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Mercia records portfolio gains after Google mandate

The technology investor's virtual reality and health diagnostics companies made strides
Mercia records portfolio gains after Google mandate

Three concerns keep Mark Payton, boss of Mercia Technologies (MERC), up at night: growth stalling among the technology investor's direct holdings; its managed funds failing to generate enough cash to cover investment costs; and staff, whose industry expertise and ties to start-ups and universities help the company find exciting prospects, losing interest and leaving. Shareholders can sleep soundly, as his fears didn't materialise in the reported period. Indeed, £5.7m in further investments and a valuation uplift of £2.8m boosted the fair value of Mercia's investment portfolio by 22 per cent to £46.6m.

IC TIP: Hold at 49p

Mercia made nine direct investments, expanding its portfolio to 26 companies at the year-end and raising investment to £30m since its listing in December 2014. Its managed funds raised £8.6m and invested £11.5m in 58 companies, strengthening the pipeline of future investment prospects.

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