Want to see GB:MERC full AI Analyst Report?
Top Page
Mercia Asset Management
(LSE:MERC)
Select Model
Select Model
Rating:52Neutral
Price Target:
27.00 p
▲(2.27% Upside)
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
£112.67M
Dividend Yield3.63%
Average Volume (3M)433.28K
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-2.25%
EPS Growth-350.00%
CountryUK
Employees133
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.02
Shares Outstanding421,211,060
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 Upside153.79% 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
Neutral
26.40
Price Trends
27.34
Negative
28.13
Negative
28.42
Negative
Market Momentum
-0.09
Negative
46.87
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MERC, the sentiment is Neutral. The current price of 26.4 is below the 20-day moving average (MA) of 26.58, below the 50-day MA of 27.34, and below the 200-day MA of 28.42, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | £234.30M | 14.90 | 14.29% | 6.90% | 0.66% | 11.49% | |
78 Outperform | £237.00M | 5.12 | 13.59% | 5.34% | 19.87% | -50.88% | |
70 Outperform | £138.55M | 10.81 | 11.90% | 9.26% | -22.86% | -56.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £191.80M | 19.90 | 8.74% | 6.46% | -20.90% | -40.53% | |
58 Neutral | £596.31M | 9.04 | 7.16% | ― | -35.12% | ― | |
52 Neutral | £112.67M | -13.18 | -4.78% | 3.67% | -2.25% | -350.00% |
* Financial Sector Average
GB:MERC
Mercia Asset Management
26.75
-4.77
-15.13%
GB:BPM
B.P. Marsh & Partners plc
676.00
17.37
2.64%
GB:CLIG
City of London Investment
481.00
133.43
38.39%
GB:IPX
Impax Asset Management
111.80
-65.42
-36.92%
GB:IPO
IP Group plc
66.30
8.00
13.72%
GB:LIO
Liontrust Asset Management
307.50
-41.69
-11.94%
Mercia Asset Management Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cuts Share Count with Ongoing Buyback
Positive
Jul 30, 2026
Mercia Asset Management has continued executing its previously announced share buyback programme, repurchasing 311,500 ordinary shares on AIM between 23 and 29 July at a volume-weighted average price of 26.43 pence. The shares bought back during t...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Mercia Asset Management publishes 2026 annual report and sets September AGM
Neutral
Jul 24, 2026
Mercia Asset Management has released its Annual Report and Accounts for the year to 31 March 2026, which are now available electronically on the company’s website and in printed form for shareholders who requested hard copies. The report pac...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia continues share buyback, trims share count on AIM
Positive
Jul 23, 2026
Mercia Asset Management has continued its previously announced share buyback programme, repurchasing 135,000 ordinary shares on AIM between 16 and 22 July at a volume-weighted average price of 26.50p. The latest transactions, executed by Canaccord...
Business Operations and StrategyPrivate Placements and Financing
Mercia Asset Management Secures £38m Metro Bank Facilities to Support Growth Plan
Positive
Jul 23, 2026
Mercia Asset Management has secured a new three-year financing package from Metro Bank comprising a £13.0 million term loan and a £25.0 million revolving credit facility, both priced over SONIA with margins linked to leverage. The facili...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Steps Up Capital Management With Latest Share Buyback
Positive
Jul 16, 2026
Mercia Asset Management has repurchased 250,000 ordinary shares on AIM between 9 and 15 July 2026 under its ongoing share buyback programme, paying a volume-weighted average price of 26.5p per share. The company intends to cancel these shares, sig...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia trims share count with latest buyback on AIM
Positive
Jul 9, 2026
Mercia Asset Management has repurchased 125,000 of its own ordinary shares on AIM between 2 July and 8 July 2026 under its previously announced share buyback programme. The purchases were executed at prices between 26.00p and 26.50p per share, wit...
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...
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.