Mercia Asset Share Price (MERC)

"Warwick Acoustics tech in new Range Rover feature" - new research freely accessible here: https://www.equitydevelopment.co.uk/research/warwick-acoustics-tech-in-new-range-rover-feature

Warwick Acoustics, a ‘direct investment’ portfolio company of Mercia Asset Management, today reached a commercialisation milestone deploying their technology into Range Rover’s new “SV Electrostatic Sound” system.

Its automotive technology system can create ‘personal sound bubbles’ for each passenger

This underlines the long‑term value creation potential within the direct investment portfolio and reinforces confidence in the commercial traction of its deep‑tech assets.

Valuation remains attractive. Mercia trades below its stated fair value of 58p per share, a level that does not fully reflect the embedded value of its direct investments, strong net cash position, and improving cash generation capability.

FY26 EBITDA to be ‘materially’ above expectations - new research (freely accessible): https://www.equitydevelopment.co.uk/research/fy26-ebitda-to-be-materially-above-expectations

Mercia Asset Management delivered a FY26 trading update ahead of expectations, with EBITDA now expected to be materially above forecasts despite a challenging markets backdrop.

Strong fundraising in H2 looks to have played a key role, with Q4 alone seeing £200m of new funds sourced (from successful VCT and EIS raises) or proposed increases to existing mandates (both quantum and duration). Impressively, there were no redemptions in FY26.

The strong end to FY26 and the announced increase in existing mandates bodes well for FY27, as Mercia will be earning a full year’s fees (or nearly a full year) on that newly invested AUM.

We await FY26 results on 30 June before updating our valuation, but nothing in today’s announcement suggests it is likely to fall, and we therefore maintain our fair value of 58p/ share.

Be careful, no need to rush, UK facing and not a happy time. A few million changed hands today. Wait imho.

Yet to see if they can deliver for shareholders and not just themselves as well as navigate a poor UK backdrop due to impact of Gulf events etc.

Lots of distress heading to UK PLC's as consumers take care and input costs rise.

Few places to hide and MERC doesn't look like one of them to me.

DYOR.

... and for those looking for a snapshot clip from the whole video, check out the discussion about Direct Investments ("mispriced or not?") which may be of interest.

https://youtu.be/9EK5lPDN0hc

Equity Development’s financials analyst, Paul Bryant, sat down with Dr Mark Payton (Chief Executive) to get under the bonnet of Mercia Asset Management’s unique business model, its growth opportunities and strategy.

You can watch the full interview recording here: https://www.equitydevelopment.co.uk/research/in-conversation-with-dr-mark-payton-ceo

The video is also divided into 7 shorter clips covering:

• Mercia's business model and differentiators

• Growth prospects and sources of capital

• Implications of the UK budget: British Business Bank, EIS, VCTs

• Mercia 27 strategy to drive shareholder returns: direct investments, fund management, profitability

• Direct Investments - mispriced or not? Unlocking value for shareholders

• History of acquisition success and potential for a 'real assets' acquisition

• Useful metrics for shareholders to track Mercia's success