Literacy Capital PLC (LSE:BOOK) has reported a total net asset value (NAV) return of 9.3% in the final quarter of 2022, after fees and charitable donation provisions, taking the 12-month total return to 51.7%.
The investment trust, which is primarily focused on investing directly into private businesses based in the UK and has a charitable objective of supporting childhood literacy, posted a fourth-quarter update showing its NAV finished the year at £252.4mln, up from £231mln at the end of September.
NAV per share was 420.6p, meaning the share price continued to trade at a discount as it has since late October 2022.
In the quarterly trading update, Richard Pindar, chief executive of investment manager Literacy Capital Asset Management, said: “The portfolio performed strongly in Q4 and trading across BOOK's largest portfolio companies has begun positively in 2023.
“We have continued to make progress rebalancing the portfolio away from earlier-stage, growth capital investments (which now equate to just 5% of gross assets), and towards buyouts of smaller, profitable businesses.
“These types of investments in profitable businesses will remain our focus, due to the favourable returns that can be generated, whilst taking lower levels of risk."
Portfolio companies highlighted for contributing strongly in the quarter included healthcare services provider RCI Group.
With the fund's charitable objective, where it commits to giving away 0.9% of net asset value every year to literacy and education charities, Literacy Capital said total charitable donations since the inception have reached £5.8mln, with a charitable donation provision of £0.73mln in the past quarter.