MERCIA ASSET MANAGEMENT PLC - Full Year Results

To be informed of all MERCIA ASSET MANAGEMENT PLC's upcoming presentations, register at InvestorMeetCompany: https://www.investormeetcompany.com/m... 0:00 Introduction 2:04 Our strategic priorities 10:00 Financials 13:20 Portfolio Spotlight 17:41 Direct Investment 27:06 Q&A Mercia Asset Management plc’s FY2026 investor update highlighted resilient company performance and continued execution of its growth strategy, with revenue remaining stable at £34.1m while EBITDA increased 6% to £8.1m, supported by improved operational efficiency and expanding margins. The specialist asset manager delivered record third-party fund inflows of £357m, a 51% year-on-year increase, taking assets under management to £2.2bn and reinforcing the strength of its scalable private markets platform. Management reiterated its strategic focus on simplifying the business by exiting its direct investment portfolio over time, allowing greater emphasis on its high-quality, recurring asset management operations, where 83% of revenue is contracted. Despite lower valuations within the direct investment portfolio due to weaker private market multiples rather than underlying trading performance, Mercia reported strong progress across many portfolio companies and maintained a robust £26.4m cash position, supporting dividend growth and ongoing share buybacks. Looking ahead, the company expects favourable UK market conditions, a strong fundraising pipeline, and increasing institutional demand to support further growth in funds under management, EBITDA, and margins, while targeting continued expansion across venture capital, development capital and property finance. Management believes the strategic simplification of the business and sustained growth in recurring revenues will enhance shareholder value and strengthen Mercia’s position as a leading UK private asset manager.