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contained in this announcement is restricted and is not for
publication, release or distribution in the United States of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.
21 March 2024
Literacy Capital plc ("Literacy
Capital", "BOOK" or the "Fund")
Final results and audited financial
statements for the year to 31 December 2023
Helping to build great businesses to
generate superior returns
Literacy Capital, the listed investment trust,
is pleased to release its final results for the year to 31 December
2023.
A PDF copy of the results can be viewed at:
www.literacycapital.com/investors/reports-and-results
Performance
highlights
·
NAV per ordinary
share of 500.4p
o Net
assets of £300.3m, an
increase of 19.0% after all
costs and expenses (including charitable donations), in the twelve
months to 31 December 2023
o Book's share price increased 30.4% over the same period
·
Significant step
up in cash realised in 2023, driven by a maturing portfolio and
interest in Literacy's assets from acquirors
o £46.3m
cash received in the twelve month period to 31
December 2023 (£13.1m in 2022)
o The
majority of this cash (£40.8m) was generated from the transactions
involving Kernel Global and Butternut Box. These transactions both
completed at significant
premiums to Literacy's carrying value of the assets (49% and
54% premiums respectively)
· Continued focus on deploying
capital into new investments and existing portfolio companies, as
well as building a pipeline of new opportunities
o Two new platform
investments completed in 2023, with
follow-on capital provided to several portfolio companies to
support and accelerate their growth
o £33.6m cash
invested in aggregate in 2023, an
increase of 25.4% compared to calendar year 2022, providing
potential for uplifts in future periods
· The Fund and its portfolio is
favourably positioned at the end of 2023. This is despite more
challenging UK macroeconomic conditions (particularly in H2 2023),
with Literacy Capital's companies modestly
leveraged
o Following the sale of BOOK's stake in Butternut Box, almost
100% of NAV is now weighted towards the buyouts of profitable
businesses, rather than earlier stage, more risky
investments
o On
31 December 2023, the average EV / EBITDA multiple was 9.4x and net
senior debt / EBITDA was 1.6x (both calculated on a weighted
average basis for Literacy's ten largest investments, which
comprise 86.5%3 of NAV)
·
Increasing
charitable donations, helping disadvantaged children across the UK
get a fair chance
o A
further £2.8m of charitable donations provided for in 2023 (£2.3m
in 2022), a year-on-year increase in line with NAV
growth
o Total donations now exceed
£8.5m since inception of Literacy Capital
Performance to 31 December
2023
%
total return
|
3 months
|
1 year
|
3 years
|
Since
Inception
|
BOOK Net asset
value
|
+1.6%
|
+19.0%
|
+250.5%
|
+456.0%
|
BOOK Share
Price
|
(5.4)%
|
+30.4%
|
n/a
|
n/a
|
FTSE Investment Company Index
|
+8.3%
|
+4.9%
|
(1.2)%
|
+37.2%
|
FTSE All-Share Index
|
+3.2%
|
+7.9%
|
+28.1%
|
+25.8%
|
Inception: 30
April 2018
Comparison to prior
periods
|
At 31 December
2023
|
At 31 December
2022
|
Net asset
value
|
£300.3m
|
£252.4m
|
NAV per
ordinary share
|
500.4p
|
420.6p
|
|
12 months to 31 December
2023
|
12 months to 31 December
2022
|
Capital
invested
|
£33.6m
|
£26.8m
|
Cash
realised
|
£46.3m
|
£13.1m
|
Charitable
donation provision
|
£2.8m
|
£2.3m
|
Richard Pindar, CEO of the Investment Manager and Director of
Literacy Capital plc, commented:
"Overall, we
are pleased with the performance of BOOK's portfolio during this
financial year. Following extremely strong performance years in
2021 and 2022 (NAV growth of +94.1% and +51.7% respectively), it
has been challenging to repeat this level of performance in 2023
(+19.0%), as weaker UK macroeconomic conditions have impacted the
growth of certain portfolio companies.
2023 marked
the first occasion where we were able to complete a significant
sale of an earlier Literacy Capital investment, which we were able
to achieve twice. In both cases, Literacy enjoyed approximately a
10x return on its investment and a premium at exit of 50% to
carrying value.
We continue to
explore several new investment opportunities and we strive to
retain the same discipline when appraising these. As Literacy's
unique approach and alternative structure compared to traditional
private equity is better understood by company founders, we expect
to continue to see a good volume of opportunities. This allows us
to remain highly selective about the businesses and people we
choose to work with.
Finally, it is
worth highlighting again the strong financial alignment between the
Fund's shareholders and investment manager. The management fee is
low and no performance fees are paid by the Fund to its Manager,
with the focus remaining on generating the best net returns
possible for shareholders."
Enquiries
For further information, please
contact:
Literacy Capital plc / Book Asset Management
LLP:
Richard Pindar / Tom
Vernon
|
+44 (0) 20 3960 0280
|
MHP
Group:
Reg Hoare / Ollie Hoare / Matthew
Taylor
|
+44 (0) 20 3128 8100
|
Singer Capital Markets Securities Limited:
Robert Peel
|
+44 (0) 20 7496 3000
|
About Literacy
Capital:
Literacy Capital (BOOK.L) is an investment trust
that was launched in 2017 by Paul and Richard Pindar, before it
listed on the London Stock Exchange's main market in June 2021. 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. It also has a unique charitable
objective to donate 0.9% of annual NAV to charities focused on
improving literacy in UK children. £8.5 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
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incorporated into, or forms part of, this announcement nor, unless
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should any such content be relied upon in reaching a decision as to
whether or not to acquire, continue to hold, or dispose of,
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This announcement may include "forward-looking
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those regarding the Company's financial position, business
strategy, plans and objectives of management for future operations
(including development plans and objectives relating to the
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Forward-looking statements are subject to risks and uncertainties
and accordingly the Company's actual future financial results and
operational performance may differ materially from the results and
performance expressed in, or implied by, the statements. These
factors include but are not limited to those described in the
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at the date of this announcement. The Company expressly disclaims
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forward-looking statements contained herein to reflect actual
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