1st Mar 2021 16:08
Mercia Asset Management PLC - Warwickshire, England-based regionally-focused asset manager - Says trading has continued to be robust since interim results which were announced in early December. Says full-year adjusted operating profit expected to be materially ahead of current consensus forecasts, with revenue growth in the second half of the financial year coming alongside lower than anticipated staff related spending.
This "elevated" second half trading performance - coupled with Monday's announcement of the sale of Oxford Genetics Ltd to an international life sciences group - is likely to result in the group's full-year consolidated profit and total comprehensive income exceeding GBP23 million.
Mercia Asset held a 32.1% direct interest in Oxford Genetics at the date of completion, and will receive cash proceeds of GBP30.7 million, noting this is its largest cash exit to date. The sale results in a realised gain of GBP14.6 million above Oxford Genetics's GBP16.1 million direct investment holding value as at September 30.
"It is very pleasing to be providing this trading update immediately following the sale of Oxgene, and after the group's strong interim results announced in December 2020. Our specialist asset management business is continuing to perform well, underpinned by our increasing scale, leading market position and recurring revenue model," says Chief Executive Mark Payton.
Current stock price: 27.30 pence; up 14% on Monday
Year-to-date change: up 9.2%
By Lucy Heming;Â [email protected]
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