Northern Inv. Co PLC Annual Financial Report

 
TIDMNRI 
 
 
   20 MAY 2016 
 
   NORTHERN INVESTORS COMPANY PLC 
 
   RESULTS FOR THE YEARED 31 MARCH 2016 
 
   Northern Investors Company PLC is a private equity investment trust 
managed by NVM Private Equity LLP.  The trust was launched in 1984 and 
has been listed on the London Stock Exchange since 1990. 
 
   In July 2011 shareholders approved a change in investment strategy 
whereby the trust ceased making new investments and began an orderly 
realisation of its portfolio with a view to returning capital to 
shareholders.  The company has subsequently returned a total of GBP76.7 
million to shareholders by way of tender offers and dividend 
distributions. 
 
   Financial highlights (comparative figures as at 31 March 2015): 
 
 
 
 
                                                      2016       2015 
Net assets                                        GBP17.1m   GBP25.6m 
Number of shares in issue at end of year         2,496,767  4,900,000 
Net asset value per share                           685.4p     522.7p 
Cash distributions to shareholders 
(dividends paid plus share buy-backs): 
During year                                       GBP16.1m   GBP20.0m 
Since change in investment policy in July 2011    GBP76.7m   GBP60.6m 
Total return for the year: 
Pence per share                                     159.5p      92.2p 
As % of opening net asset value                      30.5%      21.3% 
Proposed dividend per share for the year             24.0p      17.0p 
Mid-market share price at end of year               635.0p     507.5p 
Share price discount to net asset value               7.4%       2.9% 
 
 
   For further information, please contact: 
 
   Northern Investors Company PLC 
 
   Nigel Guy/Christopher Mellor                                                0191 244 6000 
 
 
   Stifel Nicolaus Europe Limited 
 
   Neil Winward/Mark Bloomfield/Gaudi Le Roux        020 7710 7600 
 
   Website:  www.nvm.co.uk 
 
   NORTHERN INVESTORS COMPANY PLC 
 
   CHAIRMAN'S STATEMENT 
 
   Overview 
 
   I am delighted to report that the orderly realisation strategy adopted 
by shareholders in 2011 has made significant progress over the past year, 
with a continuing reduction in the number of remaining holdings in the 
portfolio and significant further returns to investors.  As previously 
announced, in March 2016 the company completed its fifth tender offer to 
shareholders, as a result of which GBP15.3 million was distributed. 
This takes the total cash returns since July 2011 to GBP76.7 million, 
with a further GBP17.1 million of net assets still on the balance sheet 
at 31 March 2016.  Our policy of developing a considered exit strategy 
for each investment, and realising the inherent value at the optimum 
time, has continued to deliver excellent results. 
 
   Financial results 
 
   The net asset value (NAV) per share at 31 March 2016 was 685.4 pence, an 
increase of 31.1% from the corresponding figure of 522.7 pence at 31 
March 2015.  Over the past five financial years the NAV per share has 
increased by 125%. 
 
   The total return per share for the year as shown in the income statement 
was 159.5 pence, equivalent to 30.5% of the opening NAV.  Gains realised 
on investment sales during the year amounted to 103.6 pence per share, 
as value continued to be unlocked by the run-off process.  Dividend and 
interest income from the much reduced investment portfolio fell by 
approximately one third, but the revenue return per share, calculated on 
the weighted average number of shares in issue during the year, rose 
from 11.7 pence to 12.3 pence.  It is likely that investment income will 
continue to decline as the portfolio continues to reduce in size. 
 
   Dividend 
 
   Since 2013 the annual dividend has been paid in the form of a single 
final dividend, with no interim dividend being declared.  The directors 
propose a dividend for the year ended 31 March 2016 of 24.0 pence per 
share (last year 17.0 pence), equivalent to a total of GBP599,000 based 
on the 2,496,767 shares now remaining in issue, thus distributing 
substantially the whole of the available revenue surplus after tax for 
the year.  This is the twentieth consecutive year in which the dividend 
per share has been increased.  Subject to approval by shareholders at 
the annual general meeting on 5 July 2016, the final dividend will be 
paid on 22 July 2016 to shareholders on the register on 1 July 2016. 
 
   The directors will continue to recommend a dividend each year which 
takes account of the level of investment income and expenses, subject to 
observing the minimum amount necessary to maintain the company's 
authorised investment trust status. 
 
   Investment portfolio 
 
   The number of holdings in the portfolio has continued to reduce, from 15 
at the beginning of the financial year to eight at 31 March 2016. 
Successful exits were achieved from Arleigh Group, Control Risks Group 
Holdings, Direct Valeting, Kitwave One and Wear Inns.  A total of 
GBP20.8 million was realised from sales during the year, representing a 
satisfactory uplift over the GBP15.8 million carrying value of the 
relevant investments at the start of the year.  Cumulatively, 22 
investments have been exited since the change in investment policy in 
July 2011, generating total capital proceeds of over GBP70 million. 
 
   The directors' valuation of the eight remaining holdings at 31 March 
2016 was GBP11.7 million.  The board reviews performance and exit 
prospects for each holding with the manager on a regular basis.  Now 
that we are in the later stages of the realisation process, the degree 
of diversification in the portfolio will continue to reduce.  Our 
orderly realisation strategy has produced excellent results to date, but 
we recognise that it may be necessary to take a pragmatic approach to 
the realisable value of some of the remaining investments in order to 
maintain progress towards the final outcome. 
 
   Corporate strategy 
 
   Following the latest tender offer, the cumulative total of cash 
distributed to shareholders since the change in investment policy is 
GBP77 million, equivalent to 130% of the July 2011 net assets of GBP59 
million.  It is still our objective that the return of cash to 
shareholders should be substantially completed by December 2017;  our 
latest review indicates that the further amount to be returned could be 
in the range from GBP18 million to GBP23 million, making an ultimate 
total of between GBP95 million and GBP100 million.  This is equivalent 
to between 160% and 170% of the net assets at the start of the 
realisation process, and implies future cash distributions of between 
720 pence and 920 pence for each share now in issue.  As ever it must be 
emphasised that estimates of future cash flows, and their timing, are 
subject to considerable uncertainties, including general market 
conditions, future investee company performance, the behaviour of other 
shareholders in investee companies and, of course, M&A market sentiment. 
 
   To date, our preferred method of returning capital to shareholders has 
been by tender offers priced at NAV, giving shareholders a choice as to 
whether to tender their proportionate entitlement or a greater or lesser 
number of shares according to their individual circumstances.  The March 
2016 tender offer was not fully taken up, with GBP15.3 million worth of 
shares tendered compared with a maximum available of GBP20.0 million. 
As a result those shareholders who wished to exit completely have been 
able to do so.  However we are left with over GBP10 million of cash on 
the balance sheet at 31 March 2016, of which at least GBP5 million is 
surplus to foreseeable requirements and available for distribution to 
shareholders in accordance with our run-off policy. 
 
   Whilst further tender offers remain a possibility, your directors will 
give careful consideration to the possibility of adopting an alternative 
method of distribution which returns cash to all shareholders pro rata 
to their holding.  We are aware that the proportion of the company's 
shares held by private investors has increased progressively over the 
past five years and that, in the light of recent changes to the taxation 
of dividend income and capital gains, some of these investors may have a 
strong preference for returns to be taxable as capital rather than 
income.  The board will continue to liaise with its financial and legal 
advisers in determining appropriate ways of distributing the realised 
value in the portfolio.  Should these methods require any form of 
shareholder approval, then the relevant consent will be sought at the 
appropriate time. 
 
   Contingent assets 
 
   As noted in the financial statements, at 31 March 2016 the company was 
entitled to receive over the period to December 2017 up to GBP1.4 
million of deferred proceeds from investment sales.  These proceeds have 
not yet been recognised in the financial statements as there is an 
element of conditionality, and hence no reasonable certainty, attaching 
to their eventual receipt. 
 
   The company has, in common with a number of other investment trust 
companies, brought a claim against HM Revenue & Customs to recover VAT 
paid on investment management fees in the period from 1990 to 2009, to 
the extent not already recovered by the company, together with compound 
interest.  The claim has, by agreement with HMRC, been stayed pending 
the outcome of similar litigation involving other investment trust 
companies.  At this stage the outcome of the claim is not foreseeable 
and it is not practicable to estimate the possible recovery, if any. 
 
   Management 
 
   The change in the company's investment policy in 2011 was accompanied by 
a review of the terms of the management agreement with NVM, in which the 
board sought to move the emphasis from annual management fees towards an 
incentive fee based on the generation of cash for distribution to 
shareholders.  It was agreed that the annual management fee would be 
reduced on a stepped basis from GBP900,000 in the year ended 31 March 

2012 to GBP300,000 in the year ended 31 March 2016.  As we reported at 
the half year stage, the board has agreed with NVM that with effect from 
April 2016 the management fee will comprise two elements, a fixed fee at 
the rate of GBP100,000 per annum and a variable fee equivalent to 1.0% 
of the company's net assets calculated on a half-yearly basis, but 
subject to an overall cap of GBP275,000 per annum.  Also with effect 
from April 2016, the manager's notice period has been reduced from 
twelve to six months. 
 
   The directors have continued to make provision in each year's financial 
statements for the additional fee expected to be payable in due course 
under the performance incentive arrangement agreed with NVM in 2011. 
The provision as at 31 March 2016 was GBP5.0 million (31 March 2015 
GBP3.9 million);  the minimum cash distribution target agreed at the 
outset (GBP59 million plus a 7% annual hurdle) was exceeded when the 
latest tender offer was completed, and so an initial payment of GBP2.8 
million is due to NVM on the publication of the audited financial 
statements for the year ended 31 March 2016.  NVM have executed the 
realisation programme with a high level of professional skill and 
commitment and their performance fee, which ensures a close alignment of 
their interests with those of shareholders, has been well earned. 
 
   Shares and share price 
 
   Following completion of the March 2016 tender offer, in which 2,403,233 
shares were re-purchased at 635 pence per share, the number of shares 
remaining in issue at the year end was 2,496,767 - representing 
approximately 13% of the issued capital at the start of the realisation 
process in 2011. 
 
   During the year the mid-market share price rose by 25%, from 507.5 pence 
to 635.0 pence.  The share price discount to NAV at the year end was 
7.4% (31 March 2015 2.9%).  The share price total return over the five 
years to 31 March 2016, with dividends reinvested, was +247% compared 
with +32% for the FTSE All-Share total return index. 
 
   Board of directors 
 
   John Barnsley and Mark Nicholls will retire and seek re-election at the 
annual general meeting in accordance with the board's policy that 
directors who have served for nine or more years should seek re-election 
annually.  I believe that the shareholders have benefitted greatly from 
a stable board during the portfolio realisation programme and their 
re-election to the board has my full support.  In addition, I would like 
to thank my fellow directors for the knowledge and insight they have 
brought to the realisation process to date and I am sure that their 
expertise will be valuable as we move towards the later stages of the 
exercise. 
 
   Prospects 
 
   The remaining portfolio includes a number of holdings with good exit 
potential, but there is no doubt that completion of the run-off 
programme within the desired timescale will require hard work, 
creativity and a stable economic environment.  As I write this, the 
uncertainty created by the UK/EU referendum, the US Presidential 
election and global growth concerns is clearly dampening economic 
progress as business leaders take stock of the various potential 
outcomes.  Whilst it is hoped that this is only a temporary phenomenon, 
we are mindful of the longer term impact and the challenges and risks it 
may present.  However, your directors and manager will continue to focus 
their efforts on achieving a successful conclusion to the process which 
so far has produced excellent results. 
 
   Nigel Guy 
 
   Chairman 
 
   The audited financial statements for the year ended 31 March 2016 are 
set out below. 
 
   INCOME STATEMENT 
 
   for the year ended 31 March 2016 
 
 
 
 
                     Year ended 31 March 2016            Year ended 31 March 2015 
                 Revenue     Capital      Total      Revenue     Capital      Total 
                  GBP000      GBP000      GBP000      GBP000      GBP000      GBP000 
Gain on 
 disposal of 
 investments             -       5,067       5,067           -       5,870       5,870 
Movements in 
 fair value of 
 investments             -       3,413       3,413           -       2,464       2,464 
                ----------  ----------  ----------  ----------  ----------  ---------- 
                         -       8,480       8,480           -       8,334       8,334 
Income               1,025           -       1,025       1,546           -       1,546 
Investment 
 management 
 fee                  (60)     (1,324)     (1,384)        (90)     (1,474)     (1,564) 
Other expenses       (316)           -       (316)       (313)           -       (313) 
                ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
ordinary 
activities 
before tax, 
being total 
 comprehensive 
 income                649       7,156       7,805       1,143       6,860       8,003 
Tax on return 
 on ordinary 
 activities           (45)          45           -       (123)         155          32 
                ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 after tax             604       7,201       7,805       1,020       7,015       8,035 
                ----------  ----------  ----------  ----------  ----------  ---------- 
Return per           12.3p      147.2p      159.5p       11.7p       80.5p       92.2p 
 share 
 
   BALANCE SHEET 
 
   as at 31 March 2016 
 
 
 
 
                                                  31 March 2016  31 March 2015 
                                                      GBP000         GBP000 
Fixed assets: 
 Investments                                             11,720         24,068 
                                                     ----------     ---------- 
Current assets: 
 Investments                                                 56             56 
 Debtors                                                     25             56 
 Cash and cash equivalents                               10,408          5,477 
                                                     ----------     ---------- 
                                                         10,489          5,589 
Creditors (amounts falling due within one year)         (5,097)        (4,046) 
                                                     ----------     ---------- 
Net current assets                                        5,392          1,543 
                                                     ----------     ---------- 
Net assets                                               17,112         25,611 
                                                     ----------     ---------- 
Capital and reserves: 
Called-up equity share capital                              624          1,225 
Capital redemption reserve                                4,531          3,930 
Capital reserve                                         (2,918)          4,257 
Special reserve                                          12,674         12,674 
Revaluation reserve                                         251          1,346 
Revenue reserve                                           1,950          2,179 
                                                     ----------     ---------- 
Total equity shareholders' funds                         17,112         25,611 
                                                     ----------     ---------- 
Net asset value per share                                685.4p         522.7p 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 31 March 2016 
 
 
 
 
                      ------ 
                 Non-distributable 
                  reserves ------            ------ Distributable reserves ------           Total 
                            Capital 
                 Share     redemption    Revaluation    Capital     Special     Revenue 
                capital     reserve          reserve    reserve     reserve     reserve 
                GBP000      GBP000            GBP000    GBP000      GBP000      GBP000      GBP000 
At 1 April 
 2015              1,225        3,930          1,346       4,257      12,674       2,179      25,611 
Return on 
ordinary 
activities 
after tax 
 for the 
 year                  -            -        (1,095)       8,296           -         604       7,805 
Re-purchase 
 of shares         (601)          601              -    (15,260)           -           -    (15,260) 
Share 
 re-purchase 
 expenses              -            -              -       (211)           -           -       (211) 
Dividends 
 paid                  -            -              -           -           -       (833)       (833) 
              ----------   ----------     ----------  ----------  ----------  ----------  ---------- 
At 31 March 
 2016                624        4,531            251     (2,918)      12,674       1,950      17,112 
              ----------   ----------     ----------  ----------  ----------  ----------  ---------- 
 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 31 March 2015 
 
 
 
 
                      ------ 
                 Non-distributable 
                  reserves ------            ------ Distributable reserves ------           Total 
                            Capital 
                 Share     redemption    Revaluation    Capital     Special     Revenue 
                capital     reserve          reserve    reserve     reserve     reserve 
                GBP000      GBP000            GBP000    GBP000      GBP000      GBP000      GBP000 
At 1 April 
 2014              2,182        2,973         12,495       5,475      12,674       2,032      37,831 
Return on 
ordinary 
activities 
after tax 
 for the 
 year                  -            -       (11,149)      18,164           -       1,020       8,035 
Re-purchase 
 of shares         (957)          957              -    (19,142)           -           -    (19,142) 
Share 
 re-purchase 
 expenses              -            -              -       (240)           -           -       (240) 
Dividends 

 paid                  -            -              -           -           -       (873)       (873) 
              ----------   ----------     ----------  ----------  ----------  ----------  ---------- 
At 31 March 
 2015              1,225        3,930          1,346       4,257      12,674       2,179      25,611 
              ----------   ----------     ----------  ----------  ----------  ----------  ---------- 
 
 
   STATEMENT OF CASH FLOWS 
 
   for the year ended 31 March 2016 
 
 
 
 
                                                  Year ended      Year ended 
                                                 31 March 2016   31 March 2015 
                                                    GBP000          GBP000 
Cash flows from operating activities: 
Return on ordinary activities before tax                 7,805           8,003 
Adjustments for: 
Gain on disposal of investments                        (5,067)         (5,870) 
Movement in fair value of investments                  (3,413)         (2,464) 
Decrease in debtors                                         31              36 
Increase in creditors                                    1,051           1,211 
                                                    ----------      ---------- 
Net cash inflow from operating activities                  407             916 
                                                    ----------      ---------- 
Cash flows from investing activities: 
Purchase of investments                                      -               - 
Sale/repayment of investments                           20,828          23,029 
                                                    ----------      ---------- 
Net cash inflow from investing activities               20,828          23,029 
                                                    ----------      ---------- 
Cash flows from financing activities: 
Repurchase of ordinary shares for cancellation        (15,260)        (19,142) 
Share repurchase expenses                                (211)           (240) 
Dividends paid on ordinary shares                        (833)           (873) 
                                                    ----------      ---------- 
Net cash outflow from financing activities            (16,304)        (20,255) 
                                                    ----------      ---------- 
Net increase in cash and cash equivalents                4,931           3,690 
Cash and cash equivalents at beginning of year           5,533           1,843 
                                                    ----------      ---------- 
Cash and cash equivalents at end of year                10,464           5,533 
                                                    ----------      ---------- 
 
   INVESTMENT PORTFOLIO SUMMARY 
 
   as at 31 March 2016 
 
 
 
 
                                                                      % of 
                                              Cost      Valuation   net assets 
                                             GBP000      GBP000      by value 
Axial Systems Holdings                         2,311        3,519         20.6 
Optilan Group                                  1,900        2,747         16.0 
Cawood Scientific                              1,196        1,984         11.6 
Weldex (International) Offshore Holdings       3,252        1,921         11.2 
CGI Group Holdings                             1,908          819          4.8 
Lanner Group                                     621          730          4.3 
Crantock Bakery                                  215            -            - 
S&P Coil Products                                 66            -            - 
                                          ----------   ----------     -------- 
Total fixed asset investments                 11,469       11,720         68.5 
                                          ---------- 
Net current assets                                          5,392         31.5 
                                                       ----------     -------- 
Net assets                                                 17,112        100.0 
                                                       ----------     -------- 
 
 
   BUSINESS RISKS 
 
   The board carries out a regular and robust review of the risk 
environment in which the company operates.  The principal risks and 
uncertainties identified by the board which might affect the company's 
business model and future performance, and the steps taken with a view 
to their mitigation, are as follows: 
 
   Investment and liquidity risk:  the majority of the company's 
investments are in small and medium-sized unquoted companies, which by 
their nature entail a higher level of risk and lower liquidity than 
investments in large quoted companies.  Mitigation: the investment 
manager aims to limit the risk attaching to the portfolio as a whole by 
close monitoring of individual holdings, including the appointment of 
investor directors where appropriate.  The board reviews the portfolio, 
including the schedule of projected exits, with the investment manager 
on a regular basis with a view to ensuring that the orderly realisation 
process remains on track. 
 
   Portfolio concentration risk:  following the adoption of the company's 
revised investment policy in July 2011, the portfolio has and will 
continue to become more concentrated as investments are realised and 
cash is returned to shareholders.  This will increase the proportionate 
impact of changes in the value of individual investments on the value of 
the company as a whole.  The directors' valuation of the company's 
investments represents their best assessment of the fair value of the 
investments as at the valuation date and the amounts eventually realised 
from such investments may be more or less than the directors' valuation. 
Mitigation: the directors and manager keep the changing composition of 
the portfolio under review and focus closely on those holdings which 
represent the largest proportions of total value. 
 
   Financial risk:  most of the company's investments involve a medium- to 
long-term commitment and many are relatively illiquid.  Mitigation: the 
directors consider that it is inappropriate to finance the company's 
activities through borrowing except on an occasional short-term basis. 
Accordingly they seek to maintain a proportion of the company's assets 
in cash or cash equivalents in order to be in a position to meet 
expenditure commitments including any investments which may be made 
under the company's revised investment policy.  The company has very 
little exposure to foreign currency risk and does not enter into 
derivative transactions. 
 
   Economic risk:  events such as economic recession or general 
fluctuations in stock markets and interest rates may affect the 
valuation of investee companies and their ability to access adequate 
financial resources, as well as affecting the company's own share price 
and discount to net asset value.  Mitigation: the company invests in a 
diversified portfolio of investments spanning various industry sectors, 
and maintains sufficient cash reserves to be able to provide additional 
funding to investee companies should this be necessary. 
 
   Credit risk:  the company holds a number of financial instruments and 
cash deposits and is dependent on the counterparties discharging their 
commitment.  Mitigation: the directors review the creditworthiness of 
the counterparties to these instruments and cash deposits and seek to 
ensure there is no undue concentration of credit risk with any one 
party. 
 
   Internal control risk:  the company's assets could be at risk in the 
absence of an appropriate internal control regime.  Mitigation: the 
board regularly reviews the system of internal controls, both financial 
and non-financial, operated by the company and the manager.  These 
include controls designed to ensure that the company's assets are 
safeguarded and that proper accounting records are maintained. 
 
   DIRECTORS' RESPONSIBILITIES STATEMENT 
 
   The directors are responsible for preparing the annual report and the 
financial statements in accordance with applicable law and regulations. 
 
   Company law requires the directors to prepare financial statements for 
each financial year.  Under that law the directors have elected to 
prepare the financial statements in accordance with UK Accounting 
Standards, including FRS 102 "The Financial Reporting Standard 
applicable in the UK and Republic of Ireland".  Under company law the 
directors must not approve the financial statements unless they are 
satisfied that they give a true and fair view of the state of affairs of 
the company and of the profit or loss of the company for the year. 
 
   In preparing the financial statements, the directors are required to (i) 
select suitable accounting policies and then apply them consistently; 
(ii) make judgements and estimates that are reasonable and prudent; 
(iii) state whether applicable UK Accounting Standards have been 
followed, subject to any material departures disclosed and explained in 
the financial statements;  and (iv) prepare the financial statements on 
the going concern basis unless it is inappropriate to presume that the 
company will continue in business.  As explained below, the directors do 
not believe it is appropriate to prepare the financial statements for 
the year ended 31 March 2016 on a going concern basis. 
 
   The directors are responsible for keeping adequate accounting records 
that are sufficient to show and explain the company's transactions and 
disclose with reasonable accuracy at any time the financial position of 
the company and enable them to ensure that its financial statements 
comply with the Companies Act 2006.  They have general responsibility 
for taking such steps as are reasonably open to them to safeguard the 
assets of the company and to prevent and detect fraud and other 
irregularities.  Under applicable law and regulations, the directors are 

also responsible for preparing a directors' report, strategic report, 
directors' remuneration report and corporate governance statement that 
comply with that law and those regulations. 
 
   The company's financial statements are published on the NVM Private 
Equity LLP (NVM) website, www.nvm.co.uk.  The maintenance and integrity 
of this website is the responsibility of NVM and not of the company. 
The work carried out by KPMG LLP as independent auditor of the company 
does not involve consideration of the maintenance and integrity of the 
website and accordingly they accept no responsibility for any changes 
that have occurred to the financial statements since they were initially 
presented on the website.  Visitors to the website should be aware that 
legislation in the United Kingdom governing the preparation and 
dissemination of the financial statements may differ from legislation in 
their jurisdiction. 
 
   In relation to the financial statements for the year ended 31 March 2016 
each of the directors has confirmed that, to the best of his knowledge, 
(i) the financial statements, prepared in accordance with the applicable 
accounting standards, give a true and fair view of the assets, 
liabilities, financial position and profit of the company;  (ii) the 
annual report and financial statements, taken as a whole, is fair, 
balanced and understandable and provides the information necessary for 
shareholders to assess the company's performance, business model and 
strategy;  and (iii) the directors' report and strategic report include 
a fair review of the development and performance of the business and the 
position of the company, together with a description of the principal 
risks and uncertainties that the company faces. 
 
   The directors of the company at the date of this announcement were Mr N 
R A Guy (Chairman), Mr J C Barnsley, Mr P W F Marsden and Mr M P 
Nicholls. 
 
   OTHER MATTERS 
 
   The above summary of results for the year ended 31 March 2016 does not 
constitute statutory financial statements within the meaning of Section 
435 of the Companies Act 2006 and has not been delivered to the 
Registrar of Companies.  Statutory financial statements will be filed 
with the Registrar of Companies in due course;  the independent 
auditor's report on those financial statements under Section 495 of the 
Companies Act 2006 is unqualified, draws attention to the non-going 
concern basis of preparing the accounts by way of emphasis without 
qualifying the report and does not contain a statement under Section 
498(2) or (3) of the Companies Act 2006. 
 
   In July 2011 shareholders approved a change in the investment policy of 
the company, with the objective of conducting an orderly realisation of 
the assets of the company in a manner that seeks to achieve a balance 
between an efficient return of cash to shareholders and maximising the 
value of the company's investments.  As it is likely that this process 
will ultimately lead to the liquidation of the company, the financial 
statements have not been prepared on a going concern basis.  No 
adjustments were necessary to the investment valuations or other assets 
and liabilities included in the financial statements as a consequence of 
the change in the basis of preparation. 
 
   The calculation of the revenue and capital return per share is based on 
the return on ordinary activities after tax for the year and on 
4,893,434 (2015 8,717,951) ordinary shares, being the weighted average 
number of shares in issue during the year. 
 
   The calculation of the net asset value per share is based on the net 
assets at 31 March 2016 divided by the 2,496,767 (2015 4,900,000) 
ordinary shares in issue at that date. 
 
   The proposed final dividend of 24.0 pence per share for the year ended 
31 March 2016 will, if approved by shareholders, be paid on 22 July 2016 
to shareholders on the register at the close of business on 1 July 2016. 
 
   The full annual report including financial statements for the year ended 
31 March 2016 is expected to be posted to shareholders by 6 June 2016 
and will be available to the public at the registered office of the 
company at Time Central, 32 Gallowgate, Newcastle upon Tyne NE1 4SN and 
on the NVM Private Equity LLP website, www.nvm.co.uk. 
 
   Neither the contents of the NVM Private Equity LLP website nor the 
contents of any website accessible from hyperlinks on the NVM Private 
Equity LLP website (or any other website) is incorporated into, or forms 
part of, this announcement. 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Northern Investors Co PLC via Globenewswire 
 
   HUG#2014246 
 
 
  http://www.nvm.co.uk/investorarea/northern_investors_company_plc.php 
 

(END) Dow Jones Newswires

May 20, 2016 08:59 ET (12:59 GMT)

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