b'Annual Report & Accounts 2022 Mercia Asset Management PLC 41Strategic reportOutlookNotwithstanding the economic and social ravages of the pandemic, Mercia has made significant progress in the last two years. During this two-year period the Group has generated over 60million of pre-tax profits, on headline revenues of c.40million. With an excellent team of #OneMercia employees, fund management profitability established, net assets having passed 200million, a secure liquidity position and its dividends increasing, Mercia has established both strong cultural and business foundations from which to continue to grow total shareholder value in the years ahead.As the worst near-term effects of the pandemic begin to subside, current macro-economic and geo-political tremors cast near-term clouds over stock market sentiment. Whilst valuations fluctuate from time to time, Mercias funds under management are not open-ended and therefore not at risk of redemption calls. The long term contracted nature of our funds under management therefore underpins our annual revenues and with it, operating cash inflow and dividends to shareholders. Add to this our fast maturing direct investment portfolio, which has very limited public markets exposure, and Mercia faces the future with optimism, built on robust business fundamentals.Martin GlanfieldChief Financial Officer'