Portfolio Realisation

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This announcement contains inside information.

21 January 2026

Literacy Capital plc ("Literacy Capital", "BOOK" or the "Fund")

Portfolio Realisation

Literacy Capital announces sale of Tyrefix at 59% premium to carrying value,

generating cash proceeds of £14.7m

Transaction highlights

Literacy Capital is pleased to announce the sale of Tyrefix to Citira AB, a tyre management provider based in the Nordics, backed by Norvester. Tyrefix is the market leading provider of plant tyre repair and replacement services in the UK.

Literacy Capital acquired a majority stake in Tyrefix in November 2020 to support the founder's retirement plans. During Literacy Capital's ownership, the management team was strengthened with new senior recruits. Tyrefix also expanded into a new, larger headquarters and acquired two businesses, enabling the group to double revenue, grow market share and broaden its service offering to customers.

This transaction results in the Fund selling its entire stake for £14.7m, a substantial 59% premium to the previously reported carrying value, with 100% of this consideration payable in cash at completion. The total return for BOOK shareholders from this investment, after all transaction related costs, is 2.5x MoM (IRR of 25.0%). Signing and unconditional exchange have taken place, with completion expected in early February 2026.

As at 30 September 2025 (the date of BOOK's most recently published NAV), Tyrefix was the Fund's 12th largest holding by value, with its interest valued at £9.3m, equating to 3.0% of NAV.

This sale is the second transaction announced in January 2026, which will result in Q1'26 cash proceeds exceeding any previous quarterly amount received by BOOK, with the previous record set in Q3'25.

It is also the third significant transaction announced within the last six months, with two of the three disposals generating a premium to carrying value of more than 50%. BOOK's combined reported carrying value of the three businesses prior to their sale was £58.6m, whilst the aggregate value ascribed to BOOK's interests in these three businesses by acquirers was £81.2m, a premium across the three disposals of 39%.

The cash received by BOOK from the sales of Tyrefix and Wifinity will be used to repay the Fund's Revolving Credit Facility in full, leaving the balance sheet in a net cash position.

Richard Pindar, CEO of BOOK's Investment Manager, commented:

"We are pleased to announce another successful sale, which realises meaningful cash for BOOK at a 59% premium to the previously reported carrying value.

Tyrefix has been part of Literacy Capital's portfolio for over five years, with CEO and CFO, Oliver and Jon expanding the business and gaining market share during that period, resulting in strong interest in Tyrefix from strategic acquirers. The Tyrefix team has been a pleasure to work with, and we wish them the very best as they work with Citira to continue the expansion of Tyrefix.

Despite a challenging M&A environment in the mid-market, Literacy Capital has generated a substantial amount of cash since July 2025. In the nine months to 31 March 2026, we expect BOOK to generate more than £65m in cash from asset sales and refinancings, whilst retaining a valuable stake in Velociti. These transactions demonstrate our ability to realise value across the portfolio, with each of the three recent disposals attracting interest from financial sponsors or PE-backed acquirers, due to the calibre of the platforms and their management teams.

The Tyrefix disposal is in line with our previously stated intention to generate cash, reduce the number of holdings in the portfolio, whilst enabling an enhanced focus of time and capital on assets that can contribute to outperformance.

The values consistently delivered from realisations, relative to reported valuations, demonstrate Literacy's conservative valuation methodology. This leaves us well placed to deploy capital in the existing portfolio and future transactions to generate further strong returns for investors."

Notes

This announcement does not constitute or describe an updated NAV for the Company. Shareholders should take note that the calculation of the NAV per share as at 31 December 2025 will take account of the latest valuations of all the Company's investments as at this date.

Enquiries

For further information, please contact:

About Literacy Capital:

Literacy Capital (BOOK.L) is an investment trust that was co-founded by Paul Pindar and Richard Pindar in 2017 with £54 million of capital. Literacy subsequently listed on the London Stock Exchange in June 2021. The Fund 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. The fund structure is evergreen, allowing it to be more flexible and to accommodate the wishes or needs of founders.

It also has a unique charitable objective, to donate 0.5% of annual NAV to charities focused on improving UK literacy in children. £12.4 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 Fund's website at www.literacycapital.com.