Mercia Technologies (MERC) has had a good year that saw portfolio valuation growth, expansion in its operations and mandate wins for its fund management business. A UK-based investment group, Mercia runs third-party managed funds that support innovative, high-growth technology businesses. Mercia then identifies a few ‘emerging star’ portfolio companies and provides these with additional direct investment from its own balance sheet.
Net assets per share grew to 40.4p at the end of March 2017, from 37.5p a year earlier. The value of Mercia’s direct investment portfolio increased by 36 per cent to £52m.
The successful sale of Allinea Software to Arm – the technology company specialising in mobile microprocessors – in December 2016 provided a fair value uplift of 88 per cent on Mercia’s direct investment cost, while the successful Aim float of Concepta, a women’s health diagnostics business, led to an uplift of £2m in fair value there. Meanwhile, nDreams - a portfolio company focused on virtual reality games and content - grew its fair value by 133 per cent to £11m, following a syndicated investment round.
Cenkos forecasts net assets of £118.9m or net asset value (NAV) per share of 39.6p at the March 2018 year-end.
| MERCIA TECHNOLOGIES (MERC) | ||||
| ORD PRICE: | 34.5p | MARKET VALUE: | £ 104m | |
| TOUCH: | 34-35p | 12-MONTH HIGH: | 57.5p | LOW: 32.5p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 73 | |
| NET ASSET VALUE: | 40p | NET CASH: | £28.8m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013* | 0.5 | 0.0 | na | na |
| 2014* | 0.7 | 0.0 | na | na |
| 2015** | 0.5 | 2.0 | 0.9 | nil |
| 2016 | 1.8 | -1.7 | -0.8 | nil |
| 2017 | 6.7 | 1.0 | 0.5 | nil |
| % change | +279 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Pre-IPO figures **14-week period to 31 March 2015 | ||||
