b'Mercia asset Management PLc33Annual Report and Accounts 2021Post period events We see continued opportunity in Digital, Post year end we invested 0.5million inHealthcare and Digital Gaming. We expect Medherant alongside current co-investors,a continued move to remote data-based including our managed funds to continuehealthcare, and have recently invested in commercial progress, and 0.3million Naitive Technologies, an early-stage in Eyoto as it progresses its FDA business exposed to this trend.approval process. Our e-commerce businesses prospered Following initial investment through theover the last year with Northern VCT Northern VCTs in 2015, musicMagpieassets musicMagpie, Currentbody.com launched its 208.0million IPO on AIM inand Oddbox showing rapid growth and we April 2021. Upon IPO, our three Northerncontinue to believe that these areas will VCT holdings were valued at 51.7million,do well.of which half was immediately realised in cash and the unrealised portion held inWithin our Deep Tech and Manufacturing shares. The total amount invested intoassets, we are well positioned for theStrategic reportmusicMagpie via the Northern VCTs wasElectric Revolution having invested in 4.5million. The total return was 11.6x,this area for the last 10 years. While with an internal rate of return of 58%.Warwick Acoustics and Impression Technologies were initially impacted by As announced on 23 June 2021, strong FuMthe pandemic, the 2030 ban on new petrolGovernance Financial statementsportfolio performances during the yearand diesel cars has created significant have triggered net performance fees ofopportunities. Elmtronics from NEVF is3.8million. an installer of electric charging points and progressing well, as is Midlands-based summary and looking forward Acceleron, which enables individual As Chief Investment Officer it is importantbattery cells to be replaced as charge to step back and look at the sustainableefficiency drops. themes, steering our investment toward the areas where we see longer-termThis reporting year has demonstrated the structural changes and growth.resilience of our business and our people and I would like to thank all my great team We believe that businesses will continue tomembers at #OneMercia for their efforts look at their own efficiency and securityover this last extraordinary year. I am very and we have seen a real focus on sales,optimistic for our portfolio companies of business development and supply chains,which we now have c.430 assets, with to the health and safety of staff. We havesignificant liquidity to make new fund significant exposure to these areas acrossinvestments and direct investments. I am our portfolios. confident that we will continue to grow in the new financial year.Julian ViggarsChief Investment Officer'