Mercia Asset Management Plc · LSE:MERC
Mercia Asset Management — FY2026 Earnings Presentation
27 slides from Mercia Asset Management's earnings presentation, June 2026
Slide 1: Preliminary Results
Preliminary Results Year ended 31 March 2026
Slide 2: Important notice
Important notice This document contains statements about Mercia Asset Management PLC that are or may be forward-looking statements. Forward-looking statements include statements relating to (i) future revenues, expenses, earnings, financial condition and future prospects; and (ii) business and manag
Slide 3: Contents
Contents Martin Glanfield 01 Our strategic priorities and markets Chief Financial Officer 02 Financial review 03 Direct investment portfolio 04 Progress and outlook 05 In summary Dr Mark Payton Chief Executive Officer 3
Slide 4: What is Mercia and our strategic priorities for FY27
What is Mercia and our strategic priorities for FY27 01 02 03 04 SIMPLIFY THE BUSINESS DEAL ORIGINATION SALES AND DISTRIBUTION INVESTMENT PERFORMANCE • Divestiture of the entire direct • Sourcing deals others do not • Retail, via tax-efficient products • Highly experienced investment investment bala
Slide 5: Large addressable growth markets
Large addressable growth markets VENTURE CAPITAL DEVELOPMENT CAPITAL PROPERTY FINANCE £4bn - £6bn invested in the UK in 2024 from £5bn - £10bn invested in the UK in 2024 for £4bn - £6bn invested in the UK in 2024 in early stage to Series A (Mercia's current target investment ranges of £0.5m to £10m
Slide 6: FY26, a year of FuM growth and operational efficiency
FY26, a year of FuM growth and operational efficiency A leading UK regional capital platform, connecting investment prospects that others may not see to private capital markets through a single investment ecosystem FY26 FY26 vs FY25 FY25 Revenue £34.1m -0.8% £34.4m EBITDA £8.1m +6.5% £7.6m EBITDA ma
Slide 7: Mercia '27
Mercia ‘27 Targets to be achieved via organic growth and M&A FY24 FY25 FY26 Mercia ‘27 Assets under management (“AuM”) £1.8bn £2.0bn £2.2bn* c.£3bn EBITDA £5.5m £7.6m £8.1m c.£10m EBITDA margin 18.2% 22.1% 23.7% c.26% Direct investment portfolio divestiture £0.6m £0.6m c.£84m** We are exploring opti
Slide 8: Financial review
mercia asset management Q2 Financial review
Slide 9: Financial highlights
Financial highlights +12% +2.3pp £34.1m £8.1m 1.00p Revenue* EBITDA* Total dividends per share** FY25: £34.4m FY25: £7.6m FY25: 0.95p £26.4m £173.6m 40.8p Cash Net assets Net assets per share FY25: £40.1m FY25: £187.9m FY25: 43.6p * APM basis: excludes VCT performance fees totalling £nil (2025: £0.8
Slide 10: EBITDA & margin growth
EBITDA (£’m) EBITDA margin (%) EBITDA & 9 25 £8.1m 23.7% 8 £7.6m margin 22.1% 20 7 growth 18.2% 6 £5.5m 15 5 4 10 £8.1m 3 2 5 Full year EBITDA 1 Up c.6% vs FY25 0 0 FY24 FY25 FY26 FY24 FY25 FY26 23.7% EBITDA margin Up c.7% vs FY25 Sustained margin improvement driven by operating leverage and cost di
Slide 11: Growing assets under management
Growing assets under management 2,300 FUNDS RAISED 2,250 £230m EIS c.£13m 2,200 VCT c.£74m 2,150 £127m (£4m) Public sector c.£40m (£19m) (£95m) c.£127m 2,100 £’m 2,050 OTHER INFLOWS*: £1,997m 2,000 £1,988m EIS c.£5m 1,950 VCT c.£41m Public sector c.£184m 1,900 c.£230m 1,850 1 Apr 2025 Inflows Transi
Slide 12: Long-dated, diversified FuM
Long-dated, diversified FuM BY ASSET CLASS BY INVESTOR TYPE BY FUND TYPE 196 400 516 FuM by FuM by FuM by 785 asset class 522 investor type fund type (£'m) 988 (£'m) (£'m) 1,105 435 410 112 Venture Development capital Property finance Public sector Retail Institutional LP EIS VCT Other • c.83% recur
Slide 13: Consolidated statement of comprehensive income
FOR THE YEAR ENDED 31 MARCH 2026 Consolidated statement of comprehensive income HIGHLIGHTS Year ended Year ended APM basis (£'000) 31 Mar 2026 31 Mar 2025 Revenue 34,136 34,416 Administrative expenses (26,034) (26,808) EBITDA 8,102 7,608 Performance fees - 785 c.6% EBITDA growth Variable compensatio
Slide 14: Consolidated statement of financial position
AS AT 31 MARCH 2026 Consolidated statement of financial position HIGHLIGHTS As at As at 31 Mar 2026 31 Mar 2025 Goodwill and intangible assets 30,318 33,307 Property, plant and equipment / RoU assets 1,180 880 Investments 124,766 125,960 Total non-current assets 156,264 160,147 Trade and other recei
Slide 15: Consolidated statement of cash flows
FOR THE YEAR ENDED 31 MARCH 2026 Consolidated statement of cash flows HIGHLIGHTS Year ended Year ended 31 Mar 2026 31 Mar 2025 Cash generated from operating activities 6,532 9,409 Consistently cash-generative, profitable fund management Corporation tax paid (2,746) (690) operations Net cash from ope
Slide 16: Shareholder returns
Shareholder returns c.£26.8m 1.00p Total returns to date* FY26 total dividends per share** +c.5% £3.0m Dividend growth year-on-year Share buyback completed in year * Cumulative shareholder returns paid since initiating dividend payments in FY21 and the share buyback programme in FY24, plus the propo
Slide 17: Direct investment portfolio
03 Direct investment portfolio 17
Slide 18: Direct investment portfolio
AS AT 31 MARCH 2026 Direct investment portfolio Net Net investment Net cash Investment Realised Fair value investment Equity value invested realisation gain/(loss) movement value held First As at Year to Year to Year to Year to as at As at direct 1 April 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar inv
Slide 19: Faster, richer customer insight
PORTFOLIO SPOTLIGHT Faster, richer customer insight An enterprise qualitative insights platform using video and AI to help brands understand customers faster, and with richer evidence $153bn $56bn $62bn 20.6% Insights industry Market research Research software Equity stake held £13.3m Holding value
Slide 20: The sound of serenity (JLR)
PORTFOLIO SPOTLIGHT The sound of serenity (JLR) Ultra-lightweight, high-performance electrostatic audio experience Target markets Automotive audio, premium personal audio and emerging 30.7% immersive and wellness-focused markets Equity stake held £12.9m Technological innovation Patented High Precisi
Slide 21: Protecting high-value digital channels
PORTFOLIO SPOTLIGHT Protecting high-value digital channels Enterprise bot protection for websites, mobile apps and APIs, with a strong proposition in high-value, high-traffic digital channels. £19bn £10bn £2.6bn 33.4% TAM – 122k companies SAM – 65k companies SOM – 16,491 companies Equity stake held
Slide 22: Direct investment portfolio & valuation
Direct investment portfolio & valuation 01 02 Balance sheet portfolio Valuation methodology Sector split (no.) AI impact (no.) Valuation methodology (£’m) • Follow IPEVCV Guidelines • Just under half of portfolio value based 2 4 on price of last investment round 5 6 • Enterprise value based on recen
Slide 23: Progress and outlook
04 Progress and outlook 17
Slide 24: FY26 Capital deployment
FY26 Capital deployment c.£230m invested in FY26: c.£111m c.£46m c.£61m c.£12m Venture capital Development capital Property finance Direct investment portfolio 23
Slide 25: FY26 organic sales & distribution
FY26 organic sales & distribution Of the 40 VCTs fundraising, only 10 achieved their target raise and five achieved an over- Retail allocation. Mercia-managed Northern VCTs were three of these, achieving an £80m raise against an original £50m target. Mercia was awarded additional allocations into fo
Slide 26: Growth targets
Growth targets £3,500m Organic FuM inflow targets by investor type £3,000m Notified Target inflows Investor FY26*^ inflows for for FY27 FY26* £2,500m Retail £568m £133m £35m £2,000m £1,500m Public sector £1,289m £224m* £163m £1,000m Institutional £196m £0m £300m £500m Total £2,053m £357m £498m - FY1
Slide 27: In summary…tailwinds for growth
In summary…tailwinds for growth Strong domestic Diversified by region, Predictable Blended fee margin Increasing growth prospects for deal origination, revenue, c.83% of 1.74% shareholder cash private markets’ asset class and recurring returns: c.£26.8m to investable assets investor type date * * In
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