Northern 3 VCT plc Annual Financial Report

 
TIDMNTN 
 
 
   17 MAY 2018 
 
   NORTHERN 3 VCT PLC 
 
   ANNUAL FINANCIAL REPORT FOR THE YEARED 31 MARCH 2018 
 
   Northern 3 VCT PLC is a Venture Capital Trust (VCT) managed by NVM 
Private Equity.  The trust 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 31 March 2017): 
 
 
 
 
                                                         2018      2017 
Net assets                                           GBP84.3m  GBP69.9m 
Net asset value per share                               94.0p    106.2p 
Return per share: 
Revenue                                                  1.9p      2.6p 
Capital                                                (4.0)p     12.0p 
Total                                                  (2.1)p     14.6p 
Dividend per share for the year: 
First interim dividend                                   2.0p      2.0p 
Second interim (special) dividend                           -      5.0p 
Proposed final dividend                                  3.5p      3.5p 
Total                                                    5.5p     10.5p 
Cumulative return to shareholders since launch: 
Net asset value per share                               94.0p    106.2p 
Dividends paid per share*                               85.9p     75.4p 
Net asset value plus dividends paid per share          179.9p    181.6p 
Mid-market share price at end of year                   89.5p    101.0p 
Share price discount to net asset value                  4.8%      4.9% 
Tax-free dividend yield (based on mid-market share 
 price at end of year): 
Including special dividend                                N/A     10.4% 
 Excluding special dividend                              6.1%      5.4% 
 
 
   *Excluding proposed final dividend payable on 20 July 2018 
 
   For further information, please contact: 
 
   NVM Private Equity LLP 
 
   Simon John/James Bryce                    0191 244 6000 
 
   Website:  www.nvm.co.uk 
 
   CHAIRMAN'S STATEMENT 
 
   Northern 3 VCT has had a productive year during which ten new 
VCT-qualifying investments were completed and a successful public share 
offer was launched and fully subscribed. As a result, your company is 
well positioned to pursue further investment opportunities and to 
support its evolving portfolio. 
 
   Results and dividend 
 
   The net asset value (NAV) per share at 31 March 2018, after deducting 
dividends paid during the year, was 94.0p compared with 106.2p as at 31 
March 2017. The change in NAV over the year reflects amongst other items, 
a revenue return per share of 1.9p, realised gains on investment 
disposals of 0.9p per share and a net downward unrealised revaluation 
change equivalent to 3.7p per share, as well as the dividends paid of 
10.5p per share.  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. 
 
   The directors' policy is to set the annual dividend at a level which is 
sustainable, seeking to smooth out the inevitable fluctuations in annual 
results.  Since 2012, this has resulted in an annual base dividend of 
5.5p per share.  Your company has significant distributable reserves 
brought forward from previous periods and is therefore able to maintain 
the dividend for the year under review.  We propose an unchanged final 
dividend of 3.5p in respect of the year, which together with the interim 
dividend of 2.0p paid in January makes a total of 5.5p. The proposed 
final dividend will, subject to approval by shareholders at the annual 
general meeting, be paid on 20 July 2018 to shareholders on the register 
on 22 June 2018. 
 
   Changes in the VCT rules which came into effect from November 2015 have 
meant that the company is required to invest mainly in relatively young 
businesses which need funding for growth and development.  Typically, 
this funding will include a greater proportion of equity rather than 
income-yielding debt instruments, which will make future returns to the 
company more dependent on the timing of investment sales.  As a result, 
future dividend payments by the company may be subject to fluctuation, 
however we remain conscious of the importance which shareholders attach 
to a regular flow of tax-free income. 
 
   Investment portfolio 
 
   The net unrealised revaluation change for the year across our venture 
capital portfolio was a reduction of GBP1.8 million, largely driven by 
the performance of a single AIM-quoted investment, Idox, which more than 
halved in value during the last five months of our financial year after 
announcing contract delays.  The company has subsequently made 
management and organisational changes which we expect to lead to a 
recovery in the share price as market confidence is rebuilt.  We 
continue to take a long term view of the potential of our AIM-quoted 
investments and expect that in some cases, there may be take-overs.  For 
example, subsequent to the year end an agreed bid has been made for 
Cityfibre Infrastructure Holdings at approximately twice the 31 March 
2018 market price. 
 
   Overall, the valuation of the portfolio of unquoted investments has 
increased modestly during the period. Excellent progress has been made 
by many companies and positive underlying trading trends have been 
reported.  A small number of investments with an exposure to the UK 
retail and consumer sectors have faced a more challenging environment 
and our valuation reflects this. 
 
   The rate of new investment has been encouraging over the past year with 
ten new VCT-qualifying investments completed at a total cost of GBP8.6 
million.  Taken with follow-on investments totalling GBP1.2 million, the 
overall venture capital investment rate approached GBP10 million for the 
year.  As mentioned above, the composition of the portfolio is shifting 
towards earlier stage investments.  This is expected to generate greater 
fluctuations in valuations over time given the nature of early stage 
investments. 
 
   Cash proceeds from the realisation of venture capital investments 
totalled GBP7.1 million, much of which was represented by investment 
redemptions at or close to cost.  Optilan Group was sold in April 2017 
and consequently the valuation had been marked up in the previous year. 
 
   In the AIM-quoted portfolio, the modest remaining investment in 
Gear4music (Holdings) was sold in the market for over four times the 
original cost and the holding in Hayward Tyler was sold following an 
agreed take-over bid. 
 
   Shareholder issues 
 
   In November 2017, the company raised GBP20 million of new capital 
through a public offer of ordinary shares, launched in conjunction with 
similar offers by Northern Venture Trust and Northern 2 VCT.  The offer 
was fully subscribed in a matter of weeks and we thank all investors for 
the vote of confidence shown in Northern 3 VCT. 
 
   We have maintained our policy of buying back our shares in the market, 
where necessary to maintain market liquidity, at a discount of 5% to 
NAV.  During the year 1,165,000 shares, equivalent to approximately 1.8% 
of the opening share capital, were re-purchased for cancellation at an 
average cost of 93p per share. 
 
   Our investment scheme, under which dividends can be re-invested in new 
ordinary shares free of dealing costs and with the benefit of the tax 
reliefs available on new VCT share subscriptions, continues to operate. 
Shareholders who wish to join the scheme or amend their current 
participation in the scheme may obtain an updated scheme mandate form 
from NVM's website at www.nvm.co.uk 
 
   VCT qualifying status 
 
   The company has continued to meet the qualifying conditions laid down by 
HM Revenue & Customs for maintaining its approval as a VCT.  The board 
reviews the company's compliance position on a regular basis with the 
manager.  Philip Hare & Associates LLP continues to act as independent 
adviser to the company on VCT taxation matters. 
 
   VCT legislation and regulation 
 
   Frequent legislative change has unfortunately come to be expected by the 
VCT industry and the Government again took the opportunity to introduce 
amendments to the VCT rules as part of the most recent Autumn Budget 
Statement.  The rules governing permitted investment structures will 
make the provision of debt finance by VCTs to investee companies more 
difficult as the Government attempts to ensure that VCT capital is 
genuinely at risk.  Barriers to accessing capital for so-called 
knowledge intensive companies may be reduced with a doubling of the 
annual and lifetime investment limits for these businesses.  VCTs will 
be required to invest 30% of new funds by the end of the year following 
the year they are raised, which is likely to encourage smaller and more 
frequent share issues in future.  We welcome the authorities' declared 
intention to speed up the advanced assurance process and hope to see a 
tangible difference in this regard. 
 
   The company is required to comply with the Packaged Retail and 
Insurance-based Investment Products (PRIIPs) Regulation, which came into 
effect from January 2018.  A key information document (KID) has been 
prepared to summarise the purpose, costs and illustrative performance of 
Northern 3 VCT for interested market participants.  Investment managers 
have very little discretion to amend the basis of preparation of the KID, 
which is strictly mandated by the relevant regulations.  We welcome 
increased transparency across the sector but note the risks of basing 
future expectations on past performance. 
 
   Company secretary 
 
   Chris Mellor retired as company secretary of Northern 3 VCT on 31 March 
2018, having held that position since the company's formation in 2001. 
I would like to thank him on your behalf for the expert and unobtrusive 
manner in which he has carried out his duties; we are very grateful to 
him.  James Bryce, who has joined NVM as head of legal and compliance, 

is our new company secretary and we look forward to working with him. 
 
   Outlook 
 
   Our manager's reaction to the recent changes to the VCT legislation has 
been constructive. They have recruited additional members to their 
investment team and they will continue to apply the rigorous investment 
principles established over many years.  Whilst there was a reduction in 
investment realisations for the year under review, our manager is 
currently considering several promising opportunities for sales and we 
remain confident in their ability to deliver good results for 
shareholders in the medium to long term. 
 
   James Ferguson 
 
   Chairman 
 
   Extracts from the audited financial statements for the year ended 31 March 2018 are set out below. 
 
 
   INCOME STATEMENT 
 
   for the year ended 31 March 2018 
 
 
 
 
                   Year ended 31 March 2018            Year ended 31 March 2017 
               Revenue     Capital      Total      Revenue     Capital      Total 
                GBP000      GBP000      GBP000      GBP000      GBP000      GBP000 
Gain on 
 disposal of 
 investments           -         698         698           -       1,775       1,775 
Movements in 
 fair value 
 of 
 investments           -     (2,892)     (2,892)           -       7,785       7,785 
              ----------  ----------  ----------  ----------  ----------  ---------- 
                       -     (2,194)     (2,194)           -       9,560       9,560 
Income             2,436           -       2,436       2,626           -       2,626 
Investment 
 management 
 fee               (384)     (1,150)     (1,534)       (354)     (1,951)     (2,305) 
Other 
 expenses          (335)        (11)       (346)       (306)           -       (306) 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 before tax        1,717     (3,355)     (1,638)       1,966       7,609       9,575 
Tax on 
 return on 
 ordinary 
 activities        (209)         209           -       (274)         274           - 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 after tax         1,508     (3,146)     (1,638)       1,692       7,883       9,575 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return per 
 share              1.9p      (4.0)p      (2.1)p        2.6p       12.0p       14.6p 
Dividend per        1.5p        4.0p        5.5p        2.0p        8.5p       10.5p 
 share 
 
   BALANCE SHEET 
 
   as at 31 March 2018 
 
 
 
 
                                                  31 March 2018  31 March 2017 
                                                      GBP000         GBP000 
Fixed assets: 
 Investments                                             62,770         62,717 
                                                     ----------     ---------- 
Current assets: 
 Debtors                                                    167            652 
 Cash and cash equivalents                               21,458         11,811 
                                                     ----------     ---------- 
                                                         21,625         12,463 
Creditors (amounts falling due within one year)           (135)        (5,288) 
                                                     ----------     ---------- 
Net current assets                                       21,490          7,175 
                                                     ----------     ---------- 
 
Net assets                                               84,260         69,892 
                                                     ----------     ---------- 
 
Capital and reserves: 
Called-up equity share capital                            4,483          3,290 
Share premium                                               214          2,223 
Capital redemption reserve                                  171            113 
Capital reserve                                          69,721         50,850 
Revaluation reserve                                       8,463         12,124 
Revenue reserve                                           1,208          1,292 
                                                     ----------     ---------- 
Total equity shareholders' funds                         84,260         69,892 
                                                     ----------     ---------- 
Net asset value per share                                 94.0p         106.2p 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 31 March 2018 
 
 
 
 
                         ---------------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 April 
 2017               3,290          2,223          113         12,124      50,850       1,292      69,892 
Return on 
ordinary 
activities 
after tax for 
 the year               -              -            -        (3,661)         515       1,508        (1,638) 
Dividends 
 paid                   -              -            -              -     (6,127)     (1,592)     (7,719) 
Net proceeds 
 of share 
 issues             1,251         23,560            -              -           -           -      24,811 
Re-purchase 
 of shares           (58)              -           58              -     (1,086)           -     (1,086) 
Cancellation 
of share 
premium                         (25,569)            -              -      25,569           -           - 
reserve                 - 
               ----------     ----------   ----------     ----------  ----------  ----------  ---------- 
At 31 March 
 2018               4,483            214          171          8,463      69,721       1,208      84,260 
               ----------     ----------   ----------     ----------  ----------  ----------  ---------- 
 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 31 March 2017 
 
 
 
 
                       ---------------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 April 
 2016              3,277       1,348           76          6,899      54,452          912      66,964 
Return on 
ordinary 
activities 
after tax 
 for the 
 year                  -           -            -          5,225       2,658        1,692       9,575 
Dividends 
 paid                  -           -            -              -     (5,559)      (1,312)     (6,871) 
Net proceeds 
 of share 
 issues               50         875            -              -           -            -         925 
Re-purchase 
 of shares          (37)           -           37              -       (701)            -       (701) 
              ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
At 31 March 
 2017              3,290       2,223          113         12,124      50,850        1,292      69,892 
              ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
 
 
   STATEMENT OF CASH FLOWS 
 
   for the year ended 31 March 2018 
 
 
 
 
                                        Year ended          Year ended 
                                       31 March 2018     31 March 2017 
                                          GBP000                GBP000 
Cash flows from operating activities: 
Return on ordinary activities before 
 tax                                         (1,638)    9,575 
Adjustments for: 
Gain on disposal of investments                (698)           (1,775) 
Movement in fair value of investments          2,892           (7,785) 
Decrease/(increase) in debtors                   485             (400) 
(Decrease)/increase in creditors               (872)               387 
                                          ----------        ---------- 
Net cash inflow from operating 
 activities                                      169        2 
                                          ----------        ---------- 
Cash flows from investing activities: 
Purchase of investments                     (10,117)           (6,856) 
Sale/repayment of investments                  7,870            12,394 
                                          ----------        ---------- 
Net cash (outflow)/inflow from 
 investing activities                        (2,247)             5,538 
                                          ----------        ---------- 
Cash flows from financing activities: 
Issue of ordinary shares                      25,357               951 
Share issue expenses                           (546)              (26) 
Share subscriptions held pending 
 allotment                                   (4,281)             4,281 
Purchase of ordinary shares for 
 cancellation                                (1,086)             (701) 
Equity dividends paid                        (7,719)           (6,871) 
                                          ----------        ---------- 
Net cash inflow/(outflow) from 
 financing activities                         11,725  (2,366) 
                                          ----------        ---------- 
Net increase in cash/cash equivalents          9,647             3,174 
Cash and cash equivalents at 
 beginning of year                            11,811             8,637 

                                          ----------        ---------- 
Cash and cash equivalents at end of 
 year                                         21,458            11,811 
                                          ----------        ---------- 
 
 
   INVESTMENT PORTFOLIO SUMMARY 
 
   as at 31 March 2018 
 
 
 
 
                                                                      % of 
                                              Cost      Valuation   net assets 
                                             GBP000      GBP000      by value 
Venture capital investments: 
No 1 Lounges                                   1,748        2,977          3.5 
Lineup Systems                                   974        2,910          3.5 
Entertainment Magpie Group                     1,360        2,611          3.1 
Sorted Holdings                                1,521        2,372          2.8 
Agilitas IT Holdings                           1,448        2,268          2.7 
MSQ Partners Group                             1,478        2,226          2.6 
Love Saving Group                              1,017        2,089          2.5 
Closerstill Group                              1,520        1,985          2.4 
Buoyant Upholstery                               907        1,866          2.2 
Ideagen*                                         541        1,695          2.0 
Wear Inns                                      1,406        1,589          1.9 
Biological Preparations Group                  1,915        1,579          1.9 
It's All Good                                  1,131        1,446          1.7 
Volumatic                                      1,251        1,443          1.7 
Medovate                                       1,432        1,432          1.7 
                                          ----------   ----------     -------- 
Fifteen largest venture capital 
 investments                                  19,649       30,488         36.2 
Other venture capital investments             27,476       25,408         30.1 
                                          ----------   ----------     -------- 
Total venture capital investments             47,125       55,896         66.3 
Listed equity investments                      7,182        6,874          8.2 
                                          ----------   ----------     -------- 
Total fixed asset investments                 54,307       62,770         74.5 
                                          ---------- 
Net current assets                                         21,490         25.5 
                                                       ----------     -------- 
Net assets                                                 84,260        100.0 
                                                       ----------     -------- 
 
 
   *Quoted on AIM 
 
   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 their management or 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 take 
advantage of 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 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 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: whilst 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 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;  (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 its 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 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 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) 
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 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 financial statements, 
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 J 
G D Ferguson (Chairman), Mr C J Fleetwood, Mr T R Levett and Mr J M O 
Waddell. 
 
   OTHER MATTERS 
 
   The above summary of results for the year ended 31 March 2018 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 
77,868,025 (2017: 65,796,762) 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 2018 divided by the 89,662,373 (2017: 65,797,970) 
ordinary shares in issue at that date. 
 
   If approved by shareholders, the proposed final dividend of 3.5p per 
share for the year ended 31 March 2018 will be paid on 20 July 2018 to 
shareholders on the register at the close of business on 22 June 2018. 
 
   The full annual report including financial statements for the year ended 
31 March 2018 is expected to be posted to shareholders on 8 June 2018 
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 3 VCT PLC via Globenewswire 
 
 
  http://www.nvm.co.uk/investorarea/northern_3_vct_plc.php 
 

(END) Dow Jones Newswires

May 17, 2018 10:35 ET (14:35 GMT)

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