Quarterly trading update and NAV announcement

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area, Canada, Australia, Japan or the Republic of South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.

26 October 2026

Literacy Capital plc

Quarterly trading update and NAV announcement for Q3 2026

Improved trading across the majority of the portfolio, offset by the Cubo Work write down

Literacy Capital plc ("Literacy", "BOOK", or the "Company"), a listed investment trust primarily focused on investing directly into private businesses based in the UK, today announces its quarterly trading and NAV update for the three months ending 30 September 2026 (Q3'26).

Q3 Highlights:

Commenting on the Q3 performance, CEO of BOOK's investment manager, Richard Pindar, said:

"Both our company management teams and the BOOK investment team have worked hard in Q3 to deliver increasing growth for our portfolio companies. Consequently, it is pleasing to report improved trading across much of the portfolio against a challenging macro environment. Revenue and earnings growth (+37% and +32% respectively) is the strongest reported by BOOK's top ten holdings for three years.

Unfortunately, the previously reported issues at Cubo, which resulted in its carrying value being heavily reduced, offset the more positive developments across other portfolio companies. While we believe the disposal of our minority stake in Cubo was in the best interests of shareholders, it is frustrating that Q3 NAV performance would have been strong without this unwelcome setback.

The move to the Official List and trading on the LSE's Main Market is another important step to remove barriers for investors looking to buy BOOK shares and stimulate incremental demand for shares, alongside other initiatives to increase awareness. Based on recent examples of investment companies that have migrated to the Main Market, we expect index ownership to increase to at least 3.5% (from zero) of the share register in the short term once qualification criteria are met.

Alongside today's quarterly factsheet, BOOK's Board has also published a capital allocation policy that sets out a clear and disciplined framework for balancing the needs of our portfolio with opportunities to reduce the discount to NAV and return capital to shareholders. We believe this approach will support long-term NAV growth while ensuring that capital is deployed in shareholders' best interests."

Net Asset Value

The Company announces that, as at 30 September 2026, the NAV per ordinary share was 450.5 pence. NAV per share decreased 4.7%, or 22.1p per share, since 30 June 2026.

The above NAV calculation is based on the Company's issued ordinary share capital as at 30 September 2026 of 60,175,000 ordinary shares of £0.001 each. This NAV calculation includes the cost to ordinary shareholders of the 1,017,500 warrants in issue. This cost is accrued on a straight-line basis over the vesting period of the warrants.

Portfolio company performance

In Q3'26, Red Sky was the largest positive contributor to NAV (£4.5m), winning new business in the period and continuing to demonstrate a positive trajectory since Literacy's investment in 2025. The business is now BOOK's fourth largest holding, having generated a 7.2x MoM return as at 30 September, with another bolt-on acquisition completed on 16 October. Red Sky will continue to pursue bolt-on acquisitions to add further scale to the group.

TechPoint (£3.6m) and Grayce (£3.2m) also contributed strongly to NAV during the quarter. TechPoint completed an important bolt-on acquisition of Esprit Electronics, funded entirely through debt without the need for shareholder funding. Grayce's trading continued to improve with Q3 being its strongest quarter for some time.

These gains were more than offset by the £22.4m reduction in the carrying value of Cubo Work, as announced in the RNS announcement of 13 October. This disposal was considered the best outcome for BOOK's shareholders. Bright Ventures experienced the next largest decline (£1.4m), however, this was driven by seasonality in trading and is expected to reverse in Q4'26.

BOOK's two 2025 investments continue to perform well, with Red Sky and Trinitatum now BOOK's fourth and seventh largest holdings respectively.

Transactions and investments

No new platform investments were completed in Q3'26. £6.6m was invested into existing portfolio companies, predominantly to fund bolt-on acquisitions, with the remainder supporting capex and working capital. All four of BOOK's largest holdings have completed at least one acquisition in the past six months.

Bolt-on acquisitions will remain a priority for certain portfolio companies in 2026 and into 2027, with the expectation that these transactions will generate high returns on invested capital and accelerate their eventual sale.

Cash & liquidity

In Q3'26, BOOK received modest cash proceeds of £0.2m, consisting solely of distributions from its fund interests, following significant receipts in H1 2026.

On 30 September, Literacy's RCF was £18.7m drawn (£8.7m on 30 June 2026), with £2.0m held in cash. BOOK extended the term of its RCF during Q3'26 to September 2029, and increased the committed element of the facility from £40m to £50m. As part of the extension there was also a reduction in the margin charged, as well as a reduction in the minimum number of portfolio assets required under the facility covenants, from more than ten to more than eight. This maintains Literacy's significant flexibility and headroom to support its portfolio.

Activity since the period end

No events occurred between the end of Q3 and the publication of the factsheet requiring reported NAV to be restated.

Factsheet

The Company's factsheet for the three months to 30 September 2026 is now available on the Company's website: www.literacycapital.com/investors.

Marketing activity

Investor Meet Company presentation - Paul Pindar (Chair) and Richard Pindar (CEO) of Literacy's Investment Manager will provide a live presentation and update on Q3'26 performance on 26 October 2026 at 13:00 GMT. The presentation is open to all existing or prospective shareholders.

Questions can be submitted pre-event via your Investor Meet Company dashboard up until 25 October 2026 09:00 GMT, or at any time during the live presentation. Investors can sign up for free at the following link: Literacy Capital Q3 IMC.

-ENDS-

For further information, please contact:

Literacy Capital plc / Book Asset Management LLP

Richard Pindar / Aasha Tailor

+44 (0) 20 3960 0280

MHP Group

Reg Hoare / Ollie Hoare / Matthew Taylor

[email protected]

+44 (0) 7817 458 804

Deutsche Numis

Hugh Jonathan / George Shiel

+44 (0) 20 7260 1000

About Literacy Capital plc

Literacy Capital (BOOK.L) is a closed-end investment company that was co-founded by Paul Pindar and Richard Pindar in 2017 with £54m of capital. Literacy listed on the London Stock Exchange in June 2021, before gaining Investment Trust status on 1 April 2022. 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 with its support.

It also has a unique charitable objective, to donate 0.5% of annual NAV to charities focused on improving UK literacy in children. £13.8m 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.

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. The information contained herein is unaudited.

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.

LEI: 2549006P3DFN5HLFGR54