Direct Investments

Half Year Results 2017: “Growth is the central theme throughout these interim results.”

Mercia Technologies PLC has published its half year results for the six months ended 30 September 2017.

Direct portfolio developments:

  • £9.7million net invested in nine portfolio companies during the period (H1 2016: £5.7million invested in nine portfolio companies), including the following syndicated investments:
    • £2.0million as part of an overall £7.5million investment into Oxford Genetics
    • £2.0million as part of an overall £2.7million investment into nDreams
    • £1.9million as part of an overall £3.1million investment into Warwick Audio Technologies
    • £1.5million as part of an overall £3.0million investment into Impression Technologies
  • Balanced portfolio with over 98.8% of the portfolio value spread across 18 companies in four technology sectors

Managed funds’ developments:

  • Funds under management in the period were £336.5million (H1 2016: £220.0million)
    • 318 portfolio companies within the managed funds
    • Invested £8.1million via the managed funds during the period
    • £34.5million managed fund cash part-realisation achieved from investment in Blue Prism Group plc, representing a 55x return for Mercia’s RisingStars Growth Fund I

Mark Payton, CEO of Mercia Technologies PLC, said:

“Growth is the central theme throughout these interim results. We are pleased with the progress that our direct investments are making and the fair value increase has, in part, occurred as a result of successful syndicated investment rounds.

“We are also encouraged by the increase in the quantum of funds under management as this enables Mercia to continue to build a sustainable pipeline of potential future direct investments, with the aim of becoming the leading provider of Complete Capital in the key regions of the Midlands, the North of England and Scotland to deliver value for our shareholders.

“Set in the context that Mercia operates a long-term investment philosophy, by combining third-party managed funds with selective scale-up capital directly from its balance sheet, all parts of the Group are in a growth phase and so it is pleasing to see an increase in post-tax profits to £1.4million and Net Asset Value (NAV) per share increase to 41.1pence. Mercia is well capitalised, with a highly liquid balance sheet and circa five years of investment capital within its managed funds. The Group is therefore capable of supporting both its existing direct investments and its future ‘Emerging Stars’.

“We look forward to maintaining this momentum in the second half of the year as we continue to build a sustainable and ultimately self-sufficient investment model.”

To read the full RNS announcement, including financial highlights, click here.