Literacy Capital PLC Portfolio update
December 28 2022 - 2:00AM
RNS Non-Regulatory
TIDMBOOK
Literacy Capital PLC
28 December 2022
The information contained in this announcement is restricted and
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This announcement contains inside information.
28 December 2022
Literacy Capital plc ("Literacy" or the "Company")
Literacy completes sale of stake in Hometree, in line with
carrying value, realising GBP3.8m in cash
Portfolio update
Literacy has completed the sale of its interest in Hometree in
full, which generates GBP3.8 million of cash for the Company. The
sale price agreed was in line with the carrying value that the
asset was held at in recent factsheets, so has no impact on the
Company's NAV.
The transaction, which legally completed last week, delivered a
1.30x return and an IRR of 6.8%. Literacy received the final
tranche of cash consideration on 23 December, allowing the Company
to pay down borrowings and recycle this cash into alternative
investments in due course.
This represents a profitable exit for Literacy, demonstrating
the team's commitment to actively managing the portfolio and
recycling proceeds to fund new investments in the pipeline.
Richard Pindar, CEO of the Investment Manager and Director of
Literacy Capital plc, commented:
"This sale sees Literacy exit one of its few remaining growth
capital investments. This is in line with Literacy's stated
objective to focus for new investment activities and its capital on
the buyout of profitable, private businesses, rather than more
risky investments into earlier stage, growth capital or venture
investments.
At the end of Q3 2021, 15.4% of Literacy's net assets were
invested in growth capital assets. By the close of Q3 2022, growth
capital assets equated to 7.5% of the value of Literacy's
investments. Removing the asset sold in this transaction, this Q3
2022 figure would have been just 5.9%.
This cash will be recycled and used to fund new investments in
line with the Company's investment approach to optimise returns for
shareholders."
Enquiries
For further information, please contact:
Literacy Capital plc / Literacy Capital
Asset Management LLP:
Richard Pindar / Tom Vernon +44 (0) 20 3960 0280
MHP Communications:
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 Pindar and Richard Pindar and 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. It also has a unique charitable objective to donate 0.9% of
annual NAV to charities focused on improving UK literacy in
children. More than GBP5 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.
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