Mercia Asset Management PLC

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

Grant of Options to PDMRs

Mercia Asset Management PLC (AIM: MERC), the regionally focused, private capital asset manager with c.£2.0billion of assets under management ("AuM"), announces that on 15 July 2025 long-term incentive plan options ("LTIP Options") over a total of 7,028,572 new Ordinary shares with a nominal value of £0.00001 each in the capital of the Company ("Ordinary Shares") were awarded to the two Executive Directors of the Company (the "Executive Directors") pursuant to the 2024 Mercia Employee Share Plan (the "ESP") as set out below.

These LTIP Options will, subject to the satisfaction of the performance conditions, be exercisable on each of the third, fourth and fifth anniversary of the date of grant of the options (one third in each year). Any Ordinary Shares issued between the third and fifth anniversary of the date of grant of the LTIP Options are subject to customary lock-in restrictions save for meeting any tax liabilities.  Nominal consideration is due to be payable on vesting.

Up to two thirds of the LTIP Options will be subject to the following performance conditions: (i) 25 per cent. of the two thirds on achieving EBITDA of at least £10 million for the financial year ending 31 March 2027 ("FY27"); (ii) 25 per cent. of the two thirds on achieving at least £3 billion of AuM as at 31 March 2027; and (iii) 50 per cent. of the two thirds on achieving total shareholder return ("TSR") of 20 per cent or above, over the performance period from 1 April 2025 to 31 March 2027. 

The remaining one third of the LTIP Options will be subject to the following performance conditions: (i) 25 per cent. of the one third on achieving EBITDA of at least £14 million for FY27; (ii) 25 per cent. of the one third on achieving at least £4billion of AuM as at 31 March 2027; and (iii) 50 per cent. of the one third on achieving an average closing mid-market share price of at least 50 pence per Ordinary Share for the period from 27 March 2027 to 31 March 2027.

The LTIP Options granted to the Executive Directors are in line with the Group's remuneration policy and are subject to typical malus and clawback provisions.

Separately, pursuant to the ESP, options over 3,830,000 Ordinary Shares ("CSOP Options") were awarded to a number of senior employees of the Company at an exercise price of £0.33 per Ordinary Share (being the closing mid-market price of an Ordinary Share on 15 July 2025). These CSOP Options will, subject to the satisfaction of a performance condition, vest in three equal tranches on the third, fourth and fifth anniversary of the date of grant of the CSOP Options.

Following the grant of the LTIP Options and the CSOP Options above, the Company has 10,858,572 unvested options in issue pursuant to the ESP and 27,721,154 vested and unvested options in issue pursuant to the 2014 Share Plan and Save As You Earn Plan, together equating to 8.65% of the existing issued share capital of the Company.

Following the grant of these LTIP and CSOP Options, the Executive Directors and one PDMR hold the following share options and Ordinary Shares:

Notification and public disclosure of transactions by persons discharging managerial responsibilities:

-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".