Mercia Asset Management PLC is pleased to announce its interim results for the six months ended 30 September 2024.
Mark Payton, Chief Executive Officer of Mercia, commented:
“Mercia has delivered another strong first half performance with our higher funds under management driving revenue and EBITDA growth. I am pleased to say that none of the tax changes announced in the Government’s Autumn Budget, will curtail Mercia’s growth ambitions.”
| Unaudited
30 September 2024 |
Unaudited
30 September 2023 |
Audited
31 March 2024 |
|||
| Statutory results | |||||
| Revenue | £17.9m | £15.0m | £30.4m | ||
| Realised fair value gain on sale of a direct investment | – | – | £4.5m | ||
| Unrealised fair value movement in direct investments | £0.2m | £(1.6)m | £(17.3)m | ||
| Profit/(loss) before taxation | £2.4m | £1.4m | £(8.2)m | ||
| Basic earnings/(loss) per share | 0.41p | 0.30p | (1.71)p | ||
| Interim1/final dividend per share | 0.37p | 0.35p | 0.90p | ||
| Cash and cash equivalents | £46.2m | £36.5m | £46.9m | ||
| Net assets | £187.4m | £202.4m | £189.2m | ||
|
Alternative performance measures |
|||||
| AuM 2 | £1,836.9m | £1,461.8m | £1,818.8m | ||
| EBITDA 3 | £3.7m | £2.8m | £5.5m | ||
| Adjusted operating profit 4 | £4.8m | £5.5m | £9.7m | ||
| Net assets per share | 43.4p | 45.3p | 43.4p | ||
1 The interim dividend will be paid on 8 January 2025 to shareholders on the register at the close of business on 6 December 2024.
2 AuM is defined as the value of funds under management from which the Group earns revenues, plus the Group’s consolidated net assets.
3 EBITDA is defined as operating profit/(loss), depreciation, realised fair value gains/(losses) on the sale of direct investments, unrealised fair value movement in direct investments, share-based payments charge, amortisation of intangible assets and movement in fair value of deferred consideration.
4 Adjusted operating profit is defined as EBITDA plus net finance income.
Managed fund movements
- Third-party funds under management (“FuM”) increased by c.31% compared to the corresponding period end to c.£1,650million (H1 2024: c.£1,260million; FY 2024: c.£1,630million), with no redemptions
- Venture FuM of c.£952million (H1 2024: c.£660million; FY 2024: c.£913million)
- £29.2million successfully raised by the three Northern Venture Capital Trusts (“VCTs”) in April 2024, in addition to £1.2million of shareholder dividend reinvestment inflows
- Final dividends totalling £9.1million paid out by the three Northern VCTs in addition to shares repurchased and cancelled totalling £6.8million
- £10.0million additional equity allocation under the Northern Powerhouse Investment Fund I
- Two Enterprise Investment Scheme (“EIS”) funds closed raising a total of £16.3million
-
- Debt FuM of c.£672million (H1 2024 c.£552million; FY 2024: c.£687million)
- Frontier Development Capital’s National Tooling Loan Fund moved into its realisation phase
-
- Private equity FuM of c.£26million (H1 2024: c.£48million; FY 2024: c.£30million)
- A refinancing at Imail realised £6.4million back to fund investors
Direct investment portfolio movements
- Direct investment portfolio fair value of £120.9million (H1 2024: £142.5million; FY 2024: £116.9million)
- £3.9million net invested into four portfolio companies (H1 2024: £7.5million net invested into eight portfolio companies)
- £0.2million net fair value increase in the portfolio during the six month period (H1 2024: £1.6million decrease)
Post-period end developments
- Northern VCTs to launch a £36.0million fundraise in January 2025, with shares allotted in the 2024/25 tax year
- Mercia’s most recent EIS fundraise closed in November 2024, raising a total of c.£4million
- Cash proceeds totalling £0.6million received from the realisation of the Group’s direct investment in Artesian Solutions, 11% higher than its carrying value as at 30 September 2024
Read the full Interim Results here
Visit the Interim Results hub here