One in five children has reading difficulties in this country and many have never owned a book. Frightened by the written word, they leave school with poor literacy skills and their lives are often blighted as a result.
Paul Pindar and his son Richard are on a mission to change this grim trend, while making money for investors along the way.
The duo founded Literacy Capital in 2017, a business that buys small companies, helps them to improve and sells them a few years later, ideally at a large profit.
Mission: One in five children has reading difficulties in this country and many have never owned a book
The value of these firms is assessed every year and 0.9 per cent of that money is given to reading charities, particularly Bookmark Reading, which helps children who struggle to read and write.
Literacy floated on the stock market in 2021 and was recommended by Midas a year later at £3.89. The price has risen by 20 per cent since then to £4.68 and prospects are bright.
The Pindars have proved their mettle as astute dealmakers and are determined to increase the value of their business from £295 million to £1 billion in the next few years, donating millions of pounds to charity in the process.
The company invests in businesses across industries from emergency tyre repairs to wi-fi broadband for the Ministry of Defence and university campuses.
Today, there are 17 firms in the stable, most of which were acquired from their founders. Literacy appeals on two levels.
First, the Pindars have proved they can foster growth. Second, Literacy is not just about making money but doing good as well.
Last year alone, the group sold two firms, dog food specialist Butternut and recruiter Kernel Global.
In each case, acquirers paid around 50 per cent more than the firms were valued in Literacy’s books. More of the same is expected in 2024, with buyers already circling around a number of the group’s businesses.
Midas verdict: Literacy Capital shares have risen sharply over the past year and the company has now donated almost £8 million to reading charities.
At £4.68, the shares should continue to reward hard-nosed investors and philanthropists alike. Those looking to go one stage further can even volunteer with Bookmark and help children learn to read.
Traded on: Main market Ticker: BOOK Contact: literacycapital.com or 020 3960 0280
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