Direct Investments

Preliminary results 2018: Another year of positive progress

Mercia Technologies PLC has announced its preliminary results for the year ending 31 March 2018.

Group and portfolio highlights

· £21.1million net invested in 17 portfolio companies during the year, including three new Emerging Stars

· Science Warehouse sold to Advanced Business Software and Solutions Limited generating cash proceeds of £10.5million and a realised gain of £0.6million for Mercia

· Assets under management have grown to c.£0.5billion, comprising c.£400.0million of funds under management, direct assets of £66.1million and unrestricted cash of £49.4million

· Julian Viggars promoted to Chief Investment Officer, bringing a demonstrable exit track record of delivering cash realisations and IPOs

· Dr Jonathan Pell appointed as a Non-executive Director, bringing to the Board a strong financial and venture background, plus first-hand experience of successfully scaling businesses and delivering exits

· 19 university partnerships, including a new partnership with the University of Edinburgh

· Growing pipeline of future potential Emerging Stars in the expanded funds under management

Financial highlights

· Direct investment portfolio value increased to £66.1million (2017: £52.0million)

· Net fair value gains £2.8million (2017: £4.3million)

· Realised gains £0.9million (2017: £0.8million)

· Net assets £123.5million (2017: £121.4million)

· Unrestricted cash and short-term liquidity investments £49.4million (2017: £59.6million)

· Net assets per share 40.7 pence (2017: 40.4 pence)

· Revenue increased 53.1% to £10.2million (2017: £6.7million)

· Net expenses reduced 82.4% to £0.4million (2017: £2.5million)

· Pre-exceptional operating profit £2.5million (2017: £1.9million)

· Profit for the financial year £1.7million (2017: £1.0million)

Post year end

· Caroline Plumb OBE appointed as an additional Non-executive Director, bringing first-hand experience as an entrepreneur with considerable technology strategy experience to Mercia’s Board

Dr Mark Payton, Chief Executive Officer of Mercia, commented:

“Mercia has made further positive progress, finishing the year with c.£0.5billion of assets under management. With the sale of Science Warehouse, Mercia has once again demonstrated its ability to realise full cash returns above carrying value.

“With nearly £50.0million of investable cash we have considerable firepower to make additional direct investments to drive future shareholder returns, whilst also benefiting from the growing fees derived from our profitable fund management activities. In addition, the number of future potential Emerging Stars in the funds’ pipeline is accelerating, as the significant new fund mandate wins of the past 12 months are deployed.

As the Group continues to mature and expand we believe that Mercia is far more than the sum of its parts. We have the right team in place to drive the ongoing evolution of Mercia and are confident that we will deliver significant shareholder and stakeholder returns over time from a materially larger operation, as the Group and its balance sheet portfolio continues to grow in value.”

To read the full RNS announcement, including portfolio updates, click here.