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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 £3.8m in cash

Portfolio update

Literacy has completed the sale of its interest in Hometree in full, which generates £3.8 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

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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 £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.