b'Strategic report Governance Financial statementsDirect investment portfolioAt the latter end of the year Mercias direct investment portfolio declined in fair value to 87,471,000 (2019: 87,659,000). The table below lists the Groups investments by value as at 31 March 2020, including a breakdown of the net cash invested during the year, fair value movements for the year as a whole and the fully diluted equity percentage of each investee company owned.Investment Net cash Fair value Investment Percentagevalue invested movement value heldAs at Year to Year to As at As at1 April 31 March 31 March 31 March 31 March2019 2020 2020 2020 2020000 000 000 000 %nDreams Ltd 15,120 1,00016,120 36.4Oxford Genetics Ltd t/a OXGENE 10,1611,582 11,743 30.2Intechnica Ltd 6,677 5007,177 27.5Medherant Ltd 5,205 1,5006,705 30.1Voxpopme Ltd 3,026 2,000 1,004 6,030 17.1Ton UK Ltd t/a Intelligent Positioning 5,473 400 1,519 4,354 28.2Impression Technologies Ltd 5,381 2,000 (3,087) 4,294 25.9Faradion Ltd 3,525 5004,025 16.5Warwick Acoustics Ltd 7,904 1,065 (5,313) 3,656 52.9The Native Antigen Company Ltd 2,863630 3,493 29.4Soccer Manager Ltd 2,099 300 135 2,534 34.8Edge Case Games Ltd 2,300 2,300 21.2Locate Bio Ltd 500 1,7502,250 17.4VirtTrade Ltd t/a Avid Games 3,938 550 (2,288) 2,200 25.8PsiOxus Therapeutics Ltd 2,377 160 (344) 2,193 1.4sureCore Ltd 1,834 3332,167 22.0W2 Global Data Solutions Ltd 2,000 2,000 15.2Eyoto Group Ltd 1,755 875 (878) 1,752 15.7One Touch Apps Ltd t/a Clear Review500500 3.9Concepta PLC 1,133 750 (1,408) 475 22.4Other direct investments 4,388 1,473 (4,358) 1,503 n/aTotal 87,659 15,656 15,844 87,471 n/aInvestee company loan repaymentsMercia is focused on creating shareholder value through its asset management operations, including investment in, development of and at the appropriate time, exit from (predominantly through trade sales) its direct investments. The Group supports its direct investments via both equity and loan instruments. During the year loan repayments of 1.8million (2019: 1.7million) were received by Mercia from Impression Technologies, Warwick Acoustics and Crowd Reactive.Cash and short-term liquidity investmentsAt the year end Mercia had total cash and short-term liquidity investments of 30,653,000 (2019: 30,398,000) comprising cash of 24,438,000 (2019: 25,210,000) and short-term liquidity investments of 6,215,000 (2019: 5,188,000), including 467,000 (2019: 629,000) of cash held on behalf of third-party EIS investors. The overriding emphasis of the Groups treasury policy remains the preservation of its shareholders cash for investment and working capital purposes, not yield. At the year end the Groups cash and short-term liquidity investments (which is cash on deposit with maturities between three and six months) were spread across four leading United Kingdom banks.The summarised movement in the Groups cash position during the year is shown below.Year ended Year ended31 March 31 March2020 2019000 000Opening cash and short-term liquidity investments 30,398 52,908Net cash generated from/(used in) operating activities 136 (5,080)Net cash used in direct and certain other investing activities (15,456) (17,234)Purchase of management contracts (12,400) Issue of new Ordinary share capital for cash 30,000 Ordinary share capital issue costs (1,879) Net cash used in other financing activities (146) (196)Cash and short-term liquidity investments at the year end 30,653 30,398Notwithstanding the near-term impact of COVID-19 on asset values and revenues which are directly linked to asset values, Mercia has made significant positive progress during the year. Once the impact of the pandemic subsides, the underlying potential of the Groups balance sheet portfolio and deal flow pipeline via its managed funds will re-emerge, providing positive momentum for the Groups future prospects.Martin GlanfieldChief Financial Officer Mercia Asset Management PLC 51Annual Report and Accounts 2020'