Mercia Asset Management Share Discussion Threads

[weatherman] 03/12/2020 22:48

Edison note published online.
hxxps://www.edisongroup.com/publication/the-hybrid-model-halfway-home/28394

[columbarius] 02/12/2020 08:44

A handy payment covering about three quarters of the maiden interim dividend.
Also note today's RNS from Mercia portfolio company Concepta (CPT). It's been largely written off in Mercia's conservative books but new management (Mercia now represented on the board) and change of direction look promising. Any share price appreciation from the 1p level adds to Mercia's NAV.
Someone likes the newsflow, 400,000 buy at 27p.

[redartbmud] 02/12/2020 07:34

Mercia Asset Management PLC

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

Performance fee entitlement

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£872million of assets under management, is pleased to note that Northern Venture Trust PLC ("NVT") has released its preliminary results for the year ended 30 September 2020.

As a consequence of NVT's strong recovery in its net asset value per share, arising in part from a very recent successful sale of one of its investments, Mercia, as investment adviser to NVT, is now entitled to receive a performance fee of £284,000. This revenue will be included in Mercia's full year consolidated financial statements for the year ending 31 March 2021.

Mark Payton, Chief Executive Officer of Mercia, commented:

"It is very encouraging to see the recovery in net asset value per share of Northern Venture Trust PLC, as well as similar recoveries in net asset value per share for both Northern 2 VCT PLC and Northern 3 VCT PLC. This recovery in asset prices is consistent with what we are seeing in our own direct investment portfolio."

Gobsmacked from Goole. Makes a change from them giving it away.

[robsy2] 01/12/2020 16:35

Sounds positive. I’ll have a listen when i find it. I find the company communications a a bit longwinded for my liking.

[p1nkfish] 01/12/2020 16:27

Presentation was very positive. Need to rewatch as quite a bit of info, easy to miss bits.

Very pleased to see results, good for all concerned including UK regions.

[columbarius] 01/12/2020 16:09

Apologies if I led anyone up the garden path - I've edited the presentation time in 880 to make it look as though I got it right. I missed most of the chat but it was recorded on the Investor Meet Company platform so should be available soon. I caught the questions and thought they were handled well. On the discount to NAV they're confident the market will find the value based on industry metrics so my opinion is that the broker targets are achievable and an overdue re-rating will occur.

[robsy2] 01/12/2020 12:16

Anyone going?

[columbarius] 01/12/2020 11:17

You can register for a webinar starting at 15:00. They're speaking to analysts this morning.

[weatherman] 01/12/2020 10:50

Which broker? OK you answered my question - thanks.

[columbarius] 01/12/2020 10:46

Broker upgrade.
H1 has seen a clearer outlook for portfolio valuations which has allowed Mercia to recoup some of the reduction at the Finals. Cash earnings are better than expected as costs have remained lower for longer. A well-funded portfolio and £25m cash has prompted declaration of a maiden 0.1p interim dividend – a strong signal of confidence. Lower costs and increased asset values have prompted 30-45% upgrades to adj. EBITDA across the horizon. The shares are trading at a 32% discount to NAV, of which 17% is cash. This disregards all value for the asset management platform. A 10x EBITDA multiple ascribed to 3rd party asset management earnings plus NAV points to a c.40p/share intrinsic value, before further value creation.

Courtesy of N+1 Singer and Research Tree. There is more on payment of a subscription.

[weatherman] 01/12/2020 09:31

I make that NAV of 33.7p, without consideration of the FM business.

[dennisbergkamp] 01/12/2020 09:25

;-) Thanks redart! Looking forward to it already!

D

[p1nkfish] 01/12/2020 09:03

Very pleasing results.
Excellent.
Well done everyone at MERC.

[redartbmud] 01/12/2020 07:54

dennisbergkamp

Maiden interim dividend of 0.1 pence per share (H1 2020: nil) payable on 30 December 2020 to shareholders on the register at close of business on 11 December 2020

Make that a pint instead of a half!! You can afford to go all out now.

[scepticalinvestor] 01/12/2020 07:39

2 x pre mkt OB trades already completed

[robsy2] 01/12/2020 07:22

Solid progress. NAV up 15% ish, profitable operating business,maiden dividend.

[dennisbergkamp] 30/11/2020 17:04

After 6 months odd, I'm finally showing enough profit for a round of drinks! No pub till Wednesday though ;-)

D

[columbarius] 30/11/2020 16:17

Still time to buy below last year's placing price.

[varies] 25/11/2020 16:00

redartbmud
In answer to your posting on 10 November I do perceive an advantage for MERC shareholders in successes achieved by the Managed Funds.
The better they perform, the more subscriptions they attract and the greater the fees that MERC can charge.
Far and away my best investment success in recent years has been in IPX. The share price has risen nearly 12 fold in about 4 years and much of this is attributable to the success of the funds they manage. Their only quoted investment trust is, I believe, Impax Environmental. This has outperformed most in its sector but IPX shares have done much, much better. IPX specialises in investments acceptable to institutions worried about Climate Change and this is a large factor in its success.
If MERC makes good money for those invested n its managed funds, then MERC's shareholders will benefit too.

[dennisbergkamp] 25/11/2020 13:08

;-) always! D

[gwr7] 25/11/2020 12:54

Stay cool in front of goal like you used to :-)

[dennisbergkamp] 25/11/2020 11:49

Such a tease! Always gets you excited, to then withdraw! ;-)

D

[its the oxman] 25/11/2020 11:06

Yes looking ready to pop at last. Plenty of catch up if any news is half decent.

[p1nkfish] 25/11/2020 11:03

Getting close to breakout, needs a push and info next week might just do it.