b'Annual Report & Accounts 2022 Mercia Asset Management PLC 3Strategic reportThere is always more that can be done,Dividend In respect of the latter, we remain but it was encouraging to see that at ourIn conjunction with the announcementfully committed to investing in and recent senior leadership strategy day,of its interim results in December 2020,supporting the VCT investment team, half of the 14 attendees were women.Mercia declared its maiden interimas we help them to successfully manage Equally encouraging is that despite itdividend of 0.1 pence per share, as theand expand their VCT portfolios. not yet being mandatory for Mercia,beginning of a progressive dividend we have taken the proactive decisionpolicy. In October 2021, this wasProactive engagement with all of our to measure and report on our carbonfollowed by a maiden final dividendstakeholder groups remains particularly footprintfor the first time Mercia hasof 0.3 pence per share and an interimimportant to our Board. Whilst the been measured and offset its carbondividend last December of 0.3 penceintermittent lockdowns and remote footprint to become a carbon-neutralper share. If approved by shareholdersworking directives of the last two years company. As part of our mantra ofat this Septembers Annual Generalhave curtailed face-to-face discussions, responsible investing with purpose,Meeting (AGM), the Board isI look forward to re-engaging with we believe in practising what we askrecommending a final dividend of 0.5our stakeholders during the current of our investee companies, in terms ofpence per share, making 0.8 pence perfinancial year.both good governance and being goodshare for the full year (2021: 0.4 pence citizens. Carbon offsetting is just theper share). If approved, the dividendOpportunitybeginning, and we will seek to reducewill be paid on 11 October 2022 toThese financial results successfully our carbon footprint over time. shareholders on the register at close ofbuild on last years breakthrough Strategic progressMerciabusiness on 23 September 2022. achievements. They also point to the calibre of our people and the 20:20 Given the strength of Mercias businessaccelerating maturity of our business In 2021, Mercia largely achieved itsmodel and its excellent cash position,model. This is demonstrated by the previous three-year strategic plan onethe Boards objective remains torecurring profits now being derived year early. At the time of announcingmaintain this progressive policy. from our investment activities in both last years financial results, the Groupour fund management business and launched a new three-year strategicGovernance and engagement from the balance sheet portfolio.plan: Mercia 20:20. The Groups newAs part of our continuing commitmentWith continuing heightened interest objectives are to: to the governance principles of thein several of the sectors into which deliver average pre-tax profits ofQuoted Companies Alliance CorporateMercia invests, the opportunities 20million per annum over the nextGovernance Code, we commissionedfor further growth, and hence the three years; and our third independent externalpotential for sustained incremental grow its AuM by an average of Board effectiveness review since ourshareholder value creation, is now 20% per annum over the same admission to the Alternative Investmentfirmly established.three-year period. Market (AIM) in December 2014. The review findings and recommendationsAs Chair, I remain immensely proud to The achievement of these two neware summarised on page 58 of thisbe part of #OneMercia, which remains strategic objectives will deliverAnnual Report, but it is reassuring toa community of outstanding people substantial total shareholder returnsnote that the external review concludedwho care about responsibly investing during the three years, as well asthat overall, the Board appears to bethe funds we manage, the companies facilitating a growing dividend. In theperforming very well and that thein which we invest or to which we lend, specialist asset management sector inBoard has clearly made progress sinceand, most importantly of all, continue to which Mercia operates, year-on-yearits last effectiveness review.care about each other. financial results are rarely uniform. The Groups focus is therefore on deliveringIt is critical to our future success thatIan R. Metcalfethese twin annual strategic objectives onwe continue to meet the investmentNon-executive Chairaverage during the three-year period.objectives agreed with our different asset The Board is pleased with progress thusclass fund investors. This includes our far and is currently on target to deliverinstitutional investors, individual investors against these objectives.and the independent boards of the three Northern Venture Capital Trusts (VCT).'