Mercia Asset Management Plc · LSE:MERC
Mercia Asset Management — FY2019 Earnings Presentation
25 slides from Mercia Asset Management's earnings presentation, Jul 8, 2019
Slide 1: Mercia Asset Management PLC Preliminary Results 2019
Mercia Asset Management PLC Preliminary Results 2019
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 ma
Slide 3: Mercia Asset Management PLC
Mercia Asset Management PLC A proactive specialist asset manager with c.£500m in AuM via balance sheet capital alongside third-party equity and debt funds We combine regional presence with operational insight and investment expertise, to create a sustainable competitive advantage Our strategy is to
Slide 4: The team: a track record of value creation
The team: a track record of value creation Dr Mark Payton Martin Glanfield Julian Viggars CEO CFO CIO 4 Mercia Asset Management PLC
Slide 5: Mercia's investment model
Mercia’s investment model 5 Mercia Asset Management PLC
Slide 6: Mercia's 'Complete Capital' – March 2019
Mercia’s ‘Complete Capital’ – 31 March 2019 Venture Private equity Debt Balance sheet Total FuM Total FuM Total FuM NAV £224m £61m £96m £126m Total invested 2002-2019 Total invested 2004-2019 Total invested 2002- 2019 Total invested 2014-2019 £182m £39m £114m £84m Returns to date Returns to date Ret
Slide 7: Our market
Our market • Mercia invests: • In the UK regions • Venture (seed to scale up), P.E. (growth and MBO) and debt • Balance sheet capital for the most promising investees • Where Mercia has operational and/or tech expertise • Up to £10m per investee • Large, addressable, growing regional market: • c.£1.
Slide 8: Why does Mercia focus on the regions?
Why does Mercia focus on the regions? Equity investment High growth firms • 8 offices (85+ employees) • 19 university partnerships 46% 20% 8 Mercia Asset Management PLC
Slide 9: Strategic objectives
Strategic objectives FY 20 – 22 FY 15-19 In the regions, from the regions, to the Establish model & regions. First choice asset manager to prove regional value investees, investors & employees • >96% of investments outside of London • Number 1 in the UK regions • c.£500m AuM • Grow AuM to ≥£1bn • FY
Slide 10: Financials
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Slide 11: Summary financial information
Summary financial information Year ended Year ended 31 March 2019 31 March 2018 £’000 £’000 Income statement - key items Revenue 10,675 10,197 Administrative expenses (12,115) (10,633) Net expenses (1,440) (436) Realised gains on disposal of investments - 871 Fair value movements in investments 3,91
Slide 12: Direct investment progress since IPO
Direct investment progress since IPO 100 90 80 70 £’m 60 Realisations 50 Fair value movements Cash invested 40 Opening book value 30 20 10 0 2014/15 2015/16 2016/17 2017/18 2018/19 12 Mercia Asset Management PLC
Slide 13: Mercia's AuM by specialist asset class
Mercia’s AuM by specialist asset class Debt Balance sheet capital 19% 25% Private equity 12% Venture 44% 13 Mercia Asset Management PLC
Slide 14: Direct investments (balance sheet capital)
Direct investments (balance sheet capital) 14
Slide 15: Direct investment holdings
Direct investment holdings Investment Net cash Fair value Investment Percentage value invested movement value held As at Year to Year to As at As at 1 April 31 March 31 March 31 March 31 March 2018 2019 2019 2019 2019 £’000 £’000 £’000 £’000 % nDreams Ltd 12,979 1,029 1,112 15,120 45.5 Oxford Geneti
Slide 16: Direct investment portfolio - holding proportions
Direct investment portfolio - holding proportions 16 Mercia Asset Management PLC
Slide 17: Direct investment portfolio – analysis at March 2019
Direct investment portfolio – analysis at 31 March 2019 Portfolio value by sector Portfolio value by stage of development Software & the Internet 8% 21% 28% 30% Profitable Digital & Digital Entertainment Revenue growth Electronics, Materials, Early stage 24% 27% Manufacturing/Engineering 62% Life Sc
Slide 18: Progress FY19; direct investments
Progress FY19; direct investments 2 new investments from 17 companies £19.4m invested c.400 funds’ portfolio 14% IRR 18 Mercia Asset Management PLC
Slide 19: Direct investments
Direct investments 33.3% equity stake 45.5% equity stake Holding value £10.2m Holding value £15.1m 19
Slide 20: Fund Management (third party FuM)
Fund Management (third party FuM) 20
Slide 21: Progress FY19; venture
Progress FY19; venture 2,217 enquiries 61 companies £30.5m invested 15% investor IRR c.95x return 528% TVPI 21 Mercia Asset Management PLC
Slide 22: Progress FY19; private equity
Progress FY19; private equity 113 enquiries 2 new companies £8.5m invested 19% investor IRR 236% TVPI 22 Mercia Asset Management PLC
Slide 23: Progress FY19; debt
Progress FY19; debt 462 enquiries 65 companies £15.0m invested 107% being returned 23 Mercia Asset Management PLC
Slide 24: Mercia Asset Management
Mercia Asset Management sustainable and diversified To achieve this See the best NAV Increase Profitable deals growth FuM trading (before FVM & realisations) 24 Mercia Asset Management PLC
Slide 25: Mercia Asset Management PLC contact
0330 223 1430 @Mercia_PLC info@mercia.co.uk Mercia Asset Management PLC mercia.co.uk
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