Mercia Asset Management Plc · LSE:MERC
Mercia Asset Management — FY2025 Earnings Presentation
25 slides from Mercia Asset Management's earnings presentation, Jul 1, 2025
Slide 1: Preliminary Results
1 July 2025 Preliminary Results 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 man
Slide 3: Agenda
Agenda 1. Mercia, our model, the market opportunity 2. Financial review Dr Mark Payton Chief Executive Officer 3. Progress and outlook 4. In summary Martin Glanfield Chief Financial Officer Cover image: Ozzy, Birmingham New Street station Slide image: Morris & Co development of Stadium Point, Shrews
Slide 4: What is Mercia?
What is Mercia? Fast growing and scalable Mercia is a leading UK private capital asset manager, sourcing deals others do not always see We focus on the multibillions invested per annum, solely in the UK, into private capital, being debt and PE (development capital), property finance and venture and
Slide 5: Mercia's opportunity: Why?
Mercia’s opportunity… In 2021* there were 12,600 high-growth** businesses in the UK, of which c.21% were based in London However, approximately 66%*** of the investment deployed in the UK was into London-based businesses Why? * Office for National Statistics, 2021 ** Defined as employment growth of
Slide 6: Be where the deals are…
Be where the deals are… Newcastle Leeds Preston Hull Manchester Sheffield Nottingham Birmingham London Henley-in-Arden Bristol 6
Slide 7: Why Mercia?
Why Mercia? c.£284m invested in FY25: - c.£131m in venture and directs - c.£72m in development capital* - c.£81m in property lending *Includes non-property lending and PE Mercia’s portfolio companies as at 31 March 2025 7
Slide 8: Mercia '27 is on track
Mercia ’27 is on track FY24 FY25 FY26 FY27 Assets under management (“AuM”) £1.8bn £2.0bn → c.£3bn EBITDA £5.5m £7.6m → c.£10m EBITDA margin 18.2% 22.1% → c.26% Balance sheet divestiture £26.7m £0.6m → c.£84m Key FY25 milestones - Appointment of Dean Heaney as Head of Institutional Distribution - Fir
Slide 9: Mercia's opportunity
Mercia’s opportunity We expect allocations to UK private assets to grow steadily across venture capital, private debt and real assets, driven by regulatory change, policy momentum and portfolio diversification initiatives. Growth in UK private assets, supported by: - Mansion House Accord: DC pension
Slide 10: Financial review
Financial review Martin Glanfield 10 10
Slide 11: Financial highlights FY25
£34.4m +13.1% 43.6p Net assets Revenue* per share (2024: £30.4m) (2024: 43.4p) £7.6m +37.4% £2.0bn EBITDA* Assets under management Financial (2024: £5.5m) (2024: £1.8bn) highlights 0.58p +5.5% c.£316m FY25 Proposed final dividend per share Organic funds under management inflows *** (2024: 0.55p) (20
Slide 12: Sustained organic growth in revenue, EBITDA and cash generation
Sustained organic growth in revenue, EBITDA and cash generation Cash generated from Revenue* EBITDA* operating activities 40,000 8,000 10,000 9,000 35,000 7,000 8,000 30,000 6,000 7,000 25,000 5,000 £'000 £'000 £'000 6,000 20,000 4,000 5,000 4,000 15,000 3,000 3,000 10,000 2,000 2,000 5,000 1,000 1,
Slide 13: Sustained growth in AuM
Sustained growth in AuM 2,100 • c.15% organic fund inflows 2,000 • Funds raised across asset classes: AuM (£’m) 1,900 • Retail: c.£99m • Public sector c.£217m (British Business Bank, 1,800 West Midlands Combined Authority, West Midlands Pension Fund) 1,700 • No redemptions 1,600 1 Apr 2024 AuM Inflo
Slide 14: Long-dated, diversified AuM
Long-dated, diversified AuM • Enables c.80% recurring • Long-dated funds comprising revenues, with blended fee evergreen or 10-year LP type margin of c.2% structures – all closed end 22 188 390 516 928 795 AuM by AuM by 1,089 AuM by asset class investor type fund type (£’m) (£’m) (£’m) 850 509 379 1
Slide 15: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income For the year ended 31 March 2025 Year ended Year ended 31 March 31 March 2025 2024 APM basis £’000 £’000 Revenue 34,416 30,434 • Revenue up c.13% Administrative expenses (26,808) (24,897) EBITDA 7,608 5,537 • EBITDA up c.37% Net finance income 2,570 4,1
Slide 16: Consolidated statement of financial position
Consolidated statement of financial position As at 31 March 2025 As at As at 31 March 31 March 2025 2024 £’000 £’000 Goodwill and intangible assets 33,307 36,296 Property, plant, equipment and right-of use assets 880 839 Investments 125,960 116,861 • Direct portfolio: Total non-current assets 160,14
Slide 17: Consolidated statement of cash flows
Consolidated statement of cash flows For the year ended 31 March 2025 Year ended Year ended 31 March 31 March 2025 2024 £’000 £’000 Net cash generated from operating activities 8,719 7,084 • Cash generative, profitable fund Proceeds from sale of direct investments 601 26,696 management operations Pu
Slide 18: Capital allocation policy - shareholder value creation through selective M&A and increasing distributions
Capital allocation policy - shareholder value creation through selective M&A and increasing distributions • 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 Group V
Slide 19: Progress and outlook
-mercia S Progress ‘ and ‘out look -
Slide 20: Our 10-year growth story
Our 10-year growth story c.100% growth every three years Total direct Average Annual Third-party Annual Average Timeline investment investment deployment EBITDA FuM revenue headcount value size rate At IPO £23m £9m c.£0.2m c.£2m £0.8m £0m 7 FY25 £1.8bn £126m c.£2m c.£284m £34.4m £7.6m 143 Mercia lis
Slide 21: Direct investment portfolio as at 31 March 2025
Direct investment portfolio as at 31 March 2025 Net investment Net cash Investment Realised Fair value Net investment Equity value invested realisation gain/(loss) movement value percentage held Year of first as at Year to Year to Year to Year to as at as at direct 1 April 2024 31 March 2025 31 Marc
Slide 22: Direct investment portfolio – top assets
Direct investment portfolio – top 10 assets Focused on execution Strengthened C-suite 2025 OEM launch New game launched Continued partner progress Product in market Expanding user base Developing trial plans Cash breakeven Expanding games group 22
Slide 23: Sustainability and responsible investment
Sustainability and responsible investment Policy Key developments over the past 12 months: Continuous Due Diligence - Appointed a dedicated Sustainability Manager Improvement - Implemented a new strategy which embeds sustainability across each stage of the investment lifecycle across all asset class
Slide 24: AuM expansion
AuM expansion 3,500 3,000 2,500 Real assets AuM (£’m) c.55% 2,000 Proprietary capital CAGR Development capital 1,500 Property finance Venture capital 1,000 500 - 31-Mar-15 31-Mar-25 31-Mar-27 target 24
Slide 25: In summary: tailwinds for growth
In summary: tailwinds for growth Increasing shareholder returns through dividends Blended fee and annual margin of buybacks Predictable c.2% revenue, Diversified c.80% by recurring origination, Strong asset class domestic and investor growth type prospects in private markets 25
Mercia Asset Management — FY2025 Earnings Presentation on 6ix