Mercia Asset Management PLC, the proactive, regionally focused specialist asset manager with c.£959million of assets under management (“AuM”) is pleased to announce its preliminary results for the year ended 31 March 2022.

We provided a live management presentation and Q&A, presented by Dr Mark Payton, Chief Executive Officer, Martin Glanfield, Chief Financial Officer and Julian Viggars, Chief Investment Officer.

 

Read the full RNS here
Visit our Prelims 2022 area here

 

Mercia Asset Management PLC, the proactive, regionally focused specialist asset manager with c.£959million of assets under management (“AuM”) is pleased to announce its preliminary results for the year ended 31 March 2022.

Highlights

  • Adjusted operating profit up c.152% to £8.4million (2021: £3.3million)
  • Realised gains and finance income totalling £12.2million generated from the sale of Faradion
  • £11.4m fair value movement in direct investments, including fair value uplift of £6.7million in nDreams following significant third-party investment
  • Profit before taxation of £27.4million (2021: £34.0million)
  • Proposed final dividend up c.67% to 0.5 pence per share (2021: 0.3 pence per share)
  • Net assets of £200.6million (2021: 176.0million)
  • Net Assets per share up c.14% to 45.6 pence (2021: 40.0 pence)
  • Cash and short-term liquidity investments of £61.3million (2021: £54.7million)

Managed fund developments

  • Third-party funds under management (“FuM”) of c.£758million (2021: c.£764million) contributed £19.5million in revenue, excluding performance fees, for the year (2021: £18.2million)
  • Cash returned to fund investors from successful realisations of c.£87million (2021: c.£27million)
  • Venture FuM c.£592million (2021: c.£600million)
    • £15.7million successfully raised across three Enterprise Investment Scheme (“EIS”) funds during the year
    • c.£15million additional allocation from British Business Bank under the Northern Powerhouse Investment Fund Equity mandate, with effect from 1 November 2021
    • Interim and final dividends totalling £17.0million paid by the three Northern Venture Capital Trusts (“VCTs”), in addition to special dividends paid of £20.8million arising from successful realisations
  • Private equity FuM c.£48million (2021: c.£54million)
    • Portfolio trading and prospects improving post pandemic
  • Debt FuM c.£118million (2021: c.£110million)
    • Accreditation awarded to the Group to deliver debt funding under the Recovery Loan Scheme (“RLS”)
    • c.£11million additional allocation from British Business Bank under the Northern Powerhouse Investment Fund Debt mandate, with effect from 1 November 2021

Direct investment portfolio developments

  • Direct investment portfolio fair value of £119.6million (2021: £96.2million), up c.24% notwithstanding the significant investment realisation of Faradion, completed in the year
  • Sale of Faradion in January 2022 resulted in total cash receipts of £19.4million (including a £1.5million loan repayment), generating £9.9million of realised gains together with crystallised loan interest and redemption premiums totalling £2.3million for the year
  • £18.4million net invested into 16 portfolio companies (2021: £15.4million net invested into 19 portfolio companies), including new direct investments into Forensic Analytics Limited and Pimberly Limited
  • Completion of a significant third-party investment into nDreams, resulting in a £6.7million fair value increase to the Group’s investment holding value as at 31 March 2022

Post year end developments

  • In April 2022 the Group’s AuM surpassed £1.0billion, with the three Northern Venture Capital Trusts raising £40.0million through the allotment of new shares, plus Mercia’s maiden Knowledge-intensive Impact EIS Fund raising £4.5million. Both successes reflect continued confidence in the track records of the VCT and EIS portfolios and the investment teams who manage them
  • Demerger from Intechnica of its cybersecurity bot-management business Netacea, to allow both companies to benefit from a refined focus on capitalising on their respective significant growth opportunities. Mercia retains stakes in both businesses post demerger equal in value to its previous holding value
  • Exciting commercial progress continues to be made by the direct investment portfolio
  • Mercia has been accredited as a carbon neutral organisation, demonstrating its commitment to ESG principles

Mark Payton, Chief Executive Officer of Mercia, commented:

“I am pleased to share a set of results that showcase the strength and maturity of Mercia and its business model. The significant success that we have seen during the last two financial years, and our positive future prospects, have been made possible by the combined efforts of everyone connected with Mercia. I would therefore like to express my sincere gratitude to the amazing portfolio companies that we have the privilege to support. As a Group, we are also very appreciative of the growing belief in Mercia from our third-party fund investors, and both VCT and Mercia shareholders, that the UK regions can deliver value and returns. Finally, I would like to thank Mercia’s employees, without whom we would not have become who we are today: #OneMercia.”

Read the full RNS here
Visit our Prelims 2022 area here

 

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