Mercia Asset Management Plc · LSE:MERC
Mercia Asset Management — H1 FY2026 Earnings Presentation
27 slides from Mercia Asset Management's earnings presentation, Dec 2, 2025
Slide 1: Interim Results
Interim Results Six months to 30 September 2025 Unlocking prosperity across the UK – region by region 2 December 2025 1
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 mana
Slide 3: Agenda
Agenda 1. Mercia, our model and the market opportunity 2. Financial review 3. Progress and outlook Martin Glanfield Chief Financial Officer 4. In summary Dr Mark Payton Chief Executive Officer 3
Slide 4: What is Mercia?
What is Mercia? A leading UK private capital asset manager sourcing deals others do not always see Purpose Wealth creation and prosperity for all our stakeholders First choice for Investees, Fund Investors, Employees and Vision Shareholders Regional UK capital deployment (Venture, Development Capita
Slide 5: Mercia's opportunity
Mercia’s opportunity In 2021* there were However, approximately Why? 12,600 high-growth** 66%*** of the investment businesses in the UK, of deployed in the UK was which c.21% were based into London-based in London businesses * Office for National Statistics, 2021 ** Defined as employment growth of 2
Slide 6: Be where the deals are
© = mercia s! management Be where the deals are... With offices in: Newcastle « Leeds « Hull « Sheffield « Nottingham London e Bristol e Henley-in-Arden e Birmingham Manchester e Preston
Slide 7: Large addressable growth markets
Large addressable growth markets VENTURE CAPITAL* DEVELOPMENT CAPITAL* PROPERTY FINANCE** Between £4bn - £6bn was Between £5bn - £10bn was Between £6bn - £14bn was invested in the UK in 2024 from invested in the UK in 2024 for invested in the UK in 2024 in early stage to Series A (Mercia’s investmen
Slide 8: New asset allocations
New asset allocations • We expect allocations to UK private assets to grow steadily across venture capital, development capital, property finance and real assets, driven by regulatory change, policy momentum and portfolio diversification initiatives. Growth in UK private assets, supported by: • >£4b
Slide 9: UK investment market c.£9trillion
UK investment market c.£9trillion UK Investment market AUM by Client Group (2023-2024) DB Pensions £1,900bn (25.8%) Retail Funds £1,430bn (19.4%) Insurers £900bn (12.2%) All figures are rounded Individual DC/SIPPs £750bn (10.2%) estimates based on the most recent available data from DC Pensions £600
Slide 10: H1 FY26 financial review
H1 FY26 financial review 10 10
Slide 11: Interim financial results
£17.2m –3.9% 43.4p Revenue Net assets per share (H1 2025: £17.9m) (31 March 2025: 43.6p) Interim £4.2m +13.7% £2.0bn financial results EBITDA (H1 2025: £3.7m) Assets under management (31 March 2025: £2.0bn) Six months to 30 September 2025 0.39p +5.4% c.£52m Organic funds under management Interim div
Slide 12: Sustained sequential EBITDA and EBITDA margin growth
Sustained sequential EBITDA and EBITDA margin growth EBITDA EBITDA margin 4.4 25% 4.2 24% 4.0 23% 3.8 22% £m % 3.6 21% 3.4 20% 3.2 19% 3.0 18% H1 2025 Organic growth H2 2025 Organic growth H1 2026 H1 2025 Organic growth H2 2025 Organic growth H1 2026 • H1 EBITDA £4.2million, up c.14% (H1 2025: £3.7m
Slide 13: Resilient assets under management
Resilient assets under management 2,100 • Fund inflows across asset classes: 2,000 • EIS - c.£11m • VCT - c.£36m • NPIF I Equity – c.£5m 1,900 • No redemptions AuM (£’m) 1,800 • Post-period end inflows: • VCT – c.£38m 1,700 1,600 1 Apr 2025 AuM Inflows Performance Distributions 30 Sept 2025 Post-per
Slide 14: Long-dated, diversified FuM
Long-dated, diversified FuM • Over 80% recurring revenues, • Long-dated funds comprising evergreen or 10-year LP type structures – all closed end with blended fee margin of c.2% 210 400 517 FuM by 522 FuM by FuM by 776 asset class investor type fund type (£’m) (£’m) (£’m) 959 454 1,081 402 118 Ventu
Slide 15: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income For the six months ended 30 September 2025 Unaudited Unaudited Audited Six months ended Six months ended Year ended 30 September 30 September 31 March 2025 2024 2025 £’000 £’000 £’000 Revenue 17,201 17,908 34,416 Administrative expenses (12,977) (14,192
Slide 16: Consolidated statement of financial position
Consolidated statement of financial position As at 30 September 2025 Unaudited Unaudited Audited as at as at as at 30 September 30 September 31 March 2025 2024 2025 £’000 £’000 £’000 Goodwill and intangible assets 31,811 34,801 33,307 Property, plant, equipment and right-of use assets 1,424 1,054 88
Slide 17: Consolidated statement of cash flows
Consolidated statement of cash flows For the six months ended 30 September 2025 Unaudited Unaudited Audited Six months ended Six months ended Year ended 30 September 30 September 31 March 2025 2024 2025 £’000 £’000 £’000 Cash generated from operating activities 1,474 3,995 9,409 • Cash generative, p
Slide 18: Cumulative shareholder returns
Cumulative shareholder returns 30.0 25.0 20.0 £’m 15.0 10.0 5.0 0.0 FY21 FY22 FY23 FY24 FY25 H1 FY26 * Cumulative shareholder returns (dividends + share buybacks) * Includes FY26 interim dividend that will be paid to shareholders on 14 January 2026 18
Slide 19: Capital allocation policy
Capital allocation policy • Internally estimated Mercia weighted average cost of capital (“WACC”) of c.9% • All three previous acquisitions have generated returns in excess of the Group’s WACC Enterprise Ventures VCT fund management Frontier Development Group contracts Capital Acquired March 2016 Ac
Slide 20: Progress and outlook
Progress and outlook 20
Slide 21: Direct investment portfolio
Direct investment portfolio For the six months ended 30 September 2025 Year of Net investment value Net cash invested Fair value movement Net investment value Equity percentage first as at six months to six months to as at held as at direct 1 April 2025 30 September 2025 30 September 2025 30 Septemb
Slide 22: Top direct investments
Top 10 direct investments FY26 target FY27 target Outstanding c.£7.5m-£10m c.£50m-£70m c.£40m Moving towards breakeven Revenue growth and good Pivotal clinical trial First OEM launch expected New game development customer retention 2026 Developing commercial Cash breakeven and expanding Developing c
Slide 23: Seeing many of the best
Seeing many of the best c.£95m invested in H1: • c.£43m in venture and direct investments • c.£33m in development capital • c.£19m in property finance 23 23
Slide 24: Mercia '27 is on track
Mercia ‘27 is on track FY24 FY25 FY26 FY27 Key H1 FY26 milestones Assets under • Building FuM pipeline management (“AuM”) £1.8bn £2.0bn → c.£3bn • c.£52m inflows this period EBITDA £5.5m £7.6m → c.£10m • Improving operational efficiency resulting in increased EBITDA and EBITDA margin EBITDA margin 1
Slide 25: Increasing operational efficiency
Increasing operational efficiency FY25 FY26 FY27 H1 Full year H1 Full-year target Revenue £17.9m £34.4m £17.2m AuM £1.8bn £2bn £2bn £3bn AuM / employee c.£13m c.£14m c.£15m - EBITDA £3.7m £7.6m £4.2m £10m EBITDA margin c.21% c.22% c.24% c.26% Implementation of Start of system unified IT with unifica
Slide 26: Fund inflows
Fund inflows c.£880m FuM inflow pipeline for the remainder of Mercia ‘27 FuM as at 30 September FY26 FY27 Investor type 2025 target target Retail £522m £60m £70m Public sector £1,081m £32m £168m Institutional £210m £50m £500m Total £1,813m £142m £738m 26
Slide 27: In summary…tailwinds for growth
In summary…tailwinds for growth Strong domestic Diversified by Predictable Blended fee Increasing growth region, deal revenue, c.80% margin of c.2% shareholder prospects for origination, recurring cash returns: private markets’ asset class and c.£25m to date * investable assets investor type * Inclu
Mercia Asset Management — H1 FY2026 Earnings Presentation on 6ix