b'Strategic report Governance Financial statementsNet fair value decreases during the year totalled 15.8million (2019: 3.9million increase) and as at 31 March 2020 the fair value of the Groups direct investment portfolio was 87.5million (2019: 87.7million). This decrease was predominantly due to the near-term impact of COVID-19 on direct investment portfolio fair values, details of which are given in the Chief Investment Officers review on pages 24 to 29.Net assets at the year end were 141.5million (2019: 126.1million) resulting in an overall decrease in net assets per share (being net assets of 141.5million divided by 440,109,707 shares in issue) to 32.1 pence (2019: 41.6 pence, being net assets of 126.1million divided by 303,309,707 shares in issue). This reduction has been due to the dilutive effect of the Placing and the decrease in the fair value of the direct investment portfolio, due predominantly to the impact of COVID-19.Within net assets, cash and short-term liquidity investments totalled 30.7million (2019: 30.4million), including 0.5million of cash held on behalf of third-party EIS investors (2019: 0.6million).The net fair value decrease contributed materially to result in an overall consolidated total comprehensive loss for the year of 17.5million (2019: 2.6million profit). This in turn has resulted in a loss per Ordinary share of 5.11 pence (2019: 0.86 pence earnings).Alternative performance measuresThe Group has always believed that the measurement and reporting of both net revenues/(expenses) and net asset value per share are important alternative performance measures of interest to investors. The reporting of net revenues/(expenses) enables a clear understanding of the impact of the Groups operating model on net asset value enhancement or erosion, particularly historically where operating costs have exceeded revenue.From 1 April 2020 the Group will substitute adjusted operating profit for net revenues/(expenses), as it is a more generally recognised alternative performance measure for specialist asset managers. From Mercias perspective and for comparison purposes, the difference between the measurement of net revenues/(expenses) and adjusted operating profit is that adjusted operating profit will include net finance income and exclude depreciation. Had Mercia adopted this alternative performance measure for the year ended 31 March 2020 it would have resulted in adjusted operating profit of 0.5million (2019: 0.8million loss). The table below provides a bridge between the two alternative performance measures for the years ended 31 March 2020 and 31 March 2019. Year ended Year ended31 March 31 March2020 2019000 000Revenue 12,747 10,675Other administrative expenses (12,661) (12,115)Net revenues/(expenses) 86 (1,440)Depreciation 212 84Net finance income 220 562Adjusted operating profit/(loss) before exceptional items 518 (794)The table below provides a reconciliation from adjusted operating profit/(loss) to operating profit/(loss) before exceptional items for the years ended 31 March 2020 and 31 March 2019.Year ended Year ended31 March 31 March2020 2019000 000Adjusted operating profit/(loss) before exceptional items 518 (794)Depreciation (212) (84)Net finance income (220) (562)Fair value movements in investments (15,844) 3,916Share-based payments charge (528) (171)Amortisation of intangible assets (852) (301)Operating profit/(loss) before exceptional items (17,138) 2,004Similarly, the reporting of net asset value per share provides an indication of the overall progress that the Group is making in terms of shareholder value creation over the medium term. Where there is a difference between net asset value per share and the Groups share price, that difference represents either a discount or premium to Mercias net asset value.Goodwill and acquired intangible assetsThe consolidated balance sheet includes goodwill of 16.6million (2019: 10.3million) and acquired intangible assets of 20.1million (2019: 0.6million). 6.3million of the goodwill and 19.8million of the intangible assets value arose as a result of the Groups acquisition of the VCT fund management business in December 2019. 7.9million (2019: 7.9million) of the goodwill and 0.3million of the intangible assets value arose as a result of the Groups acquisition of Enterprise Ventures Group Limited in March 2016. The balance of the goodwill arose on the acquisition of Mercia Fund Management Limited in December 2014. The intangible assets are separately identifiable assets arising from the VCT fund management contracts with Northern Venture Trust PLC, Northern 2 VCT PLC and Northern 3 VCT PLC (the Northern VCT Contracts) and Enterprise Ventures fund management contracts (the EV Contracts). The fair value of the Northern VCT Contracts intangible assets is being amortised on a straight-line basis over 10 years. The fair value of the EV Contracts are being amortised on a straight-line basis over the average duration of the remaining Mercia Asset Management PLC 49Annual Report and Accounts 2020'