TIDMBOOK
RNS Number : 9137L
Literacy Capital PLC
11 September 2023
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is not for publication, release or distribution in the United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.
11 September 2023
Literacy Capital plc ("Literacy Capital" or the "Company")
Literacy Capital FY23 Interim Results
Focus on helping to build great businesses to generate superior
returns
Literacy Capital, the listed investment trust, is pleased to
report its unaudited interim results for the six months ended 30
June 2023.
A PDF copy of the results can be viewed at:
www.literacycapital.com/investors/reports-and-results
Performance highlights
w NAV per ordinary share of 488.5p (1)
o Net assets of GBP293.1m(1) , an increase in net assets of
16.1% in the six months to 30 June 2023
o Over the same period, the FTSE Investment Company Index
declined 2.7%, and FTSE All-Share increased 2.6%, compared to a
27.2% increase in BOOK's share price
w Portfolio companies maturing and gaining interest from
potential acquirors, resulting in uplifts and increasing cash
inflows
o GBP21.3m of cash received in H1 2023, higher than any previous
six-month period. This is expected to be exceeded again in H2 2023,
following receipt of the proceeds from Butternut Box
o Two significant sales announced so far in 2023, both
delivering approximately 50% uplifts to carrying value
w Portfolio companies continue to show strong growth, with the
Literacy Capital team providing input to improve performance and
optimise the composition of the portfolio
o Portfolio companies focused on maximising long-term growth and
value creation, with average revenue growth of 69% amongst the
fund's ten largest holdings
o BOOK has focused on buyout investments, rather than earlier
stage growth capital investments, for the last three years.
Following the successful sale of the fund's stake in Butternut Box,
growth capital investments will equate to less than 0.5% of net
assets (down from 15% in 2021)
w Significant activity and value creation initiatives across the
portfolio companies
o Completed two new platform investments in the period, as well
as five small bolt-on acquisitions. Investment activity is expected
to continue similarly in the second half of the year
o Helped to build and strengthen the management teams of
portfolio companies with several senior hires
w Increasing charitable donations, helping disadvantaged
children across the UK get a fair chance
o GBP1,334k of charitable donations provided for in H1 2023, up
42% on the same period in 2022, in line with growth in NAV
o Total donations now amount to GBP7.1m since inception of
Literacy Capital
Performance to 30 June 2023
% total return 6 months 1 year Since Admission(2) 3 years Since Inception(3)
------------------------- --------- ------- ------------------- -------- -------------------
BOOK net asset value +16.1% +41.3% +204.1% +302.9% +442.8%
--------- ------- ------------------- --------
BOOK share price +27.2% +17.0% +192.5% n/a n/a
------------------------- --------- ------- ------------------- -------- -------------------
FTSE Investment Company
Index (2.7)% +0.2% (14.1)% +11.8% +27.2%
FTSE All-Share Index +2.6% +7.9% +8.2% +33.2% +19.6%
Comparison to prior periods
At 30 June 2023 At 31 December 2022
------------------ ---------------- --------------------
Net asset value GBP293.1m(1) GBP252.4m(1)
NAV per ordinary
share 488.5p(1) 420.6p(1)
Six months to 30 June Six months to 30 June
2023 2022
Capital invested GBP19.4m GBP10.7m
-------------------- ---------------------- ----------------------
Cash realised GBP21.3m GBP6.1m
-------------------- ---------------------- ----------------------
Charitable donation GBP1,334k GBP942k
provision
(1) The NAV and NAV per share figures include the impact of the
warrants in issue. The calculation is shown on page 32 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. GBP54 million of
capital raised
Richard Pindar, CEO of the Investment Manager and Director of
Literacy Capital plc, commented:
"We are pleased that BOOK and its portfolio has continued to
show good progress, evidenced by the 16% uplift in NAV in the six
month period and strong performance for shareholders (+27% in the
six months to 30 June 2023).
Many of BOOK's earliest investments have matured and grown
substantially since Literacy originally invested. We are now seeing
large and well-respected investors taking an active interest in
many of our businesses. We expected cash inflows to be significant
in 2023 and we expect this to continue in the second half of the
year and into 2024.
The recent sales of Kernel Global and Butternut Box have been
clear examples of the returns on capital that BOOK can generate
from its investments and converting interest in its assets from
larger, institutional investors into sales. Both sales realised
very substantial premiums to the prior reported carrying values,
contributing to the uplift recorded in H1 and giving comfort on the
prudence of the portfolio's valuations.
We look forward to delivering further positive outcomes for
BOOK's shareholders, its portfolio companies and their employees,
and communities across the UK; including, improving outcomes for as
many children from disadvantaged backgrounds as possible."
Enquiries
For further information, please contact:
Literacy Capital plc / Literacy Capital
Asset Management LLP:
Richard Pindar / Tom Vernon +44 (0) 20 3960 0280
MHP:
Reg Hoare / Ollie Hoare / Matthew Taylor +44 (0) 20 3128 8276
Singer Capital Markets Securities Limited:
Robert Peel +44 (0) 20 7496 3000
About Literacy Capital:
Literacy Capital (BOOK.L) is a closed-end investment company
launched in 2017 by Paul and Richard Pindar and listed on the
London Stock Exchange's main market in 2021. The Company focuses on
opportunities to invest for the long-term in growing private
businesses where a clear route to creating additional value. It
also has a unique charitable objective to donate 0.9% of annual NAV
to charities focused on improving UK literacy in children. GBP7.1
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.
Website:
www.literacycapital.com
LEI: 2549006P3DFN5HLFGR54
A copy of this announcement will be available on the Company's
website at 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.
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
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