‘Emerging stars’ help Mercia to £1.1m profit
TECHNOLOGY investor Mercia’s strategy is bearing fruit with rising value of its company investments helping it record half-year profits of more than £1m.
The successful integration of Enterprise Ventures Group into Mercia has helped boost its figures and bolstered its pipeline as it looks to identify the businesses it dubs “emerging stars”.
The Warwickshire-based business is focused on innovative businesses in the UK regions with the potential for high growth.
In the six months to September, it recorded a £1.13m profit, compared with a £750,000 loss in the same period in 2015. Revenues were up sharply to £2.89m, but it was a big shift in the fair value of its investments – up £2.56m – which drove its bottom line turnaround.
Mark Payton, chief executive of Mercia Technologies, said: “The output from Mercia’s strategy execution to date can be measured in three ways. Firstly, by the balanced and growing portfolio of direct investments, secondly by the significantly expanded pipeline of future potential direct investment prospects and finally, by the strengthened investment team. These tangible developments underpin the group’s objective of building a focused, sustainable and valuable investment business.”
Mercia invested 30% more than a year ago with net £5.7m going into three new and six existing direct investment portfolio companies. Also during the period, healthcare business Concepta floated on the Alternative Investment Market.
