Technology investor enjoys solid growth

Mark Payton

Mercia Technologies has enjoyed a strong period of growth across its business as it continues to see a strong pipeline of opportunity.

Its direct investments, funds under management and the key measure of net asset value (NAV) per share all rose in the first half of its financial year. Mercia increased its pre-tax profits by 26% to £1.4m in the period.

Mercia has also revealed it has completed the first closing of a 10-year growth fund, Enterprise Ventures Growth II LP, with initial commitments totalling £45.1m.

Mark Payton, chief executive of Mercia Technologies PLC, said: “The market sentiment and entrepreneurs’ sentiment and finance availability is all positive.”

The investment group targets innovative technology businesses with high-growth potential that are based in the regions.

“Growth is the central theme throughout these interim results,” said Payton. “We are pleased with the progress that our direct investments are making and the fair value increase has, in part, occurred as a result of successful syndicated investment rounds.

“We are also encouraged by the increase in the quantum of funds under management as this enables Mercia to continue to build a sustainable pipeline of potential future direct investments, with the aim of becoming the leading provider of Complete Capital in the key regions of the Midlands, the North of England and Scotland to deliver value for our shareholders.”

Mercia manages third party funds, including the Northern Powerhouse Investment Fund, which it uses to identify the strongest companies which it then labels as an “Emerging Star” and considers for direct investment to fund scale-up.

The Stratford-upon-Avon-based company invested £9.7m in the six months to September in nine of its portfolio companies, with most of the money being put in as part of syndicated investments. It included £2.0m for Oxford Genetics and nDreams, £1.9m into Warwick Audio Technologies, and £1.5m into Impression Technologies.

Payton added: “Mercia is well capitalised, with a highly liquid balance sheet and circa five years of investment capital within its managed funds. The Group is therefore capable of supporting both its existing direct investments and its future ‘Emerging Stars’.

“We look forward to maintaining this momentum in the second half of the year as we continue to build a sustainable and ultimately self-sufficient investment model.”

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