We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Mercia Asset Management Plc | MERC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.20 | 0.60% | 33.70 | 10:11:19 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 33.50 | 33.50 | 33.70 | 33.50 |
| Industry Sector |
|---|
| GENERAL FINANCIAL |
| Top Posts |
|---|
Posted at 21/3/2024 18:56 by robsy2 Like i said just a few short weeks ago, “…the sharebuy back seems to be working a treat , so far. There is just so much value here that even going from bombed out ( 25p) to lacklustre (40p ish ?) will be transformational for me and others and then you have the divis which look sustainable and growing . If , excessive pay aside, investors warm to the virtues of the business model , it might even get towards 50p. If they keep adding FUM as they have been doing and get a few more winners, it could go a lot higher still , say 60p. It is not impossible.” |
Posted at 14/3/2024 09:39 by davebowler Singer -Successful VCT fundraise and syndicated investments In the last 24 hours, Mercia has announced a successful £60m fund raise into its Northern VCTs alongside participation into three syndicated investment rounds for on-balance sheet investees. Both validate the potential value creation from existing portfolio investments and Mercia’s ability to originate and support attractive new opportunities; made all the more impressive given these transactions have been completed against a more challenging backdrop for fundraising. Following success in the recent British Business Bank MEIF bid process, we expect to hear the outcome of the Northern Powerhouse process in the coming weeks. Event Mercia has announced positive developments both yesterday and today: Today: participation in three syndicated investment rounds using balance sheet capital MIP Discovery (Mercia’s fully diluted stake is now 11.5%) - £1.2m (£7.1m total round) invested to drive commercialisation; Locate Bio (20.1%) - £2.5m (£8.4m total round, oversubscribed) invested to progress the ongoing clinical study of its LDGraft product, and; Warwick Acoustics (36.5%) - £2.0m (£6.9m total round) invested to scale production capacity following its maiden OEM contract win and to support R&D. Although investments in new balance sheet holdings remains paused, Mercia’s considerable liquidity (~£50m pf cash) can be used to support the growth aspirations of existing investments and catalyse value creation, alongside external investors (c.80% participation). Attracting 3rd party capital is a positive validation for the prospects of these three investees given the more challenging funding backdrop. Yesterday: successful £60m VCT fund raise In line with the usually fundraising cycle into the tax year end, Mercia’s Northern VCT range has successfully raised £60m new capital – adding to the organic growth from the recent British Business Bank (“BBB”) Midlands Engine Investment Fund (“MEIF”) win. We expect news on the BBB’s Northern Powerhouse Investment Fund (“NPIF”) bid process, which is due to come to a conclusion around the end of this month. We hope for further positive news. Impact on earnings & valuation We make no change to our forecasts, although note that the recent MEIF mandate win will have a positive impact on our outer year estimates. We will review this following Mercia’s FY update. We again reiterate considerable embedded value in Mercia shares with a SOTP approach taking into account the balance sheet value of the investment portfolio and cash alongside long-dated recurring fund management fee-related income. We reiterate BUY alongside our 66p 12m TP. |
Posted at 29/11/2023 12:21 by robsy2 ...and the sharebuy back seems to be working a treat , so far. There is just so much value here that even going from bombed out ( 25p) to lacklustre (40p ish ?) will be transformational for me and others and then you have the divis which look sustainable and growing . If , excessive pay aside, investors warm to the virtues of the business model , it might even get towards 50p. If they keep adding FUM as they have been doing and get a few more winners, it could go a lot higher still , say 60p. It is not impossible. |
Posted at 22/11/2023 17:39 by robsy2 Extending to 2035 provides certainty in the VCT and EIS market so is good for MERC.VCT and EIS sunset clause extended to 2035 MicrosoftTeams-image Darius McQuaid 22 November 2023 Chancellor Jeremy Hunt has extended the Venture Capital Trust (VCT) and Enterprise Investment Scheme (EIS) sunset clause to 2035 during the Autumn Statement today (22 November). The Association of Investment Companies (AIC) chief executive Richard Stone described it as “excellent news”. “This addresses an urgent issue as the sunset clause would have automatically ended VCT tax relief in April 2025. “The extension to 2035 will help provide certainty to investors and businesses and enable VCTs to continue supporting UK growth companies.” Triple Point head of retail sales Jack Rose added: “We warmly welcome the UK government’s decision to extend the VCT and EIS sunset clause, announced within the Autumn Statement today. “This extension is a testament to the government’s commitment to nurturing the growth of young, fast-growing SMEs, which serve as the backbone of the UK economy. “The tax incentives embedded in VCT and EIS have proven to be magnets for investors, attracting over £1bn in VCT investment for the second consecutive year, in the 2022/23 tax year. “Simultaneousl “These figures underscore the vital role these pieces of legislation play in providing crucial resources to young companies and the investors who believe in their potential.” St. James’s Place (SJP) head of tax advantaged investments Luke Barnett also welcomed the news. He said: “Not only is the announcement a recognition by government of the benefits which these schemes can bring, but it will also provide much needed certainty to investors. “With this news, it will help to reinforce the attractiveness of the UK market for startups, and founders can continue to build new and exciting businesses with confidence.” |
Posted at 21/11/2023 17:33 by robsy2 Government initiatives to help venture capital could be good for us . We'll see some more detail tomorrow."The Treasury said £250m will be committed to two successful bidders under the Long-term Investment for Technology and Science (LIFTS) initiative. This initiative works with the industry to establish new funds to invest in science and tech companies and “provide over a billion pounds of investment from pension funds and other sources into UK science and technology companies.” Also, a new growth fund will be created within the British Business Bank (BBB) and will access “the best investment opportunities in the UK’s most promising businesses” which has received support from both pension schemes and fund managers. Hunt said: “Innovation is the key to our future success as a nation and its vital that we do all we can to help companies start, scale and grow in the UK. “Tomorrow̵ The package also includes measures to support the UK’s venture capital industry. The new Venture Capital Fellowship scheme “will support the next generation of world-leading investors in our [UK] renowned VC funds”. This comes as the chancellor is convening representatives from several universities and investors at University College London (UCL) East where they will endorse a new set of “best-practice policies” that are recommended in a separate review. In 2021-22 £5.3bn was raised in investment from spin-out companies from research done at universities. The independent review led by Oxford University vice-chancellor Irene Tracey and Cambridge Innovation Capital managing partner Andrew Williamson recommends innovation-friendly policies that universities and investors should adopt to make the UK the best place in the world to start a spin out company. The chancellor has accepted all the recommendations and will set out his full response as part of the Autumn Statement tomorrow." |
Posted at 20/11/2023 10:19 by columbarius Thanks Robsy2. I think Canaccord’s positivity is entirely justified. There are strong hints their price targets will be revised upwards after the release of the interims on 28th November. There will be an Investor Meet Company presentation at 3pm on that date. Warwick Acoustics is also performing very well as mentioned earlier. |
Posted at 04/7/2023 09:42 by davebowler Justin Bates | Analyst | Canaccord Genuity Ltd (UK) | JBates@cgf.com | 44.20.7523.8380 Portia Patel, CFA | Analyst | Canaccord Genuity Ltd (UK) | PPatel@cgf.com | 44.20.7523.8386 Strong FY23 results Canaccord Genuity view Adj. operating profit of £7.6m, 39% ahead of our forecast Mercia has delivered excellent results against a challenging market backdrop. Key highlights from FY23 (31 March y/e) were: •Third-party FUM of £1,234m, including £415m of acquired FUM (Frontier Development Capital, which is said to be performing in line with expectations) and was net of £38m of distributions to investors as a result of investment realisations. •Organic FUM inflows were £134m, +18% of opening FUM with no redemptions, which is impressive in challenging markets. •Direct investment portfolio FV at 31 March was £136.6m, reflecting £20.7m of gross investments into 13 portfolio companies, £4.0m of realisations (Intechnica) and £1.2m net FV gains. •Total AUM was £1,437m, +50% y/y and on track to achieve the current three-year target of £1.6bn in AUM by the end of March 2024. •Total revenue excluding performance fees was £25.9m, +9% vs our forecast and +26% y/y. The beat to our forecast was driven by higher fund management fees. There were nil performance fees during the year (FY22: £2.6m gross), such that total revenue was also £25.9m, +12% y/y. •Adj. operating profit was £7.6m -10% y/y but +39% ahead of our forecast. •Adj. PBT (includes net performance fees, net realised gains, net finance income but excludes non-cash gains/losses) was £3.9m, +2% versus our forecast and versus £18.0m in FY22. There was a £1.8m realised gain on the disposal of Intechnica during the year (FY22: £9.9m in respect of Faradion). •Unrestricted cash and short-term liquidity investments were £37.8m at period end. •Total div: 0.86p (FY22: 0.80p), +7.5% y/y, reflective of the strong cash position and management's confident outlook. •NAV p/s was 45.4p, flat y/y. Outlook positive The group has set an "ambitious" target of increasing total capital deployment to a record level of £250m in FY24, utilising strong unrestricted liquidity of c. £378m across the group and noting the improvement in "both the quality and volume of investment opportunities". Changes to forecasts We increase FY24 revenue by 5% to £29.8m. However, due to inflationary pressures (wage & other admin expenses), this is offset to some extent by increasing finance income; the reduction to our adj. op. profit forecast to £6.5m is 9%. Our forecast for NAV per share remains unchanged at 46p. Valuation and recommendation Our target price methodology remains unchanged, i.e. we take the average of two scenarios. Firstly, a P/NAV of 1x, plus a value of 4% of FUM. The second scenario takes a value of 1x for NAV and applies a 20x PE to fund management profits. We roll forward the reference date for fund management PAT to CY24, from CY23. This results in our new target price of 61p (old: 62p), implying 143% upside. With such a discounted valuation, coupled with a positive outlook, GHE remains a conviction BUY for us |
Posted at 10/3/2023 13:41 by reabank Some interesting comments. I'm invested in Mercia, but always find it an "on the other hand" investment. The good news is that unlike most private equity funds the fund manager isn't external. Therefore whilst other funds get slapped with an investment management charge, Mercia gets an income from managing other funds and makes a profit on investment management. I'm not convinced that is reflected in the share price. On the other hand there's an issue around how management is valuing investments. I accept where Mercia sells out it's generally at a premium to the previous accounts valuation but what about investments that don't work out? There must be a temptation to let these run rather than face up to losses. That's an issue for all private equity funds. Best way to handle it is a steady stream of disposals and management generally acting in an appropriate fashion to give investors confidence in their valuations. I guess Oakley have made a better job of that than Mercia over the last 12 months. |
Posted at 10/3/2023 11:46 by pavey ark Well I appreciate the recent posts as they did encourage me to have a look (again) at the recent figures and news from MERC.The company figures show that things are certainly going in the correct direction. I expect the dividend to increase yet again so should be over 1p. The cash balance is close to 50% of the market cap and the discount to (very real) NAV is probably over 40%. As MERC usually sell their holding at above their listed value this discount could be even greater. Once again private investors fail to grasp that management have little control over the share price.....but the market and the market makers do call the shots. This management are probably simply average in their desire to make as much from the company as they can but they do seem to be good at running MERC which is better than the greedy AND incompetent management teams that can be found. MERC is profitable , cash rich and has the means to increase the value of their investments significantly. They certainly get more right than they get wrong ....if this is not reflected in the share price buy more or sell your holding ....thems the rules !! |
Posted at 07/12/2022 14:49 by redartbmud columbarius.I have no words to describe you other than supercilious prat of the first order. If they aim at 15%IRR for both that doesn't answer the question. That is a pipe dream aspiration. What is the position today? That is the question. retiurns to investors in some VCT's running at 11% to 15% from what I read. The return to shareholders, according to H-L is 2.52% pa. Youa are filtered, like the rest of your ilk. red |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
