517.8         519.5         504.7

 

The above NAV calculation is based on the Company's issued ordinary share
capital as at 30 September 2025 of 60,175,000 ordinary shares of £0.001 each.
This NAV calculation includes the cost to ordinary shareholders of the 597,500
warrants in issue. This cost is accrued on a straight-line basis over the
vesting period of the warrants.

 

Portfolio company performance

 

Techpoint was the largest positive contributor to NAV in the period,
representing a recovery from a weaker performance and contribution in the past
two years. The business unveiled its new state-of-the-art facility in
Basingstoke in Q3, which will allow Techpoint to sustain positive momentum
into 2026. Grayce was the largest detractor in the quarter as it continued to
face market headwinds making growth more difficult. Despite this, we are
optimistic that the new CEO who was appointed in September, will help to
realise the potential of what is already a highly profitable investment for
BOOK.

 

The positive early signs and momentum from some of BOOK's most recent
investments have also been maintained. Whilst these businesses (such as
Trinitatum, which contributed the second largest uplift in Q3) are currently
smaller holdings and outside the top ten, they are showing encouraging
potential to develop into larger assets that can generate significant returns
for Literacy shareholders upon exit.

 

Whilst annual sales and EBITDA growth metrics in the top ten holdings were
more subdued in Q3 than historically, the equivalent figures at the end of Q4
are expected to show improvement, with a consequent positive impact on NAV.

 

Transactions and investments

 

No new investments were completed in the period and only £0.2m of capital was
invested into an existing portfolio company in Q3. The focus for Q3 was, and
continues to be going into Q4, cash inflow activity.

 

Cash & liquidity

 

Cash inflows in Q3 were the highest of any previous quarter for BOOK, at
£28.7m. The Velociti transaction that completed in July was the main
contributor to this, added to by a refinancing in the period, as well as
distributions from Literacy's fund investments.

 

Literacy's RCF was £14.1m drawn as at 30 September 2025 (£37.9m drawn on 30
June 2025), with £2.4m held in cash. As a result of the cash received during
Q3 from the sale of Velociti, the balance drawn on the RCF is materially lower
than Q2, which has substantially reduced financing costs for BOOK.

 

Activity since the period end

 

No events occurred between the end of Q3 and the publication of the factsheet
requiring reported NAV to be revised.

 

Factsheet

 

The Company's factsheet for the three months to 30 September 2025 is now
available on the Company's website: www.literacycapital.com/investors
(https://protect.checkpoint.com/v2/___http:/www.literacycapital.com/investors___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzphNjUwYWQxZDUwODhlOWQ3MmI2NDdhYTkzOTJmNjA0Mzo2OmM0NWE6MTBkZjJiZmU3NGNhNmQwYTc2ZTQ2YjBlNjM2OGJlNTk0N2MyMDZmNzFhNzcxY2ZhOTcxMDVhNGEzNjgwYjhhYjpwOlQ6Tg)
.

 

 

-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

 

Singer Capital Markets

Mark Bloomfield (Investment Banking)

Alan Geeves, James Waterlow, Sam Greatrex, William Gumpel (Sales)

+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 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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