Record organic growth in assets under management at Mercia, as it seeks to change tack

Published by

Nicky Godding

Mercia Asset Management PLC, the AIM-listed, Warwickshire-based regional asset manager, which has around £1.8 billion of assets under management, has achieved record fund inflows of around £562 million during the year, and increased revenues, EBITA, and operating profits, dividends and cash, according to its preliminary results for the year ended 31 March 2024.

Revenues for the year were £30.4 million, with third-party funds under management increasing by 32 per cent to £1,630 million.

Mercia now intends to focus on growing its funds under management, which will require it to be reclassified as a trading company and cease to be an investing company under AIM rules.

Mark Payton, Chief Executive Officer of Mercia, said: "The year to 31 March 2024 was characterised by market volatility, high inflation and high interest rates driving up the costs of doing business, alongside geopolitical uncertainty and a thankfully short-lived recession. It is therefore pleasing to have come through these universal headwinds with record organic growth in our assets under management, driven by Mercia's diversified and differentiated approach to making a positive impact for our investors and investees.

"Over the next three years as Mercia continues its natural evolution, and subject to shareholders approving our proposed new investment approach, we will seek to drive AuM to in excess of £3.0billion whilst doubling EBITDA, focused on building value for shareholders and our other key stakeholders as a growing and sustainable, specialist alternative asset manager."

Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe. After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts. She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.