b'Annual Report & Accounts 2022 Mercia Asset Management PLC 7Strategic reportWe are one year into our journey towards achieving our Mercia 20:20 targets and we remain firmly on course. We have exceeded the average annual profit before tax (PBT) target and continued to increase our AuM against the backdrop of our significant investment exit performance.Other key objectives FY22 progressTo create superior stakeholder value Implemented stakeholder response service level agreementAchieved positive feedback from media, brokers and analystsUpward movement in fair value of 11.4million across the Groups direct investmentsc.155million realised across 30 companiesFaradion sold for a total value of 100.0millionTo provide dynamic capital solutions to investeeInvested c.124million across all Mercia-managed fundscompanies throughout their growth journey and balance sheetc.202million in co-investments secured across Mercias portfoliosTo increase funds under management (FuM)Enterprise Investment Scheme (EIS) funds raised c.16millionthrough increased fund mandates, fund raisingBBB allocated an additional 31.4millionactivities and mergers and acquisitions (M&A) Post year end Northern VCTs raised 40.0millionTo remain cost efficient and grow profitability Costs were managed under budgetAdjusted operating profit more than doubledExceeded average annual pre-tax profit targetachieving 27.4millionTo support investee growth through Formation of Mercia Nucleus, with expanded portfolio proactive engagement support servicesContinued growth of Mercias non-executive networkFive new partners added to the Mercia Partnership ProgrammeWebinars and panel discussions held regularlyWeekly newsletter, Starter for Ten, launchedTo optimise risk management Developed risk register dashboard for improved information and compliance management and monitoringInternal training bolstered with training videos'