Mercia Asset Management makes positive start to financial year

(Sharecast News) - Mercia Asset Management reported a positive start to the current financial year in an update on Thursday, driven by strong performance across both its equity and debt fund portfolios.

The AIM-traded firm, which was holding its annual general meeting, described its deal pipelines as robust, adding that it had continued capacity to deploy capital effectively across its fund portfolios.

That included support for existing portfolio companies and new investments, bolstered by the firm's significant liquidity position.

Non-executive chair Ian Metcalfe told shareholders that the group's financial position remained solid, with over £43m in cash and no debt on the balance sheet.

That healthy cash position supported the company's ability to yield returns, and provided a strong foundation for continued profitable growth in the second half of the financial year.

Mercia, which manages over £1.8bn in assets, said it was particularly encouraged by progress in its five new British Business Bank mandates.

"Our debt free balance sheet cash position of over £43m remains strong, together with its resultant yield," Metcalfe said.

"We therefore remain optimistic for continuing profitable progress across the group during the second half of the current financial year."

At 0922 BST, shares in Mercia Asset Management were down 1.54% at 32p.

Reporting by Josh White for Sharecast.com.