Mercia Asset Regulatory News (MERC)

Mercia Asset Management PLC

("Mercia", the "Group" or the "Company")

NVT performance fee entitlement and trading update

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£940million of assets under management, is pleased to note that Northern Venture Trust PLC ("NVT", AIM: NVT), whose investment adviser is Mercia Fund Management Limited ("MFM"), a wholly owned subsidiary of Mercia, has released its audited results for the year ended 30 September 2021.

As a consequence of the strong increase in NVT's net asset value per share, arising in large part from a number of successful exits and the IPO of musicMagpie plc, MFM is entitled to receive a gross performance fee of £2.5million. This revenue will be included in Mercia's interim consolidated financial statements for the six months ended 30 September 2021.

Net of directly attributable staff costs and receipt of a small additional legacy fund performance fee, the performance fee contribution to the Group's interim results is £1.6million.

Whilst still subject to review by Mercia's auditors and Board approval, the Group's consolidated profit and total comprehensive income for the six months ended 30 September 2021 is expected to exceed £10.0million, which is materially ahead of the prior period to 30 September 2020. Adjusted operating profit* for the year ending 31 March 2022, excluding the above net performance fee, is now expected to be materially ahead of market forecasts. Unrestricted cash and short-term liquidity investments as at 30 September 2021 was £52.1million and the Group remains debt free.

* Adjusted operating profit is defined as operating profit before performance fees net of variable compensation, realised gains on disposal of investments, fair value movements in investments, share-based payments charge, depreciation, amortisation of intangible assets, movement in fair value of deferred consideration and exceptional items. It includes net finance income.

Mark Payton, Chief Executive Officer of Mercia, commented:

"It is pleasing to see the strong year on year increase in Northern Venture Trust's net asset value per share.

Overall, we have made a positive start to our three-year 'Mercia 20:20' strategic plan. We look forward to releasing our interim results on 7 December 2021 and presenting those results to all stakeholders in Mercia."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain.

-Ends-

For further information, please contact:

About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group's 'Complete Connected Capital'. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.

The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£940million of assets under management and, since its IPO in December 2014, has invested c.£111million gross into its direct investment portfolio.

Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".