A year ago, the Mercia 27 strategy was announced, which prioritised scaling the highly profitable fund management business and targeted EBITDA of c£10m by FY27 (£5.5m in FY24). Mercia is flying along. FY25 (to 31 Mar 25) has seen FUM (funds managed for 3rd parties) increase 10% y-o-y to £1.80bn (+46% over 2 years) and EBITDA jump 37% from £5.5m to £7.6m. Its net inflow rate has been the highest among London-listed peers for two years. Much of that FUM growth came from c. £250m of inflows in Q425 (existing mandate increases, new fund management contracts, and successful VCT and EIS fund raises), so the revenue benefit is still to come. Mercia is also finding further cost efficiencies. Our FY26 EBITDA forecast rises from £6.2m to £7.2m. Our fundamental value rises from 52p to 56p.