Mercia Technologies PLC (LON:MERCM) H119 results reflected continued steady progress across the portfolio, with net assets rising slightly to £125.2m and FuM remaining stable at £394.9m. The direct investment portfolio increased 17.7% to £77.8m, reflecting £9.2m of cash investment as well as £2.6m fair value uplift. Key portfolio companies continue to deliver against commercial milestones and with c £60m of investment expected in FY19, Mercia is well positioned for further progress in FY19. The shares continue to trade at a significant discount to NAV (0.74x) and peer group comparators.
17.7% growth in direct investment portfolio
Mercia reported H119 net assets of £125.2m, which compares to £123.5m at FY18. As a result of a £9.2m of investment and £2.6m fair value uplift, the direct investment portfolio grew to £77.8m from £66.0m at FY18. Within the Mercia Fund Managers (MFM) subsidiary, FuM remained steady at £394.9m (vs c £400m at FY18). Importantly, MFM also contributed the majority of £5.27m revenues at H119 (vs £4.85m in H118), with a 19.1% reduction in operating expenses to £0.69m vs the comparable period (£0.85m for H118). Mercia continues to expect to invest c £60m during FY19, of which £20-25m will be direct balance sheet investments.
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