Mercia Asset Management Share Discussion Threads

[p1nkfish] 10/7/2020 16:00

Confidence in management is an issue showing up in the share price

[sev22] 10/7/2020 15:23

I wonder what Mercia's NAV per share was at the end of the second half trading period?

Even allowing for any covid damage I think it will be conservatively close to 40.0p per share. Applying a 25% discount to the reported NAV means the shares should be trading at 30.0p plus.

[wan] 10/7/2020 14:36

Pavey Ark...Indeed, let's see, but I don't think the enquiries/interest will be limited to the Native Antigen Company.

[gb904150] 10/7/2020 14:13

Well not long to wait until prelims to get more detail - 14th July.

MERC has been a dreadful investment since IPO in 2014. Currently at 1/3 of its share price

They suggested the portfolio will be self sustaining back in December. That might mean MERC finally becomes a decent investment.

Let's see.


3rd Dec 2019
The Board currently expects that the net proceeds of the Placing will fully fund Mercia's investment pipeline and "evergreen" the balance sheet with future investments funded from periodic portfolio cash realisations.

[p1nkfish] 10/7/2020 13:57

That has been the case in the past. PIs are not a priority. Wonder when 50p options run out as they may be happy as low as possible until if close in so they get new at a lower target than 50p?

[kasspass] 10/7/2020 13:31

No matter the potential or the good news fact is the share price hardly moves. Maybe management s priorities run opposite shareholders interests.

[pavey ark] 10/7/2020 11:14

wan,

I don't think people have any idea of the potential value of ndreams.

To value the company at £40m is just a stab in the dark and this could easily be the value of MERC's holding.

MERC has been invested here for over five years and the new release could be a catalyst for dream to float or be taken over.

Oxgene is another investment that could be taken out at a rather high valuation.

lots more on the list so let's see if this is the start of a series of value realisations.

[wan] 10/7/2020 07:36

Interesting sector development for those who know what else is in Mercia's Portfolio.

Sony invests $250 million in Fortnite maker Epic Games
Dean Takahashi
July 9, 2020

Sony has invested $250 million for a minority stake in Fortnite maker Epic Games, the companies announced today. With the new money, Epic Games has raised $1.83 billion to date.

Epic confirmed it will still be able to publish to other platforms. As noted, Sony is acquiring only a minority part of Epic Games, and it is not acquiring a controlling stake in the company. (Update: Sony is acquiring a 1.4% stake in Epic, which means the deal values Epic Games at $17.86 billion).

A separate deal
The deal is different from the one that Bloomberg reported in June, which we independently confirmed, that Epic Games was seeking to raise $750 million at a pre-money valuation of $16.3 billion, with a post-money valuation (the value of the company after the deal is done) of $17 billion. Epic declined to comment on that deal.

Epic Games didn’t say what it would use the money for. But it’s a good bet the company will continue to make acquisitions, invest in its Epic Games Store, expand Fortnite, and drive toward the creation of the Metaverse. The latter is the universe of virtual worlds that are all interconnected,

Full story -

[weatherman] 09/7/2020 11:47

A good result, looking at what limited financial details there are on the Companies House website. 'Profit' less than £0.5m, and net assets less than £2m. Also, this wasn't until recently a much mentioned holding.

[columbarius] 09/7/2020 11:44

Apologies, didn't realise it was that old. At least the second message was up to date!

[varies] 09/7/2020 11:20

Columbarius
The YouTube video mentioned in your post 699 seems to date from 2015.
Did you mean to provide us with a link to something more recent ?

[columbarius] 09/7/2020 11:11

Positive news from the CEO on @nDreamsVR concerning their latest release, Phantom Covert Ops.

"I’m really pleased with the reaction and sales of Phantom so far. And incredibly proud to have hit #1 on both Quest and Rift. We have had so many amazing comments from players. Thank you! #PhantomVR"

[columbarius] 09/7/2020 10:58

A video with a bit of background on another MERC stable star, nDreams.

[cheshire man] 09/7/2020 10:41

Good result for MERC whatever way you look at it :-)

[p1nkfish] 09/7/2020 10:16

Thats a good point columbarius. Very good point.
Timing of exit.

[columbarius] 09/7/2020 09:50

Excellent timing as covid story shooting stars fizzle out. A good profit, well done MERC!

[pavey ark] 09/7/2020 08:05

You're struggling a bit there but you obviously have an agenda to follow.

[redartbmud] 09/7/2020 07:54

The sale is anticipated to generate an 8.4x return on its original direct investment cost

Gawdluvaduck 8.4x. Hardly covers the cost of Merc management time at decent charge out rates.

[pavey ark] 09/7/2020 07:49

Excellent result.
Very good deal/return and although not large it is excellent in percentage terms and shows the very considerable potential and real value in their direct investment portfolio.

I would suggest that there are a number of larger and more valuable constituents of their portfolio getting to this point.

[lord gnome] 09/7/2020 07:35

Nice deal, but not big enough to move the dial.

[wan] 09/7/2020 07:22

Considering the increase in fair value booked against NAC over the duration and the subsequent increase in the holding value, the exit multiple looks very good to me.

[p1nkfish] 09/7/2020 07:18

At least better than Sci Warehouse.
Good return if somewhat low total value.

[redartbmud] 09/7/2020 07:11

Mercia Asset Management PLC



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



Sale of The Native Antigen Company

Mercia Asset Management PLC (AIM:MERC), the proactive, regionally focused specialist asset manager, is pleased to announce the profitable sale of The Native Antigen Company Limited ("NAC") to LGC, a global leader in the life sciences tools sector, for a total cash consideration of up to £18.0million.

Mercia held a 29.4% fully diluted direct holding in NAC at the date of sale and will receive initial cash proceeds of £4.8million, with up to a further £0.4million receivable upon finalisation of customary closing working capital calculations.

Based upon the total anticipated amount receivable of £5.2million, the total realised return above the £2.7million holding value as at 30 September 2019, will be a further £2.5million. Of this, £0.6million will be included as a fair value increase in the Group's results for the year end ended 31 March 2020, which will be announced on 14 July 2020. The remaining balance of £1.9million will be recognised as a realised gain in the Group's interim results for the six months to 30 September 2020.

The sale is anticipated to generate an 8.4x return on its original direct investment cost and a 65% internal rate of return ("IRR").

Mercia first invested in NAC in 2011 through its third-party managed funds (which as at 31 March 2020 held an additional combined 20.9% stake) and subsequently, from its own balance sheet as a direct investment in December 2014.

In addition to the direct investment returns, the sale will generate a 12.1x return on a blended third-party managed funds investment cost and a 31% funds IRR. Mercia has proactively supported NAC since its first day of trading, including representation from Mercia's Chief Operating Officer Peter Dines, as a non-executive director on the NAC board through to exit.

Founded in 2010, as a divestiture from a University of Birmingham spinout company, NAC has become one of the world's leading suppliers of infectious disease reagents and is widely acknowledged to be a primary source of reagents for the study of emerging diseases.

Dr Mark Payton, Mercia Asset Management, CEO, said: "Keeping to our commitment of realising balance sheet investments within a three to seven year period from initial investment, NAC is the fourth full cash exit from our direct investment portfolio. It has been an excellent investment for Mercia and this sale is a strong demonstration of the value which our differentiated model can create; for investors in our managed funds, shareholders in Mercia and the founders we back. NAC is an example of an innovative regional business sourced through Mercia's network, supported initially by our managed fund capital and then scaled using our own balance sheet capital.

"Mercia plays a critical role in helping the UK's most exciting regional businesses scale and I am proud of the part we have played in NAC's journey, not just as the major capital provider but also as a critical partner in helping the business achieve its potential. I look forward to watching as they continue to go from strength to strength with their new owner."

Yet another transformational sale by Merc - Not.

Underwhelmed from Uttoxeter.

[sev22] 07/7/2020 15:52

The web-site has been updated today.