New research report freely accessible here: https://www.equitydevelopment....
H1-25 (to 30 Sep 24) saw further progress of the Mercia 27 strategy which targets £3bn AUM (FUM + proprietary capital) and c.£10m EBITDA by FY27.
AUM was up 26% y-o-y and 1% over H1-25, following a series of large mandate wins in late FY24. Mercia is one of very few London-listed asset managers with positive net flows over recent periods.
H1 revenue was up 19% y-o-y and EBITDA +34%, a margin of 20.8%, up from 18.4% in H1-24. This is likely to ratchet up over the longer term as the business scales. PBT increased 75% and basic EPS increased 37%.
Our valuation is sum-of-the-parts based coming out at 52p, and we see no reason to discount the direct portfolio NAV given Mercia’s record of exits at a premium to holding NAV.
