Mercia Asset Management

LN: MERC

£80.1m market cap

26.4p last close

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.

Investment summary

Mercia Asset Management is a regionally focused specialist asset manager. Its target is to become the leading regional provider of supportive balance sheet, venture, private equity and debt capital in transaction sizes typically below £10m. Mercia remains well positioned for further progress in FY20 with key portfolio companies strategically well placed, together with firepower from the group’s £168m of free cash and £30m of unrestricted balance sheet cash. The shares continue to trade at a 20%+ discount to NAV.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 10.2 (0.4) 3.5 1.17 22.6 N/A
2019A 10.7 (1.4) 3.0 1.00 26.4 N/A
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Last updated on 17/10/2019
Industry outlook

Investor sentiment towards early-stage investors in general has remained negative in H119, with stocks typically trading at a meaningful discount to NAV. This has only been exacerbated by the recent fallout from Woodford, a major investor in the patient capital sector. In H219, we expect investors to continue to differentiate between stocks that offer the potential for meaningful exits in a realistic timeframe and those that do not.

Last updated on 17/10/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (16.2) (25.2) (12.3)
Relative* (15.0) (22.6) (14.3)
52-week high/low 38.7p/26.4p
*% relative to local index
Key management
Dr Mark Payton CEO
Martin Glanfield CFO
Julian Viggars CIO