Mercia Asset Management Share Discussion Threads

[weatherman] 22/10/2018 09:55

One way to succeed on the stock market is to search for undervalued growth situations, and then hold until better value is realised. There may be times when you don't get it right, but overall it has worked for me over the years.

[p1nkfish] 22/10/2018 09:45

So where's the price action in Merc if the market looks forward?

Shouldn't it be running ahead?

[weatherman] 22/10/2018 09:28

But the market looks forward. There are some promising cos in the portfolio such as Oxford Genetics.

[p1nkfish] 22/10/2018 08:12

There are examples where discounts last many years. Add a trip up or 2 and NAV can stagnate or even decline too. Result - dead money.

Mercia have repriced options (that is a red flag) and achieved a paltry exit from Sci Warehouse given the growth mantle of Mercia, the holding period of Sci W. and the capital invested in Sci W.

Results speak for themselves. Even the use of Edison suggests the results are not speaking for themselves.

Would like to see further consolidation in this area and an offer for MERC might just perk it up. The management doesn't seem able to achieve that. Differentiate yes, but what about £'s on shareholders own balance sheets?

[p1nkfish] 22/10/2018 08:04

wan at al, that makes it even more obvious they are not monetizing their value properly on the exchange.

Differentiate all they want, market value matters and they have failed on that score so far.

All other talk is a distraction from what should be their primary objectives - closing gap to NAV and driving NAV higher.

If they are on 0.6x NAV then no amount of differentiation is having a positive impact is it?

[wan] 22/10/2018 07:11

Weatherman...Indeed, Mercia is differentiated from peers -

Mercia Technologies (Mercia) is a leading player in the funding and scaling of high growth companies from the UK regions, with a business model that is significantly de-risked vs peers.

£400m of managed funds (Mercia Fund Managers, MFM) are used to predominately support all early-stage activity, whilst also providing meaningful revenue to offset group operating costs. As a result, the balance sheet investment is reserved for only the most promising companies or ‘Emerging Stars’ sourced from MFM. The group has a strong cash position and an experienced management, as well as a good track record, with three successful full cash exits to date. The shares trade at 0.73x NAV, not including the contribution from MFM, which we estimate at a further c 9p per share (total discount to NAV of 0.60x).

[weatherman] 21/10/2018 22:37

The fund management business may be worth £27m. Lifting the NAV to 50p - the discount is therefore closer to 0.6x.

[p1nkfish] 21/10/2018 10:31

Devaluing management options did no favours too.

I do hold but that doesn't mean I have to only post the positives. There are reasons for the discount to NAV.

[turbocharge] 21/10/2018 01:09

"Mercia’s stock trades at 0.73x NAV, which is considerably lower than many of its UK peers (IP Group at 0.78x, Draper Esprit at 1.68x, Syncona at 1.38x). We note that the US-focused Allied Minds trades at 0.47x NAV, having been affected by a series of portfolio business write-downs in 2017 and 2018.

For Mercia, given management’s track record at successful exits, combined with a significantly lower-risk model vs its peers, we believe the sharp discount to NAV is unjustified. Catalysts for a rerating include further externally-led funding rounds and/or successful exits, as well as concrete evidence of achieving operational milestones at subsidiary level. In our view, the greatest likelihood for a revaluation or exit currently lies in nDreams and Oxford Genetics"

[wan] 20/10/2018 04:51

Coverage initiated by Edison, who believe the sharp discount to NAV is unjustified. Catalysts for a re-rating include further externally-led funding rounds and/or successful exits, as well as concrete evidence of achieving operational milestones at subsidiary level.

Full in-depth analysis -

Mercia Technologies
Realising value
18 October 2018 | Mercia Technologies, Investment companies, Initiation

[aishah] 21/9/2018 07:34

AGM statement:

"We are seeing an increasing number of exciting investment opportunities for Mercia's third-party managed funds which will, in due course, lead to further balance sheet direct investment opportunities."

"Our focus remains on growing the net asset value of the Group's direct investments by utilising Mercia's differentiated model to create long term value for shareholders. We look forward to updating shareholders on further positive progress throughout the year."

[aishah] 18/9/2018 12:16

Nice contract news flow recently. nDreams, Oxford Genetics and now Aston EyeTech

[wan] 18/9/2018 09:23

A re-rating appears to be underway, and further positive portfolio news has been indicated.

One would also imagine that the portfolio companies presenting and providing interviews at the Capital Market Day, also have good things to report.

[cheshire man] 18/9/2018 07:43

Well timed increase in holding AISHAH :-) excellent news this morning

[aishah] 18/9/2018 07:36

Aston EyeTech secures a significant multi-million pound contract

Mercia Technologies PLC (AIM: MERC), the national investment group focused on the identification, creation, funding and scaling of innovative technology businesses with high-growth potential from the UK regions, is pleased to announce that Aston EyeTech Limited ("Aston EyeTech") has secured a multi-million pound product design, development and manufacturing contract with one of the largest, most successful and fastest growing optical retailers in the world.

Aston EyeTech is revolutionising the eyecare industry through increased portability, wider accessibility, lower costs and better user experiences. The company marries game-changing ophthalmic hardware with its proprietary AI software platforms to provide leading edge technology solutions in the optical space.

Mercia, which holds an 18.7% direct equity stake in the business and has worked with Aston EyeTech since 2013, initially invested via its third-party managed funds before making its first direct investment in November 2017. In addition to this major contract win, over the last 12 months the business has launched its new EYOTO™ brand of power-mapping lens visualizers.

Dr Mark Payton, Chief Executive Officer of Mercia Technologies, said: "Aston EyeTech is another good example of our promising direct investment portfolio, many of which are now in revenue growth. I expect more positive developments from this business and a number of our other direct investments in the near to medium term, as the portfolio continues to mature."

[aishah] 14/9/2018 12:57

Happy to have doubled up here few weeks ago.

[weatherman] 14/9/2018 12:40

Recovering well from recent lows.

[wan] 13/9/2018 08:10

Welcome to my world ;-)

[redartbmud] 13/9/2018 07:55

Hope springs eternal, but I live in the real world.

[wan] 13/9/2018 07:28

Today's news regarding the Capital Markets Day should provide institutions, analysts and private investors with some interesting insights, which might create buying interest. Let's also hope we get further positive portfolio news between now and then (which would help focus the minds of those attending) and the recent low in share price proves to have been the bottom!

[redartbmud] 29/8/2018 09:01

Mercia Technologies PLC (AIM: MERC), the national investment group focused on the identification, creation, funding and scaling of innovative technology businesses with high growth potential from the UK regions, announces that options (the "Options") over a total of 4,689,000 new Ordinary shares with a nominal value of 0.001p each in the capital of the Company ("Ordinary Shares") were awarded yesterday pursuant to the 2014 Mercia Company Share Option Plan at an exercise price of 30.80p per Ordinary Share (being the closing mid-market price of an Ordinary Share on 28 August 2018). The Options will, subject to the satisfaction of the performance condition, vest in three equal tranches on the third, fourth and fifth anniversary of the date of grant of the Options.

Snout in trough. The 56p options will never vest, so this is a gimme.

[p1nkfish] 29/8/2018 07:42

"Following these grants, the Company has a total of 14,851,000 unvested options pursuant to the 2014 Mercia Company Share Option Plan, equating to approximately 4.90% of the existing issued Ordinary share capital of the Company."

[p1nkfish] 29/8/2018 07:41

More options
Anyone know if same criteria as recent options - so about 56p?

>4% of co now in options if I remember right. share price prformance lacking.

[livewireplus] 24/8/2018 11:17

Indeed - the multi-million-£ contract announcement was also the reason I bought back-in... look forward to further announcements...