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Literacy Capital PLC
(LSE:BOOK)
Select Model
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Rating:46Neutral
Price Target:
283.00 p
▼(-7.21% Downside)
Action:Reiterated
Date:10/03/26
The score is primarily constrained by weak financial performance, led by persistent negative free cash flow and a recent TTM swing to losses, which raises earnings quality and funding risk. Technicals are also weak with price below key moving averages, only partially offset by oversold signals. Valuation is mixed: the negative P/E reflects unstable earnings, while the very high dividend yield is notable but hard to rely on given poor cash conversion.
Positive Factors
Conservative leverage
A sizable equity cushion and generally low leverage provide financial resilience for an investment company. This structure can help Literacy Capital absorb portfolio volatility, support long-term ownership, and preserve flexibility for investment decisions without excessive debt pressure.
Negative Factors
Persistent negative cash generation
Persistent negative operating and free cash flow indicates that reported results have not consistently translated into cash. Continued cash burn can increase reliance on balance-sheet liquidity or financing, reducing flexibility to fund investments and withstand weaker portfolio outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
A sizable equity cushion and generally low leverage provide financial resilience for an investment company. This structure can help Literacy Capital absorb portfolio volatility, support long-term ownership, and preserve flexibility for investment decisions without excessive debt pressure.
Read all positive factors
Literacy Capital PLC (BOOK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£172.10M
Dividend Yield34.97%
Average Volume (3M)35.17K
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees5
SectorGeneral
Sector StrengthN/A
IndustryAsset Management
Share Statistics
EPS (TTM)-0.38
Shares Outstanding60,175,000
10 Day Avg. Volume42,424
30 Day Avg. Volume35,168
Financial Highlights & Ratios
PEG Ratio-2.65
Price to Book (P/B)0.79
Price to Sales (P/S)21.98
P/FCF Ratio-23.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Literacy Capital PLC Business Overview & Revenue Model
Company Description
Literacy Capital plc, a venture capital and private equity firm founded in 2017 and based in London, United Kingdom, employs a diverse set of investment strategies. These include early-stage funding, direct private equity deals, buyouts, growth ca...
How the Company Makes Money
Literacy Capital makes money primarily through investment returns generated by its portfolio of private companies. Its key economic outputs typically include: (1) value appreciation of its equity stakes in portfolio companies, which can be realise...
Literacy Capital PLC Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
74
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -13.84M | 10.52M | -15.81M | 21.72M | 70.23K | 4.10M |
| Gross Profit | -14.84M | 3.27M | 2.76M | 55.24M | -2.42M | 1.22M |
| EBITDA | 0.00 | 742.60K | -4.24M | 49.71M | 61.20M | 81.05M |
| Net Income | -22.51M | 742.60K | -4.24M | 48.20M | 62.48M | 78.93M |
Balance Sheet | ||||||
| Total Assets | 297.54M | 320.84M | 332.07M | 315.84M | 272.59M | 169.45M |
| Cash, Cash Equivalents and Short-Term Investments | 736.57K | 1.16M | 2.36M | 272.90K | 1.47M | 5.20M |
| Total Debt | 8.73M | 24.97M | 30.09M | 9.47M | 16.32M | 0.00 |
| Total Liabilities | 12.94M | 29.03M | 35.10M | 14.75M | 19.90M | 5.47M |
| Stockholders Equity | 284.61M | 291.81M | 296.97M | 301.09M | 252.69M | 163.98M |
Cash Flow | ||||||
| Free Cash Flow | -8.86M | -9.66M | -6.14M | -2.70M | -3.93M | -3.13M |
| Operating Cash Flow | -8.86M | -9.66M | -6.14M | -2.70M | -3.93M | -3.13M |
| Investing Cash Flow | 43.72M | 19.32M | -11.80M | 8.00M | -13.06M | -1.40M |
| Financing Cash Flow | -35.17M | -10.87M | 20.04M | -6.49M | 15.47M | 0.00 |
Literacy Capital PLC Technical Analysis
Negative
305.00
Price Trends
305.62
Negative
304.17
Negative
334.77
Negative
Market Momentum
-4.00
Positive
27.44
Positive
14.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BOOK, the sentiment is Negative. The current price of 305 is below the 20-day moving average (MA) of 311.50, below the 50-day MA of 305.62, and below the 200-day MA of 334.77, indicating a bearish trend. The MACD of -4.00 indicates Positive momentum. The RSI at 27.44 is Positive, neither overbought nor oversold. The STOCH value of 14.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BOOK.
Literacy Capital PLC Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £491.92M | 11.82 | 46.72% | 6.04% | 7.26% | 30.92% | |
72 Outperform | £24.28B | 4.45 | 17.91% | 3.53% | -25.49% | 3.34% | |
65 Neutral | £1.17B | 9.97 | 9.21% | ― | -78.12% | 30945.45% | |
60 Neutral | £116.58M | -13.79 | -4.78% | 3.57% | -2.25% | -350.00% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | £636.95M | 4.48 | 14.25% | 2.09% | -37.29% | ― | |
46 Neutral | £172.10M | -7.53 | -7.81% | 34.97% | ― | ― |
* General Sector Average
GB:BOOK
Literacy Capital PLC
286.00
-70.39
-19.75%
GB:III
3i Group plc
2,391.00
-1,854.33
-43.68%
GB:GROW
Molten Ventures
678.00
275.40
68.41%
GB:IPO
IP Group plc
69.60
15.50
28.65%
GB:MERC
Mercia Asset Management
28.00
-1.45
-4.94%
GB:FSG
Foresight Group Holdings Ltd.
449.00
-1.07
-0.24%
Literacy Capital PLC Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Literacy Capital Flags Cubo Write-Down but Portfolio Remains Robust
Negative
Oct 2, 2026
Literacy Capital plc reported a mixed third-quarter update, with strong trading and acquisition activity at key holdings such as RCI Group, Techpoint, Velociti and Red Sky Food Group supporting portfolio momentum and liquidity. The company’s...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesRegulatory Filings and Compliance
Literacy Capital gains full LSE main-market listing and refreshes board leadership
Positive
Sep 9, 2026
Literacy Capital plc, a UK-listed closed-end investment trust under ticker BOOK, focuses on long-term investments in growing private businesses and channels 0.5% of annual NAV to children’s literacy charities. Co-founded by Paul and Richard ...
Business Operations and StrategyExecutive/Board Changes
Literacy Capital refreshes board with new audit chair
Positive
Sep 3, 2026
Literacy Capital plc has strengthened its board with the appointment of Nick Latner as an independent non-executive director, effective 22 October 2026. Latner, currently finance director at technology-focused private equity firm Hg Capital, bring...
Business Operations and StrategyFinancial Disclosures
Literacy Capital boosts cash realisations as NAV dips in tough UK market
Negative
Aug 24, 2026
Literacy Capital reported a 2.4% decline in diluted NAV per share to 472.6p for the six months to 30 June 2026, with diluted NAV falling to £284.4 million amid a tough trading backdrop for smaller UK businesses. Despite the modest NAV setback...
Business Operations and StrategyPrivate Placements and Financing
Literacy Capital Extends and Enhances £50m Revolving Credit Facility
Positive
Aug 3, 2026
Literacy Capital plc has secured a two-year extension of its Revolving Credit Facility with OakNorth Bank, pushing the expiry to September 2029 and increasing the committed element from £40 million to £50 million. The improved terms lowe...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A Transactions
Literacy Capital Q2 NAV Dips as Trust Prioritises Bolt-on Deals and Main Market Move
Neutral
Jul 27, 2026
Literacy Capital reported a Q2 2026 net asset value of £284.4m, or 472.6p per share, a 1.8% decline from the previous quarter, reflecting a challenging period for smaller U.K. businesses. Valuation movements were modest, with RCI Group and Li...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.