Mercia Asset Management Share Discussion Threads

[robsy2] 13/3/2024 08:18

Thanks
These VCT funds are sticky as well, because I think they have to run for 5 years as a minimum and tend to run on longer and the charges are pretty high as well , 2% rings a bell from somewhere.
So, if you capture 20m it gives you income of circa 2m over the next 5 years.
I can only think of one bubble burster, probably not even a burster , but more of a steady bubble deflater really and that is the remuneration our BOD receive, which, like in a lot of the corporate world, is completely out of synch with what is achieved and at times seems to be barely correlated to performance.If the company does well, the shareholders do well,but pretty much whatever the company does the BOD do well.

[rimau1] 13/3/2024 07:52

Good spot Robsy2, announced this morning. Merc really do appear to be flying and i have no bear case to counter my bullishness here. Even in an election year Merc will benefit from a potential change in government. Any thoughts to burst my bubble?

[robsy2] 12/3/2024 17:28

Maybe these announcements are spiking interest?

Further to the announcement made by Northern 3 VCT PLC (“the Company”) on 18 September 2023 in conjunction with Northern Venture Trust PLC and Northern 2 VCT PLC in respect of the offers of new ordinary shares for subscription in the 2023/24 tax year, the Company announces that its offer of new ordinary shares to raise a total of up to £20.0 million is now fully subscribed and no further applications will be accepted.

The offers by Northern Venture Trust PLC and Northern 2 VCT PLC are now both closed to further applications.

[spectoacc] 08/3/2024 12:18

You'd hope it's an overhang clearing, a stake going from weak hands to strong hands. The fact it was at 30p (not at a discount) is a good sign.

Beyond that - who knows :)

[robsy2] 08/3/2024 11:59

Oh yeah!Specto What does it mean though? For every buyer there must be a seller?

R

[spectoacc] 08/3/2024 10:53

I like quiet OBs but no mention of the large trades earlier? All at 30p, adding to about 5m shares.

[rimau1] 29/2/2024 20:07

BBB will (and should) get a lower margin for sheer size of assets flowing in. Merc are in the growing scale phase and FUM attracts more FUM. Remember this is all annuity re-occuring multi-year income. Its excellent news and Merc are carving out a nice niche whilst remaining under the radar.

[cordwainer] 29/2/2024 19:00

"implies minimal profit"? My view is that it has to be ostensibly competitive because it's a government entity which must be seen to be using compliant procurement processes. And competitiveness in a procurement context is not necessarily converging on minimal profit margins, there will also be scoring on service levels and competencies.

[spectoacc] 29/2/2024 13:59

Only reservation is their description of the process being "..Very competitive..", it implies minimal profit to me.

But MERC looks underrated even without today's - and possible impending - wins. At the very least, it's reputational and adds to AUM.

[davebowler] 29/2/2024 08:27

Singer-Mercia has achieved a resounding success securing £207m new FuM across three debt and equity mandates as part of the British Business Bank's Midlands Engine fund ("MEIF II"). The success further validates Mercia's established regional presence, as well as the rationale behind the Frontier acquisition which enabled participation in the debt fund. Although the outcome is not yet known, Mercia has further bids in play for the Northern Powerhouse fund ("NPIF II"), expected to be announced by the end of March. In close proximity to March year end, we leave forecasts unchanged for the moment but see upside to our FY25e. We continue to see material dislocation between the £125m market cap and a SOTP which points to £230m equity value.

[rimau1] 29/2/2024 08:06

Worth an extra £4m of asset management income pa - I assume a blended 200bps on FUM from previous results so that is a decent proxy. This is good news as we should exceed FY24 inflow and FUM targets now. Surprised it was labelled a highly competitive process as i thought Merc were the default choice for BBB but excellent news. Expecting outperformance across all metrics this year and £2m of extra interest income to help our profitability.

[robsy2] 29/2/2024 07:21

Very good news this morning. Not sure what the margin is on these funds but this is another decent chunk of annual revenue.
My figures may be a bit sketchy, but I think the AUM has gone from around 1b to around 1.7b in under 2 years. They are delivering.

[columbarius] 06/2/2024 08:43

One wonders how high the share price ends when the weak stop selling.

[kasspass] 05/2/2024 11:01

One wonders how low the share price ends when they stop buying their own shares

[columbarius] 16/1/2024 15:51

Newly appointed Chairman of Warwick Acoustics, Ian Harnett added: “I am excited to be appointed to the role of Chairman after a fantastic first 12 months working with Warwick Acoustics. It is rare to find a company that is doing something that is as genuinely revolutionary as the ElectroAcoustic Panels Warwick Acoustics has developed. To see the incarnation of this technology within the distruptive systems the company has created is a testament to the team, the leadership group, and the wider ecosystem that supports the Company. This is a British company with a world-leading and unique product, which is generating a great deal of interest from the very best automotive OEMs and I am relishing the opportunity to take on this new role as the company goes from strength-to-strength.”

[spectoacc] 10/1/2024 13:59

Mixed views on buybacks too, but if the discount is (genuinely) wide enough, can be the best/most accretive use for cash.

Finally looks a keener market in MERC today.

[weatherman] 09/1/2024 15:02

Buybacks seem to be an opportunity for institutions to sell down their stakes and raise cash.

[kasspass] 09/1/2024 13:37

Buyback in this case is just a waste money , the share price seems stuck in a downward spiral.what s mayb needed is a management buyout and take this pile private.because it looks like the shareholders aren t served properly while the bod are well compensated.That s just an opinion.

[columbarius] 02/1/2024 17:24

Nice chart for a momentum play. Golden cross and the 200dma has turned upwards.

[weatherman] 02/1/2024 12:01

ST went off in a huff when MERC raised cash a few years ago for a purchase - maybe he'll eat humble pie and come back on board.

[spectoacc] 02/1/2024 08:55

I like quiet BBs :)

Bought in last week, can see MERC getting a 2024 tip, quite possibly from Simon "ramper" Thompson in the IC early next month.

[riverman77] 14/12/2023 17:23

Strange that this was actually down today when other venture funds were up 10% in some cases, such as GROW. I guess very under the radar and should catch up in due course.

[weatherman] 30/11/2023 08:33

Director purchase noted.

[columbarius] 29/11/2023 16:15

They have grown and are stronger financially than when last in the 40s.