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Started: RedNinja, 31 May 2024 14:22
Last post: RedNinja, 31 May 2024 14:24
Loss of 2p I make that a decline of 4.4% of NAV
ie not so small
Merc. sp holding up well despite yesterdays bad news concerning Impression Tech. :-
Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with over £1.5 billion of assets under management, announces that it has made the decision to cease further funding for one of its direct investments, Impression Technologies Limited ("ITL").
Mercia first invested in ITL via its thirds-party funds in 2014 and it became a balance sheet direct investment in 2015. During the period of Mercia's investment, ITL developed its novel Hot Form Quench ("HFQ®") technology, established a low volume manufacturing facility, secured its first production customers, signed licences with several automotive sub-contractors and developed its technology to be transferable across industry sectors e.g. aerospace.
However, despite this considerable technological and commercial progress, ITL has been unable to reach breakeven. As announced on 28 November 2023, Mercia reduced its direct investment carrying value in its interim results, reflecting increased uncertainty following a sale process which did not ultimately succeed. Since that time, ITL has continued to explore options including further funding or a sale. Ultimately however, no successful new external funding or a sale of ITL has been achieved. Given that ITL's pathway to profitability remains highly uncertain, Mercia has also decided to cease further funding. It is now anticipated that ITL will enter into an insolvency process in the near future.
Mercia will now reduce the carrying value of its investment in ITL as at 31 March 2024 to zero, resulting in a small reduction in the Group's net asset value per share of c.2 pence, compared with the net asset value per share of 45.3 pence as at 30 September 2023
Started: formerlyeasyp, 10 Apr 2024 13:06
Last post: formerlyeasyp, 23 Apr 2024 08:40
Share price has enjoyed a good run over the past month and no pumpers & dumpers on the BB which is a relief! The value proposition for owning more MERC shares seems strong according to Schanhorst. Inclined to agree, will add more this week.
I’m expecting a bid at some stage. Big cash pile, good reputation, assets under management growing fast, well positioned for UK turnaround, especially with our British Business Bank relationship. That is meaningful. Like us, Maven were recently awarded BBB contracts. Maven were taken over by Mattioli Woods in 2021 and they are currently being taken over by Pollen Street Capital. Things are moving.
Very good results, surprised the sp not higher.
Started: formerlyeasyp, 22 Mar 2024 08:01
Last post: ManInGreen, 25 Mar 2024 17:01
Brilliant Scharn, thank you. Really appreciate the information and I totally agree Ray sounds like the type of guy any company and investor would be proud to have on their side. Now I know, I am. Kind regards, MIG
You’re welcome MiG. Ray Chamberlain was non-exec chair of Mercia at IPO and is a staunch supporter. He was executive chair and main shareholder of Forward Group plc which was successfully sold in the 90s. The name lives on in Forward Innovation Fund and Forward Nominees which are listed in the MERC Annual Report as significant shareholders in Mercia and in which Ray has an interest. I don’t know how many shares Ray holds directly in Mercia but I’m told he has never sold a single share in the company. I’ve met him, he’s a very nice bloke and passionate about encouraging small and medium sized companies in the regions. The UK needs more like him imo.
Thanks Scharn, exact as usual and completely correct. The RNS here is more accurate than where I saw it. Apologies FEP if my note didn't help. All the best guys, MIG
The director didn’t sell shares.
The Shares were sold on 21 March 2024 at 32.50p per share by non‐Chamberlain family shareholders. None of the shares sold were held personally by Ray Chamberlain.
Hi MiG thanks for the response, I did not appreciate he held that many shares! As you say the prev RNS very encouraging and I am starting to think this is a long term hold.
Started: formerlyeasyp, 21 Mar 2024 07:18
Last post: barchid, 21 Mar 2024 08:02
Indeed, 2 brokers have appeared to upgrade estimates already, one described it as "hitting sixes".
Let us hope shareholders see some of it, personally I'd be happy just with a boundary hit...
Good news, a sizeable chunk of money imo.
Started: Florence141414, 29 Feb 2024 08:23
Last post: realturbo, 13 Mar 2024 00:51
Buyback has reaches just under 9 million shares, and Mercia could keep buying until they reach around 16.5 million, as they did announce "a share buyback programme of up to £5.0million".
Volume has picked up in recent days with the share price beginning to tick up. Perhaps supply of cheap shares is running out? It's possible some further good news is brewing, and Mercia are keen to accelerate the buyback programme before the news flow is ready. to be released.
Let's hope we are at the start of a sustained rise and some positive news flow lands to help drive the share price into the 40's.
I’m surprised by the muted market response here. Fund managers pretty much across the board have had outflows for around two years now.
Not only did they manage minor inflows in their H1 results, they’ve now added over 10% in one fell swoop. Talk about bucking the trend.
Started: jollyspeculator, 8 Feb 2024 09:03
Last post: Scharnhorst, 23 Feb 2024 15:40
You can tell from share buy back profile over time that they're mopping up weak PIs. It's beneficial for me that shares are bought back well below NAV so no complaints. Times might be hard for some but it hasn't stopped Mercia closing out the Northern Venture Trust offer which is fully subscribed for £14m plus £6m extension. I expect NVT2 and NVT3 to follow suit.
Hi JS, (my thoughts, but of course they could be wrong!) with Mercia buying back its own shares I would think that may support the shares a bit, but with the various cost of living increases at present, especially re-mortgaging, that counterbalances that. The FT Weekend also had various little bits of info such as bonuses not going towards VCTs, which again could affect Mercia, at the moment. Unless Hunt comes up with something in the March budget to help the UK market and general spending, the technical recession bites. Won't ever give up on Mercia, as they have everything in a share I and my family value. People in trouble sell things in the market that are easy to sell. May be shares like Mercia. Give it a year and I'm convinced they will recover. Good luck all, especially JS and Scharn. Best, MIG
Given history of nervous holders cashing in
expect this dip to ?27p
Started: ManInGreen, 13 Dec 2023 08:53
Last post: Scharnhorst, 18 Dec 2023 12:14
Thanks for the clarification MIG. Resolution 11 at the agm gave them the authority to repurchase up to 10% of ordinary shares so they’re operating within that remit. When you put your figure up I wondered if our directors thought there was a chance the share price could drop to 9p. Nothing will surprise me in this market for small caps but I hope to put that thought away along with the mauser. Have a good one.
Hi Scharnhorst, my figures are from the Share Buyback Programme RNS of the 28Nov23 where Mercia mentioned £5m and a maximum of 44,658,120 shares - though at a purchase price of 30p that would only be 16.7m shares bought....and a Happy New Year! MIG
Barchid Scharnhorst : And a very merry Santa to you also. So we end the year down to 29p from 33p Doh..!
It's been a funny old year , well it could have been, but as of 8 November 2023 possession of nitrous oxide, also known as ‘laughing gas’, has been made illegal. I think it was something to do with people consuming balloons full of instant whipped cream & choking to death ? People just don't read instructions anymore.
https://www.thefactsite.com/year/2023/#:~:text=The%20Doomsday%20Clock%20was%20set,since%20its%20creation%20in%201947.
So nearly the end of the "Water Rabbit" ? and the start of the "Wood Dragon" both of which have never appeared on any of Attenborough's offerings (must do better Sir David). Have a Cracker … 👍 💧🐇 🎈
Scharnhorst
And a very happy Santa period to you too although I doubt many Norwegians (Quislings excepted) would agree with me !
Boards would though, I'm sure...
I don't know how you arrive at 44m shares for possible repurchase MIG. They have £5m to spend, so to take 44m shares off the table the average price during the repurchase would need to be 9p. If we drop that low I'll be having a night in with a bottle of schnapps and a mauser. Have a nice holiday. I've asked santa for 'Hitler and Stalin' by Laurence Rees to remind me of the good old days. I have high hopes for 2024. After all, it was Himmler's idea to send undesirables to a colony in Africa.
Started: BoardsOfUK, 8 Dec 2023 16:51
Last post: BoardsOfUK, 10 Dec 2023 21:10
Equity for cash & Lemons & plums, ..... Cheers guy's.
Cash reserves, runway, loan expiration dates and asset impairments should be of much focus in the current climate.
It's all looking very squeaky, a state the Fed would like us to be in "The Big Squeaky".
Apart from Sense, which they thought to be a cracker, and jumped in at the end of a refinancing thinking it's sale or float was in the bag they have more lemons than plums to choose from, however they do get first choice on the plums.
My guess is they will continue to milk their EIS investors by jumping in as something is about to take off but the VCT investors have much more protection (& pay high relatively fees to boot).
I follow their house stock purchases with interest, as you can imagine.
The direct investments are financed with cash for equity. For me the biggest risk is if partners baulk at a funding round and merc can’t carry it on their own as happened with sense. merc’s stake was far too small and they were at the mercy of a big investor who pulled the plug on further funding
Zombie shake-out ref. debt refinancing in 2024.
Refinancing SMB's in 2024 will be more expensive. - Ques. Does Merc offer favourable financing to it's direct investments, or are they exposed to market conditions ?
Started: jollyspeculator, 29 Nov 2023 13:52
Last post: BoardsOfUK, 5 Dec 2023 16:39
:) I thought my nightmare would stimulate some controversy.
I’m thinking you maybe need Eyoto’s services ahead of Warwick’s Boards. Your first mate might get some attention at an Eldorado lock-in, but would be walking the plank off my vessel.
Which reminds me... I must buy a new pair of nut crackers..
Cheers Barchid
Boards
Fair comment but I know which one I'd prefer on my "Riley green canal cruiser"...
Barchid :
Interesting . Kuenssberg is built for opening locks, but Kardashian could negate the need to stow a life raft and fenders. They both have their points.
Started: Goldenyears., 29 Nov 2023 09:51
Last post: BoardsOfUK, 30 Nov 2023 08:28
Nice to have cash ATM, as it can earn relatively risk free returns. And when the Fed pivots next year, you have the liquidity to take advantage. “Eminently sensible”.
Buy precious metals .... Precious .....!
I doubt it (except if it's a unique size...but even then it's a guess)
plenty of companies with substantial buy backs see the sp fall...even if an illiquid stock
Jollyspeculator, is it possible to know which shares are bought back by the company on the open market and which ones are bought by any other party?
Lol
sp rise not caused by buy back
Working marvels! Look what happens when you spend a bit of money buying shares in an illiquid stock
“Eminently sensible” just to hold excess cash apparently
Started: Goldenyears., 28 Nov 2023 13:41
Last post: Goldenyears., 28 Nov 2023 13:41
Makes sense in my view. Take some shares out at a massively suppressed valuation to NAV
With such little liquidity in the shares I think this will have a huge capital upside for us all
Dividend is great also
Started: BoardsOfUK, 28 Nov 2023 08:08
Last post: jollyspeculator, 28 Nov 2023 13:19
There isn't much volume in most tiddlers/small caps
the animal spirits of punters has dried up
I mentioned some block trade sales below the bid yesterday. Previously such trades were absorbed at the mid-point where there were matched buyers. Perhaps there isn’t much interest from third parties at the moment so Mercia are taking up the slack with the buy-back. I’d rather have received a special dividend but perhaps it’s needs must.
But almost no interest
doesn't help that it nm to buy
And of course, if your your itching to invest : https://www.investegate.co.uk/announcement/gnw/northern-venture-trust--nvt/offer-update-utilisation-of-over-allotment-/7907007
Yo Ho Ho...! 🎅
Buying back 4% of outstanding shares isn't going to move the dial much, but the dividend is always welcome.
It's risk-off time for everyone, but the spin would be, that they are happy to invest in themselves, which is a vote of self confidence. Competent I like.
Started: oldbutnowisa, 28 Nov 2023 13:04
Last post: oldbutnowisa, 28 Nov 2023 13:04
.....can see the perfect logic for this, especially over the next few weeks when stock market activity is usually quiet and our assets are worth around 60p+ per share.
Started: Scharnhorst, 27 Nov 2023 13:53
Last post: Scharnhorst, 27 Nov 2023 13:53
Around 8m shares sold in three blocks at 25.5p when spread at 27-28p. Someone was selling blocks at around 21p recently so I 25.5 seems good in comparison. One or more of the large holders covering redemptions?
Apparent sales today at 27.49p are buys
Started: ManInGreen, 24 Nov 2023 09:58
Last post: Scharnhorst, 27 Nov 2023 13:44
Selling nDreams has taken out a big chunk of their gaming portfolio. Let’s see what they say tomorrow.
..and my pre-Xmas message to Santa Mercia is diversify your sectors a bit more. Too much in any one sector can be risky, e.g Gaming does cause mental health problems. I know evolving cos are where your market is but by its very terminology it is a wide field. Spread it around - Oh and jolly well done so far!
Dear Santa MERC, more like Oxgene, Faradion and nDreams please. Big stakes at an early stage. Not so much Sense Biodetection if you don’t mind. A small percentage in an already overhyped stock left you exposed and you blew your £2m stake in 2 years. Lesson learnt hopefully.
Have been building up gently since 2019, (actually no other option!) always liked everything to do with Mercia, especially their long term plans, analysis during 6-monthly updates, cash investments and cash held on the balance sheet as and when. They always seem to invest wisely, in the main, so they are one of the few companies I keep. When the dividends started I was happily surprised, even more to like. So for me it's carry on Mercia, as you are doing please. Regards all and a Merry Christmas, MIG
Started: jollyspeculator, 20 Nov 2023 11:47
Last post: BoardsOfUK, 24 Nov 2023 11:41
"Awesome....! totally stoked...! perfect, super cool, alright.....!"
"Can you make me a brew ?" must be the 1st question asked of any potential AI assistant.
"Yes Dave, here is your PFAS brew" .. "Enjoy...! , you obsolete hairy deuce bag of salt water". "Is there anything else I can hurt .*..^./ ....help you with Dave?".
I’m not convinced by this Athena bird Boards. Say something pet or put the kettle on.
https://engagevr.io/ai/
A Meta Quest 3 VR headset. An item that can be used with Engage "Link", a software platform produced by Engage XR Ltd. for Meta.
Coincidentally, as Engage XR's share price looks good value ATM, I confess to a nibble (shameless ramp). Next Figures out in Jan. 👍
The £500 paid for a Meta Quest 3. It has the unexpected perk that when my wife calls during the day I can honestly say I’m up to the eyes in a big power wash job. 😉
🤔 Maybe that's why the UK Government want's them off their balance sheet.
Started: Troajan, 21 Nov 2023 10:00
Last post: Troajan, 21 Nov 2023 10:00
Started: jollyspeculator, 20 Nov 2023 10:52
Last post: skid35, 20 Nov 2023 13:39
Great news this morning.
MERC a bit of a hybrid - trading below NAV for its direct investments and then the investment management arm providing a steady flow of revenue
All these stocks beaten up - will add to grow and augm this month. For less risk Cldn is great as it’s being treated as a PE stick when it is only 50% PE.
I like your ambition. Mercia has performed when the market hates UK small caps and private equity. Imagine life when sentiment turns.
Yes, this was my business/professional life lol
the ability to showcase success (real, hard cash exit success) is everything in developing a £10bn++ asset management business
The balance sheet is evergreen and is also throwing off money to add to funds under management (ref FDC acquisition last December), the side of the business that provides recurring revenue and drives the progressive dividend policy.
The ability to achieve a seriously decent exit for a major investment in a v challenging market does pretty much everything
tp 50p++
Started: jollyspeculator, 20 Nov 2023 13:19
Last post: jollyspeculator, 20 Nov 2023 13:19
Could easily be persuaded to double up if price action works out
Started: Scharnhorst, 18 Nov 2023 17:20
Last post: Scharnhorst, 20 Nov 2023 11:01
Boards, it turns out that casually hosing down the Millennium Falcon and the backyard of SpongeBob SquarePants delivers zen in buckets. The original game has over 7 million users and putting it on a virtual reality platform is a no brainer. Instead of twiddling in front of a computer screen, who doesn’t want the freedom of waving their stick around for a pleasant half hour?
Scharnhorst : PowerWash a "1st Person Squirter" nice.! which reminds me, I most clean my pavers.
Barchid: Yes, it's been "Tin Hats" for a while now. Maybe your Resuscitation idea could be the spark for NDreams new game "Defibrillator Simulator". "Stand Clear ....!
AIM only down 20% YTD . No weighted averages in this little index.... Shouts to OBWa for hanging in there 👍
The FD has explained in detail numerous times how buy backs don’t make financial sense for this company. I’d rather see a special dividend. I’d also have rather seen them hold on longer as the PowerWash Simulator game will prove a big money spinner. I guess that’s why Aonic have bought in just after release of the VR version of the game. All the same it’s plenty money in the bank for us and we retain a stake in Aonic which is a company going places. Maybe they’ll buy Futurlab as well to sew up PowerWash. I was hoping nDreams would do that. Onwards and upwards.
I am not a fan of buybacks which are loved by Directors because it enhances their holding values. The true view is that where there is money to be made by the company in its businesses, that is where cash should be spent. It is called 'Reinvestment' and it should be the first priority. I am also not averse to growing the dividend to us shareholders!
I hope here that they do a bit of diversification rather than have more eggs in the UK gaming market.
Boards
It has been a long & lonely wait & this is not exactly a flip from where they have been but a modest resuscitation...
Started: oldbutnowisa, 18 Oct 2023 10:10
Last post: oldbutnowisa, 18 Oct 2023 10:10
....franks the apparently unpopular message that Mercia might well come out of this bear market smelling of roses.
Having sold half my holding months back I have just bought some back at this lower price.
Started: jollyspeculator, 25 Sep 2023 11:35
Last post: formerlyeasyp, 12 Oct 2023 08:11
Predictions? The next set of results out in November is anyone willing to offer a guess as to where they sit? My intuitive feel is that they will be broadly in line with forecasts which is why I hold a stake here. I view MERC as a low risk play and do not lose any sleep over owning a small stake.
EV is closer to £70m
but 3rd party FuM is only £1.2bn
My bad
still only c6%
and you get the £130m (or nearly 2*EV) equity book as well
EV c £80m with FuM c £1.5bn (5% of FuM), and an equity book way in excess of EV
MERC is stupidly cheap BUT everything hinges on demonstrating the basics (steady profitable exits)
DYOR
Started: Troajan, 9 Oct 2023 08:41
Last post: Troajan, 9 Oct 2023 08:41
Started: jollyspeculator, 21 Sep 2023 21:13
Last post: You_Having_a_Laugh, 23 Sep 2023 21:11
With the price response to latest RNS it would be better if they didn't bother or just take it private and give everyone an exit.
We need to hear about proftable exits
Started: You_Having_a_Laugh, 20 Sep 2023 09:52
Last post: jollyspeculator, 20 Sep 2023 15:06
Not much of a holding in aceleron (if any)
Merc put money into Aceleron - now down the pan.
They tried to raise more cash but no joy.
Administrators now in place.