Research on Mercia Asset Management PLC (MERC:LON) from Equity Development
Funding for growth. Mercia has secured a new three-year funding agreement with Metro Bank worth up to £38m, comprising a £13m term loan facility and a £25m revolving credit facility, strengthening balance sheet flexibility. Mercia-27 strategy. The facility supports delivery of the Mercia-27 plan, which targets growth in funds under management to £3.0bn, with strategic acquisitions expected to play an important role. Valuation unchanged. Following management’s comments that an acquisition during FY27 is a realistic possibility, forecasts are unchanged. We reiterate our sum-of-the-parts Fair Value of 54p per share.
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