Share buyback programme

1 July 2025

Mercia Asset Management PLC

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

Share buyback programme

Mercia Asset Management PLC (AIM: MERC), the regionally focused, private capital asset manager with c.£2.0billion of assets under management, today announces that it is commencing a share buyback programme of up to £3.0million (the "Share Buyback Programme"), in line with the new annual share buyback policy announced in its full year results today. Shares bought back will be cancelled.

The Share Buyback Programme will be for on market purchases of up to £3.0million of Ordinary shares in the Company (the "Maximum Monetary Amount"), in accordance with certain pre-set parameters (the "Share Buyback"). The Share Buyback will take place within the limitations of the authority granted to the Board of Mercia to repurchase Ordinary shares granted by its shareholders from time to time (at the Company's Annual General Meeting, held on 26 September 2024, shareholders gave the Company authority to purchase a maximum of 43,109,572 Ordinary shares, equivalent to 10 per cent. of its issued share capital as at 26 July 2024) (the "General Authority").

Mercia has entered into arrangements with Canaccord Genuity Limited ("Canaccord Genuity")(the "Broker") to conduct this year's Share Buyback Programme on its behalf on a broker-managed basis in relation to the purchase of Ordinary shares of Mercia (the "Ordinary Shares").

The Broker will make trading decisions in relation to Shares purchased under the Share Buyback Programme independently of, and uninfluenced by, Mercia.

Further details of the Share Buyback Programme

- The purpose of the Share Buyback Programme is to reduce the share capital of the Company and to return capital to those shareholders wishing to participate in the Share Buyback.

- The Share Buyback will be financed from existing cash resources.

- The aggregate number of Ordinary shares acquired by the Company pursuant to the Share Buyback shall not exceed the maximum number of Ordinary Shares which the Company is authorised to purchase pursuant to the General Authority, set out above.

- In accordance with the General Authority, the maximum price paid per Ordinary Share acquired by the Company pursuant to the Share Buyback is to be no more than the higher of: (i) 5% above the average of the mid-market value of the Ordinary Shares for the five business days before the purchase is made; and (ii) the higher of the last independent trade and the highest current independent bid, for any number of Ordinary Shares on the trading venue where the purchase is carried out. Furthermore, in accordance with the General Authority the minimum price payable per Ordinary Share acquired by the Company pursuant to the Share Buyback is 0.001 pence.

- It is intended that the Share Buyback Programme will be conducted within the volume limits of the exemption contained in Article 5(1) of the Regulation. However, given the limited liquidity in the Shares, the Company has agreed that, on any trading day, a buy-back of Ordinary Shares under the Share Buyback Programme may exceed 25 per cent. but remain below 50 per cent. of the average daily trading volume in the Shares in the 20 trading days preceding the date on which a buy-back of Ordinary Shares is carried out. Accordingly, the Company may not benefit from the exemption contained in the Market Abuse Regulation (EU 596/2014) with respect to such trading dates.

- The Share Buyback will commence on the date of this announcement and will continue until the earlier of (i) the publication of the Company's preliminary results for the year ended 31 March 2026 and (ii) the point at which the total monetary value of Ordinary Shares purchased under the Share Buyback reaches the Maximum Monetary Amount or the process is terminated or paused.

- The purchased Ordinary Shares will be cancelled.

- Share buybacks will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. There is no certainty that any buybacks will be completed. The Share Buyback may be paused at any time if deemed appropriate by the Brokers with respect to market conditions.

- The Company is not in a close period and currently has no unpublished inside information.

- The Share Buyback will operate in accordance with and under the terms of the relevant General Authority.

- The Company confirms that as at 30 June 2025, its issued share capital consisted of 431,455,017 Ordinary Shares, all with voting rights. In addition, 15,224,506 shares are currently held in Treasury. The total number of voting rights in the Company as at 30 June 2025 is therefore 431,455,017.

The Board has determined that the commencement of this Share Buyback Programme is in the best interests of the Company and its shareholders.

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 and as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this 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 +44 (0)330 223 1430

Canaccord Genuity Limited (NOMAD and Joint Broker)

Simon Bridges, Andrew Potts, Harry Gooden +44 (0)20 7523 8000

Singer Capital Markets (Joint Broker)

Charles Leigh-Pemberton +44 (0)20 7496 3000

FTI Consulting

Tom Blackwell, Jenny Boyd +44 (0)20 3727 1051

[email protected]

About Mercia Asset Management PLC

Mercia is a private capital asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of venture, debt, private equity and proprietary capital: the Group's 'Complete Connected Capital'.

The Group has a strong UK footprint through its 11 regional offices, extensive local adviser and personal networks, and university partnerships, providing it with access to high-quality deal flow.

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