b'Annual Report & Accounts 2022 Mercia Asset Management PLC 27Strategic report11 years of our investment (11 years inThe accelerated growth of nDreams the managed funds and five years ascontinues in terms of both product a direct investment). The sodium-ionreleases and revenue, with this years batteries it developed have a markedlyhighlight being Mark ZuckerbergThe Faradion exit reduced environmental impactannouncing the acclaimed Ghostbuster compared to conventional lithium-ionVR video game coming to Meta Quest 2delivered on our batteries due to the abundance as a collaboration between nDreams, of sodium. Ghost Corps and Sony Pictures promise to create value The Faradion exit brought anVirtual Reality.in the UKs regions, additional 25.0million investmentDuring the year, nDreams also benefitedwhile also delivering from Reliance New Energy Solar intofrom a $35million investment from Sheffield for Faradions next phase ofthe Swedish games studio group19.4m in cash growth, keeping the business in theAonic, adding 6.7million of fair value UK. In doing so, this exit deliveredmovement for Mercias 33.2% directreceipts for our direct on our promise to create value in theholding stake.UKs regions, while also deliveringinvestment portfolio.19.4million in cash receipts for ourOther portfolio companies making good direct investment portfolio alongside aprogress include: Invincibles Studio Ltd further 32.0million in proceeds to our(formerly Soccer Manager Ltd), (direct managed funds. This generated a 4.4xholding of 39.0%) growing revenues return on investment cost and a c.72%40% year-on-year; and Avid Games IRR for our direct holding. (direct holding of 40.6%), with a more than threefold revenue growth over the Warwick Acoustics and nDreams are twocourse of the year.other businesses that have caught theThis investment model has been9.9 mattention of commercial partners as well as investors. delivering good results. In the year, we have added Pimberly and Warwick Acoustics (40.0% direct holdingForensic Analytics from our shadow stake) is increasingly recognised for its fitportfolio with a number of remarkableRealised gain on the salewith car manufacturing, owing to its lowopportunities that are currentlypower, flexible shape and lightweight under consideration. of Faradionsound systems.'