Supporting the regions’ thriving businesses
First choice for investors, investees and employees, Mercia’s hybrid investment model has now achieved critical mass as the synergies deliver both growth in underlying profit from the fund management operations and the returns from our proprietary investment activity. This self-financing model enables Mercia to compete domestically on a regional basis across the UK.
The execution of Mercia’s strategy has materially grown shareholder value.Ian Metcalfe, Non-executive Chair – Mercia
Mercia by numbers
c.£940m
Assets under Management (“AuM”)
2020: c.£800m
£19.2m
Revenue
2020: c.£12.7m
£3.3m
Adjusted operating profit
2020: £0.5m
£34.5m
Profit after tax
2020: £17.5m loss
0.3 pence/share
Proposed final dividend
2020: Nil
£176.0m
Net Assets
2020: £141.5m
40.0 pence
Net assets per share
2020: 32.1 pence
10
Profitable exits
2020: 5
17
Shadow portfolio companies
£314.0m
Total liquidity
2020: c.£320m
Complete Connected Capital
Mercia’s investments across its four asset classes are powering ambitious regional SMEs with the capital that they need to grow. Our business model is designed specifically to support the funding needs of companies through their journey from origin to exit.
Balance sheet
Up to £10m
Total portfolio: 23
Total invested in 2021: £15.4m
Unrestricted cash: £54.7m
Venture
£100k–£10m
Total portfolio: 245
Total invested in 2021: c.£56m
FuM: c.£600m
Private equity
Up to £10m
Total portfolio: 8
Total invested in 2021: £0.8m
FuM: c.£54m
Debt
£100k–£10m
Total portfolio: 150
Total invested in 2021: £16.8m
FuM: c.£110m
Edison Group research report
A breakthrough year and more to come
“FY21 was the year Mercia’s business model as a specialist asset manager matured. The group largely achieved its FY22 strategic goals a year ahead of target (assets under management, AUM, of c £1bn, evergreen balance sheet and sustainable profitability), with NAV per share climbing 24% y-o-y to 40p and AUM rising 18% y-o-y to £940m at year end. Given this progress, a new plan has been set, Mercia 20:20, aiming for average annual growth in AUM of 20% and average PBT of £20m between FY22 and FY24. Mercia is now profitable (FY21 EPS of 7.83p, a 4.8x P/E), with an FY21 dividend yield of 1.1%. Despite evident progress, Mercia’s shares continue to trade at a discount to NAV (0.94x), even before considering the embedded value of the third-party fund management business (c 6.9p/share at 4% of AUM).”
To view the full research report visit edisongroup.com
Annual Report 2021
The Group is now trading profitably as a result of its fund management activities, providing further positive momentum for the Group’s future prospects.
Martin Glanfield, Chief Financial Officer – Mercia
Supporting the regions’ thriving businesses
First choice for investors, investees and employees, Mercia’s hybrid investment model has now achieved critical mass as the synergies deliver both growth in underlying profit from the fund management operations and the returns from our proprietary investment activity. This self-financing model enables Mercia to compete domestically on a regional basis across the UK.
The execution of Mercia’s strategy has materially grown shareholder value.Ian Metcalfe, Non-executive Chair – Mercia