Mercia Asset Management PLC

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

Mercia announces a new direct investment - Pimberly

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£940million of assets under management, is pleased to announce that its third-party managed fund portfolio company Pimberly Limited ("Pimberly"), has completed a £4.3million funding round to expand into the US market and accelerate its growth in the UK. Mercia has invested £1.4million from its own balance sheet, alongside a further £2.9million investment by the Mercia managed Northern VCTs.

Following this investment, Mercia holds a 5.6% fully diluted direct equity stake in Pimberly, with the Northern VCTs holding a further 11.7% fully diluted equity stake.

Pimberly is a Manchester-based software-as-a-service company whose platform helps retailers, distributors and manufacturers increase sales by enabling them to harness and enrich the increasing volumes of product data they have across multiple channels and regions. High-profile customers include Ellis Brigham, JD Sports and Monsoon.

Mercia first invested in the company in 2018 via its managed Northern Powerhouse Investment Fund, and this is the first direct investment in Pimberly from the Group's own balance sheet, alongside the Northern VCTs.

Mark Payton, Chief Executive Officer of Mercia, commented: "Pimberly is a prime example of a regional business with a compelling customer offering that can accelerate its growth when supported with the right funding. Our Complete Connected Capital means that we can provide the right capital at the right time for a business such as Pimberly, as it continues to expand and target new markets. Mercia is passionate about using our extensive regional networks and deep sector expertise to support those SMEs that are playing an increasingly critical role in the growth of the UK's economy. We look forward to our continued relationship with Pimberly and its management team on this exciting journey, as it further scales both domestically and in international markets."

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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.£940million of assets under management and, since its IPO in December 2014, has invested c.£111million gross into its direct investment portfolio.

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