b'Mercia asset Management PLc49Annual Report and Accounts 2021Net fair value increases during the year totalled 10,088,000 (2020: 15,844,000 decrease) and as at 31 March 2021, the fair value of the Groups direct investment portfolio was 96,220,000 (2020: 87,471,000). For the year as a whole, unrealised fair value gains arose in 11 (2020: four) out of the Groups 23 (2020: 25) direct investments. The largest fair value gain was in respect of MyHealthChecked, which accounted for 3,509,000 of the total (2020: 1,582,000 fair value gain in respect of OXGENE). There were four (2020: 10)fair value decreases, the largest being 439,000 which arose in respect of Eyoto (2020: 5,313,000 fair value decrease forWarwick Acoustics).share-based payments chargeThe 543,000 non-cash charge (2020: 528,000) arises from the net increase in the total number of issued share options held by employees throughout the Group, ranging from 28 August 2018 to 31 March 2021.amortisation of intangible assetsThe amortisation charge for the period of 2,317,000 (2020: 852,000) represents amortisation of the acquired intangible assets of both Enterprise Ventures Group Limited (Enterprise Ventures) and the VCT fund management business. The Enterprise Ventures intangible asset is now fully amortised.Movement in fair value of contingent considerationThe VCT fund management total purchase price has a number of contingent consideration elements payable over a three-year period. The total contingent consideration was fair valued at the date of acquisition. The charge to the income statement represents theStrategic reportunwinding of the discount on the first contingent consideration payment made in December 2020 (2020: nil).taxationThe components of the Groups tax credit are shown in note 11 to the consolidated financial statements. The Group continues to utilise those historic trading losses which are available to set off against current year taxable profits. The overall tax credit comprisesFinancial statements Governancethe unwinding of the deferred tax liability in respect of both the Enterprise Ventures and VCT fund management acquisitions. The Enterprise Ventures deferred tax liability was fully unwound in the year to 31 March 2021. total comprehensive profit for the yearThe adjusted operating profit, net performance fees, realised gains made on the sale of The Native Antigen Company, ClearReview and OXGENE, together with net fair value increases for the year, all contributed favourably to a record consolidated total comprehensive profit of 34,458,000 (2020: 17,454,000 loss), resulting in basic earnings per Ordinary share of 7.83 pence (2020: 5.11 pence loss per share).dividendsThe profitable and operating cash generative first-half performance, together with its future prospects, enabled Mercia to declare and pay a maiden interim dividend of 0.1 pence per share; a landmark moment in the Groups evolution as a proactive, regionally focused, specialist asset manager. The even stronger second-half performance now enables Mercias Board to recommend a proposed final dividend of 0.3 pence per share. If approved by shareholders at September 2021s Annual General Meeting, the total first year dividend will represent a yield of approximately 1% (2020: nil).Balance sheet and cash flowsNet assets as at 31 March 2021 of 176,021,000 (2020: 141,460,000) were predominantly made up of goodwill, acquired VCT fund management contract-related intangible assets, the direct investment portfolio and unrestricted cash. The Group continues to have limited working capital needs due to the nature of its business and generated net operating cash inflow of 5.6million (2020: 0.3million net inflow).intangible assetsDetails of the Groups intangible assets are given in notes 15 and 16 to the consolidated financial statements, and consist of goodwill and intangible assets recognised on the acquisitions of Mercia Fund Management Limited, Enterprise Ventures and the VCT fund management business.direct investment portfolioDuring the year under review, Mercias direct investment portfolio grew from 87,471,000 as at 1 April 2020 (2020: 1 April 2019 87,659,000) to 96,220,000 as at 31 March 2021 (2020: 87,471,000), a 10% increase notwithstanding the significant cash realisations achieved during the year.The Group invested 15,397,000 net (2020: 15,656,000) into 17 existing and two new direct investments (2020: 17 and one respectively). The quantum of direct investment activity seen in the second half of the financial year was lower than the first half, as the majority of the direct portfolio are sufficiently well funded through to at least the end of 2021.'