**Summary of Mercia Asset Management PLCs Interim Results for the Six Months Ended 30 September 2025**
Mercia Asset Management PLC, a UK-based private capital asset manager, reported robust interim results for the first half of its financial year ending 30 September 2025. Key highlights include
1. **Financial Performance**
**Revenue**£17.2 million, a slight decrease from £17.9 million in the same period last year, primarily due to lower capital deployment and associated transaction fees.
**EBITDA**Increased by 14% to £4.2 million, with an EBITDA margin expansion to 24.6% (up from 20.8% in H1 2025), driven by operational efficiencies and technology adoption.
**Profit Before Taxation**£2.5 million, compared to £2.4 million in H1 2025.
**Basic Earnings Per Share**: 0.39pconsistent with the prior year.
2. **Dividend**
Interim dividend increased by 5% to 0.39p per share, reflecting strong EBITDA growth and margin expansion.
3. **Assets Under Management (AuM)**
Total AuM remained stable at £2.0 billion, with third-party funds under management (FuM) increasing slightly to £1.813 billion.
Venture FuM grew to £959 million, supported by successful fundraising for Northern Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) funds.
Development capital and property finance FuM also saw increases to £454 million and £400 million, respectively.
4. **Direct Investment Portfolio**
Fair value of the direct investment portfolio increased to £131.1 million (from £125.96 million in FY 2025), with £5.5 million net invested into five portfolio companies.
Notable valuation adjustments include a positive impact from Medherant’s latest investment round and impairments for Netacea and VirtTrade due to slower revenue growth.
5. **Post-Period Developments**
First share allotment of £38 million completed for the Northern VCT’s £50 million fundraise.
Launch of the £35 million North East Accelerate Fund in October 2025.
Board changesDr Jonathan Pell retired, succeeded by Janine Nicholls as Chair of the Audit and Risk Committee.
6. **Strategic Focus**
Continued emphasis on regional focusoperational efficiencyand disciplined investment approach.
Commitment to ESG principles, with enhanced due diligence and materiality assessment tools for new funds.
Strong liquidity position with £34.5 million in cash and cash equivalents, supporting growth and shareholder returns.
7. **Outlook**
Optimistic about continued momentum in fundraising and investment opportunities, particularly in venture capital and regional private markets.
Confident in achieving three-year goals of growing AuM to £3.0 billion, EBITDA to £10.0 million, and EBITDA margin to 26% by 31 March 2027.
Overall, Mercia Asset Management demonstrated resilience and growth despite macroeconomic uncertainties, positioning itself well for sustainable long-term value creation.
| Metric | 30 Sep 2025 | 30 Sep 2024 | 31 Mar 2025 | Change (YoY) |
|---|---|---|---|---|
| Revenue (£'m) | 17.2 | 17.9 | 35.2 | -3.9% | tr>
| Operating Profit (£'m) | 1.8 | 1.3 | 2.8 | +38.5% |
| Profit Before Taxation (£'m) | 2.5 | 2.4 | 5.4 | +4.2% |
| Basic Earnings Per Share (pence) | 0.39 | 0.41 | 0.80 | -4.9% |
| Interim Dividend Per Share (pence) | 0.39 | 0.37 | 0.95+5.4% | |
| Cash and Cash Equivalents (£'m) | 34.5 | 46.2 | 40.1 | -25.3% |
| Net Assets (£'m) | 187.1 | 187.4 | 187.9 | -0.2% |
| AuM (£'m) | 2,000 | 1,837 | 1,988 | +9.4% |
| EBITDA (£'m) | 4.2 | 3.7 | 7.6 | +13.7% |
| EBITDA Margin (%) | 24.6% | 20.8% | 22.1% | +18.3% |
| Net Debt (£'m) | (34.5) | (46.2) | (40.1) | +25.3% |