Why this regional investor expects positive momentum to continue as it reveals £8.2m in profit

Mercia, which views Yorkshire as a 'heartland', said revenue, excluding performance fees of £2.6m, increased 20.7 per cent to £10.1m for the six months ended September 30, 2021, up from £8.4m in the same period last year.

While profit after tax increased 35.2 per cent to £11.2m, up from £8.2m in the first half last year.

The business now has assets under management (AUM) of around £948m, up from £872m in the same period last year.

Mark Payton, CEO of Mercia, said: “I am pleased with this strong performance and the continued growth and value creation that we have delivered across our portfolio in the six-month period under review.

"I believe that against a backdrop of economic recovery, this positive momentum is set to continue, reinforcing our position as one of the most active UK investors in our chosen areas across venture, private equity and debt.

"Our total AUM has now increased to circa £948m, circa £762m of which is third-party funds under management, and we remain confident in achieving our three-year objectives of growing AUM on average by 20 per cent per annum while also delivering a cumulative £60m in profit before tax.

"The success of our ‘Complete Connected Capital’ approach and ability to provide such a breadth of flexible financing solutions is evidenced by the variety of regional investments we have originated, and notably 38 of our 74 investments made, represented new opportunities.

"Complementing this is our growing reputation for achieving strong exits for our investors and investee management teams, with nine exits successfully realised across our third-party managed funds and direct investment portfolios during the period.

"I’m delighted that this year we’ve been able to deliver a trebling of the group’s interim dividend indicating our confidence in the sustainability and resilience of Mercia’s hybrid investment model.”

Mercia announced an interim dividend of 0.3 pence per share, up from 0.1 pence per share in the same period last year.

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