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Mercia Asset Management
(LSE:MERC)
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Rating:52Neutral
Price Target:
27.00 p
▼(-10.00% Downside)
Action:Reiterated
Date:07/02/26
The score is held back primarily by weak and volatile profitability (FY2026 returned to a sizable loss with declining revenue) and bearish technical momentum (below major moving averages with negative MACD). These risks are partially offset by a very conservatively financed balance sheet and continued positive free cash flow, with an additional modest support from the ~3.6% dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage gives Mercia durable financial flexibility to fund operations, support portfolio companies, and absorb valuation volatility. A conservative capital structure reduces solvency risk and preserves optionality to invest or withstand downturns over the next several months.
Negative Factors
Volatile profitability
Sharp swings from profit to sizable loss demonstrate weak operating leverage and inconsistent cost control. Such volatility undermines predictability of performance fees and ROE, complicating capital allocation and investor returns planning over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage gives Mercia durable financial flexibility to fund operations, support portfolio companies, and absorb valuation volatility. A conservative capital structure reduces solvency risk and preserves optionality to invest or withstand downturns over the next several months.
Read all positive factors
Mercia Asset Management (MERC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£113.91M
Dividend Yield3.59%
Average Volume (3M)433.28K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-2.25%
EPS Growth-353.75%
CountryUK
Employees138
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.02
Shares Outstanding421,879,550
10 Day Avg. Volume493,965
30 Day Avg. Volume433,276
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.68
Price to Sales (P/S)3.46
P/FCF Ratio25.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£67.00Price Target Upside123.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.01
Revenue Forecast (FY)£34.96M
Mercia Asset Management Business Overview & Revenue Model
Company Description
Mercia Asset Management PLC functions as a private equity and venture capital firm, dedicating its expertise to a full spectrum of investment stages. This includes initial incubation, seed EIS, early-stage, emerging growth, mid-venture, late-stage...
How the Company Makes Money
Mercia primarily makes money by managing assets and investments for third-party clients and earning fees linked to those mandates, alongside returns from its own principal investments.
1) Recurring management fees (third-party AUM): A core revenu...
Mercia Asset Management Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 34.14M | 35.20M | 30.43M | 25.03M | 33.06M |
| Gross Profit | 30.57M | 18.41M | 15.97M | 13.23M | 22.09M |
| EBITDA | -4.01M | 8.99M | -4.68M | 4.49M | 25.70M |
| Net Income | -8.61M | 3.46M | -7.58M | 2.84M | 26.10M |
Balance Sheet | |||||
| Total Assets | 187.30M | 203.49M | 204.91M | 218.19M | 214.80M |
| Cash, Cash Equivalents and Short-Term Investments | 26.38M | 40.09M | 46.94M | 37.83M | 61.28M |
| Total Debt | 940.00K | 758.00K | 702.00K | 907.00K | 452.00K |
| Total Liabilities | 13.74M | 15.58M | 15.67M | 15.27M | 14.21M |
| Stockholders Equity | 173.56M | 187.91M | 189.24M | 202.92M | 200.59M |
Cash Flow | |||||
| Free Cash Flow | 4.69M | 8.59M | 6.97M | 3.48M | 13.51M |
| Operating Cash Flow | 4.95M | 8.72M | 7.08M | 3.55M | 13.59M |
| Investing Cash Flow | -11.90M | -9.31M | 9.85M | -18.16M | -9.25M |
| Financing Cash Flow | -6.76M | -6.25M | -7.55M | -3.89M | -2.78M |
Mercia Asset Management Technical Analysis
Negative
30.00
Price Trends
28.41
Negative
28.48
Negative
28.77
Negative
Market Momentum
-0.60
Negative
36.42
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MERC, the sentiment is Negative. The current price of 30 is above the 20-day moving average (MA) of 27.28, above the 50-day MA of 28.41, and above the 200-day MA of 28.77, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 36.42 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MERC.
Mercia Asset Management Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | £233.34M | 14.73 | 14.29% | 8.15% | 0.66% | 11.49% | |
78 Outperform | £241.78M | 5.20 | 13.59% | 3.21% | 19.87% | -50.88% | |
70 Outperform | £135.89M | 10.60 | 11.90% | 17.93% | -22.86% | -56.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £208.51M | 21.63 | 10.12% | 21.31% | -20.90% | -40.53% | |
61 Neutral | £570.69M | 8.65 | 7.16% | ― | -35.12% | ― | |
52 Neutral | £113.91M | -13.30 | 1.79% | 3.29% | -2.25% | -353.75% |
* Financial Sector Average
GB:MERC
Mercia Asset Management
27.00
-5.00
-15.63%
GB:BPM
B.P. Marsh & Partners plc
686.00
24.53
3.71%
GB:CLIG
City of London Investment
482.00
149.18
44.82%
GB:IPX
Impax Asset Management
112.20
-82.13
-42.26%
GB:IPO
IP Group plc
64.60
6.00
10.24%
GB:LIO
Liontrust Asset Management
337.00
-13.60
-3.88%
Mercia Asset Management Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Tightens Free Float with Latest Share Buybacks
Positive
Jul 2, 2026
Mercia Asset Management has continued executing its share buyback programme, repurchasing 185,000 ordinary shares on AIM between 25 June and 1 July 2026 at a volume-weighted average price of 28.18 pence. The company plans to cancel these shares, r...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Mercia Asset Management boosts dividend as EBITDA hits record despite valuation hit
Positive
Jun 30, 2026
Mercia Asset Management reported record EBITDA of £8.1 million and an expanded EBITDA margin of 23.7% for the year to 31 March 2026, despite statutory revenue dipping to £34.1 million and a £7.7 million pre-tax loss driven by a ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels 200,000 Shares Under Ongoing Buyback
Positive
Jun 25, 2026
Mercia Asset Management has continued to execute its previously announced share buyback programme, repurchasing 200,000 ordinary shares on AIM between 18 and 23 June 2026 at prices ranging from 29.00p to 29.50p. The company intends to cancel these...
Business Operations and StrategyPrivate Placements and Financing
Mercia backs Warwick Acoustics with fresh funding to scale JLR partnership
Positive
Jun 25, 2026
Mercia Asset Management has led a new funding round for portfolio company Warwick Acoustics, which develops next-generation electrostatic audio systems for automotive and personal audio markets. The business recently saw its technology launched in...
Business Operations and StrategyStock Buyback
Mercia Asset Management Cancels Further Shares After Buyback on AIM
Positive
Jun 18, 2026
Mercia Asset Management has repurchased 250,000 ordinary shares on the London Stock Exchange between 11 and 17 June 2026 as part of its ongoing share buyback programme. The purchases were executed at prices between 29.0p and 29.5p per share, with ...
Business Operations and StrategyFinancial Disclosures
Mercia Asset Management sets online investor presentation for preliminary results
Neutral
Jun 17, 2026
Mercia Asset Management PLC, the AIM-quoted regional private capital asset manager with over £2.0 billion of assets under management, will present its preliminary results to investors via an online event on 30 June 2026. The live presentation...
Stock BuybackRegulatory Filings and Compliance
Mercia Asset Management Buys Back 250,000 Shares for Cancellation
Positive
Jun 11, 2026
Mercia Asset Management has continued to execute its previously announced share buyback programme, repurchasing 250,000 ordinary shares on AIM between 4 and 10 June at a consistent price of 28.75p. The company plans to cancel these shares, which w...
Stock BuybackRegulatory Filings and Compliance
Mercia cancels 250,000 shares in latest buyback tranche
Positive
Jun 4, 2026
Mercia Asset Management has repurchased 250,000 ordinary shares on AIM between 28 May and 3 June 2026 as part of its ongoing share buyback programme. The purchases, executed by Canaccord Genuity at volume-weighted average prices around 29 pence, a...
Business Operations and StrategyStock Buyback
Mercia Asset Management Cancels 100,000 Shares in Ongoing Buyback
Positive
May 28, 2026
Mercia Asset Management has continued its share buyback programme, repurchasing 100,000 ordinary shares on AIM between 21 and 26 May 2026 at prices around 29 pence. The company intends to cancel these shares, reducing the number of ordinary shares...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Advances Share Buyback, Cuts Free-Float Stock
Positive
May 21, 2026
Mercia Asset Management has continued executing its share buyback programme with the repurchase of 225,000 ordinary shares on AIM between 14 and 20 May 2026, at a volume-weighted average price of 29.16p. The company plans to cancel these shares, w...
Business Operations and StrategyStock Buyback
Mercia Asset Management Buys Back 180,000 Shares Under Ongoing Programme
Positive
May 14, 2026
Mercia Asset Management has repurchased 180,000 ordinary shares on AIM between 7 and 13 May 2026 as part of its ongoing share buyback programme launched on 1 April 2026. The purchases, executed at prices between 29.10p and 30.00p per share, reflec...
Business Operations and StrategyFinancial Disclosures
Mercia Asset Management Secures £1m from Realisation of Former Direct Investments
Positive
May 13, 2026
Mercia Asset Management has received approximately £1 million in cash proceeds over the past six months from the realisation of three former direct investments: Impression Technologies, LM Technologies and Fortis Frontier. While individually ...
Business Operations and StrategyRegulatory Filings and Compliance
Mercia updates share capital after transfer of treasury shares
Neutral
May 11, 2026
Mercia Asset Management has transferred 26,776 ordinary shares from treasury to satisfy the exercise of employee share options, reflecting the use of its equity-based incentive schemes. Following this transfer, the company’s issued share cap...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia continues buyback with 160,000 shares repurchased on AIM
Neutral
May 7, 2026
Mercia Asset Management has continued to execute its previously announced share buyback programme, repurchasing 160,000 ordinary shares on AIM between 30 April and 6 May at prices between 29.5p and 30.0p. The transactions, carried out by Canaccord...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels Further Shares Under Buyback Programme
Positive
Apr 30, 2026
Mercia Asset Management has continued to execute its previously announced share buyback programme, repurchasing 135,000 ordinary shares on AIM between 23 and 28 April 2026 at prices between 29.40p and 30.00p. The move forms part of the companyR...
Business Operations and StrategyProduct-Related Announcements
Mercia Portfolio Firm Powers Range Rover’s First Electrostatic Car Audio System
Positive
Apr 29, 2026
Mercia Asset Management has highlighted a key milestone for portfolio company Warwick Acoustics, whose technology underpins the SV Electrostatic Sound system announced by Range Rover as the world’s first automotive electrostatic audio system...
Stock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels 510,000 Shares After Latest Buyback Tranche
Positive
Apr 23, 2026
Mercia Asset Management has repurchased 510,000 of its own ordinary shares on AIM between 16 and 22 April 2026, at prices ranging from 29.0p to 30.0p under its previously announced share buyback programme. The company plans to cancel the repurchas...
Business Operations and StrategyRegulatory Filings and Compliance
Mercia Updates Share Capital After Treasury Transfer for Employee Options
Neutral
Apr 20, 2026
Mercia Asset Management has transferred 37,190 ordinary shares from treasury to satisfy employee share option exercises, reflecting the use of equity-based incentives within the Group. Following this move, the Company’s issued share capital ...
Business Operations and StrategyStock Buyback
Mercia Asset Management Cancels 260,000 Shares Under Ongoing Buyback
Positive
Apr 16, 2026
Mercia Asset Management has continued its previously announced share buyback programme, repurchasing 260,000 ordinary shares on AIM between 9 and 15 April 2026 at a volume-weighted average price of 28.00 pence. The company plans to cancel these sh...
Business Operations and StrategyStock BuybackFinancial Disclosures
Mercia Asset Management Lifts Earnings Outlook and Extends Buybacks on Strong Fund Inflows
Positive
Apr 16, 2026
Mercia Asset Management said trading remained robust in the second half of its 2026 financial year and now expects EBITDA to come in materially ahead of market forecasts. The group highlighted more than £200 million of proposed mandate increa...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels 130,000 Shares in Latest Buyback Move
Positive
Apr 9, 2026
Mercia Asset Management has repurchased 130,000 of its own ordinary shares on AIM between 1 and 8 April 2026 as part of its recently launched share buyback programme. The company intends to cancel these shares, reducing the number of ordinary shar...
Other
Mercia Director Increases Stake with Share Purchase
Positive
Apr 8, 2026
Mercia Asset Management has disclosed that non-executive director and Audit Risk Committee chair Janine Nicholls has acquired 73,229 ordinary shares in the company at 27.90p per share. Following the transaction, Nicholls holds 0.02% of MerciaR...
Business Operations and StrategyRegulatory Filings and Compliance
Mercia Asset Management Updates Voting Rights After Treasury Share Transfer
Neutral
Apr 7, 2026
Mercia Asset Management has transferred 74,380 ordinary shares from treasury to satisfy employee share option exercises, a move that marginally increases the number of shares in circulation. Following the transaction, the company’s issued sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.