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11 September 2023

Literacy Capital plc ("Literacy Capital" or the "Company")

Literacy Capital FY23 Interim Results

Focus on helping to build great businesses to generate superior returns

Literacy Capital, the listed investment trust, is pleased to report its unaudited interim results for the six months ended 30 June 2023.

A PDF copy of the results can be viewed at: www.literacycapital.com/investors/reports-and-results

Performance highlights

w NAV per ordinary share of 488.5p¹

o  Net assets of £293.1m¹, an increase in net assets of 16.1% in the six months to 30 June 2023

o  Over the same period, the FTSE Investment Company Index declined 2.7%, and FTSE All-Share increased 2.6%, compared to a 27.2% increase in BOOK's share price

w Portfolio companies maturing and gaining interest from potential acquirors, resulting in uplifts and increasing cash inflows

o  £21.3m of cash received in H1 2023, higher than any previous six-month period. This is expected to be exceeded again in H2 2023, following receipt of the proceeds from Butternut Box

o  Two significant sales announced so far in 2023, both delivering approximately 50% uplifts to carrying value

w Portfolio companies continue to show strong growth, with the Literacy Capital team providing input to improve performance and optimise the composition of the portfolio

o  Portfolio companies focused on maximising long-term growth and value creation, with average revenue growth of 69% amongst the fund's ten largest holdings

o  BOOK has focused on buyout investments, rather than earlier stage growth capital investments, for the last three years. Following the successful sale of the fund's stake in Butternut Box, growth capital investments will equate to less than 0.5% of net assets (down from 15% in 2021)

w Significant activity and value creation initiatives across the portfolio companies

o  Completed two new platform investments in the period, as well as five small bolt-on acquisitions. Investment activity is expected to continue similarly in the second half of the year

o  Helped to build and strengthen the management teams of portfolio companies with several senior hires

w Increasing charitable donations, helping disadvantaged children across the UK get a fair chance

o  £1,334k of charitable donations provided for in H1 2023, up 42% on the same period in 2022, in line with growth in NAV

o  Total donations now amount to £7.1m since inception of Literacy Capital

Performance to 30 June 2023

Comparison to prior periods

¹ The NAV and NAV per share figures include the impact of the warrants in issue. The calculation is shown on page 32 of the interim accounts

² BOOK was admitted to the London Stock Exchange on 25 June 2021

³ Inception date treated as 30 April 2018. £54 million of capital raised

Richard Pindar, CEO of the Investment Manager and Director of Literacy Capital plc, commented:

"We are pleased that BOOK and its portfolio has continued to show good progress, evidenced by the 16% uplift in NAV in the six month period and strong performance for shareholders (+27% in the six months to 30 June 2023).

Many of BOOK's earliest investments have matured and grown substantially since Literacy originally invested. We are now seeing large and well-respected investors taking an active interest in many of our businesses. We expected cash inflows to be significant in 2023 and we expect this to continue in the second half of the year and into 2024.

The recent sales of Kernel Global and Butternut Box have been clear examples of the returns on capital that BOOK can generate from its investments and converting interest in its assets from larger, institutional investors into sales. Both sales realised very substantial premiums to the prior reported carrying values, contributing to the uplift recorded in H1 and giving comfort on the prudence of the portfolio's valuations.

We look forward to delivering further positive outcomes for BOOK's shareholders, its portfolio companies and their employees, and communities across the UK; including, improving outcomes for as many children from disadvantaged backgrounds as possible."

Enquiries

For further information, please contact:

About Literacy Capital:

Literacy Capital (BOOK.L) is a closed-end investment company launched in 2017 by Paul and Richard Pindar and listed on the London Stock Exchange's main market in 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. £7.1 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 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.

This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, 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 Company's products and services) are forward-looking statements. 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 formal Prospectus. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Regulation Rules made under Part VI of the Financial Services and Markets Act 2000 of the Financial Conduct Authority or other applicable laws, regulations or rules.