In QuotedData’s morning briefing 8 October 2024:

• Literacy Capital (BOOK) has announced a variation to the terms of its investment management agreement increasing the fee payable to the investment manager to 1.5% of the adjusted audited net asset value as at the end of that year effective from 1 January 2025. The current entitlement is 0.9%. This follows the company’s strong NAV per share performance since it was admitted to the specialist funds segment of the London Stock Exchange of 225.4%, which is more than any other investment company listed on the LSE over the same period. At the same time BOOK has announced what it describes as “an immaterial variation to its investment policy, effective from 1 January 2025, regarding the amount which the Directors may use for charitable donations”. So far, BOOK has made charitable donations equal to 0.9% of net assets in each financial year since 2018. Given that BOOK has grown significantly through strong performance, the amount of the donation has grown significantly (from approximately £0.53m in 2018 to more than £2.75m in 2023). BOOK says that a major beneficiary of its donations has been Bookmark Reading Charity and that this charity has built an increasingly professional and effective fundraising operation that has significantly reduced its need for material donations from BOOK. BOOK’s board says that it has therefore concluded that reducing the trust’s charitable donation from 0.9% to 0.5% of net assets per annum enables BOOK “to retain its unique feature of making a significant difference to children from disadvantaged backgrounds, through continuing to make substantial seven-figure donations on an annual basis, whilst allowing for the Increased Management Fee to be paid without materially increasing the total cost of the combined elements for shareholders”.
• ICG Enterprise Trust (ICGT) has announced its interim results for the six months to 31 July 2024. The company delivered a 2.8% NAV total return and 10.3% share price total return in the first half of the year. The company also continues to focus on its capital allocation policy through a combination of a progressive dividends and share buybacks. It announced a dividend for Q2 of of 8.5p per share and reaffirmed the board’s intention to pay total dividends of at least 35p per share for the 2025 financial year. Its buyback programmes in aggregate increased NAV per share by 19p (~1%) during the period.
• UIL Limited (UIL) announced a significant transaction within the portfolio of its investee subsidiary company Zeta Resources Limited. Zeta announced earlier today that it expects to receive approximately USD 41m from Koumbia Bauxite Investments (KBI), an unlisted Bermuda based company in which Zeta is a 41.3% shareholder and is Zeta’s largest investment. KBI has agreed to terminate its commercialisation deed with Alliance Mining Commodities (AMC), the 90% owner of the Koumbia bauxite project located in Guinea, in exchange for a cash payment of USD100m from the 100% owner of AMC. The payment from KBI is expected to be received by Zeta within one week and is in line with Zeta’s carrying value of KBI as at 30 September 2024. KBI represents approximately 8% of UIL’s investment portfolio as at 30 September 2024 on a look through basis.
• Harworth Group (HWG) has acquired a 2850,000 sq ft urban logistics estate in Rotherham for £43.7m, reflecting a net initial yield of 5.4%. The asset, completed in 2023, is located close to the group’s industrial development Advanced Manufacturing Park. Comprising five units, the scheme is 90% let with a WAULT of 6.6 years to break and 10.1 to expiry. Once the final unit is let, the park will generate around £2.5m of annualised rent.