b'12 Mercia asset Management PLc Annual Report and Accounts 2021Our strategyDelivering on our strategy and raising our ambitionTwo years into our three-year strategic plan,we have substantially reached our three objectives, delivering value to all our stakeholders.Increase AuM to at leastAchieve operatingEvergreen our1.0billion profitability balance sheet Organic growth in Seed EnterpriseSupported by Funding our direct investment Investment Scheme (SEIS) andRecurring revenue from Funds underactivities through periodic cash Enterprise Investment Scheme Management (FuM) realisations from our direct (EIS) funds Track record of organic growth investment portfolio.New mandates A culture of financial discipline.Selective acquisitions.Progress Progress ProgressIn 2021, we increased assets underThrough our significant growth in AuM Four cash exits in FY2021 generating management (AuM) from c.800millionand our track record of organic growth,37.0million in cash and 20.3million to c.940million. together with a well-established culture in realised gainsConsolidated net assets increased of financial discipline, we have achievedDirect investments are well-funded from c.142million to c.176million sustainable operating profitability and and supported by Mercias platform Third-party FuM increased fromthe ability to fund a progressive and network; well-positioned for c.658million to c.794million. dividend policy. future realisationsPromising companies in managed In 2021, we generated adjusted operatingfunds to maintain the investment profits of 3.3million supporting acycle as current investmentsproposed final dividend payment of are realised.0.3 pence per share (2020: nil).'