TIDMBOOK
RNS Number : 3222R
Literacy Capital PLC
26 October 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is not for publication, release or distribution in the United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.
This announcement contains inside information.
26 October 2023
Literacy Capital plc
Quarterly trading update and NAV announcement for Q3 2023
Continued growth and investment across BOOK's portfolio
companies results
in a NAV return of +0.9% in Q3 and an uplift over the last
twelve months of +28.0%
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 announces its
quarterly trading update and NAV update for the three months ending
30 September 2023.
Q3 Highlights:
-- Total return in the quarter of +0.9%, an uplift of GBP2.6m
(4.3p per share), taking net asset value ("NAV") per share
of 492.8p (Q2'23: 488.5p), or NAV of GBP295.7m (Q2'23:
GBP293.1m).
-- BOOK and its portfolio companies made good headway in
Q3 despite less favourable market conditions, reporting
strong growth year-on-year; as ever our focus remains
on long-term value creation.
-- The Butternut Box transaction received regulatory approval
in October (after the quarter end), as a result of which
the sale of BOOK's stake completed. GBP21.8m is expected
to be received this week.
-- Share price performance was strong in the quarter (rising
8.4%), and outperforming its benchmark indices.
-- Total charitable donations since the inception of Literacy
Capital now amount to GBP7.8m, including a charitable
donation provision of GBP694k in the quarter.
Commenting on the Q3 performance, CEO of BOOK's investment
manager, Richard Pindar, said:
"BOOK and its portfolio companies made good headway in Q3
despite less favourable market conditions in some sectors. This
progress translated into an uplift in NAV of +0.9%. But as ever,
our focus remains on scaling our businesses and creating
substantial value over the longer term.
In Q3, revenue grew in eight of BOOK's largest ten companies,
compared to a year earlier. Several of our leading companies made
significant investments to build scale in the period, including,
for example making eight C-suite appointments. Most of these
appointments comprise newly created roles that ensure our
companies' teams have the right talent to thrive.
We are confident that these investments will have a positive
impact in making our businesses more valuable and attractive to
acquirers in due course, not least given the level of interest from
PE firms in several BOOK assets already."
Net Asset Value
The Company announces that as at 30 September 2023, the NAV per
ordinary share was 492.8 pence. This represents a 0.9%, or 4.3p per
share, uplift since 30 June 2023 when NAV per ordinary share was
488.5p.
At 30 Sep 23 At 30 Jun 23 At 30 Sep 22
Net asset value GBP295.7m GBP293.1m GBP231.0m
================== ============= ============= =============
NAV per ordinary
share 492.8p 488.5p 384.9p
================== ============= ============= =============
The above NAV calculation is based on the Company's issued
ordinary share capital as at 30 September 2023 of 60,000,000
ordinary shares of GBP0.001 each. This NAV calculation includes the
cost to ordinary shareholders of the 600,000 warrants in issue.
This cost is accrued on a straight-line basis over the vesting
period of the warrants.
Portfolio company performance
The growth and KPIs across BOOK's portfolio companies remain
healthy, with year-on-year sales growth of 57% reported at the end
of Q3. The businesses continue to successfully scale and gain
market share in their sectors.
Whilst this overall revenue growth is strong, earnings grew less
quickly due to increased investment, less favourable market
conditions and lower contributions from M&A activity. This
increased investment, principally in people and technology, remains
the best route to create long-term value for BOOK shareholders.
Headcount in BOOK's ten largest investments (as at the end of Q3)
has increased by more than 350 so far this year.
Thus far in 2023, two significant and highly successful exits
have completed; both achieved close to 10x return on investment for
BOOK. We are optimistic that further upside and cash inflows can be
generated for BOOK in the rest of this year and in 2024, given the
level of interest from PE firms in several BOOK assets.
Transactions and investments
Despite no new investments completing in the quarter, the
pipeline for new investment opportunities has remained strong.
However, follow-on funding amounting to GBP5.2m was in invested
in the quarter. This funding was provided to several portfolio
companies to support their growth, as well as to acquire additional
equity in certain portfolio companies.
BOOK and its portfolio companies continue to assess many M&A
and investment opportunities, some of which we expect to complete
before the end of 2023.
Cash & liquidity
Cash inflows in Q3 amounted to GBP2.8m, with the largest
component being a dividend from Grayce, and the balance being
distributions from fund interests.
Since 30 September, BOOK's sale of its investment in Butternut
Box has completed which sees the Company receive GBP21.8m this
week. This transaction has no impact on NAV, as the uplift was
recognised on exchange of the transaction in Q2.
The RCF was GBP22.75m drawn at 30 September 2023 (GBP17.0m on 30
June 2023). Before the end of October, net debt will be below
GBP1m, following completion of the sale of BOOK's shareholding in
Butternut Box and receipt of GBP21.8m.
Post-balance sheet events
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
2023 is now available on the Company's website:
www.literacycapital.com/investors
Investment Manager's name change
In order to reduce any confusion between Literacy Capital plc
and its Investment Manager, the Investment Manager was renamed in
September 2023 from Literacy Capital Asset Management LLP to Book
Asset Management LLP. There remains no intention for the Investment
Manager to manage or launch any other fund, nor has there been any
change in personnel or strategy.
Investment restrictions
Literacy Capital plc is announcing a minor amendment to its
investment restrictions, which is not expected to impact BOOK's
investment activities or strategy. This has been requested by
certain institutional investors, who require this clarification to
acquire and hold shares in BOOK. The investment restrictions are
now as follows;
The Company will voluntarily comply with the investment
restrictions set out below and will continue to do so for so long
as they remain requirements of the FCA for closed ended funds
subject to the Listing Rules:
* neither the Company nor any of its subsidiaries will
conduct any trading activity which is significant in
the context of the group as a whole;
* the Company must, at all times, invest and manage its
assets in a way which is consistent with its
objective of spreading investment risk and in
accordance with the published investment policy; and
* not more than 10 per cent of the Gross Assets at the
time an investment is made will be invested in other
closed-ended investment funds which are listed on the
Official List.
-S-
For further information, please contact:
Literacy Capital plc / Book Asset Management LLP
Tom Vernon / Richard Pindar
+44 (0) 20 3960 0280
MHP Group
Reg Hoare / Ollie Hoare / Matthew Taylor
book@mhpgroup.com
+44 (0) 20 3128 8100
Singer Capital Markets Securities Limited
Robert Peel
+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
GBP54m 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 0.9% of
annual NAV to charities focused on improving UK literacy in
children. GBP7.8 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.
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. 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
PFUVELFLXBLLFBE
(END) Dow Jones Newswires
October 26, 2023 02:00 ET (06:00 GMT)
Literacy Capital (LSE:BOOK)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Literacy Capital (LSE:BOOK)
Historical Stock Chart
Von Mai 2023 bis Mai 2024