Grant and variation of Options

Mercia Asset Management PLC

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

Grant and variation of Options

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£1.5billion of assets under management, announces that options (the "CSOP Options") over a total of 1,000,000 new Ordinary shares ("Ordinary Shares") were awarded to Jocelyne Bath, the new Chief Operating Officer of the Group and a person discharging managerial responsibilities ("PDMR") pursuant to the 2014 Mercia Company Share Option Plan ("2014 CSOP"), at an exercise price of 33.00p per Ordinary Share (being the closing mid-market price of an Ordinary Share on 26 March 2024). The Options will, subject to the satisfaction of the performance condition, vest in three equal tranches on the third, fourth and fifth anniversary of the date of grant of the Options.

The Company further announces that, pursuant to the existing 2021 Performance Share Plan, the performance period for the existing 8,800,000 nominal cost options (the "PSP Options") over Ordinary Shares granted on 9 July 2021 to the Executive Directors and one further PDMR, has been extended.

Pursuant to the rules of the Mercia CSOP, the Company's Remuneration Committee has elected to vary the vesting period in which the performance condition of the PSP Options has to be satisfied, by an additional year. The Remuneration Committee considers that this is the most appropriate way of continuing to align the interests of the Executive Directors and one further PDMR with the shareholders of the Company, whilst continuing to provide a strong incentive. This facilitates the retention of high calibre individuals, who are leading the delivery of positive investment returns for Mercia's clients and as a direct consequence, the continuing successful growth of Mercia's Assets under Management and its profitability.

The PSP Options will, subject to the satisfaction of the performance condition, now vest on 9 July 2025, being the fourth anniversary of the date of grant of the options (the "Vesting Date") and will continue to be subject to a subsequent two-year holding period. The number of PSP Options which will vest on the Vesting Date will depend on the Company's total shareholder return ("TSR") over a performance period of four financial years, which started on 1 April 2021. The number of PSP Options vesting will be calculated as follows: 50% of the PSP Options will vest based on the achievement of 10.0% TSR per annum (compounded) over the new four-year performance period. Vesting will then increase on a straight-line basis to full vesting for the achievement of 20.0% TSR per annum (compounded).

Following the grant of the CSOP Options and the amendment to the PSP Options above, the Company has a total of 35,039,150 options in issue pursuant to the 2014 CSOP, equating to 8.6% of the existing issued share capital of the Company.

Following the grant of the CSOP Options and the amendment to the PSP Options above, the PDMRs listed below hold the following options and Ordinary Shares: