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.

Mercia’s Direct Investments

Investments totalling £5.3million completed into two new direct portfolio companies, Axis Spine Technologies and Nova Pangaea Technologies

Axis Spine Technologies

Axis Spine Technologies completed a £10.8million funding round in October 2022, including direct investment from Mercia.

CEO and Founder, Jon Arcos, spoke to Mercia TV, about its truly unique technology and how virtual reality is playing a significant role in the company’s strategy.

Nova Pangaea Technologies

Nova Pangaea Technologies is a Clean Tech company based in Redcar in Teesside, with a mission to use its technology to unlock the pathway to sustainable aviation fuel (SAF).

NPT completed a £5.3million funding round with Mercia and the Northern Powerhouse Investment Fund. CEO, Sarah Ellerby explains more.

Uniphy Ltd

Uniphy provides a seamless surface which can be formed into any shape, with extruded or recessed dials, switches, buttons and sliders built-in. Its patented technology has limitless potential.

CEO, Jim Nicholas, and Industrial Design and Manufacturing Director, Simon Ireland, explain Uniphy’s incredible technology.