(Alliance News) - Mercia Asset Management PLC on Tuesday said mobile gaming investments account for a significant proportion of its portfolio, and the sector is a "natural fit" for its strategy despite a small decline last year.
The Warwickshire, England-based specialist asset manager, in a trading update on Tuesday, said that at September 30 last year mobile and digital gaming investments accounted for about 33% of its direct investment portfolio by value. Mercia also invests in multiple gaming companies through its managed funds. It said that because most UK game development studios are small and medium-sized enterprises, they are "a natural fit" for its criteria and expertise.
Mercia said virtual reality game developer and publisher nDreams Ltd is currently its largest direct investment by fair value with a 33.2% fully diluted direct investment. nDreams' revenue increased by around 60% during the year ended March and so far this year it has signed over USD12 million of projects. It also acquired VR and augmented reality developer Near Light Ltd in December.
Mercia also has a 40.6% fully diluted direct investment in Virttrade Ltd, trading as Avid Games Ltd, as well as a 4.3% fully diluted stake held by Mercia's managed funds. Mercia said the mobile trading card gaming company is "well placed to solidify its position as a leading player" in the sector. Furthermore Mercia has a 39.0% fully diluted direct investment and a 7.6% stake held by managed funds in Invincibles Studio Ltd, a mobile football manager game developer which has doubled its annual user count to 8.8 million this year.
"While the mobile sector showed a small slowdown in 2022, I am particularly pleased that our two mobile games businesses are both showing outstanding growth...We are also seeing significant momentum in the VR market with 2023 promising to be a pivotal year as new hardware is released by a number of leading global tech firms," Chief Information Officer Julian Viggars commented.
"Looking ahead, we will continue to seek out and support gaming companies that demonstrate exceptional potential for growth and value creation," he added.
Shares in Mercia Asset Management were up 1.8% at 27.49 pence in London on Tuesday. The stock is down 6.8% over the past 12 months.
By Emma Curzon, Alliance News reporter
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Mercia Asset (MERC)