Want to see GB:MERC full AI Analyst Report?
Top Page
Mercia Asset Management
(LSE:MERC)
Select Model
Select Model
Rating:60Neutral
Price Target:
33.00 p
▲(22.22% Upside)
Action:Reiterated
Date:10/02/26
The score is primarily supported by a very strong, low-debt balance sheet and continued positive free cash flow, which help cushion volatility. Offsetting this, FY2026 saw weakening revenue and a return to losses, limiting confidence in sustainable profitability. Technically, the trend is positive, but overbought signals (high RSI) and a negative P/E keep the overall score moderate.
Positive Factors
Very low leverage
Mercia’s exceptionally low leverage provides resilience during periods of weaker investment performance and reduces solvency and refinancing pressure. The substantial equity base also preserves flexibility to support funds, maintain operations, and pursue opportunities without relying heavily on additional borrowing.
Negative Factors
Revenue contraction
A sharp year-over-year revenue decline weakens confidence in near-term growth and shows that Mercia’s fee and investment-related income can contract materially. Sustained pressure would reduce resources available for investment in the platform and make it harder to rebuild durable earnings momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Mercia’s exceptionally low leverage provides resilience during periods of weaker investment performance and reduces solvency and refinancing pressure. The substantial equity base also preserves flexibility to support funds, maintain operations, and pursue opportunities without relying heavily on additional borrowing.
Read all positive factors
Mercia Asset Management (MERC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£127.90M
Dividend Yield3.28%
Average Volume (3M)447.88K
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 Outstanding419,344,450
10 Day Avg. Volume146,617
30 Day Avg. Volume447,883
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 Upside148.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)<0.01
Revenue Forecast (FY)£35.00M
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 Asset Management makes money primarily through asset management activities and secondarily through investment returns on its own balance-sheet investments.
1) Investment management fees (recurring)
- The company earns management fees for m...
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
Positive
27.00
Price Trends
27.90
Positive
27.32
Positive
27.59
Positive
Market Momentum
0.86
Positive
76.57
Negative
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MERC, the sentiment is Positive. The current price of 27 is below the 20-day moving average (MA) of 29.73, below the 50-day MA of 27.90, and below the 200-day MA of 27.59, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 76.57 is Negative, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | £247.67M | 6.25 | 11.00% | 5.18% | 31.43% | -60.23% | |
75 Outperform | £210.10M | 11.56 | 15.69% | 5.12% | 5.81% | 19.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | £113.00M | 8.82 | 11.90% | 10.72% | -22.86% | -56.06% | |
62 Neutral | £174.17M | 18.07 | 8.74% | 6.75% | -20.90% | -41.22% | |
60 Neutral | £127.90M | -15.02 | -4.78% | 3.28% | -2.25% | -350.00% | |
55 Neutral | £650.20M | 4.74 | 14.25% | 2.09% | -37.29% | ― |
* Financial Sector Average
GB:MERC
Mercia Asset Management
30.50
1.53
5.28%
GB:BPM
B.P. Marsh & Partners plc
700.00
59.38
9.27%
GB:CLIG
City of London Investment
434.00
80.29
22.70%
GB:IPX
Impax Asset Management
93.30
-85.23
-47.74%
GB:IPO
IP Group plc
73.60
14.20
23.91%
GB:LIO
Liontrust Asset Management
281.50
-11.30
-3.86%
Mercia Asset Management Corporate Events
Business Operations and StrategyFinancial Disclosures
Mercia Asset Management Sets Date for Interim Results and Investor Presentations
Neutral
Oct 20, 2026
Mercia Asset Management PLC has announced it will publish its interim results for the six months ended 30 September 2026 on 1 December 2026, signalling an upcoming update on its financial performance and portfolio activity. The company is maintain...
Business Operations and StrategyStock Buyback
Mercia Asset Management cancels repurchased shares and updates capital structure
Positive
Oct 15, 2026
Mercia Asset Management PLC has continued its previously announced share buyback programme, repurchasing a total of 200,000 ordinary shares on AIM between 8 and 14 October 2026 at a volume-weighted average price of 29.44 pence. The company intends...
Business Operations and StrategyExecutive/Board Changes
Mercia Asset Management grants new share options to senior staff
Positive
Oct 13, 2026
Mercia Asset Management has granted options over 600,000 ordinary shares to several senior employees under its 2024 Employee Share Plan. The options, priced at 30.5 pence per share and subject to performance conditions, will vest in three equal tr...
Stock BuybackRegulatory Filings and Compliance
Mercia Tightens Share Base with Latest Buyback on AIM
Positive
Oct 8, 2026
Mercia Asset Management has continued to execute its share buyback strategy, repurchasing 460,000 ordinary shares on AIM between 1 and 7 October at a volume-weighted average price of 28.04 pence. The move reflects ongoing capital management effort...
Stock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels 180,000 Shares Under Ongoing Buyback
Positive
Oct 1, 2026
Mercia Asset Management has continued to execute its previously announced share buyback programme, repurchasing 180,000 ordinary shares on AIM between 24 and 30 September at prices between 27.25p and 28.00p. The company plans to cancel the repurch...
Business Operations and StrategyShareholder Meetings
Mercia Asset Management Wins Full Shareholder Backing at AGM
Positive
Sep 24, 2026
Mercia Asset Management PLC has confirmed that all resolutions proposed at its Annual General Meeting, held on 24 September 2026, were duly passed by shareholders. The AGM outcome signals continued shareholder support for the Company’s strat...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Mercia Asset Management Reports Strong Start and Wins New British Business Bank Mandate
Positive
Sep 24, 2026
Mercia Asset Management reported a strong start to its current financial year, citing healthy deal flow, significant fund liquidity and solid technical and commercial progress across its direct investment portfolio. The company has drawn part of i...
Business Operations and StrategyStock Buyback
Mercia steps up buybacks as it cancels shares and fulfils staff options
Positive
Sep 24, 2026
Mercia Asset Management has continued its previously announced share buyback programme, repurchasing 325,000 ordinary shares on AIM between 17 and 23 September at a volume-weighted average price of 27.5 pence. The company intends to cancel these s...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Continues Share Buyback, Plans Cancellation of Repurchased Shares
Positive
Sep 17, 2026
Mercia Asset Management PLC has continued its share buyback programme on AIM, repurchasing 229,000 ordinary shares between 10 and 15 September 2026 at a volume-weighted average price of 27.50 pence. The purchases form part of the previously announ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Continues Share Buybacks, Tightens Equity Base
Positive
Sep 10, 2026
Mercia Asset Management has continued to execute its share buyback programme, repurchasing 220,000 ordinary shares on AIM between 3 and 9 September 2026 at a volume-weighted average price of 27 pence. The company intends to cancel these shares, re...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels 30,000 Shares in Ongoing Buyback
Positive
Sep 3, 2026
Mercia Asset Management has repurchased 30,000 ordinary shares at a price of 26.5p each as part of its ongoing share buyback programme covering the period from 27 August to 2 September 2026. The company intends to cancel these shares, reducing the...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia trims share capital with buybacks and option-related transfers
Positive
Aug 27, 2026
Mercia Asset Management has repurchased 200,000 ordinary shares on the London Stock Exchange between 20 and 25 August under its ongoing share buyback programme, at a volume-weighted average price of 26.50p. The company plans to cancel these shares...
Business Operations and StrategyExecutive/Board Changes
Mercia Executives Reinvest Bonuses to Lift Personal Stakes
Positive
Aug 21, 2026
Mercia Asset Management has disclosed that its chief executive Mark Payton, chief financial officer Martin Glanfield and chief operating officer Jocelyne Bath have collectively purchased 276,334 Mercia ordinary shares on the AIM market. The acquis...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management reduces share count through ongoing buybacks
Positive
Aug 20, 2026
Mercia Asset Management has continued executing its previously announced share buyback programme, repurchasing 283,812 ordinary shares on AIM between 13 and 19 August 2026 at a volume-weighted average price of 26.60 pence. The company intends to c...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels 100,000 Shares After Latest Buyback
Positive
Aug 13, 2026
Mercia Asset Management has repurchased 100,000 ordinary shares on AIM between 6 and 12 August 2026 under its ongoing share buyback programme, paying a volume-weighted average price of 26.5 pence per share. The company intends to cancel the newly ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mercia Asset Management Cancels Shares After Latest Buyback Tranche
Positive
Aug 6, 2026
Mercia Asset Management has repurchased 122,000 ordinary shares on the London Stock Exchange between 30 July and 5 August 2026 under its ongoing share buyback programme, at a volume-weighted average price of 26.48 pence. The company plans to cance...
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...
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.