Mercia reports record revenues with strong financial performance

In a recent financial update, the Warwickshire-based Mercia Asset Management revealed a significant boost in its revenue, reaching £15 million in the six months leading up to 30 September 2023. This marks a substantial increase from the £12.1 million reported in the corresponding period last year.

The company’s chief executive highlighted the firm’s unprecedented financial strength, despite a notable shift in pre-tax profits, which decreased from £7.4 million to £1.3 million during the same timeframe.

Mercia Asset Management also experienced a considerable growth in EBITDA, which escalated by approximately 33% to £2.8 million, compared to the previous £2.1 million.

Furthermore, shareholders can anticipate a 6% rise in the interim dividend, now at 0.35 pence per share. Adding to its strategic financial manoeuvres, the company has initiated a share buyback scheme valued at up to £5 million.

“Mercia has never been financially stronger,” chief executive Mark Payton said. “The first six months of FY24 have witnessed record revenues derived predominantly from Mercia’s profitable and cash generative third-party fund management operations. 

“Mercia is now firmly established as a leading provider of private capital across venture, debt and private equity in the UK within the £500,000 to £20m range, with further attractive growth prospects across all of these discrete strategic asset classes.

“The group’s recent successful exit from its largest direct investment, nDreams, has materially increased Mercia’s debt-free liquidity position to circa £60m today. We are therefore pleased to announce a share buyback of up to £5m.”