Business
NVT performance fee entitlement and trading update
NVT performance fee entitlement and trading update.
About this update from Mercia Asset Management Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5204T\n Mercia Asset Management PLC\n 25 November 2021\n \n \n \n \n \n \n \n \n \n RNS\n \n \n 25 November 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n Mercia Asset Management PLC\n \n \n \n \n \n (\"Mercia\", the \"Group\" or the \"Company\")\n \n \n \n \n \n NVT performance fee entitlement and trading update\n \n \n \n \n \n Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£940million of assets under management, is pleased to note that Northern Venture Trust PLC (\"NVT\", AIM: NVT), whose investment adviser is Mercia Fund Management Limited (\"MFM\"), a wholly owned subsidiary of Mercia, has released its audited results for the year ended 30 September 2021.\n \n \n \n \n \n As a consequence of the strong increase in NVT's net asset value per share, arising in large part from a number of successful exits and the IPO of musicMagpie plc, MFM is entitled to receive a gross performance fee of £2.5million. This revenue will be included in Mercia's interim consolidated financial statements for the six months ended 30 September 2021.\n \n \n \n \n Net of directly attributable staff costs and receipt of a small additional legacy fund performance fee, the performance fee contribution to the Group's interim results is £1.6million.\n \n Whilst still subject to review by Mercia's auditors and Board approval, the Group's consolidated profit and total comprehensive income for the six months ended 30 September 2021 is expected to exceed £10.0million, which is materially ahead of the prior period to 30 September 2020. Adjusted operating profit* for the year ending 31 March 2022, excluding the above net performance fee, is now expected to be materially ahead of market forecasts. Unrestricted cash and short-term liquidity investments as at 30 September 2021 was £52.1million and the Group remains debt free.\n \n \n *\n \n Adjusted operating profit is defined as operating profit before performance fees net of variable compensation, realised gains on disposal of investments, fair value movements in investments, share-based payments charge, depreciation, amortisation of intangible assets, movement in fair value of deferred consideration and exceptional items. It includes net finance income.\n \n \n \n...