The Board is pleased to announce that trading has continued to be robust since the Group’s interim results were announced in early December 2020. A positive combination of revenue growth in the second half of the financial year coupled with lower than anticipated staff related expenditure, in part due to the Government’s most recent stay at home lockdown restrictions, now means that the Group’s full year adjusted operating profit* is expected to be materially ahead of current consensus forecasts.
This elevated second half trading performance coupled with the recently announced profitable sale of Oxford Genetics Limited (“Oxgene”) is, subject to audit, likely to result in the Group’s full year consolidated profit and total comprehensive income exceeding £23million. Unrestricted cash at 31 March 2021 is now forecast to be c.£49million.
Dr Mark Payton, CEO of Mercia Asset Management PLC, said:
“It is very pleasing to be providing this trading update immediately following the sale of Oxgene, and after the Group’s strong interim results announced in December 2020. Our specialist asset management business is continuing to perform well, underpinned by our increasing scale, leading market position and recurring revenue model.
Less than two years ago we set out a clear strategy aimed at making Mercia a sustainably profitable, cash generative, specialist asset manager. We have now achieved this, establishing the foundation for future profitable growth. The outlook for Mercia beyond the current financial year is positive and we look forward to reporting our full year results to 31 March 2021 in early July.”
* Adjusted operating profit is defined as operating profit before realised gains on disposal of investments, fair value movements in investments, share-based payments charge, depreciation and amortisation of intangible assets.
Read the full RNS Reach here.