Northern 2 VCT PLC Annual Financial Report

 
TIDMNTV 
 
 
   16 MAY 2019 
 
   NORTHERN 2 VCT PLC 
 
   ANNUAL FINANCIAL REPORT FOR THE YEARED 31 MARCH 2019 
 
   Northern 2 VCT PLC is a Venture Capital Trust (VCT) managed by NVM 
Private Equity.  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 Summary (comparative figures as at 31 March 2018): 
 
 
 
 
                                                        2019      2018 
                                                    --------  -------- 
Net assets                                          GBP84.1m  GBP87.0m 
Net asset value per share                              64.7p     66.9p 
Return per share: 
Revenue                                                 1.2p      1.3p 
Capital                                                 2.0p    (0.4)p 
Total                                                   3.2p      0.9p 
Dividend per share for the year: 
Interim dividend                                        2.0p      2.0p 
Proposed final dividend                                 2.0p      3.5p 
Total                                                   4.0p      5.5p 
Cumulative return to shareholders since launch: 
Net asset value per share                              64.7p     66.9p 
Dividends paid per share*                             117.4p    111.9p 
Net asset value plus dividends paid per share         182.1p    178.8p 
Mid-market share price at end of year                  59.0p     63.5p 
Share price discount to net asset value                 8.8%      5.1% 
Tax-free dividend yield (based on net asset value 
 per share at the start of year)                        6.0%      7.2% 
 
 
   *Excluding proposed final dividend payable on 19 July 2019 
 
   For further information, please contact: 
 
   NVM Private Equity LLP 
 
   Simon John/James Bryce                    0191 244 6000 
 
   Website:  www.nvm.co.uk 
 
   HIGHLIGHTS 
 
 
   -- Return per share for the year of 3.2 pence representing 4.8% of opening 
      NAV per share 
 
   -- Successful public share offer launched raising GBP6.6 million of gross 
      proceeds 
 
   -- GBP11.5 million of proceeds received from venture capital portfolio 
      realisations, generating a gain of GBP2.7 million (2018: GBP1.0 million) 
 
   -- Ten new and eight follow-on investments completed in innovative earlier 
      stage companies 
 
 
   CHAIRMAN'S STATEMENT 
 
   I am pleased to report on another busy year for your company during 
which ten new VCT qualifying investments were completed. Cash flows 
remained strong, supported by a number of successful investment 
disposals and a top-up public share offer which was fully subscribed. 
As a result, your company is well positioned both to pursue new 
opportunities to support small and medium businesses and to work with 
existing portfolio companies to realise their growth plans. 
 
   Results and dividend 
 
   In the year ended 31 March 2019 the company achieved a return on 
ordinary activities of GBP4,237,000 (2018: GBP1,055,000) or 3.2 pence 
per share (2018: 0.9 pence), representing a total return of 4.8% on the 
opening net asset value (NAV) per share.  The NAV per share at 31 March 
2019, after deducting dividends paid during the year of 5.5 pence, was 
64.7 pence compared with 66.9 pence as at 31 March 2018.  The cumulative 
return to shareholders increased to 182.1 pence per share (2018: 178.8 
pence) which marks the tenth consecutive year of growth.  The company's 
NAV total return over five years remains ahead of the UK equity market 
total return index which we use as a comparator. 
 
   We remain committed to building a portfolio of investments in smaller 
innovative UK companies across a diverse range of sectors with 
significant growth potential.  In keeping with the latest VCT rules, the 
companies selected for investment require patient capital to enable job 
creation or technological advancement.  These investments are generally 
structured with a view to achieving capital growth rather than income 
generation and as a consequence the timing and quantum of potential 
capital gains from realisations may be less predictable.  As we 
highlighted in our half-yearly report, your directors believe it is 
important to set the annual dividend at a level which has regard to the 
company's changing asset base and to its recurring income. 
 
   After careful consideration, the directors have proposed a final 
dividend of 2.0 pence per share in respect of the year ended 31 March 
2019, which if approved at the annual general meeting, will be paid on 
19 July 2019 to shareholders on the register on 21 June 2019.  Taken 
with the interim dividend of 2.0 pence per share paid in January 2019, 
this makes a total annual dividend of 4.0 pence per share, equivalent to 
a tax-free yield of 6.0% by reference to the opening NAV per share. 
 
   Paying regular tax-free dividends whilst seeking to minimise or avoid 
erosion of the NAV per share remains a priority for your directors. 
 
 
 
   Investment portfolio 
 
   Our investment manager, NVM, has continued to build its early stage 
investment capability having hired five investment professionals during 
the year and two sector specialists whose roles encompass value-adding 
activities for portfolio companies.  The investment team now works from 
an expanded network of five regional offices.  I am pleased to note that 
NVM has continued to identify opportunities to support small and medium 
businesses with good growth potential. 
 
   Following our rigorous investment process, ten new VCT-qualifying 
investments were added to the venture capital portfolio at a cost of 
GBP6.4 million. In addition, follow-on investments totalling GBP3.9 
million were made in eight existing portfolio companies to support their 
continued development. The total investment rate of GBP10.3 million 
maintains the momentum established in the prior year (2018: GBP10.1 
million).  The investment rate is encouraging, as we continue to 
identify opportunities to advance capital to growing businesses, many of 
which are developing disruptive products or services.  Whilst we are 
still relatively near the beginning of the investment holding period for 
the 25 investments acquired to date under the new rules, satisfactory 
progress is being made by the portfolio as a whole. The earlier-stage 
nature of the businesses we are investing in will typically lead to 
greater fluctuations in short-term results and in longer periods before 
a significant value creation event might occur.  We remain confident in 
our manager's skills in selecting attractive opportunities in which to 
invest shareholders' funds for the long term. 
 
   Just over half of the value of the venture capital portfolio is 
currently represented by investments made under previous iterations of 
the VCT rules, which tend to be in more mature, profitable businesses. 
The notable realisations of investments during the year were all from 
this older portfolio and generated gains on disposal of GBP4.8 million 
over cost or GBP2.7 million over their carrying value as at 31 March 
2018.  We hope that the remaining mature investments will continue to 
provide an income yield and a series of profitable exits in the years to 
come, supporting the overall returns of the company whilst the 
earlier-stage portfolio matures. 
 
   Shareholder issues 
 
   Having reviewed the medium-term investment pipeline with NVM earlier in 
the year, your board proposed a non-prospectus top-up share offer which 
was launched in January 2019.  We were very pleased that strong demand 
was experienced for this offer and that it was fully subscribed within 
eight days of being launched, raising gross proceeds of GBP6.6 million. 
Your directors would like to express their appreciation of shareholders' 
continuing support. 
 
   Recent legislative changes mean that VCTs will be required to invest 30% 
of new funds by the end of the year following the year in which they are 
raised, which is likely to lead us to make smaller and more frequent 
share offers. 
 
   In addition to the public offer, gross proceeds of GBP1.3 million were 
received during the year through the issue of new shares under our 
dividend investment scheme.  The scheme enables shareholders to 
efficiently re-invest some or all of their dividends in new shares 
attracting income tax relief and remains open to new participants. 
 
   The company's annual general meeting (AGM) will be held in London on 
Thursday 11 July 2019 and the directors look forward to meeting and 
engaging with shareholders. 
 
   Share buy-backs 
 
   The company has maintained its policy of buying back its own shares in 
the market, at a discount of around 5% to NAV.  During the year, a total 
of 2,110,000 shares were repurchased for cancellation, equivalent to 
approximately 1.6% of the opening share capital. 
 
   Board of directors 
 
   All the directors will be seeking re-election at the AGM, either in 
accordance with the AIC Code of Corporate Governance or voluntarily. 
 
   VCT legislation and regulation 
 
   Following the significant amendments to the relevant legislation 
announced in both 2015 and 2017, the past year has seen a welcome period 
of regulatory stability.  The main change still being phased into 
practice is the increase in the minimum proportion of investments 
required to be held by a VCT in VCT-qualifying holdings, from 70% to 
80%.  This will first apply to your company from 31 March 2020 and both 
the board and NVM are monitoring progress towards this target closely. 
 
   Whilst there were no further amendments announced by the Chancellor in 
his 2018 Autumn Budget statement, it is possible that further changes 
will be made in the future.  We will continue to work closely with our 
investment manager to maintain compliance with the scheme rules at all 
times. 
 
   HM Revenue and Customs (HMRC) launched a consultation in December 2016 
to consider how to streamline the advanced assurance service, the 

process whereby potential investments may be given an indicative opinion 
of eligibility.  The consultation conclusions called for a greater level 
of self-assurance by VCTs however provided little guidance on how this 
should work in practice.  NVM has been in discussions with HMRC and 
other market participants on this topic since the consultation and 
progress has recently been made, with formal guidance on the 
self-assurance process now available.  Your board has therefore decided 
to self-assure certain investments meeting a series of criteria, where 
professional advice has been sought and expert opinion over the 
eligibility of the investment opportunity has been received. 
 
   VCT qualifying status 
 
   The company has continued to meet the stringent and evolving qualifying 
conditions laid down by HM Revenue & Customs for maintaining its 
approval as a VCT.  NVM monitors the position closely and reports 
regularly to the board.  Philip Hare & Associates LLP has continued to 
act as independent adviser to the company on VCT taxation matters. 
 
   Outlook 
 
   Your board is encouraged by the further progress made by the company 
over the past year, both in the implementation of the investment 
strategy and the successful realisation of several investments. 
Financial markets rarely react well to lack of political clarity and the 
recently extended process of implementing the UK's decision to leave the 
EU has provided much uncertainty.  Our manager, NVM, continues to work 
with portfolio companies to plan for a range of potential outcomes with 
regard to the UK's future relationship with the EU.  Following the 
recent investment disposals and successful share offer, your company is 
well-funded to capitalise on attractive investment opportunities and 
will continue to maintain the highest standards in the selection of 
investments to deploy capital effectively and ultimately drive 
shareholder value. 
 
   David Gravells 
 
   Chairman 
 
 
   Extracts from the audited financial statements for the year ended 31 
March 2019 are set out below. 
 
   INCOME STATEMENT 
 
   for the year ended 31 March 2019 
 
 
 
 
                   Year ended 31 March 2019            Year ended 31 March 2018 
               Revenue     Capital      Total      Revenue     Capital      Total 
                GBP000      GBP000      GBP000      GBP000      GBP000      GBP000 
Gain on 
 disposal of 
 investments           -       2,827       2,827           -         709         709 
Movements in 
 fair value 
 of 
 investments           -         762         762           -       (202)       (202) 
              ----------  ----------  ----------  ----------  ----------  ---------- 
                       -       3,589       3,589           -         507         507 
Income             2,638           -       2,638       2,482           -       2,482 
Investment 
 management 
 fee               (399)     (1,198)     (1,597)       (393)     (1,180)     (1,573) 
Other 
 expenses          (393)           -       (393)       (350)        (11)       (361) 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 before tax        1,846       2,391       4,237       1,739       (684)       1,055 
Tax on 
 return on 
 ordinary 
 activities        (275)         275           -       (277)         277           - 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 after tax         1,571       2,666       4,237       1,462       (407)       1,055 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return per          1.2p        2.0p        3.2p        1.3p      (0.4)p        0.9p 
 share 
 
   BALANCE SHEET 
 
   as at 31 March 2019 
 
 
 
 
                                                  31 March 2019  31 March 2018 
                                                      GBP000         GBP000 
Fixed assets: 
 Investments                                             64,125         61,432 
                                                     ----------     ---------- 
Current assets: 
 Debtors                                                    221            205 
 Cash and cash equivalents                               26,431         25,540 
                                                     ----------     ---------- 
                                                         26,652         25,745 
Creditors (amounts falling due within one year)         (6,668)          (134) 
                                                     ----------     ---------- 
Net current assets                                       19,984         25,611 
                                                     ----------     ---------- 
 
Net assets                                               84,109         87,043 
                                                     ----------     ---------- 
 
 
Capital and reserves: 
Called-up equity share capital                            6,502          6,505 
Share premium                                             1,555            392 
Capital redemption reserve                                  215            110 
Capital reserve                                          67,341         71,629 
Revaluation reserve                                       6,679          7,836 
Revenue reserve                                           1,817            571 
                                                     ----------     ---------- 
Total equity shareholders' funds                         84,109         87,043 
                                                     ----------     ---------- 
Net asset value per share                                 64.7p          66.9p 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 31 March 2019 
 
 
 
 
               ---------------Non-distributable reserves---------------  Distributable reserves         Total 
                                              Capital 
               Called up share     Share     redemption    Revaluation     Capital      Revenue 
                   capital        premium     reserve        reserve*      reserve      reserve 
                   GBP000         GBP000      GBP000         GBP000        GBP000        GBP000        GBP000 
At 1 April 
 2018                    6,505         392          110           7,836      71,629         571     87,043 
Return on 
ordinary 
activities 
after tax                    -           -            -         (1,157)       3,823       1,571         4,237 
Dividends 
 paid                        -           -            -               -     (6,831)       (325)       (7,156) 
Net proceeds 
 of share 
 issues                    102       1,163            -               -           -           -         1,265 
Shares 
 purchased 
 for 
 cancellation            (105)           -          105               -     (1,280)           -   (1,280) 
                    ----------  ----------   ----------      ----------  ----------  ----------    ---------- 
At 31 March 
 2019                    6,502       1,555          215           6,679      67,341       1,817    84,109 
                    ----------  ----------   ----------      ----------  ----------  ----------    ---------- 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 31 March 2018 
 
 
 
 
               ---------------Non-distributable reserves---------------  Distributable reserves     Total 
                                              Capital 
               Called up share     Share     redemption    Revaluation     Capital      Revenue 
                   capital        premium     reserve        reserve*      reserve      reserve 
                   GBP000         GBP000      GBP000         GBP000        GBP000      GBP000       GBP000 
At 1 April 
 2017                    4,678       3,029           83           9,049      53,908          900      71,647 
Return on 
ordinary 
activities 
after tax                    -           -            -         (1,213)         806        1,462       1,055 
Dividends 
 paid                        -           -            -               -     (9,226)      (1,791)    (11,017) 
Net proceeds 
 of share 
 issues                  1,854      23,853            -               -           -            -      25,707 
Shares 
 purchased 
 for 
 cancellation             (27)           -           27               -       (349)            -       (349) 
Cancellation 
 of share 
 premium 
 reserve                     -    (26,490)            -               -      26,490            -           - 
                    ----------  ----------   ----------      ----------  ----------   ----------  ---------- 
 
At 31 March 
 2018                    6,505         392          110           7,836      71,629          571      87,043 
                    ----------  ----------   ----------      ----------  ----------   ----------  ---------- 
 
 
   *the revaluation reserve is generally non-distributable other than that 
part of the reserve relating to gains/losses on readily realisable 
quoted investments, which is distributable. 
 
   STATEMENT OF CASH FLOWS 
 
   for the year ended 31 March 2019 
 
 
 
 
                                             Year ended     Year ended 
                                            31 March 2019  31 March 2018 
                                               GBP000         GBP000 
Cash flows from operating activities: 
Return on ordinary activities before tax            4,237          1,055 
Adjustments for: 
Gain on disposal of investments                   (2,827)          (709) 
Movement in fair value of investments               (762)               202 
(Increase)/decrease in debtors                       (16)            386 
Increase/(decrease) in creditors                       66          (582) 
                                               ----------     ---------- 
Net cash inflow from operating activities             698            352 

                                               ----------     ---------- 
Cash flows from investing activities: 
Purchase of investments                          (17,730)       (10,265) 
Sale/repayment of investments                      18,626          7,535 
                                               ----------     ---------- 
Net cash inflow/(outflow) from investing 
 activities                                           896        (2,730) 
                                               ----------     ---------- 
Cash flows from financing activities: 
Issue of ordinary shares                            1,304         26,248 
Share issue expenses                                 (39)          (541) 
Share subscriptions held pending allotment          6,468        (4,297) 
Purchase of ordinary shares for 
 cancellation                                     (1,280)          (349) 
Equity dividends paid                             (7,156)       (11,017) 
                                               ----------     ---------- 
Net cash (outflow)/inflow from financing 
 activities                                         (703)         10,044 
                                               ----------     ---------- 
Increase in cash and cash equivalents                 891          7,666 
Cash and cash equivalents at beginning of 
 year                                              25,540         17,874 
                                               ----------     ---------- 
Cash and cash equivalents at end of year           26,431         25,540 
                                               ----------     ---------- 
 
   INVESTMENT PORTFOLIO SUMMARY 
 
   as at 31 March 2019 
 
 
 
 
                                                                      % of 
                                              Cost      Valuation   net assets 
                                             GBP000      GBP000      by value 
Fifteen largest venture capital 
investments: 
Sorted Holdings                                2,716        3,625          4.3 
MSQ Partners Group                             1,672        3,486          4.2 
Agilitas IT Holdings                           1,638        3,266          3.9 
No 1 Lounges                                   1,977        2,952          3.5 
Lineup Systems                                   974        2,910          3.5 
Volumatic Holdings                             1,078        2,110          2.5 
SHE Software Group                             1,873        2,109          2.5 
Entertainment Magpie Group                     1,503        1,915          2.3 
Biological Preparations Group                  2,166        1,761          2.1 
Currentbody.com                                1,287        1,655          2.0 
Avid Technology Group                          1,287        1,634          1.9 
It's All Good                                  1,145        1,618          1.9 
Knowledgemotion                                1,469        1,595          1.9 
Intelling Group                                1,143        1,540          1.8 
Intuitive Holding                              1,508        1,469          1.7 
                                          ----------   ----------     -------- 
                                              23,436       33,645         40.0 
Other venture capital investments             25,981       22,674         27.0 
                                          ----------   ----------     -------- 
Total venture capital investments             49,417       56,319         67.0 
Listed equity investments                      6,687        6,438          7.7 
Listed interest-bearing investments            1,342        1,368          1.6 
                                          ----------   ----------     -------- 
Total fixed asset investments                 57,446       64,125         76.3 
                                          ---------- 
Net current assets                                         19,984         23.7 
                                                       ----------     -------- 
Net assets                                                 84,109        100.0 
                                                       ----------     -------- 
 
 
   RISK MANAGEMENT 
 
   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: investment in smaller and unquoted 
companies, such as those in which the company invests, involves a higher 
degree of risk than investment in larger listed companies because they 
generally have limited product lines, markets and financial resources 
and may be more dependent on key individuals. The securities of smaller 
companies in which the company invests are typically unlisted, making 
them illiquid, and this may cause difficulties in valuing and disposing 
of the securities. The company may invest in businesses whose shares are 
quoted on AIM -- the fact that a share is quoted on AIM does not mean 
that it can be readily traded and the spread between the buying and 
selling prices of such shares may be wide. 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 manager 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 pursue new 
unquoted investment opportunities and to make follow-on investments in 
existing portfolio companies. 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, exchange rates 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 may 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, including NVM in the case 
of AIM-quoted investments, and the board keeps the portfolio and the 
actions taken 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 manager 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 manager. These include 
controls designed to ensure that the company's assets are safeguarded 
and that proper accounting records are maintained. 
 
   VCT qualifying status risk: while it is the intention of the directors 
that the company will be managed so as to continue to qualify as a VCT, 
there can be no guarantee that this status will be maintained. A failure 
to continue meeting the qualifying requirements could result in the loss 
of VCT tax relief, the company losing its exemption from corporation tax 
on capital gains, to shareholders being liable to pay income tax on 
dividends received from the company and, in certain circumstances, to 
shareholders being required to repay the initial income tax relief on 
their investment. Mitigation: the investment manager 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 
 
   its profit or loss 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;  (iv) assess the company's ability to continue 
as a going concern, disclosing, as applicable, matters related to going 
concern; and (v) prepare the financial statements on the going concern 
basis unless they either intend to liquidate the company or to cease 
operations, or have no realistic alternative but to do so. 
 
   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 are responsible for such 
internal control as they determine is necessary to enable the 
preparation of financial statements that are free from material 
misstatement, whether due to fraud or error, and 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 strategic report, directors' 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 UK governing the preparation and dissemination of 
financial statements may differ from legislation in other jurisdictions. 
 
   The directors have confirmed that to the best of their knowledge (i) the 
financial statements, prepared in accordance with the applicable set of 
accounting standards, give a true and fair view of the assets, 
liabilities, financial position and profit or loss of the company;  and 
(ii) 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 they face. 
 
   The directors consider that the annual report and accounts, taken as a 
whole, is fair, balanced and understandable and provides 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 D 
P A Gravells (Chairman), Mr A M Conn, Mr S P Devonshire, Miss C A 
McAnulty and Mr F L G Neale. 
 
   OTHER MATTERS 
 
   The above summary of results for the year ended 31 March 2019 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 return per share is based on the return on 
ordinary activities after tax for the year of GBP4,237,000 (2018: 
GBP1,055,000) and on 130,606,159 (2018: 112,186,377) shares, being the 
weighted average number of shares in issue during the year. 
 
   The calculation of the net asset value per share as at 31 March 2019 is 
based on the net assets of GBP84,109,000 (2018: GBP87,043,000) divided 
by the 130,044,260 (2018: 130,089,490) ordinary shares in issue at that 
date. 
 
   If approved by shareholders, the proposed final dividend of 2.0p per 
share for the year ended 31 March 2019 will be paid on 19 July 2019 to 
shareholders on the register at the close of business on 21 June 2019. 
 
   The full annual report including financial statements for the year ended 
31 March 2019 is expected to be posted to shareholders on 14 June 2019 
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. 
 
 
 
 

(END) Dow Jones Newswires

May 17, 2019 03:31 ET (07:31 GMT)

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