b'Annual Report & Accounts 2022 Mercia Asset Management PLC 21Strategic reportTees-based Clean Tech business NovaWe have continued to promote ourOur businesses in cyber security and Pangaea has created a process toComplete Connected Capital with the intelligent use of big data have enable the conversion of discardedco-investment by various Mercia- all grown and we expect this will plant biomass into advanced biofuels,managed funds and Mercias balancecontinue, as have those involved in the including aviation fuel and othersheet, including into Intechnica, identification, selection and welfare sustainable biocarbons, and which is Forensic Analytics and Pimberly. of staff in the workplace. The pace of led by experienced CEO Sarah Ellerby.change in moving to cleaner energy, During the year, NPIF Equity benefittedPost period events as witnessed by innovations in the from the sale of Faradion, a jointDirect investments Avid Games andelectric vehicle sector, is remarkable. investment with Mercias balance sheet.Impression Technologies both receivedWe are seeing significant activity as Sheffield-based Clean Tech businessfollow-on funds totalling 1.0million,traditionally slow-moving OEMs look Libertine PLCs AIM flotation in Decemberand a further 0.2million has beenfor an edge for consumers, alongside raised gross proceeds of 9.0million forinvested into both Eyoto Group Ltd andweight and cost savings, giving added investment in continued technical andW2 Global Data Solutions Ltd, followingmomentum to Warwick Acoustics, commercial development. continuing commercial and technicalImpression Technologies and our other progress. Overall, good progress is beingDeep Tech fund assets, that innovate Three investments were made duringmaintained across our direct portfolio. around the human/machine interface.the year by Mercias PE team. These three transactions saw a total ofSummary and look forward And of course, in Digital, where 9.3million invested into UK LandscapesThis has been an incredible year forconsumers continually search for Holdings Ltd, a specialist landscapingMercia in what again has been a volatileincreasingly better entertainment and grounds maintenance business,period, where the global environment,and more efficient ways to address based in Cheshire, that serves blue-chipworking practices and sentiment havetheir healthcare needs; our Games companies such as Asda, John Lewis,continued to change unpredictably.businesses and Digital Healthcare Shell and Santander plus Coventry- From coming out of lockdown in earlycompanies will all continue to prosper. based UK Mail Digital Ltd to support 2021, through new levels of freedom last its buy-out from DHL Parcel UK Ltd.summer and then the re-appraisal withAs always, I would like to thank all of ParkVia Ltd, an online car parkingOmicron in the autumn, our investeethe talented investment and operations booking platform, received follow-oncompanies have also had to deal withteam members at #OneMercia for their investment as it emerged well out ofsupply chain issues and, more recently,efforts throughout another challenging the COVID-19 pandemic and is nowserious military conflict, rising pricesyear. In generating over 250million in performing ahead of budget. and the uncertainty that these realisations over the past two years, we matters bring. have proven our business model and Mercias Debt funds team saw a slightinvestment credentials as a proactive reduction in enquiries during the year,From an investment perspective, wespecialist asset manager. Given our completing 63 transactions (2021: 70),have and will continue to steer ourmix of assets across sectors and, in investing a total of 13.4million, of activity toward those areas where weparticular, our exposure to the growth which 10.3million was provided to see longer-term structural changesthemes identified above, I remain 48 new businesses. The Groupand growth. Mercias investmentoptimistic for the year ahead. announced a further extension of its NPIFmodel is now delivering, with much debt mandate, which was increased bymore to come. We typically hold directWe must not ignore the chill winds of 10.9million, with the investment periodinvestments for three to seven yearsinflation, ongoing supply chain issues being extended to December 2023. Inahead of a trade sale or IPO. With theand the uncertainty caused by military August 2021, Mercia was also accreditedcreation of a shadow portfolio, beingconflict. However, Mercias funds-first to deliver loans via the governmentstracked from the over 260 venturebusiness model, our experienced and Recovery Loan Scheme (RLS). Merciasbusinesses within Mercias managed- hugely committed #OneMercia team, vastly experienced Debt team continue tofund portfolios, we can add the rightplus Mercias strong liquidity across support profitable SMEs, mainly acrossinvestment at the right time to ensureboth funds and balance sheet, give me the North of England. balance across sector and stage confidence that we will continue to of growth, and at the right valuethrive, regardless of whatever the year inflection point.ahead throws at us.Julian ViggarsChief Investment Officer'