LITERACY CAPITAL PLC - Investor Presentation

Literacy Capital PLC delivered an investor update highlighting resilient company performance, disciplined capital allocation and a differentiated growth strategy across its UK private equity portfolio. Since launch in 2017, net assets have grown from £54m to nearly £290m, with shareholder returns of 109% since listing and recent exits achieved at an average 39% premium to carrying value. Management emphasised its focus on smaller UK businesses with enterprise values typically below £25m, where operational support, management upgrades, M&A and attractive entry pricing can drive NAV growth, EBITDA expansion and margin improvement. The portfolio remains concentrated, with the top 10 investments representing 84% of the fund, while Q1 KPIs showed revenue growth of 14% and EBITDA growth of 16%. Recent investments Trinitatum and Red Sky have performed strongly, delivering rapid multiple-of-money growth supported by cash generation, improved operational capacity and favourable deal structuring. Literacy Capital also highlighted its conservative valuation approach, significant management ownership of nearly 40%, no carried interest or performance fees, and a charitable purpose supporting UK literacy. Despite recent discount-to-NAV pressures, management remains focused on investor engagement, portfolio execution and restoring stronger NAV growth.