Mercia Asset Management reports record fund inflows

(Sharecast News) - Mercia Asset Management released its trading summary for the financial year ended 31 March on Wednesday, with organic fund inflows surpassing £0.5bn, marking a record and reflecting a 40% surge in third-party funds under management since the start of the financial year. The AIM-traded firm said there were no redemptions.

Frontier Development Capital, a key segment within Mercia's portfolio, exceeded expectations by accomplishing one of its two-year contingent deferred consideration targets eight months ahead of schedule.

Specifically, it achieved a net new institutional third-party fund raising target of £100m.

Despite operating within a challenging market landscape characterised by constrained new fund raisings, private capital co-investment, and exits and IPOs, Mercia said its direct investment portfolio continued to demonstrate commendable technical and commercial progress.

As of 31 March, Mercia maintained a healthy closing cash and cash equivalents position of about £47m, while also remaining debt-free.

"Mercia's record year of organic fund inflows for 2024, which exceeded £0.5bn, is testament to our investment performance, together with the operational teamwork of everyone in our group," said chief executive officer Dr Mark Payton.

"It also reflects Mercia's ability to effectively deploy equity and debt funding across the UK, through our established regional footprint. We continue to be pleased with the performance of Frontier Development Capital and we remain encouraged by the overall development of our direct investment portfolio.

"Our significant closing debt free cash position as at 31 March of £47m, means that Mercia enters the new financial year in a strong financial and liquidity position, across both its managed funds and balance sheet."

Mercia said it would announce its full-year results on 2 July.

At 1125 BST, shares in Mercia Asset Management were up 5.44% at 35.85p.

Reporting by Josh White for Sharecast.com.