Mercia Asset Management is a regionally focused specialist asset manager. Its stated intent is to become the leading regional provider of supportive balance sheet, venture, private equity and debt capital in transaction sizes typically below £10m.
More Mercia Asset Management content >Investment summary
Mercia announced an attractive exit from Faradion (#2 holding) in January 2022 (for £100m, cash proceeds to Mercia of £19.4m and an uplift of c 1.5p per share) as well as Aonic’s £20.1m investment in nDreams (#1 holding) in March 2022, implying a £78m valuation for nDreams and an uplift for Mercia of £8.1m (1.8p per share) from its September 2021 carrying value. As the sector has been squeezed, Mercia trades at an attractive discount to its H122 NAV/s of 42.4p and an even deeper discount to our FY22 estimated NAV/s of at least 46p (before factoring in the profitable third-party funds business).
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 12.7 | 0.3 | (15.5) | (4.55) | N/A | 230.2 |
| 2021A | 23.4 | 7.1 | 36.9 | 8.38 | 3.5 | 22.6 |
| 2022E | N/A | N/A | N/A | N/A | N/A | N/A |
| 2023E | N/A | N/A | N/A | N/A | N/A | N/A |
Industry outlook
Technology valuations had a very strong run in 2021 as COVID-19 fears eased, with sustained valuations amidst a robust funding environment. With the market rotation towards value and out of growth, sector discounts have widened across the board, but the underlying portfolio performance has remained robust. This may present an attractive buying opportunity for longer-term investors.
Last updated on 30/06/2022Content on Mercia Asset Management
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TMT
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Share price graph
Balance sheet |
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| Forecast net debt (£m) | N/A |
| Forecast gearing ratio (%) | N/A |
Price performance
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12m |
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Key management |
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| Dr Mark Payton | CEO |
| Martin Glanfield | CFO |
| Julian Viggars | CIO |