(Alliance News) - Mercia Asset Management PLC on Tuesday reported a significant annual loss on a sharp fair value loss.
For the year ended March 31, the asset manager recorded a pretax loss of GBP17.6 million compared to a GBP2.6 profit the year before. Adjusted profit was GBP518,000 from a loss of GBP794,000 the year before.
Mercia recorded a GBP15.8 million fair value loss compared to a GBP3.9 million gain the year before.
Revenue improved to GBP12.7 million from GBP10.7 million.
The company said its assets under management jumped 58% year on year to about GBP800 million from about GBP507 million. Net assets rose to GBP141.5 million from GBP126.1 million.
Third-party funds under management increased to about GBP658 million from GBP381 million. The rise was attributed to its acquisition of NVM VCT, which added GBP250 million in funds.
Mercia's Venture funds advanced to about GBP476 million from GBP224 million. Private Equity funds slipped to about GBP60 million from GBP61 million. Debt funds rose to about GBP122 million from GBP96 million.
Chief Executive Mark Payton said: "I am pleased to say that, in many ways, 2019 was a year of significant progress for Mercia as we achieved our goal of trading profitably a year earlier than planned, and significantly increased the scale of our fund management business, both key parts of our three-year strategic plan. A significant driver of this was the acquisition of the three Northern VCT fund management contracts."
"Looking ahead, I believe that Mercia is well placed to build on 2019's strategic progress and position as a leading and trusted provider of regional capital. The growth of our fund management business means we have over GBP290 million of available liquidity which, in addition to the GBP30 million of liquidity on our balance sheet, gives us considerable investment capacity to support both our existing portfolio and take advantage of new opportunities at anticipated lower entry prices," Payton added.
Shares in Mercia Asset Management were 4.6% lower in London on Tuesday afternoon at 19.55 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Mercia Asset (MERC)