Northern 2 VCT PLC Annual Financial Report

 
TIDMNTV 
 
 
   17 MAY 2018 
 
   NORTHERN 2 VCT PLC 
 
   ANNUAL FINANCIAL REPORT FOR THE YEARED 31 MARCH 2018 
 
   Northern 2 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                                           GBP87.0m  GBP71.6m 
Net asset value per share                               66.9p     76.6p 
Return per share: 
Revenue                                                  1.3p      1.6p 
Capital                                                (0.4)p      7.7p 
Total                                                    0.9p      9.3p 
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                               66.9p     76.6p 
Dividends paid per share*                              111.9p    101.4p 
Net asset value plus dividends paid per share          178.8p    178.0p 
Mid-market share price at end of year                   63.5p     72.0p 
Share price discount to net asset value                  5.1%      6.0% 
Tax-free dividend yield (based on mid-market share 
 price at end of year): 
Including special dividend                                N/A     14.6% 
 Excluding special dividend                              8.7%      7.6% 
 
 
   *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 
 
   I am pleased to report on another busy year for Northern 2 VCT, during 
which ten new VCT qualifying investments were completed. Cash flows 
remained strong, supported by a highly successful public share offer. 
Our investment manager, NVM, continues to meet the twin challenges of 
identifying new and compelling VCT-qualifying opportunities to support 
small and medium businesses and working with existing portfolio 
companies to realise their growth plans. 
 
   Results and dividend 
 
   The total return per share for the year as shown in the income statement 
was 0.9p (last year 9.3p). The net asset value (NAV) per share at 31 
March 2018, after deducting dividends totalling 10.5p which were paid 
during the year, was 66.9p compared with 76.6p as at 31 March 2017. The 
total return expressed as a percentage of the opening NAV was 1.2%, 
which reflects a lower contribution from investment disposal activity 
during the year. 
 
   Since 2004 our company has maintained an annual dividend payment of at 
least 5.5p per share. Whilst the returns for the current year have not 
been as high as in recent years, the company does have significant 
distributable reserves brought forward from previous periods. The 
directors therefore propose to maintain the total ordinary dividend at 
5.5p.  An interim dividend of 2.0p per share was paid in January and the 
directors propose a final dividend of 3.5p per share in respect of the 
year ended      31 March 2018, which if approved at the annual general 
meeting, will be paid on 20 July 2018 to shareholders on the register on 
22 June 2018.  As previously highlighted, the Finance (No.2) Act 2015 
contained significant changes to the criteria for VCT-qualifying 
investments.  Subsequent investment activity has necessarily focussed on 
earlier stage businesses requiring capital to develop new products and 
markets.  This gradual shift in the portfolio may make the flow of 
realised gains less predictable and so future dividends are likely to be 
subject to fluctuation. However, paying regular tax-free dividends to 
shareholders remains a priority for the directors. 
 
   Investment portfolio 
 
   Following careful selection, ten new VCT-qualifying investments were 
added to the venture capital portfolio at a cost of GBP8.7 million. In 
addition, follow-on investments totalling GBP1.4 million were made in 
existing portfolio companies.  I am pleased to note that the investment 
rate of GBP10.1 million represents a marked increase from the prior year 
(investments totalling GBP5.9m) and demonstrates our manager's continued 
progress in adapting our investment approach to comply with the evolving 
legislative landscape.  Whilst we are still near the beginning of the 
investment holding period for the 17 investments acquired to date under 
the new rules, satisfactory progress is being made in the early stage 
portfolio.  Returns from early stage investments are expected to be more 
volatile, which will have a bearing on the overall performance of the 
company as this part of the portfolio grows. We are confident in our 
manager's skills in selecting attractive opportunities in which to 
invest shareholders' funds. 
 
   Approximately two thirds of the value of the venture capital portfolio 
is currently represented by investments made under previous iterations 
of the VCT rules.  These investments are unaffected by the introduction 
of the new rules, except in that we are prohibited from providing 
follow-on funding to many of them.  Strong underlying trading for many 
of these investments has been balanced by more challenging economic 
environments faced by a small number of others. 
 
   In a relatively subdued period for disposal activity, the cash proceeds 
from venture capital investments sold or repaid during the year amounted 
to GBP7.0 million, representing a surplus of GBP1.7 million over 
original cost.  Several investee companies are currently the subject of 
discussions with a view to a realisation during the year to 31 March 
2019. 
 
   Shareholder issues 
 
   Based on the expected investment rate in the coming years, both for new 
investments and for follow-on funding rounds in early stage investee 
companies, we announced a prospectus share offer in September 2017 to 
raise up to GBP20 million.  We were very pleased that strong demand was 
experienced for this offer and that it was fully subscribed within six 
weeks of being launched.  Your directors would like to express their 
appreciation of shareholders' continuing support. 
 
   In addition to the public offer, gross proceeds of GBP2 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 has maintained its policy of buying back its own shares in 
the market, at a discount of 5% to NAV.  During the year, a total of 
537,000 shares were repurchased for cancellation, equivalent to 
approximately 0.6% of the opening share capital. 
 
   The company's annual general meeting (AGM) will be held in London on 
Thursday 12 July 2018 and the directors look forward to meeting and 
engaging with shareholders. 
 
   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. 
 
   Our colleague Chris Fletcher retired from the board at the AGM in July 
2017, when tributes were paid to his excellent service as a director and 
chairman of the audit committee since 1999. 
 
   Company secretary 
 
   Chris Mellor retired as company secretary of Northern 2 VCT on 31 March 
2018, having served in that role since the company was launched in 1999. 
Many shareholders will have personal experience of Mr Mellor's knowledge 
and expertise, and the directors would like to thank him for his sound 
advice and support during his period in office.  We welcome James Bryce, 
NVM's new head of legal and compliance, as Mr Mellor's successor and 
look forward to working with him. 
 
   VCT legislation and regulation 
 
   Having conducted its Patient Capital Review in 2017, with the aim of 
considering the availability of long-term finance for growing firms, the 
Government announced further changes to the VCT rules in the Autumn 
Budget in November.  The updates place additional restrictions on the 
range of permitted investments and make the conditions for a VCT to 
maintain its approved status somewhat more restrictive.  We do 
nonetheless welcome the preservation of the tax reliefs available to 
shareholders and conditions for obtaining them.  We also welcome the 
stated intention of HM Revenue & Customs to improve the process for 
providing advanced assurance for new VCT investments.  The delays 
experienced in the current year have on occasion been extreme and a 
smoother process would enable the sector to deliver time critical 
funding in a more efficient manner.  VCTs continue to provide an 
important source of capital to small and medium businesses and enable 
investors to both support and share in their success.  Apart from growth 
generated in the financial metrics of portfolio companies, the wider 
societal benefits are clear with our unquoted venture capital portfolio 
collectively delivering growth of over 200 employees over the past year. 
 
 
   In January 2018, the Packaged Retail and Insurance-based Investment 
Products (PRIIPs) Regulation was introduced with the aim of helping 
investors to understand and compare the key features, risks, rewards and 
costs of different investment products.  Investment funds are now 
required to publicly provide a Key Information Document (KID) 
summarising a range of illustrative net returns to investors.  Since its 
introduction, your company has at all times complied with the PRIIPs 

regulations, however it should be noted that the composition and 
presentation of the KID is strictly prescribed and the inputs are based 
on past performance only. 
 
   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.  Our investment manager 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 
 
   The past year has been another period of adapting as the company has 
faced both economic and legislative uncertainty. These conditions look 
set to continue for some time as the long-term impact of the UK's 
decision to leave the EU unfolds and the Government evolves its approach 
to the VCT industry as a whole.  The company is currently well-funded to 
capitalise on attractive investment opportunities and will continue to 
maintain the highest standards in the selection and monitoring of 
investments.  We continue to have confidence that our portfolio and 
investment strategy will deliver good returns to shareholders, taking a 
medium to long-term perspective. 
 
   David Gravells 
 
   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           -         709         709           -       2,285       2,285 
Movements in 
 fair value 
 of 
 investments           -       (202)       (202)           -       6,189       6,189 
              ----------  ----------  ----------  ----------  ----------  ---------- 
                       -         507         507           -       8,474       8,474 
Income             2,482           -       2,482       2,556           -       2,556 
Investment 
 management 
 fee               (393)     (1,180)     (1,573)       (370)     (1,681)     (2,051) 
Other 
 expenses          (350)        (11)       (361)       (364)           -       (364) 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 before tax        1,739       (684)       1,055       1,822       6,793       8,615 
Tax on 
 return on 
 ordinary 
 activities        (277)         277           -       (313)         313           - 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return on 
 ordinary 
 activities 
 after tax         1,462       (407)       1,055       1,509       7,106       8,615 
              ----------  ----------  ----------  ----------  ----------  ---------- 
Return per          1.3p      (0.4)p        0.9p        1.6p        7.7p        9.3p 
 share 
 
   BALANCE SHEET 
 
   as at 31 March 2018 
 
 
 
 
                                                  31 March 2018  31 March 2017 
                                                      GBP000         GBP000 
Fixed assets: 
 Investments                                             61,432         58,195 
                                                     ----------     ---------- 
Current assets: 
 Debtors                                                    205            591 
 Cash and cash equivalents                               25,540         17,874 
                                                     ----------     ---------- 
                                                         25,745         18,465 
Creditors (amounts falling due within one year)           (134)        (5,013) 
                                                     ----------     ---------- 
Net current assets                                       25,611         13,452 
                                                     ----------     ---------- 
 
Net assets                                               87,043         71,647 
                                                     ----------     ---------- 
 
 
Capital and reserves: 
Called-up equity share capital                            6,505          4,678 
Share premium                                               392          3,029 
Capital redemption reserve                                  110             83 
Capital reserve                                          71,629         53,908 
Revaluation reserve                                       7,836          9,049 
Revenue reserve                                             571            900 
                                                     ----------     ---------- 
Total equity shareholders' funds                         87,043         71,647 
                                                     ----------     ---------- 
Net asset value per share                                 66.9p          76.6p 
 
   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               4,678       3,029           83          9,049      53,908         900     71,647 
Return on 
ordinary 
activities 
after tax for 
 the year               -           -            -        (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 
Re-purchase 
 of shares           (27)           -           27              -       (349)           -      (349) 
Cancellation 
of share 
premium                      (26,490)            -                     26,490           - 
reserve                 -                                       -                                  - 
               ----------  ----------   ----------     ----------  ----------  ----------    ---------- 
At 31 March 
 2018               6,505         392          110          7,836      71,629         571     87,043 
               ----------  ----------   ----------     ----------  ----------  ----------    ---------- 
 
 
   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              4,580       1,464           59          5,562      58,614        1,058      71,337 
Return on 
ordinary 
activities 
after tax 
 for the 
 year                  -           -            -          3,487       3,619        1,509       8,615 
Dividends 
 paid                  -           -            -              -     (7,987)      (1,667)     (9,654) 
Net proceeds 
 of share 
 issues              122       1,565            -              -           -            -       1,687 
Re-purchase 
 of shares          (24)           -           24              -       (338)            -       (338) 
              ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
At 31 March 
 2017              4,678       3,029           83          9,049      53,908          900      71,647 
              ----------  ----------   ----------     ----------  ----------   ----------  ---------- 
 
 
   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            1,055          8,615 
Adjustments for: 
Gain on disposal of investments                     (709)        (2,285) 
Movement in fair value of investments                 202           (6,189) 
Decrease/(increase) in debtors                        386          (321) 
(Decrease)/increase in creditors                    (582)            172 
                                               ----------     ---------- 
Net cash inflow/(outflow) from operating 
 activities                                           352            (8) 
                                               ----------     ---------- 
Cash flows from investing activities: 
Purchase of investments                          (10,265)        (6,082) 
Sale/repayment of investments                       7,535         13,358 
                                               ----------     ---------- 
Net cash (outflow)/inflow from investing 
 activities                                       (2,730)          7,276 
                                               ----------     ---------- 
Cash flows from financing activities: 
Issue of ordinary shares                           26,248          1,717 
Share issue expenses                                (541)           (30) 
Share subscriptions held pending allotment        (4,297)          4,297 
Purchase of ordinary shares for 

 cancellation                                       (349)          (338) 
Equity dividends paid                            (11,017)        (9,654) 
                                               ----------     ---------- 
Net cash inflow/(outflow) from financing 
 activities                                        10,044        (4,008) 
                                               ----------     ---------- 
Net increase in cash/cash equivalents               7,666          3,260 
Cash and cash equivalents at beginning of 
 year                                              17,874         14,614 
                                               ----------     ---------- 
Cash and cash equivalents at end of year           25,540         17,874 
                                               ----------     ---------- 
 
 
   INVESTMENT PORTFOLIO SUMMARY 
 
   as at 31 March 2018 
 
 
 
 
                                                                      % of 
                                              Cost      Valuation   net assets 
                                             GBP000      GBP000      by value 
Venture capital investments: 
No 1 Lounges                                   1,977        3,362          3.9 
Lineup Systems                                   974        2,910          3.3 
Entertainment Magpie Group                     1,503        2,886          3.3 
Agilitas IT Holdings                           1,638        2,565          2.9 
Sorted Holdings                                1,625        2,535          2.9 
MSQ Partners Group                             1,672        2,516          2.9 
Love Saving Group                              1,124        2,309          2.7 
Closerstill Group                              1,683        2,198          2.5 
Buoyant Upholstery                             1,057        2,179          2.5 
Wear Inns                                      1,868        2,113          2.4 
Biological Preparations Group                  2,166        1,790          2.1 
Graza                                          1,523        1,523          1.7 
It's All Good                                  1,145        1,458          1.7 
Medovate                                       1,450        1,450          1.7 
Volumatic Holdings                             1,251        1,443          1.7 
                                          ----------   ----------     -------- 
Fifteen largest venture capital 
 investments                                  22,656       33,237         38.2 
Other venture capital investments             23,427       20,601         23.6 
                                          ----------   ----------     -------- 
Total venture capital investments             46,083       53,838         61.8 
Listed equity investments                      3,644        3,800          4.4 
Listed interest-bearing investments            3,868        3,794          4.4 
                                          ----------   ----------     -------- 
Total fixed asset investments                 53,595       61,432         70.6 
                                          ---------- 
Net current assets                                         25,611         29.4 
                                                       ----------     -------- 
Net assets                                                 87,043        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 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, 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: 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 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 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 
112,186,377 (2017: 92,962,814) 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 130,089,490 (2017: 93,560,667) 
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 15 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 2 VCT PLC via Globenewswire 
 
 
  http://www.nvm.co.uk/investorarea/northern_2_vct_plc.php 
 

(END) Dow Jones Newswires

May 17, 2018 10:30 ET (14:30 GMT)

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