Mercia Asset Management Share Discussion Threads

[turbocharge] 03/3/2021 11:37

I'm staying on board, more to come...

[weatherman] 03/3/2021 10:48

Nice rise this am, no comment here?

[cheshire man] 02/3/2021 16:25

Clickable link

Mercia Asset Management - The UK’s top regional investor ...


Financial support was also forthcoming from the UK government, with 11 of Mercia’s top 20 portfolio companies (c 65% by value) benefiting from Future Fund support. In total, as stated above, Mercia invested £10.9m (net) into its balance sheet portfolio in H121 (H120: £11.1m), with an additional £11.5m committed by the Future Fund and £10.5m from other investors, …

[weatherman] 02/3/2021 16:17

hxxps://www.edisongroup.com/publication/the-uks-top-regional-investor/28957

[p1nkfish] 02/3/2021 15:39

Gov on side too as regional development is/will be critical.

[columbarius] 02/3/2021 15:19

That's a sensible outlook. I see this as a solid investment, no debt, lots of available cash, now self-financing, early mover experience in the regions where there are growth tailwinds and with exciting companies in the pipeline. For newbies the share price was hit hard by the Woodford fiasco and a placing that annoyed PIs for which the CEO apologized in the FT. We're only just recovering from those and the improved outlook has still to be factored in imo.
I see Edison have released an update.

[mammyoko] 02/3/2021 14:15

Thanks. On the basis that yesterday's announcement moved the risk/reward scenario slightly in my favour, I took a reasonable size position this morning. It does still feel rather early stage though in terms of demonstrating successful exits so I am not expecting any significant reduction in the discount. It will be interesting to see how this plays out over the next couple of years.

[gfrae] 02/3/2021 13:33

There is also fee income in addition.

[columbarius] 02/3/2021 13:12

The market will decide what is an appropriate discount. As the NAV has risen, despite the share price rise, we’re at the same discount as before the news that the portfolio is evergreen. I think we’ll see a re-rate. Don’t forget the published NAV is based on carrying values which are conservative as demonstrated by the Oxgene sale at twice the carrying value. I don’t believe that was a one-off and in fact they are building a good record of portfolio company exits and there is definitely more to come. You pays your money and takes your chance i.e. DYOR.

[weatherman] 02/3/2021 12:58

Thanks Columb-us.

[mammyoko] 02/3/2021 12:44

What would be an appropriate discount? Given the nature of the investments, I would have thought that a 30% discount might be appropriate. I make the discount around 36% at these prices. They don't yet have an extensive history of successful exits.

[columbarius] 02/3/2021 12:34

The gist is that at 27.6p the 40% discount to their sum of the parts valuation is unwarranted. Long termers know this already.

[weatherman] 02/3/2021 11:24

Oxford Genetics accounts are available on Companies House. This shows how rapidly they grew with turnover going from £0.5m to £6m in 4 years - sold for around £100m. One success story for Mercia.

2017 517k
2018 1015k
2019 2685k
2020 6002k

[weatherman] 02/3/2021 11:18

What is the gist of this upgrade from N+1 Singer? No further comment from Edison yet.

[columbarius] 02/3/2021 10:31

Very positive update and broker upgrade from N+1 Singer.

[cheshire man] 02/3/2021 09:46

Mercia Asset Management PLC
@Mercia_PLC
·
11m
This full cash sale of our second largest direct investment, will enable the Group to support and expand its direct investment portfolio for the foreseeable future.

[bb123] 01/3/2021 22:02

Group's full year income exceeding £23million.


This elevated second half trading performance coupled with the recently announced profitable sale of Oxford Genetics Limited ("Oxgene") is, subject to audit, likely to result in the Group's full year consolidated profit and total comprehensive income exceeding £23million. Unrestricted cash at 31 March 2021 is now forecast to be c.£49million.

[p1nkfish] 01/3/2021 21:18

So am I now if they stick to their knitting. We need this type of focus.

[columbarius] 01/3/2021 20:53

I recommend listening to this lightning tour of the company and its ethos. I’m confident Mercia will help drive economic success for Britain’s regions.

[weatherman] 01/3/2021 19:56

The sale price was nearly double the value on the books of Mercia - it might suggest that the value of some other holdings is not fully reflected in the stated NAV.

[redartbmud] 01/3/2021 19:13

Turbo

"Prospects for long term holders looking good!"

I hope so, the placing was at 46p. I do hope that they get back to that level before 2121.

[bisiboy] 01/3/2021 17:38

i would of thought that these would have moved a lot higher on this news
i see invesco are still showing as holders in the old woodford fund and wonder whether there is selling pressure holding back the price

[robsy2] 01/3/2021 16:50

Good news. Patience is being rewarded and there should be more to come. The business is progressing well and seems ahead of valuation which is unusual nowadays.