Literacy Cap Regulatory News (BOOK)

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area, Canada, Australia, Japan or the Republic of South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

27 May 2026

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

Portfolio Realisation

Sale of largest fund interest at carrying value, accelerating portfolio rebalancing

Literacy Capital is pleased to announce the sale of its largest fund interest, which accounted for the majority of BOOK's remaining third-party funds exposure as at 31 March 2026.

The fund interest was Literacy Capital's largest and most recent fund commitment (2021 vintage). The agreed sale price was at par, or nil discount to carrying value, and cash proceeds of €5.7 million (approximately £4.9 million) were received in full yesterday on completion of the transaction.

Once this sale is complete, BOOK will have two remaining fund interests, with a combined carrying value of £4.4m as at 31 March 2026 (1.5% of NAV).

This is the Fund's second disposal of a third-party fund interest in the secondary market, with the previous sale (disclosed on 28 October 2024, which was BOOK's second largest commitment) occurring at an 8.2% premium to the previously reported carrying value.

Every third-party fund commitment has been a profitable investment and all were made prior to BOOK's admission to the London Stock Exchange in June 2021. These were made at a time when the Fund had excess cash and the UK base rate was close to 0%.

As stated in our Q1 NAV announcement, Literacy Capital intends to prioritise bolt-on acquisition opportunities within the existing portfolio to enhance NAV, whilst remaining open to new investments.

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

"The sale of BOOK's largest remaining fund interest helps to accelerate the process of rebalancing the portfolio away from third-party fund interests and towards direct buyout investments in profitable UK businesses, which has been BOOK's stated objective for several years.

Similar to the sale of the previous fund interest in late 2024, this transaction achieves a highly attractive price and swift receipt of cash proceeds relative to typical secondary transactions, demonstrating the quality of BOOK's diverse holdings and investment strategy.

Including this sale, more than £36 million of cash has been received by BOOK since the start of 2026. All disposals in Literacy Capital's history, including those completed in 2026 to date, have valued the assets in line with or at a premium to prior carrying values."

Notes

This announcement does not constitute or describe an updated NAV for the Company.

Enquiries

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

book@mhpgroup.com

+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. £13.1 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.

A copy of this announcement will be available on the Fund's website at www.literacycapital.com.

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