New £38m finance facility readies Mercia for M&A

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.