Shares in Mercia Asset Management PLC has risen 10% today (writing at 3.30pm) after it said this morning that it expects FY26 EBITDA to be ‘materially ahead of expectations’.
The regionally focused investor, which has over £2 billion of assets under management, pointed to notification of proposed increases to existing fund mandates, plus successful VCT and EIS fundraises, in the final three months of the year.
These totalled in excess of £200 million, which Mercia said “represents a strong and continuing endorsement of our asset management growth strategy, particularly in the context of the current turbulent market conditions”.
There were no redemptions during FY26. Mercia will announce its results for the year ended 31st March 2026 on 30th June.
“We are pleased to update that Mercia has once again had a positive finish to the financial year,” said CEO Dr Mark Payton.
“Our fourth quarter notification of proposed increases in both the duration and quantum of certain existing fund mandates, coupled with our successful VCT and EIS fundraises and strong trading performance, is continuing testament to our clear strategy of focusing on growing our profitable private asset management capabilities.
“It also reflects Mercia’s longstanding ability to deploy significant equity and debt funding to where it is needed across the UK, through our established regional footprint of 11 offices and our extensive deal flow networks, to generate attractive returns over time for our investors.
“Notwithstanding the current macro-economic and global market turmoil, with our debt free cash position as at 31st March 2026 of £26m, Mercia has entered the new financial year in a very strong financial position.”
On 31st March the group completed its £3m share buyback programme and in line with its annual share buyback policy, it has subsequently commenced a new programme of up to £3m for the financial year ending 31st March 2027.