Mercia Asset Management PLC is pleased to announce its interim results for the six months ended 30 September 2022.
Continuing profitable progress and a strong, debt-free balance sheet, underpins a 10% increase in the interim dividend
Interim results presentation FY 2023
Our debt-free balance sheet and significant liquidity means Mercia is well placed to capitalise at a time in the cycle when there are compelling opportunities to be had.
– Dr Mark Payton, Chief Executive Officer – Mercia
Acquisition of Frontier Development Capital Limited
Mercia is delighted to announce that it has acquired the entire issued share capital of the central-Birmingham headquartered Frontier Development Capital Limited, a leading, regionally-focused lender to SMEs, with c.£415million of funds under management, for a total consideration of up to £9.5million plus net cash.
CEO's Review
In these challenging times, it is pleasing to report continued, steady momentum at Mercia. We are in the strong position of being able to build from a solid base, providing support for founders and managers of many of the UK’s leading SMEs to enable them to focus on long-term growth.
Our vision remains ‘to become the first choice for investees, investors and employees’.
CIO's Review
The period under review saw net upward fair value movements of £5.6million and the past six months at Mercia have been relatively unremarkable; our experienced team has been well prepared and our investee companies have put their heads down and got on with what is in front of them.
We have started to reap the benefits of our expanding regional footprint with four new investments in the South West region, and see significant opportunity in this vibrant part of the UK.
CFO's Review
Mercia has maintained positive financial momentum during the first half of the current financial year, with increases in adjusted operating profit, net assets and net assets per share.
As a direct consequence of the significant liquidity held in both our funds under management and on our own balance sheet, Mercia is able to continue to support those businesses without hindering both pillars of its own organic and inorganic growth strategy.