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contained in this announcement is restricted and is not for
publication, release or distribution in the United States of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.
29 July 2024
Literacy Capital plc
Quarterly trading update and NAV
announcement for Q2 2024
Positive Q2 NAV return continues BOOK's
sector leading performance
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 and NAV update for the three months
ending 30 June 2024.
Q2
Highlights:
●
|
Total return in the quarter of +2.4%, an uplift
of £7.4m (12.2p per share), taking net asset value ("NAV") per
share to 522.6p (Q1'24: 510.4p), and NAV to £313.6m (Q1'24:
£306.2m).
|
●
|
Literacy celebrated its third anniversary
during the quarter since listing in June 2021. During this period,
BOOK's NAV performance (over 47% p.a. compound) was #1 out of all
UK listed investment companies.
|
●
|
RCI, the fund's largest holding, was the
strongest contributor again in Q2, whilst Cubo Work and Wifinity
have also traded particularly encouragingly. Revenue growth across
BOOK's top ten holdings accelerated compared to recent
quarters.
|
●
|
Total charitable donations since the inception
of Literacy Capital now amount to £10.0m, including a charitable
donation provision of £735k in Q2'24.
|
Commenting on
the Q2 performance, CEO of BOOK's investment manager, Richard
Pindar, said:
"BOOK delivered a
further 2.4% NAV uplift in the quarter, with positive contributions
from most portfolio companies.
We are pleased with
the performance of the fund, which now has a three-year track
record as a listed investment company, and nearly seven years since
inception. Out of all UK-listed investment companies, BOOK's NAV
performance in its first three years as a listed company positions
it in 1st place.
We continue to
believe that investing in smaller, private companies is where the
most value can be added and most rapid growth can be achieved. We
believe these types of investments will deliver the best returns
for shareholders. M&A and realisation activity are also showing
encouraging signs, which will enable us to continue to recycle the
capital received from our existing portfolio into exciting smaller
companies. The Company may also return capital to shareholders
where this is considered more advantageous."
Net
Asset Value
The Company announces that, as at 30 June 2024,
the NAV per ordinary share was 522.6 pence. This represents a 2.4%,
or 12.2p per share, uplift since 31 March 2024, when NAV per
ordinary share was 510.4p.
|
At 30 Jun 24
|
At 31 Mar 24
|
At 30 Jun 23
|
Net asset value (£m)
|
313.6
|
306.2
|
293.1
|
NAV per ordinary share
(pence)
|
522.6
|
510.4
|
488.5
|
The above NAV calculation is based on the
Company's issued ordinary share capital as at 30 June 2024 of
60,000,000 ordinary shares of £0.001 each. This NAV calculation
includes the cost to ordinary shareholders of the 675,000 warrants
in issue. This cost is accrued on a straight-line basis over the
vesting period of the warrants.
Portfolio company
performance
Revenue growth across BOOK's top ten holdings
accelerated compared to recent quarterly factsheets. RCI was the
largest driver of this and was again the most significant
contributor to the NAV uplift in the quarter. Other portfolio
companies, including Cubo Work and Wifinity, are also trading
particularly encouragingly, contributing to this improved level of
revenue growth.
Less positive was the contribution from Techpoint in
the quarter, which was the most significant detractor to NAV. Its
reduced carrying value reflected the weaker market conditions and
earnings for the group. Several changes to the management team have
recently been made.
As predicted earlier in the year, M&A and
realisation activity are showing encouraging signs. Proceeds
received from third-party PE fund interests remained high in Q2 and
we continue to receive inbound interest from prospective acquirors,
both private equity and trade, for BOOK's portfolio companies.
Transactions and
investments
In aggregate, £5.0m was invested by BOOK in Q2
2024. No new platform investments were completed in the period,
with the full £5.0m injected into the existing portfolio. The
largest recipient of additional capital was Cadro, a tech-enabled
wealth management platform that Literacy originally invested in a
year ago.
Cash
& liquidity
In the quarter, cash inflows amounted to £5.6m.
These receipts related to distributions (£3.3m) from two portfolio
companies, with the balance (£2.3m) received courtesy of
distributions from third-party fund investments.
Literacy's RCF was £6.4m drawn as at 30 June
2024 (the facility was £5.3m drawn on 02 April 2024). The fund has
received several proposals to extend the term of this facility,
which are more competitive than the existing terms. The current
facility limit is £30m and this is not expected to
increase.
Post-balance sheet
events
No events occurred between the end of Q2 and the
publication of the factsheet requiring reported NAV to be
revised.
Factsheet
The Company's factsheet for the three months to
30 June 2024 is now available on the Company's website: www.literacycapital.com/investors
-ENDS-
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) 7817 458804 / + 44 (0) 7827
662831
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 £54m 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. £10.0 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.
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