(Alliance News) - Literacy Capital PLC on Monday said its net asset value increased 16% during its latest half-year, and that its portfolio companies have continued to show significant growth.

The London-headquartered trust, which focuses on long-term investments in private UK businesses and is also known as BOOK, said its NAV at June 30 was 488.5 pence per share, up from 420.6p at December 31.

Literacy Capital's NAV total return for the first half of 2023 was positive 16.1%. This far outstripped the FTSE Investment Company Index, which returned negative 2.7%, and the FTSE All-Share Index with positive 2.6%.

Literacy said its portfolio companies matured and gained interest from potential acquirers, causing the firm to receive a record GBP21.3 million cash during the six-month period. It expects to exceed this in the second half of 2023, upon receipt of proceeds from the recent GBP21.8 million sale of its stake in dog food subscription service Butternut Box.

Portfolio companies also showed strong growth, with revenue increasing on average by 69% across Literacy's ten largest holdings.

Investments at June 30 totalled GBP312.8 million, an increase of 16% from GBP270.6 million at December 31.

Pretax profit decreased 0.5% to GBP40.9 million from GBP41.1 million. Gains on investments increased 13% to GBP42.8 million from GBP37.7 million, while total operating expenses increased 25% to GBP1.9 million. Literacy also increased charitable donations by 42% to GBP1.3 million.

"Many of BOOK's earliest investments have matured and grown substantially since Literacy originally invested," said Chief Executive Officer Richard Pindar. "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."

Literacy Capital shares were untraded at 478.00p on Monday in London. They last traded on Friday.

By Emma Curzon, Alliance News reporter

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