Mercia Asset Management sets share buyback as assets near GBP2 billion

Tue, 01st Jul 2025 11:16

(Alliance News) - Mercia Asset Management PLC on Tuesday launched a GBP3.0 million share buyback as a part of new annual buyback policy, while reporting a swing to annual profit and nearly GBP2 billion in assets under management.

Warwickshire, England-based Mercia is a "regionally focused, private capital asset manager". It manages Northern Venture Trust PLC, Northern 2 VCT PLC and Northern 3 VCT PLC, all London listings.

Total AuM was GBP1.99 billion on March 31, the end of Mercia's financial year, up 9.3% from GBP1.82 billion a year before. Third-party funds under management was GBP1.80 billion, up 10% from GBP1.63 billion a year before, with no redemptions during the recent year.

Mercia reported a pretax profit of GBP5.4 million in financial 2025, swung from a loss of GBP8.2 million in financial 2024. Revenue rose to GBP35.2 million from GBP30.4 million. More importantly, Mercia recorded a GBP300,000 unrealised gain in direct investments, compared to a GBP17.3 million loss the year before.

Looking at underlying measures, earnings before interest, tax, depreciation and amortisation was GBP7.6 million in financial 2025, up 38% from GBP5.5 million. Ebitda margin widened to 22.1% from 18.2%.

Basic earnings per share were 0.80p, swung from a 1.71p loss.

Mercia declared a final dividend 0.58p, up 5.5% from 0.55p a year before. That brings its total annual payout to 0.95p, up from 0.90p.

Mercia shares were up 7.5% to 33.85p on Tuesday morning in London for a GBP147.1 million market capitalisation.

The company also launched a share buyback worth up to GBP3.0 million. The buyback will be run by Canaccord Genuity Ltd. It will start on Tuesday and be completed no later than the release of Mercia's next set of annual results.

Mercia completed its first share buyback last year and said it now will initiate an annual buyback policy. Between the buybacks and cash dividend payments, Mercia said it will return about GBP7.0 million to shareholders each year.

By Tom Waite, Alliance News editor

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