Mercia Asset Management Share Discussion Threads

[pavey ark] 07/12/2022 14:29

rndm355, I liked the guy's style.
Do you subscribe ?

[columbarius] 07/12/2022 14:02

Question already answered. 15% IRR aimed for in both. Venture higher potential reward, but higher risk, hence the tax breaks. Not rocket science.

[rndm355] 07/12/2022 13:54

some positive comments posted on YouTube:

[redartbmud] 06/12/2022 15:57

Unaswered question - again.

Please explain the percentage returns to investors in the funds to those received by the shareholders?

red

[redartbmud] 06/12/2022 15:55

They smokin weed?

red

[columbarius] 06/12/2022 14:26

Canaccord increased their target from 57p to 62p this morning. Singer target 66.1p.
Investor presentation 3pm on the investormeetcompany platform.

[p1nkfish] 06/12/2022 10:28

Good move.

[davebowler] 06/12/2022 08:47

hTTps://www.insidermedia.com/news/midlands/mercia-strikes-9.5m-deal-for-regionally-based-lender?

[columbarius] 06/12/2022 08:09

Also note nDreams working with Sony and Meta, and reading between the lines...

"Mercia first supported nDreams in 2014 via its managed funds. The company is highly regarded in the VR space as much for its technical capability in VR, following the launch of its Fracked game, as for its quality content and publishing success."

[columbarius] 06/12/2022 07:59

These statements summarise the investment case.

With over a quarter of Mercia's AuM in unrestricted cash available for investment, our reputation as a truly regional investor aligned with our investees' growth aspirations, is aiding our deal sourcing and continues to be a key competitive advantage. During this six-month period, we received 1,165 requests for investment and invested c.£56million into 80 businesses. This investment cadence is critical to meeting our capital deployment targets across both our debt and equity teams as we look to build out our portfolios with new investments, during a period where value for a patient investor with capital to deploy will become evident.

Many businesses are facing national and global headwinds as we approach 2023. This is arguably most acute in the technology sector and, specifically, within capital-intensive, loss-making business-to-consumer companies. These headwinds are particularly visible in the public markets. Against this backdrop Mercia is well placed, especially given the significant liquidity we have to deploy into what is a buyers' market.

With our focus on SMEs within the UK, predominantly businesses in sectors with relatively modest capital needs, we and the funds we manage, are able to continue to support these businesses with additional capital as and when needed during these turbulent times. As almost all businesses in our portfolios are private businesses, our exposure to the public markets is limited. In addition, as a debt-free, cash-rich business, Mercia is well placed to capitalise on both corporate (as evidenced by our recent acquisition) and direct investment opportunities as we invest through the cycle. A majority of the Group's investment realisations are through trade sale exits (just two exits in the last two years were via IPOs), and this part of the market remains relatively resilient.

Though the public markets may be stressed, Mercia is not.

[illiswilgig] 20/11/2022 09:34

Robsy,

thank you for raising Uniphy and also good to know that you got an answer to your question.

It does look interesting - the website is very slick and the board look to be very impressive. In the sense that I don't see them being involved unless there is big potential. Whether they are close to realising that, or ever will is not clear to me. There is not a lot of depth to the information on the website - it's not possible to tell how far along the development they are. The potential certainly looks to be big. The collaboration with Hyundai, whatever that means, looks to be interesting as well. Overall I get the feeling that the technology is interesting enough for some big players to be involved but they are just at the start of the road to commercialising it. So risks are high, but its also when the greatest rewards tend to be made if it comes off.

I had a quick look on companies house - according to the latest results (to dec 21) they have 14 employees up from 10 the year before. They look to be burning through cash at quite a rate. And certainly have needed an injection of funds this year. Which may continue to be the case for some time. Looks to have been quite a lot of corporate activity in the last few months - so they may well have just pulled off a funding round and pulled in some new investors. Probably a very recent investment for MERC.

It's for this kind of investment that I hold shares in MERC so I'm pleased to see it and I'll be interested to see how it proceeds,

thanks,

[redartbmud] 18/11/2022 15:49

When they did their last online offering, I submitted the question before that start of the meeting.
Cannot remember the platform now.

columbrius - I have other things in my life and am not glued to a screen demanding immediate answers to slanderous remarks.
I have no intention of muddying waters, I only ask sensible questions to futher my knowledge and understanding. No need for bile and ire, and you can be fileterd if necessary.
You have gone too far, and a gentleman, or lady, would apologise.

Are you perchance an agent or employee of the comany masquerading as a PI? I wonder?

red

[columbarius] 18/11/2022 15:37

I’ve just done a bit of basic research and the question was asked and answered at the last presentation. They aim for a 15% internal rate of return for both the balance sheet companies and the third party funds. Returns on company sale are greater for the funds, but that is balanced by the higher failure rate when investing early stage.

[columbarius] 17/11/2022 13:42

I don't assume people are chaff without evidence. I ask them a simple question and if they can't provide a sensible answer then I think they're chaff.

Over to redbartmud - when did they try to pose the question to Mercia about returns to shareholders/fund investors?

[p1nkfish] 17/11/2022 13:28

So you assume people are chaff?
My experience of management is that they are not a paragon of virtue wrt attitude to PI's.
No intention of wasting time to prove it, but it's the truth.
They need to prove they are not chaff, look over the history.

[columbarius] 17/11/2022 13:18

Not defensive at all. If you write something on here you ought to be able to back it up. On advfn you need to be able to separate the wheat from the chaff.

[p1nkfish] 17/11/2022 12:15

Colimbarius, I hold MERC but am perfectly ok with criticism of the management (justified or otherwise) and dont assume people are lying when they have a beef.

Why are you so defensive?

[columbarius] 17/11/2022 11:58

“I tried to ask the following question:
What are the returns for the investors in the funds relative to those of the shareholders? Strangely they ran out of time before they were able to answer it.”

Where did you try to ask the question? I’ve always found them to be helpful.

[robsy2] 16/11/2022 17:14

I got an answer from MERC. We do have a direct holding in Uniphy which is good . It looks like it could be a winner.

hxxps://uniphy.global/technology

[p1nkfish] 16/11/2022 16:48

Won't disagree but one day it might breakout so worth keeping an eye on.

[redartbmud] 16/11/2022 16:07

pink

Fair enough, but this is a share to trade and not hold forever. Buy low and sell for a profit. I just don't see the share price moving out of a range. The way they operate the business cast iron guarantees it. As soon as it hits the 30's it dives, following some news, fact or other.

red

[p1nkfish] 16/11/2022 15:20

Their track record in attitude to PI's has been less than brilliant but I swallowed my ire and bought a lot towards 20p and below a while back - no regrets from me. The price was too attractive.

I hope they realise that PI's matter especially if they want a share price that reflects the value. Ignore the wider shareholder base and it will cost them in a discounted share price.

Also, supporting the regions attracted me. London/Ox/Cambs always get the lions share when there is talent and drive elsewhere that needs a hand.

[redartbmud] 16/11/2022 14:59

pink

Too right.
I didn't paricipate in the fundraising at 46p that saw the share price fall to about 20p in very short order.
I was around when the share options lapsed, so they just reissued them. That was Paul Daniels or even Houdini at their best!

The disappointment is the fact that when they sell down an investment and boast that they sold it for a 10 to 15 multiple, it seems to make little difference to tha share price or shareholder returns. On the other hand there are some who benefit.

I tried to ask the following question:
What are the returns for the investors in the funds relative to those of the shareholders? Strangely they ran out of time before they were able to answer it.
Hey ho...

red

[p1nkfish] 16/11/2022 13:49

He probably means the way they treated shareholders in the past.

[columbarius] 16/11/2022 13:36

That's no clearer. Where have you been the last 30 years if you think their pay is obscene?

Is your comparison of Mercia to crypto currency rocket science?

I'm getting a 3% dividend and have a very good paper gain despite MERC continuing to be priced at a huge discount to NAV.

It is difficult to assess the value of their portfolio companies, but they have a good track record when it comes to selling them.