Mercia Asset Management PLC (LSE:MERC) has announced a 37% increase in EBITDA for the year ending March 31, 2025. This strong financial performance has led to a proposed 5% rise in the final dividend and the launch of a £3 million annual share buyback program. The company’s assets under management have grown to £2 billion, driven by a combination of organic fund inflows and strategic acquisitions.
Looking ahead, Mercia aims to double its size and financial results by 2027, focusing on expanding its fund management business while gradually divesting direct investments to enhance shareholder value.
Outlook
While Mercia benefits from a strong balance sheet and positive corporate developments, it faces challenges including declining revenues and profitability pressures. Technical indicators currently show bearish trends, and valuation is affected by negative earnings. Nevertheless, ongoing corporate initiatives and a solid dividend yield offer some optimism.
About Mercia Asset Management
Mercia Asset Management PLC is a UK-based private capital asset manager dedicated to supporting regional SMEs. The company operates across venture capital, debt, private equity, and proprietary capital through its ‘Complete Connected Capital’ model. With a network of 11 regional offices and collaborations with universities, Mercia is well-placed to source high-quality investment opportunities. The company is listed on AIM under the ticker ‘MERC’.
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