Northern Venture Tst Annual Financial Report

 
TIDMNVT 
 
 
   14 NOVEMBER 2016 
 
   NORTHERN VENTURE TRUST PLC 
 
   ANNUAL FINANCIAL REPORT FOR THE YEARED 30 SEPTEMBER 2016 
 
   Northern Venture Trust PLC is a Venture Capital Trust (VCT) whose 
investment adviser is NVM Private Equity LLP.  The trust was one of the 
first VCTs launched on the London Stock Exchange in 1995.  It invests 
mainly in unquoted venture capital holdings and aims to provide high 
long-term tax-free returns to shareholders through a combination of 
dividend yield and capital growth. 
 
   Financial highlights (comparative figures as at 30 September 2015): 
 
 
 
 
                                                         2016      2015 
Net assets                                           GBP77.2m  GBP78.9m 
Net asset value per share                               80.0p     83.0p 
Return per share after tax: 
Revenue                                                  1.6p      2.0p 
Capital                                                  8.5p      5.2p 
Total                                                   10.1p      7.2p 
Dividend per share for the year: 
First interim dividend                                   3.0p      3.0p 
Second interim (special) dividend                        7.0p      6.0p 
Proposed final dividend                                  3.0p      3.0p 
Total                                                   13.0p     12.0p 
Cumulative return to shareholders since launch: 
Net asset value per share                               80.0p     83.0p 
Dividends paid per share*                              148.5p    135.5p 
Net asset value plus dividends paid per share          228.5p    218.5p 
Mid-market share price at end of year                   70.0p     76.0p 
Tax-free dividend yield (based on mid-market share 
 price at end of year): 
Excluding special dividend                               8.6%      7.9% 
 Including special dividend                             18.6%     15.8% 
 
 
   *Excluding proposed final dividend payable on 23 December 2016 
 
   For further information, please contact: 
 
   NVM Private Equity LLP 
 
   Alastair Conn/Christopher Mellor                  0191 244 6000 
 
   Website:  www.nvm.co.uk 
 
   CHAIRMAN'S STATEMENT 
 
   Overview 
 
   Our company has had a busy and successful year, against a backdrop of 
far-reaching changes to the VCT legislation as well as the economic 
uncertainty resulting from the unexpected outcome of the EU referendum. 
Six new VCT-qualifying investments were completed under the new rules, 
and there were four significant investment sales.  As a result of the 
strong inflow of cash from these exits, the board was once again able to 
declare a special dividend, this time of 7.0 pence per share paid in 
June, taking the total for the year (including the proposed final 
dividend) to 13.0 pence.  We have worked closely with our investment 
adviser, NVM, to adapt our approach to the requirements of the new VCT 
rules and we believe the company is well positioned to maintain its 
strong performance record in the future. 
 
   Results and dividend 
 
   In the year ended 30 September 2016 the company achieved a return after 
tax of GBP9,571,000 (2015 GBP6,825,000), or 10.1 pence (2015 7.2 pence) 
per share, before deducting dividends paid, equivalent to a total return 
of 12.2% on the opening net asset value per share (NAV).  This is an 
excellent outcome and is arrived at after providing for the 
performance-related management fee of GBP844,000 (2015 GBP319,000) 
earned by NVM in respect of the year. 
 
   The NAV per share at 30 September 2016 (after deducting the dividends 
totalling 13.0 pence paid during the year) was 80.0 pence, compared with 
83.0 pence at 30 September 2015.  An interim dividend of 3.0p per share 
was paid in June 2016, together with a special dividend of 7.0 pence in 
recognition of the profitable investment realisations achieved during 
the year.  The directors propose a final dividend also of 3.0 pence per 
share, which will be paid on 23 December 2016 to shareholders on the 
register on 25 November 2016, making a total of 13.0 pence in respect of 
the year.  This is the thirteenth consecutive year in which a dividend 
of at least 6.0 pence has been paid.  A 6.0 pence dividend represents a 
tax-free yield of 8.6% on the mid-market share price (70.0 pence) at 30 
September 2016. 
 
   The company's dividend investment scheme (DRIS), under which 
shareholders can re-invest their dividends in new ordinary shares in the 
company, was reinstated in June 2016 after a period of suspension while 
the board considered the implications of the Government's changes to the 
VCT legislation.  Shareholders reinvesting their June 2016 dividends 
represented over 20% by value of the total dividends paid. 
 
   Investment portfolio 
 
   Total additions to the venture capital portfolio in the year amounted to 
GBP6.2 million.  Six new holdings in unquoted trading companies were 
acquired at a cost of GBP5.3 million.  In response to the amended VCT 
rules, the emphasis in new deal activity has moved from our traditional 
later stage/management buyout focus towards earlier stage businesses 
requiring funding for growth and development.  This is likely to involve 
smaller amounts being invested in more than one funding round in some of 
our target companies, as we seek to identify and support the significant 
winners in the portfolio.  NVM has taken steps to resource this change 
appropriately and shareholders will recall that we have had a number of 
past successes in backing early stage businesses, including DxS and 
Alaric Systems. 
 
   The cash proceeds from venture capital investments sold or repaid 
amounted to GBP11.1 million, representing a surplus of GBP6.3 million 
over original cost.  The resulting inflow of cash facilitated the 
declaration of the special dividend referred to above.  Momentum has 
been maintained subsequent to the year end and several companies are 
currently in discussions with a view to sale. 
 
   Share issues and buy-backs 
 
   It is now three years since our last significant fund-raising.  During 
this period new investments have been financed by a combination of 
drawing on the 2013/14 share issue proceeds and utilising cash generated 
from investment sales.  Having reviewed the forecast cash requirements 
in 2017, we do not currently envisage a significant public share offer 
in the 2016/17 tax year.  However in order to maintain a comfortable 
margin of liquidity for new investments, we intend in conjunction with 
Northern 2 VCT and Northern 3 VCT to launch a non-prospectus 'top-up' 
share issue in January 2017 which will raise approximately GBP4 million 
for each VCT.  It is intended that priority will be given to 
applications from existing investors. 
 
   We have continued to buy back shares in the market at a 5% discount to 
NAV.  During the past year 1,265,000 shares, equivalent to approximately 
1.3% of the total issued capital, were re-purchased at a cost of 
GBP968,000.  For most of the year the mid-market share price discount to 
the latest published NAV was less than 5%, with a marked narrowing 
subsequent to the year end. 
 
   VCT qualifying status 
 
   The company has maintained its approved venture capital trust status 
with HM Revenue & Customs.  The company's compliance with the VCT 
qualifying conditions is closely monitored by the board, who receive 
regular reports from NVM and from our VCT taxation advisers, Philip Hare 
& Associates LLP. 
 
   VCT legislation 
 
   I wrote to shareholders in January 2016 to set out the board's initial 
views on the impact of the changes in the VCT rules, which were enacted 
in November 2015.  The main provisions affecting our company are: 
 
 
   -- Companies may no longer use funds invested by VCTs to acquire existing 
      shares or businesses - in future such funds may be applied only for 
      "growth and development" purposes; 
 
   -- In order to be eligible for VCT investment, companies must normally have 
      made their first commercial sale within the past seven years (ten years 
      in the case of "knowledge-intensive" businesses); and 
 
   -- Although there is no change to the existing GBP5 million annual limit on 
      the amount that a company can raise from State aided sources such as VCTs, 
      there is now also a GBP12 million lifetime limit (GBP20 million for 
      knowledge-intensive businesses). 
 
 
   The board has subsequently carried out a careful review of the impact of 
the new legislation and of future prospects.  Clearly the Government's 
primary objective is to focus future VCT investment on the provision of 
growth capital for relatively young companies.  As previously mentioned, 
Northern Venture Trust has experience in this type of investment and NVM 
has already taken steps to augment its early-stage capability, 
recruiting additional executives with relevant expertise.  We have drawn 
up a broad profile of the type of company that we would like to focus on 
in the future, and the early indications are encouraging in that we have 
already completed six new investments which qualify under the new VCT 
rules.  We believe that the change in circumstances, whilst somewhat 
abruptly imposed, creates a market opportunity which our company is well 
placed to exploit. 
 
   Our existing portfolio of VCT-qualifying investments is not affected by 
the new legislation, except to the extent that it will no longer be 
possible for us to make follow-on investments in many of our companies. 
These holdings will continue to be managed with a view to providing a 
strong investment return in the form of income yield and capital growth 
over the next few years. 
 
   As older investments are sold and new investments are added under the 
revised investment approach, the composition of the portfolio will 
gradually change and future investment returns may be more volatile, 
with potentially a greater emphasis on capital appreciation rather than 
income.  Nevertheless we hope to be able to continuing paying dividends 
at a level which will provide an attractive tax-free yield to 

shareholders. 
 
   In the circumstances it is appropriate to revise the wording of our 
formal investment policy, and we are taking the opportunity to submit an 
updated version for approval by shareholders at the forthcoming annual 
general meeting. 
 
   Professor Sir Frederick Holliday 
 
   We were very sorry to learn in September of the death of Professor Sir 
Frederick Holliday at the age of 80, after a long illness.  Fred was the 
founding chairman of Northern Venture Trust and served in that capacity 
for 14 years, retiring from the board in 2009.  His accomplishments 
across a wide range of business, academic and scientific activities are 
too numerous to record here, but his contribution to our company was 
significant and he is greatly missed. 
 
   Annual general meeting 
 
   The 2016 annual general meeting will take place in London on Thursday 15 
December 2016.  Details of the formal business of the meeting are set 
out in a separate circular which is being sent to shareholders with the 
annual report.  We look forward to meeting shareholders on that 
occasion. 
 
   Outlook 
 
   The past year has been a period of rapid change.  We have responded in a 
considered way to the challenge to adapt our investment philosophy and 
process, without discarding the key elements which have contributed to 
the company's success over the past 21 years, and we believe that there 
are good grounds for feeling positive about future prospects. 
 
   Simon Constantine 
 
   Chairman 
 
   The audited financial statements for the year ended 30 September 2016 
are set out below. 
 
   INCOME STATEMENT 
 
   for the year ended 30 September 2016 
 
 
 
 
                 Year ended 30 September 2016        Year ended 30 September 2015 
               Revenue     Capital      Total      Revenue     Capital      Total 
                GBP000      GBP000      GBP000      GBP000      GBP000      GBP000 
Gain on 
 disposal of 
 investments           -       2,398       2,398           -       5,019       5,019 
Movements in 
 fair value 
 of 
 investments           -       7,458       7,458           -       1,189       1,189 
              ----------  ----------  ----------  ----------  ----------  ---------- 
                       -       9,856       9,856           -       6,208       6,208 
Income             2,570           -       2,570       3,123           -       3,123 
Investment 
 management 
 fee               (404)     (2,054)     (2,458)       (433)     (1,617)     (2,050) 
Other 
 expenses          (397)           -       (397)       (456)           -       (456) 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 before tax        1,769       7,802       9,571       2,234       4,591       6,825 
Tax on 
 return on 
 ordinary 
 activities        (240)         240           -       (333)         333           - 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 after tax         1,529       8,042       9,571       1,901       4,924       6,825 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return per          1.6p        8.5p       10.1p        2.0p        5.2p        7.2p 
 share 
 
   BALANCE SHEET 
 
   as at 30 September 2016 
 
 
 
 
                                          30 September 2016  30 September 2015 
                                                GBP000             GBP000 
Fixed asset investments                              73,572             72,680 
                                                 ----------         ---------- 
Current assets: 
 Debtors                                                369                302 
 Cash and deposits                                    4,206              6,418 
                                                 ----------         ---------- 
                                                      4,575              6,720 
 
Creditors (amounts falling due within 
 one year)                                            (947)              (452) 
                                                 ----------         ---------- 
Net current assets                                    3,628              6,268 
                                                 ----------         ---------- 
 
Net assets                                           77,200             78,948 
                                                 ----------         ---------- 
Capital and reserves 
Called-up equity share capital                       24,110             23,775 
Share premium                                         2,599              1,359 
Capital redemption reserve                              544                228 
Capital reserve                                      40,514             47,787 
Revaluation reserve                                   7,360              3,367 
Revenue reserve                                       2,073              2,432 
                                                 ----------         ---------- 
Total equity shareholders' funds                     77,200             78,948 
                                                 ----------         ---------- 
Net asset value per share                             80.0p              83.0p 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 30 September 2016 
 
 
 
 
                        ---------------Non-distributable 
                            reserves---------------                Distributable reserves     Total 
                                         Capital 
                  Share       Share     redemption    Revaluation     Capital     Revenue 
                 capital     premium     reserve        reserve       reserve     reserve 
                 GBP000      GBP000      GBP000        GBP000          GBP000    GBP000       GBP000 
At 1 October 
 2015              23,775       1,359          228          3,367      47,787        2,432      78,948 
Return on 
ordinary 
activities 
after tax for 
 the year               -           -            -          3,993       4,049        1,529       9,571 
Net proceeds 
 of share 
 issues               651       1,240            -              -           -            -       1,891 
Shares 
purchased 
for 
 cancellation       (316)           -          316              -       (968)            -       (968) 
Dividends 
 paid                   -           -            -              -    (10,354)      (1,888)    (12,242) 
               ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
At 30 
 September 
 2016              24,110       2,599          544          7,360      40,514        2,073      77,200 
               ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 30 September 2015 
 
 
 
 
                        ---------------Non-distributable 
                            reserves---------------                Distributable reserves     Total 
                                         Capital 
                  Share       Share     redemption    Revaluation     Capital     Revenue 
                 capital     premium     reserve        reserve       reserve     reserve 
                 GBP000      GBP000      GBP000        GBP000          GBP000    GBP000       GBP000 
At 1 October 
 2014              23,770       1,073          106         10,788      45,348        2,436      83,521 
Return on 
ordinary 
activities 
after tax for 
 the year               -           -            -        (7,421)      12,345        1,901       6,825 
Net proceeds 
 of share 
 issues               127         286            -              -           -            -         413 
Shares 
purchased 
for 
 cancellation       (122)           -          122              -       (373)            -       (373) 
Dividends 
 paid                   -           -            -              -     (9,533)      (1,905)    (11,438) 
               ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
At 30 
 September 
 2015              23,775       1,359          228          3,367      47,787        2,432      78,948 
               ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
 
 
   STATEMENT OF CASH FLOWS 
 
   for the year ended 30 September 2016 
 
 
 
 
                                             Year ended         Year ended 
                                          30 September 2016  30 September 2015 
                                               GBP000             GBP000 
Cash flows from operating activities: 
Return on ordinary activities before tax              9,571              6,825 
Adjustments for: 
Gain on disposal of investments                     (2,398)            (5,019) 
Movement in fair value of investments               (7,458)            (1,189) 
(Increase)/decrease in debtors                         (29)                 56 
Increase/(decrease) in creditors                        495                 50 
                                                 ----------         ---------- 
Net cash inflow from operating 
 activities                                             181                723 
                                                 ----------         ---------- 
Cash flows from investing activities: 
Purchase of investments                            (10,471)           (18,300) 
Sale/repayment of investments                        19,397             22,882 
                                                 ----------         ---------- 
Net cash inflow from investing 
 activities                                           8,926              4,582 
                                                 ----------         ---------- 
Cash flows from financing activities: 
Issue of shares                                       1,899                428 

Share issue expenses                                    (8)               (15) 
Shares purchased for cancellation                     (968)              (373) 
Dividends paid                                     (12,242)           (11,438) 
                                                 ----------         ---------- 
Net cash outflow from financing 
 activities                                        (11,319)           (11,398) 
                                                 ----------         ---------- 
Net decrease in cash and cash 
 equivalents                                        (2,212)            (6,093) 
Cash and cash equivalents at beginning 
 of year                                              6,418             12,511 
                                                 ----------         ---------- 
Cash and cash equivalents at end of year              4,206              6,418 
                                                 ----------         ---------- 
 
   INVESTMENT PORTFOLIO SUMMARY 
 
   as at 30 September 2016 
 
 
 
 
                                          Cost     Valuation   % of net assets 
Company                                  GBP000      GBP000      by valuation 
Fifteen largest private equity 
investments: 
Entertainment Magpie Group                  1,610       5,515              7.1 
Buoyant Upholstery                          1,674       3,365              4.4 
No 1 Traveller                              2,006       3,211              4.2 
MSQ Partners Group                          1,695       2,578              3.3 
Cawood Scientific                           1,073       2,519              3.3 
Lineup Systems                                974       2,468              3.2 
IDOX*                                         269       2,432              3.1 
Optilan Group                               1,000       2,183              2.8 
Wear Inns                                   1,640       2,039              2.6 
It's All Good                               1,205       1,841              2.4 
Axial Systems Holdings                      1,004       1,799              2.3 
Biological Preparations Group               2,366       1,759              2.3 
Closerstill Group                           1,747       1,757              2.3 
Volumatic Holdings                          1,762       1,724              2.2 
Weldex (International) Offshore 
 Holdings                                   3,262       1,670              2.2 
                                       ----------  ----------          ------- 
                                           23,287      36,860             47.7 
Other private equity investments: 
Agilitas IT Holdings                        1,662       1,631              2.1 
Graza                                       1,581       1,581              2.0 
Hunley                                      1,581       1,581              2.0 
Oceanos                                     1,581       1,581              2.0 
Saluda                                      1,581       1,581              2.0 
Seawise                                     1,581       1,581              2.0 
Turbinia                                    1,581       1,581              2.0 
Customs Connect Group                       1,406       1,406              1.9 
Love Saving Group                           1,204       1,204              1.6 
Intuitive Holding                           1,674       1,080              1.5 
CGI Group Holdings                          3,818       1,040              1.3 
Vectura Group**                               599         976              1.3 
Myparceldelivery Holdings                     905         905              1.2 
Rockar                                        874         874              1.1 
Haystack Dryers                             1,661         834              1.1 
Lending Works                                 722         722              1.0 
AVID Technology Group                         715         715              1.0 
Lanner Group                                  579         702              0.9 
Channel Mum                                   662         662              0.9 
Arnlea Holdings                             1,305         585              0.8 
Nasstar*                                      323         548              0.7 
Other investments each valued at less 
 than GBP500,000                            5,386       2,660              3.4 
                                       ----------  ----------          ------- 
Total private equity investments           56,268      62,890             81.5 
Listed equity investments                   5,638       6,336              8.1 
Listed interest-bearing investments         4,306       4,346              5.6 
                                       ----------  ----------          ------- 
Total fixed asset investments              66,212      73,572             95.2 
                                       ---------- 
Net current assets                                      3,628              4.8 
                                                   ----------          ------- 
Net assets                                             77,200            100.0 
                                                   ----------          ------- 
* Quoted on AIM 
**Listed on London Stock Exchange 
 
 
   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: many of the company's investments are in 
small and medium-sized unquoted and AIM-quoted companies which are VCT 
qualifying holdings, and which by their nature entail a higher level of 
risk and lower liquidity than investments in large quoted companies. 
Mitigation: the directors aim to limit the risk attaching to the 
portfolio as a whole by careful selection, close monitoring and timely 
realisation of investments, by carrying out rigorous due diligence 
procedures and maintaining a wide spread of holdings in terms of 
financing stage and industry sector.  The board reviews the investment 
portfolio with the investment adviser on a regular basis. 
 
   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 take 
advantage of new unquoted investment opportunities.  The company has 
very little direct exposure to foreign currency risk and does not enter 
into derivative transactions. 
 
   Economic risk: events such as economic recession or general fluctuation 
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 where appropriate. 
 
   Stock market risk: some of the company's investments are quoted on the 
London Stock Exchange or AIM and will be subject to market fluctuations 
upwards and downwards.  External factors such as terrorist activity can 
negatively impact stock markets worldwide.  In times of adverse 
sentiment there can be very little, if any, market demand for shares in 
smaller companies quoted on AIM.  Mitigation: the company's quoted 
investments are actively managed by specialist managers and the board 
keeps the portfolio under ongoing review. 
 
   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. 
 
   Legislative and regulatory risk: in order to maintain its approval as a 
VCT, the company is required to comply with current VCT legislation in 
the UK, which reflects the European Commission's State aid rules. 
Changes to the UK legislation or the State aid rules in the future could 
have an adverse effect on the company's ability to achieve satisfactory 
investment returns whilst retaining its VCT approval.  Mitigation: The 
board and the investment adviser monitor political developments and 
where appropriate seek to make representations either directly or 
through relevant trade bodies. 
 
   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 investment adviser. 
These include controls designed to ensure that the company's assets are 
safeguarded and that proper accounting records are maintained. 
 
   VCT qualifying status risk: the company is required at all times to 
observe the conditions laid down in the Income Tax Act 2007 for the 
maintenance of approved VCT status.  The loss of such approval could 
lead to the company losing its exemption from corporation tax on capital 
gains, to investors being liable to pay income tax on dividends received 
from the company and, in certain circumstances, to investors being 
required to repay the initial income tax relief on their investment. 
Mitigation: the investment adviser keeps the company's VCT qualifying 
status under continual review and its reports are reviewed by the board 

on a quarterly basis.  The board has also retained Philip Hare & 
Associates LLP to undertake an independent VCT status monitoring role. 
 
   DIRECTORS' RESPONSIBILITIES 
 
   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 they 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. 
 
   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 the 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 directors are responsible for the maintenance and integrity of the 
corporate and financial information included on the company's website. 
Legislation in the United Kingdom governing the preparation and 
dissemination of financial statements may differ from legislation in 
other jurisdictions. 
 
   DIRECTORS' RESPONSIBILITY STATEMENT IN RELATION TO THE ANNUAL REPORT AND 
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2016 
 
   The directors have confirmed that to the best of their knowledge (i) 
taken as a whole 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 or loss of the 
company, and (ii) the strategic report and directors' 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 they face.  The directors consider that the 
annual report and financial statements, taken as a whole, are fair, 
balanced and understandable and provide the information necessary for 
shareholders to assess the company's position and performance, business 
model and strategy. 
 
   The directors of the company at the date of this announcement were Mr S 
J Constantine (Chairman), Mr N J Beer, Mr R J Green, Mr T R Levett, Mr D 
A Mayes and Mr H P Younger. 
 
   OTHER MATTERS 
 
   The above summary of results for the year ended 30 September 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, does not include any reference to 
matters to which the auditor drew attention 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. 
 
   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 
95,009,513 (2015 95,302,650) 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 30 September 2016 divided by the 96,440,979 (30 September 2015 
95,099,820) ordinary shares in issue at that date. 
 
   The proposed final dividend of 3.0 pence per share for the year ended 30 
September 2016 will, if approved by shareholders, be paid on 23 December 
2016 to shareholders on the register at the close of business on 25 
November 2016. 
 
   The full annual report including financial statements for the year ended 
30 September 2016 is expected to be posted to shareholders on 17 
November 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 Corporate Solutions on behalf 
of Nasdaq 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 Venture Trust PLC via Globenewswire 
 
 
 
 

(END) Dow Jones Newswires

November 14, 2016 09:00 ET (14:00 GMT)

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