Mercia has outperformed on both fundraising and internal efficiency. Fundraising performance was strong in Q4 and we estimate that it has now broken the £2bn milestone. During the year there has been a continued drive for efficiency, both operationally and financially. Efficiency has driven outperformance for FY25e with the outturn now expected to be “materially ahead of market expectations” driving us to increase FY25e EBITDA by 22%. We do not yet make changes to outer year forecasts, deferring until Finals, but see upside given outperformance on AuM and costs. We continue to believe that the current share price is significantly disconnected from intrinsic value on a SOTP basis. We reiterate our 65p 12m TP and BUY.
