Last checked at 23 Jun 2021 15:16
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Mercia Asset Management PLC
("Mercia", the "Group" or the "Company")
Performance fee entitlement and trading update
Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£872million of assets under management, is pleased to note that both Northern 2 VCT PLC ("N2", AIM: NTV) and Northern 3 VCT PLC ("N3", AIM: NTN) have released their audited preliminary results for the year ended 31 March 2021.
As a consequence of the continuing strong recovery in N2 and N3's net asset value per share, arising in large part from successful exits and the IPO of one of their leading investments, musicMagpie plc, as investment manager to both VCTs, Mercia is entitled to receive gross performance fees totalling £3.3million. This revenue will now be included in Mercia's full year consolidated financial statements for the year ended 31 March 2021.
Net of directly attributable staff bonuses, total performance fees across the Group for the year ended 31 March 2021 are £3.8million.
Whilst still subject to audit and Board approval, the Group's full year consolidated profit and total comprehensive income is now expected to exceed £32million. Due in part to the timing of direct investment activity around Mercia's year end, unrestricted cash and short-term liquidity investments as at 31 March 2021 was £54.7million and the Group remains debt free.
Mark Payton, Chief Executive Officer of Mercia, commented:
"It is very encouraging to see the material net asset value per share increases by the Northern VCTs, as they delivered a strong overall investment performance for their shareholders. This performance is consistent with what we are seeing more broadly within our other funds under management and direct investment portfolio.
We look forward to releasing our preliminary full year results on 6 July 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.
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For further information, please contact:
Mercia Asset Management PLC Mark Payton, Chief Executive Officer Martin Glanfield, Chief Financial Officer www.mercia.co.uk
| +44 (0)330 223 1430
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Canaccord Genuity Limited (NOMAD and Joint Broker) | +44 (0)20 7523 8000 |
Simon Bridges, Emma Gabriel, Richard Andrews |
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N+1 Singer (Joint Broker) |
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Harry Gooden, James Moat
| +44 (0)20 7496 3000 |
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FTI Consulting
| +44 (0)20 3727 1051 |
Tom Blackwell, Louisa Feltes, Shiv Talwar |
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mercia@fticonsulting.com |
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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.£872million of assets under management and, since its IPO in December 2014, has invested over £106million into its direct investment portfolio.
Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".