Mercia Asset Management PLC Trading Update (7536Q)
02 March 2021 - 2:31AM
UK Regulatory
TIDMMERC
RNS Number : 7536Q
Mercia Asset Management PLC
01 March 2021
RNS 1 March 2021
Mercia Asset Management PLC
("Mercia", the "Company" or the "Group")
Trading Update
Mercia Asset Management PLC (AIM: MERC), the proactive,
regionally focused specialist asset manager with c.GBP872million of
assets under management, announces a trading update for the year to
31 March 2021.
The Board is pleased to announce that trading has continued to
be robust since the Group's interim results were announced in early
December 2020. A positive combination of revenue growth in the
second half of the financial year coupled with lower than
anticipated staff related expenditure, in part due to the
Government's most recent stay at home lockdown restrictions, now
means that the Group's full year adjusted operating profit* is
expected to be materially ahead of current consensus forecasts.
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 GBP23million. Unrestricted cash at 31 March 2021 is now
forecast to be c.GBP49million.
Dr Mark Payton, CEO of Mercia Asset Management PLC , said: "It
is very pleasing to be providing this trading update immediately
following the sale of Oxgene, and after the Group's strong interim
results announced in December 2020. Our specialist asset management
business is continuing to perform well, underpinned by our
increasing scale, leading market position and recurring revenue
model.
Less than two years ago we set out a clear strategy aimed at
making Mercia a sustainably profitable, cash generative, specialist
asset manager. We have now achieved this, establishing the
foundation for future profitable growth. The outlook for Mercia
beyond the current financial year is positive and we look forward
to reporting our full year results to 31 March 2021 in early
July."
* Adjusted operating profit is defined as operating profit
before realised gains on disposal of investments, fair value
movements in investments, share-based payments charge, depreciation
and amortisation of intangible assets.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 which is
part of UK law by virtue of the European Union (Withdrawal) Act
2018. Upon publication of this announcement, this inside
information is now considered to be in the public domain.
Ends
For further information, please contact:
Mercia Asset Management PLC
Mark Payton, Chief Executive Officer
Martin Glanfield, Chief Financial Officer +44 (0)330 223
www.mercia.co.uk 1430
Canaccord Genuity Limited (NOMAD and Joint +44 (0)20 7523
Broker) 8000
Simon Bridges, Emma Gabriel, Richard Andrews
+44 (0)20 7496
N+1 Singer (Joint Broker) 3000
Harry Gooden, James Moat
+44 (0)20 3727
FTI Consulting 1051
Tom Blackwell, Louisa Feltes, Shiv Talwar
mercia@fticonsulting.com
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on
supporting regional SMEs to achieve their growth aspirations.
Mercia provides capital across its four asset classes of balance
sheet, venture, private equity and debt capital: the Group's
'Complete Connected Capital'. The Group initially nurtures
businesses via its third-party funds under management, then over
time Mercia can provide further funding to the most promising
companies, by deploying direct investment follow-on capital from
its own balance sheet.
The Group has a strong UK footprint through its regional
offices, 19 university partnerships and extensive personal
networks, providing it with access to high-quality deal flow.
Mercia currently has c.GBP872million of assets under management
and, since its IPO in December 2014, has invested c.GBP106million
gross into its direct investment portfolio.
Mercia Asset Management PLC is quoted on AIM with the EPIC
"MERC".
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