b'Annual Report & Accounts 2022 Mercia Asset Management PLC 17Strategic reportMercia invested 1.4million of capitalfrom new and existing investors inImpression Technologies Ltd has made from its own balance sheet, alongsideDecember 2021, Intechnica recentlyadvances, with licence partners making a further 2.9million investment by thecompleted the demerger of its excitingtheir first sales, and we are particularly Northern VCTs. Both new assets arebot management cyber securityexcited about the companys new performing well. Within our shadowbusiness, Netacea. Mercia now developments in battery boxes for portfolio of existing fund assets beingholds stakes equal in value to its electric vehicles and the use of recycled tracked are Axis Spine Technologies Ltd,pre-demerger holding value.aluminium in the companys HFQ Nova Pangaea Technologies (UK) Ltdpressing process.and Uniphy Ltd, a business developingWe are continuing to see our core smart surface technology at the human/ companies grow their revenues andOur Life Sciences portfolio also had a machine interface. We expect a numberprogress their business models, in manystrong year. Locate Bio Ltd continues of exciting new additions to the directcases underpinned by positive marketto progress well with its pre-clinical portfolio in the current year. sentiment and longer-term trends. Wetrials and, following our syndicated have seen accelerating commercialinvestment in February 2022, MIP For the year as a whole, we recordedinteraction and developments acrossDiscovery Ltd is well fundedfair value uplifts in 10 of our directour Deep Tech and Manufacturingto deliver its technical andinvestments, the largest beingassets, in particular Warwick Acousticscommercial milestones.6.7million for nDreams Ltd. TheLtd, which is engaged in discussions virtual reality (VR) market has grownwith a wide variety of automotiveWhilst much of the progress seen is due significantly against a backdroporiginal equipment manufacturersto a maturation of these businesses in of greater hardware penetration(OEM) and has successfullytheir markets, we have also workedat affordable prices and reneweddemonstrated its electrostatic acoustichard to add new complementary skills investment impetus by Oculus, Sonypanel technology within a premiuminto these companies, including high-and others. nDreams completed amarque vehicle for a globally recognisedprofile chairs being added to thenumber of important steps in itscar brand. The technology wasboards of nDreams, Netacea and development with new game releasespositively profiled by Autocar magazineImpression Technologies, plus senior and its push into third-party publishing.earlier this year with the listeningappointments at Intelligent Positioning In March 2022, the company securedexperience described as astounding.and MIP Discovery. 20.0million of new investment from European games investor Aonic AB. We look forward to working with our new investment partner in the next phase of nDreams growth as the companyMercia Nucleusthe evolution develops further intellectual property (IP). Its newest VR title, which isof value-add services across based on the Ghostbusters intellectual property in conjunction with Sonythe portfoliosPictures Virtual Reality, was introducedWe have expanded Mercias value-add offering to our portfolio by Mark Zuckerberg in April 2022 at thecompanies through the addition of other services that Meta Quest Gaming Showcase.include talent search, growth partner counsel, non-executive Other operational highlights withinappointments and knowledge sharing. This area of our business this sector include Invincibles Studiois something we have continued to invest in to increase the value Ltd (formerly Soccer Manager Ltd),added to our portfolio companies through hands-on support and growing revenues 40% year-on-year anddevelopment. Adding value is at the heart of what we do and as VirtTrade Ltd t/a Avid Games, with moresuch we have formalised these performance drivers into what we than threefold revenue growth over thecall Mercia Nucleus. course of the year. The revenue growthOur Mercia Nucleus team has been busy throughout the year of both businesses has been achievedwith 41 appointments made into portfolio companies.off the back of new game releasesand the increasing awareness of theirAlongside this we continue to forge new co-investor relationships, games worldwide. with BGF, Aonic Group, Vitruvian and Aramco Ventures becoming new partners across our direct and fund assets.Intechnica Group Ltd saw strong progress with a fair value uplift of 2.9million. After raising 8.5million'