Confirmation of unrestricted liquidity position

RNS Number : 6628S

Mercia Asset Management PLC

13 March 2023

 

RNS	13 March 2023

Mercia Asset Management PLC

("Mercia", the "Group" or the "Company")

Confirmation of unrestricted liquidity position

Mercia Asset Management PLC (AIM: MERC), the debt free, proactive and regionally focused specialist asset manager with c.£1.4billion of assets under management, confirms that the Group does not bank with any Silicon Valley Bank ("SVB") entity.

All of its consolidated balance sheet cash, which on 10 March 2023 was c.£39million, is held in bank accounts with Barclays, Lloyds, HSBC and Santander, with the vast majority on very short notice periods to provide maximum flexibility and availability.

A very small number of the Group's direct investment portfolio have bank accounts with SVB, but their credit balances are relatively small due to their scale and cash burn rates. Mercia therefore has sufficient liquidity to support these investees, should a short term need arise.

Dr Mark Payton, CEO of Mercia Asset Management PLC, said: " Mercia's business model was developed specifically to only invest in businesses with relatively low capital needs. Our interconnected pools of capital and debt free, highly liquid balance sheet ensures that investee company liquidity risk can be mitigated. Furthermore, our treasury policy has always prioritised capital preservation by spreading credit risk across leading UK banks."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain.

 -Ends-

For further information, please contact:

Mercia Asset Management PLC Mark Payton, Chief Executive Officer Martin Glanfield, Chief Financial Officer www.mercia.co.uk	[phone]
Canaccord Genuity Limited (NOMAD and Joint Broker)	[phone]
Simon Bridges, Emma Gabriel
Singer Capital Markets (Joint Broker)	[phone]
Harry Gooden, James Moat
FTI Consulting	[phone]
Tom Blackwell, Immy Ransom
[e-mail]

About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of venture, private equity, debt and proprietary capital: the Group's 'Complete Connected Capital'. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.

The Group has a strong UK footprint through its regional offices, university partnerships and extensive personal networks, providing it with access to high-quality deal flow.

Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".

 

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