Mercia Asset Management PLC

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

Soccer Manager receives £3.0million investment

Mercia Asset Management PLC (AIM: MERC), the proactive regionally focused specialist asset manager with c.£872million of assets under management, is pleased to announce completion of a £3.0million investment round into Soccer Manager Limited ("Soccer Manager"), one of the Group's direct investments.

The funding round comprised £0.75million from Mercia's proprietary capital, £0.75million from the Northern Powerhouse Investment Fund and £1.5million in matched funding from the Government's Future Fund. This investment will support Soccer Manager's continuing growth.

Soccer Manager is a prime example of Mercia's Complete Connected Capital. It was first backed in December 2013 with a loan from one of Mercia's managed debt funds. Subsequently in December 2014, it received equity investment from two of Mercia's EIS funds and in March 2015 received its first direct investment from Mercia's proprietary capital. Mercia now holds a fully diluted direct investment stake of 39.0% with a further 7.6% held by Mercia's managed EIS funds.

The Soccer Manager team is led by founders Andy and Chris Gore, alongside executive chairman Nick Wheelwright, the former CEO of Codemasters and Monumental Games. Soccer Manager's games are played in 234 countries around the world, having been downloaded by more than 50 million players, with more than one million active monthly users. Revenue has grown over 80% since the launch of Soccer Manager 2021' in September 2020.

Andy Gore, CEO of Soccer Manager, said: "We founded Soccer Manager with a vision to create high-quality football games that the whole world could play. We have always had the view that football, mobile technology and the internet is a powerful combination with which to achieve this vision. After years of building out our IP, technology and games to millions of people worldwide, this investment will help us further accelerate our current growth and deliver on our strategic ambitions.

We are delighted to have Mercia as a partner that continues to share our vision and we look forward to the next stage of our journey together."

Julian Viggars, CIO of Mercia Asset Management, said: "The video gaming market was estimated to be worth $159.3billion in 20201, which is a considerable increase of c.9% from 2019, in part due to the changes in the leisure time spend we have seen following the start of the COVID-19 pandemic. Soccer Manager is a great example of an innovative regional business which, with the determination of its founders, has scaled its recurring customer base and revenues by offering high-quality games to a very loyal community. The business was already on a strong growth trajectory before the pandemic but with the increasing numbers of 'at home gamers' not expected to slow down, we believe that there is significant further potential in this asset."

1 https://www.wepc.com/news/video-game-statistics//

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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 balance sheet, venture, private equity and debt 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, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£872million of assets under management and, since its IPO in December 2014, has invested c.£106million gross into its direct investment portfolio.

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