Mercia Asset Management Share Discussion Threads

[p1nkfish] 11/8/2020 13:53

Now positioned to take advantage if it does.
dyor etc.

[p1nkfish] 11/8/2020 13:52

I have inexplicable feeling this is going to move up soon. Soon could be weeks or a couple of months.

[sev22] 10/8/2020 15:04

10th August, 2020
👏👏👏 Congratulations to our portfolio company @OXGENEofficial, who have made the list of the UK’s 10 fastest-growing companies compiled by @Beauhurst

CEO Dr. Ryan Cawood explains how Mercia’s investment has transformed their company from very humble beginnings.

#biotech

[sev22] 10/8/2020 09:43

10th August, 2020.
🎮 @nDreamsVR
📍 Farnborough
🏆 Award-winning VR developers
👏 Phantom: Covert Ops ranked #1

@patrickol & @juliep_1 explain the rise of VR gaming, being a market leader and scaling their team for big future plans.

#vr #regions #investment #gaming

[sev22] 04/8/2020 19:10

Legaltech business raises £6m for international growth (4th August 2020).

Fast-growing legaltech business Clarilis has raised a further £6m in a Series B investment to support its ongoing growth. The funding has come from Mercia’s Northern Venture Capital Trust Funds (VCTs), which were an existing investor in the business, and Gresham House Ventures, investing on behalf of the Baronsmead VCTs.

The funding will assist the company’s continued international growth and fund its sales, marketing and product development activities.

Clarilis, which is based in Leamington Spa and has an office in Singapore, is a leading provider of automated drafting technology. Its CLARILIS™ platform was designed to automate complex suites of precedents, such as Share Purchase and Facility Agreement suites with many ancillaries, parties and complex underlying deal structures. CLARILIS™ saves significant amounts of lawyer time whilst ensuring that law firms and in-house legal departments draft consistently high-quality documentation. This creates time for solicitors to focus on what they do best – providing bespoke advice to clients and handling non-standard aspects of transactions.

Clarilis was co-founded by brothers James Quinn, a former solicitor, and Kevin Quinn, the technical architect of the CLARILIS™ platform and former lead developer. Since its launch in 2015, it has experienced consistently strong growth and now boasts an impressive blue-chip client base including Addleshaw Goddard, Baker McKenzie, GoCompare, National Grid and Slaughter and May.

Henry Alty, Investment Director at Gresham House Ventures, said:

“While the legal world has arguably been a late adopter of technology, firms are realising that automation is essential to driving both cost efficiency and resilience across distributed workforces.

“In Clarilis we have found an ambitious business with a market-leading solution and exceptional customer satisfaction as a result of its fully managed service. It exemplifies the type of technology-driven and scalable business model that our investment team look for. We’ve been impressed by the impact that Clarilis has already had in the market and as the business expands, particularly into the South East Asian market, we are excited to be bringing our experience to bear and to help facilitate its growth.”

Tim Levett, Investment Chairman of Mercia Northern VCTs, commented:

“We are pleased to be investing once again in this leading LegalTech business, particularly in this current environment where the rapid adoption of user-friendly consumer software has fundamentally changed user expectations within enterprise. Regardless of the complexities of any business process, elegant automation and consumer-grade UX are the critical success factors that have set Clarilis and its platform apart, especially filling the void left by legacy software in this sector.

“Mercia’s strong tech and SaaS investment credentials and experience combined with our ability to invest through the lifecycle of a business will be important to support the team at Clarilis as they continue to scale the business.”

James Quinn, CEO and co-founder of Clarilis, added: “It’s fantastic to have the continued support from the investment team at Mercia Asset Management and I’m really pleased they’re backing us again. We are also delighted that Gresham House has chosen to invest. Gresham House were the clear choice here given Henry Alty and James Hendry’s in-depth knowledge of the LegalTech space and excellent insight. The Gresham House team also share our vision for the development of the Clarilis platform going forward.

“This investment will provide the resources required to bring significant enhancements to our platform and to further scale the Clarilis team both in the UK and abroad.

The uniqueness of Clarilis’ intelligent drafting platform and managed service is resonating with organisations globally – particularly as current market conditions highlight the importance of technology that can provide a strategic advantage.”

[sev22] 02/8/2020 12:02

Thank you for the link. Edison have produced an excellent detailed research report on Mercia here which all investors would be well advised to read.

Mercia’s shares continue to trade at a severe discount to current NAV of 32.1p per share.

Add the additional 4.5p per share set out below gives a potential total value of at least 36.6p versus a latest closing price of 18.5p (shares are trading at half price).

Valuation: 0.60x NAV + £20m for MFM
Mercia’s shares continue to trade at a discount to NAV (0.60x), even before considering the embedded value of Mercia Fund Managers (MFM), which we estimate could be worth an additional 4.5p per share or more on top of NAV. Catalysts for a re-rating include further scaling of the business, commercialisation of the direct investment portfolio and/or successful exits.

[weatherman] 01/8/2020 17:24

hxxps://www.edisongroup.com/publication/scaling-sustainable-and-evergreen-by-fy22/27310/
Latest note on Mercia from Edison.

[dennisbergkamp] 29/7/2020 17:53

Need to get more... This is a long term play for sure... No get rich quick scheme...

D

[pavey ark] 29/7/2020 16:38

I always take note when any CFO buys shares.....it doesn't happen often so it is very positive when the MERC guy buys 155k .

[columbarius] 29/7/2020 15:06

Good, CFO purchase is noteworthy.

[sev22] 29/7/2020 14:43

Good to see four Directors adding to their personal stakes in Mercia today.

[columbarius] 27/7/2020 21:04

If a company fails the government covers 80% of the CBILS debt. It's up to accredited lenders to manage the risk on the other 20%.

[redartbmud] 27/7/2020 15:46

And what happens when they go bust?

[sev22] 27/7/2020 15:37

Mercia offers CBILS loans in Northern Powerhouse region (27th July 2020).

Mercia is now offering NPIF loans of £100,000 to £750,000 backed by the Coronavirus Business Interruption Loan Scheme (CBILS).

Mercia opened applications after being accredited as a CBILS lender by the British Business Bank recently and will deliver the loans through the Northern Powerhouse Investment Fund (NPIF). Mercia now manages more than £140milion on behalf of NPIF deploying both debt and equity across the region with a particular focus on Yorkshire and the Humber.

Paul Taberner, Managing Director of Mercia’s Debt Funds, said: “Given the rise in the number of businesses in the region, there is already significant demand for finance to support growing firms, and a pandemic such as COVID-19 has only heightened this need. With traditional banking solutions becoming increasingly hard to secure, we are delighted to be working with our partners at both the British Business Bank and the Northern Powerhouse Investment Fund to deliver the CBILS scheme. We want to encourage businesses to come forward and find out how they can access additional capital to support them through the pandemic and recovery plans as the economy unwinds from lockdown and prepares for 2021.”

Mercia’s NPIF CBILS loans are aimed at companies or LLPs with fewer than 250 staff and whose business has been adversely affected by Coronavirus.

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

CBILS, delivered through British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

[p1nkfish] 21/7/2020 20:48

UK Gov must be on side too as we desperately need next wave of new growth compamies to come through. Especially in the regions.

[waterfall city] 21/7/2020 20:33

If you beleive in reversion to the mean this could do well in the next few years, ive often found tomorrows winners come from todays poor performers.
likewise will big tech still be the best performer in the next few years, it looks like a bubble to me.Tesla etc no thanks.
Mercia on the one hand is exposed to growth companies through its portfolio holdings but is also a value play due to its discount to book value.

[sev22] 21/7/2020 08:08

Breakthrough offers early warning system for osteoporosis (21st July 2020).

IBEX, the Mercia-backed company which is a pioneer in X-ray imaging technology, has developed a new system that can provide a early warning system for osteoporosis, a condition that weakens bones and can result in potentially fatal fractures.

The company has successfully demonstrated the system in a clinical trial with researchers from The James Cook University Hospital in Middlesbrough. It will lead to earlier and widespread screening for osteoporosis and more timely and targeted treatment

There is currently no method for routinely assessing bone health in the general population, and typically osteoporosis is only diagnosed following a serious fracture and assessment on specialist DEXA scanning equipment. Broken hip – one of the most common injuries – costs the NHS currently over £1bn a year and is the largest single cause of accident-related death in the UK.

Uniquely, IBEX Trueview® software will measure a patient’s bone health from a standard X- ray, meaning that the early signs of a problem can be identified from the first fracture, 10- 15 years before the onset of serious osteoporosis.

In preliminary analysis of data from a trial of 130 patients attending for a DEXA scan at James Cook , the IBEX software gave a better prediction of DEXA outcome than age or gender and demonstrated excellent agreement to the current gold standard CT and DEXA methods. This result confirms the huge potential Trueview has to have a major positive impact on bone health assessment. IBEX is now engaged in discussions with a number of major global healthcare companies to incorporate this novel feature in their standard X-ray equipment.

IBEX is backed by investors including the North East Venture Fund (NEVF), which is supported by the European Regional Development Fund and managed by Mercia, the IP Group and private investors. The company has received several rounds of funding totalling £5.5m so far to help it develop its technologies. It is also working on a system to improve detection of breast cancer.

Professor Amar Rangan, Consultant Orthopaedic surgeon, and Chief Investigator for the clinical study commented: “The data I have seen from the study so far is fascinating and exciting, as I think it has the potential to change the way we screen individuals to assess their bone health.”

Dr Stephen Tuck, Consultant Rheumatologist and co-investigator added: “I am now convinced that this technology could make a major contribution to the identification of people with osteoporosis and at risk of fractures.”

Neil Loxley, CEO of IBEX, concluded: “We are excited by the preliminary results of the trial, which we believe demonstrate the first major innovation in the osteoporosis diagnosis since the introduction of DEXA more than three decades ago. I am grateful for the support of clinical and research staff at The James Cook University Hospital and look forward to reporting progress in commercialising this new capability in the near future.”

Ian Wilson, who leads Mercia’s team in the North East, added: “IBEX is a pioneer in its field whose software could help save lives through early detection. Its success also demonstrates how investment from sources such as Mercia and the North East Venture Fund can help create jobs and build local economies by supporting innovative companies in the regions.”

[sev22] 20/7/2020 14:15

BIOTECH COMPANY RAISES £2.25m FOR NEW SPINAL TREATMENTS (20th July 2020).

A biotech company which is developing new treatments for patients with serious spinal conditions has completed a £2.25m funding round led by Mercia Asset Management to help to continue its ground-breaking research and bring its first products to market.

Locate Bio has secured the investment from Mercia’s own balance sheet, its EIS fund and the MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, and the Future Fund. Together with earlier funding rounds from Mercia and MEIF, it brings the total raised by the company to over £8m.

Locate Bio’s first product, which is at the pre-clinical development stage, will help patients who require spinal fusion surgery, where bones are permanently joined together to overcome low back pain. It uses a type of bone protein to remove the need for a bone graft. Its second therapy will be for the biological renewal of the intervertebral discs and will help those suffering from degenerative disc disease, a painful condition affecting 33 million people in the US and EU.

Locate Bio is a spin-out from the University of Nottingham and based on the research of Professor Kevin Shakesheff, a world-leading expert in regenerative medicine. The company, which initially started out as a contract research organisation, first received investment from Mercia in 2018.

John von Benecke, CEO of Locate, said: “I am delighted by the continued support of our lead investor. This investment will allow us to maintain the excellent progress with our lead product and further the development of a pipeline of synergistic products.”

Dr Ian Wilding, Chairman of Locate said: “This investment comes at an important time for the Company as it enters an exciting phase. Despite the uncertainty and disruption that COVID-19 has brought to so many industries, the Locate team have relentlessly executed against its aggressive timelines and the additional funding announced today is a welcome validation of the progress that has been made.”

Peter Dines, Chief Operating Officer of Mercia, said: “We are very pleased to continue to support John and the team at Locate. Their lead product has the potential to disrupt a $3bn market, and we remain excited by the prospect of helping to build a world-leading business.”

Ken Cooper Managing Director, British Business Bank, added: “We are pleased that the MEIF Proof of Concept fund has been able to support further investment into Locate Bio. Along with the bank’s other programmes the MEIF funds are investing to support SMEs in the region and are still very much open for business. This second round of funding recognises a business which has continued to make good progress despite the difficulties caused by Covid 19.”

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

[pavey ark] 16/7/2020 16:25

weatherman, please look at my posts 731 and 733 (again).

Now you post "The decline in NAV is due to the issuing of lots more share."

Nothing to do with the £15m write down in the investment portfolio at the 31st of March at the bottom of the recent market fall.

I get it that you are upset because the value of your shareholding is down (so is mine) but just so that I manage my exasperation and modify my BP spikes are we going to get this repeated at regular (very short) intervals ?

If you simply take the time to look at the business ,especially the direct investment portfolio, and apply a little projected forecasting you will see that within any reasonable expectations their portfolio is bound to be revalued upwards and with any reasonable good fortune will be revalued significantly.

They are now managing much greater FUM with what I expect is roughly the same staff or at least they can manage this larger FUM at a lower cost ......hence the fundraise.....hence profits should improve.

[columbarius] 16/7/2020 16:11

Ah, we're at cross purposes regarding definition of NAV. Using tangible NAV is an admirable conservative approach in these difficult times.

[weatherman] 16/7/2020 14:47

The purchase was effectively a fund manager, without tangible assets. Of course the funds are worth several £100m, the fund manager is worth something, but not physical assets to add to NAV. The combined business is probably worth 40-45p per share, but this was above 50p before purchase. They need to be able to show they can make something of the purchase.

[columbarius] 16/7/2020 13:59

The money from the issued shares was used to purchase assets. The write-downs and non-cash loss due to coronavirus caused the drop in NAV.

[weatherman] 16/7/2020 11:46

The decline in NAV is due to the issuing of lots more share.