REG - Literacy Capital PLC - FY25 Interim Report and Accounts

Literacy CapitalAnnouncement

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RNS Number : 5053W  Literacy Capital PLC  26 August 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The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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.

 

 

26 August 2025

 

Literacy Capital plc

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

 

Literacy Capital FY25 Interim Results

 

Strong first half; in touching distance of all-time high NAV

 

Literacy Capital, the listed investment trust focused on helping to build
great businesses to generate superior returns, is pleased to report its
unaudited interim results for the six months ended 30 June 2025.

 

A PDF copy of the results can be viewed at:
www.literacycapital.com/investors/reports-and-results
(http://www.literacycapital.com/investors/reports-and-results)

 

Performance highlights

 

·    NAV per ordinary share of 519.5p(1) (31 December 2024: 492.8p; 30
June 2024: 522.6p), in touching  distance of BOOK's all-time high NAV of
522.6p

o  Net assets of £312.6m(1), an increase of 5.4% in the six months to 30
June 2025

o  Over the same period, BOOK's share price declined 4.0%, compared to a 4.6%
increase for the FTSE Investment Company Index and a 9.1% increase for the
FTSE All-Share Index

 

·   Continued deployment of capital into new opportunities and the
existing portfolio, with new investments focused on smaller, profitable
UK-based businesses

o  New investment: In March 2025, BOOK acquired a majority stake in
Trinitatum, a provider of test automation software and related services within
the energy and financial trading markets

o New investment: In April 2025, BOOK acquired a significant minority stake
in Langford's, a leading manufacturer of award-winning premium meat products,
becoming the first acquisition of the newly formed Red Sky Food Group, which
is considering further M&A opportunities in the sector

o  Existing portfolio: Literacy has continued to deploy capital into the
existing portfolio, as well as supporting and strengthening the management
teams of these businesses

 

·    A focus on actively managing and recycling capital from the portfolio
to maximise returns

o  Rebalancing our emphasis from new investments, towards building and
maximising value from our current investment portfolio, thereby generating
strong cash inflows

o  The fund is assessing whether and when to sell interests in portfolio
companies that are now considered to be relatively mature holdings, subject to
a pick-up in M&A activity and confidence

o   In July 2025, BOOK finalised the sale and reinvestment into Velociti
Solutions; the transaction completed at a 52% premium to the latest carrying
value and generated a 14.8x MoM return (IRR of 70%) for Literacy's
shareholders

o  Two portfolio company refinancings also completed in the six months to 30
June 2025, which were used to fund the platform investments in the period

o  The Company recently announced its intention to make a first return of
capital to shareholders before the end of 2025

·    Strong long-term performance versus benchmarks

o  BOOK's share price has grown 172.5% since admission compared to 5.3% for
the FTSE Investment Company Index and 35.9% for the FTSE All-Share Index

o  This demonstrates the value of Literacy's long-term strategy that will
continue to be the focus for the foreseeable future

·    Significant charitable donations, helping disadvantaged children
across the UK get a fair chance

o  £790k of charitable donation provided for in H1 2025

o  Total donations now amount to £12.0m since inception of Literacy Capital

 

Performance to 30 June 2025

 % total return                  6 months  1 year   3 years  Since Admission(2)  Since Inception(3)
 BOOK net asset value per share  +5.4%     (0.6)%   +50.3%   +223.4%             +419.5%
 BOOK share price                (4.0)%    (17.3)%  +9.0%    +172.5%             n/a(4)
 FTSE Investment Company Index   +4.6%     +7.5%    +22.8%   +5.3%               +56.0%
 FTSE All-Share Index            +9.1%     +11.2%   +35.5%   +35.9%              +50.2%

 

Comparison to prior periods

                            At 30 June 2025  At 30 June 2024
 Net asset value(1)         £312.6m          £313.6m
 NAV per ordinary share(1)  519.5p           522.6p

 

                              Six months to 30 June 2025  Six months to 30 June 2024
 Capital invested             £10.8m                      £17.8m
 Cash realised                £5.8m                       £25.0m
 Charitable donation accrual  £790k                       £1,429k

 

(1) The NAV and NAV per share figures include the impact of the warrants in
issue. The calculation is shown on page 33 of the interim accounts

(2) BOOK was admitted to the London Stock Exchange on 25 June 2021

(3) Inception date treated as 30 April 2018

(4) BOOK's shares were admitted for trading on the London Stock Exchange in
June 2021. Share price data therefore starts at this point

Richard Pindar, CEO of the Investment Manager and Director of Literacy Capital
plc, commented:

"We are pleased to report an increase in NAV per share of 5.4% during the
six-month period to 30 June 2025, particularly given the inconsistent
macroeconomic and political conditions.

Whilst BOOK's most recent (30 June 2025) NAV per share is just 0.6% below its
all-time high, its share price remains more significantly below the range
within which it traded during 2024. The recently improved NAV performance and
additional positive news flow from the portfolio provide potential catalysts
for a reduction in the discount to NAV in the coming period. This would also
be aided by a pick-up in M&A activity and renewed confidence amongst trade
and financial buyers, both of which were in short supply in H1 2025.

We are rebalancing our emphasis from new investments, towards building and
maximising value from our current investment portfolio, thereby generating
strong cash inflows. Consistent with this, the fund owns interests in many
businesses that it considers to be relatively mature holdings. As a result,
assessments are being made to determine whether and when it is best to sell
these companies. It remains the case that Literacy's closed-ended fund
structure and its Investment Manager's financial incentives are well-suited
and structured to deliver on this strategy and provide the best outcomes
possible for shareholders.

The transaction announced in July
(https://www.literacycapital.com/investors/rns-announcements/rns-announcements-details/2025/Literacy-Capital-announces-sale-and-reinvestment/default.aspx)
involving portfolio company Velociti (delivering a total return of 14.8x MoM
and an IRR of 70%), illustrates the value that BOOK's approach and strategy
can deliver to shareholders. It also demonstrates the level of patience and
hands on support needed to transform smaller businesses into highly sought
after market leaders, to deliver outsized returns for BOOK's shareholders.

It is also worth noting the two new investments completed in H1 2025
(Trinitatum and Red Sky Food Group). Both of these have seen their senior
teams strengthened considerably since Literacy's investment and are showing
encouraging potential and momentum.

Further enhancements to marketing activities and shareholder communication
have been scheduled, as well as the recently announced intention to make the
first return of capital to shareholders before the end of 2025, to build
greater awareness and understanding of Literacy Capital amongst a larger
number of investors. Overall, we remain highly confident in our model and in
our process, reflected in our excellent portfolio of companies led by strong,
talented management teams."

-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-ended 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. £12.0 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 (http://www.literacycapital.com) .

A copy of this announcement will be available on the Company's website at
www.literacycapital.com (http://www.literacycapital.com) .

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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