Northern Venture Tst Annual Financial Report

 
TIDMNVT 
 
 
   12 NOVEMBER 2018 
 
   NORTHERN VENTURE TRUST PLC 
 
   ANNUAL FINANCIAL REPORT FOR THE YEARED 30 SEPTEMBER 2018 
 
   Northern Venture Trust PLC is a Venture Capital Trust (VCT) whose 
investment adviser is NVM Private Equity LLP.  The trust was one of the 
first VCTs launched on the London Stock Exchange in 1995.  It invests 
mainly in UK unquoted companies and aims to provide high long-term 
tax-free returns to shareholders through a combination of dividend yield 
and capital growth. 
 
   Financial highlights (comparative figures as at 30 September 2017): 
 
 
 
 
                                              2018      2017 
                                          --------  -------- 
Net assets                                GBP93.9m  GBP76.3m 
Net asset value per share                 70.8p     72.6p 
Return per share after tax: 
Revenue                                   1.0p      1.8p 
Capital                                   2.3p      1.9p 
Total                                     3.3p      3.7p 
Dividend per share for the year: 
First interim dividend                    2.0p      3.0p 
Second interim (special) dividend         -         5.0p 
Proposed final dividend                   2.0p      3.0p 
Total                                     4.0p      11.0p 
Cumulative return to shareholders since 
 launch: 
Net asset value per share                 70.8p     72.6p 
Dividends paid per share*                 164.5p    159.5p 
Net asset value plus dividends paid       235.3p    232.1p 
 per share 
Mid-market share price at end of year     66.00p    71.00p 
Tax-free dividend yield (based on the 
 net asset value per share at the start 
 of the year): 
Excluding special dividend                5.5%      7.5% 
 Including special dividend                N/A       13.8% 
 
 
   *Excluding proposed final dividend not yet paid 
 
   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 3.3p per share representing 4.5% of 
      opening NAV 
 
   -- NAV per share at year-end of 70.8 pence (2017: 72.6 pence) after paying 
      dividends of 5.0 pence 
 
   -- Successful public share offer raising GBP20 million 
 
   -- GBP10.8 million of proceeds from realisations, representing a gain of 
      GBP4.9 million (2017: GBP1.6 million) 
 
   -- 12 new and seven follow-on investments in innovative earlier stage 
      companies added to the portfolio 
 
 
   CHAIRMAN'S STATEMENT 
 
   Overview 
 
   I am pleased to report on another busy year for our company starting 
with a successful GBP20 million public share offer launched last autumn. 
The investment rate has been strong throughout the year with a total of 
12 new venture capital investments being added to the portfolio.  The 
number of completed realisations increased in the second half of the 
year generating a good level of gains and supporting the return for the 
year.  Building a portfolio of high growth companies where we expect 
some of them to deliver significant capital gains over time comes at the 
expense of lower levels of income in the short term and less 
predictability over the timing of realisations.  Both maintaining the 
current net asset value per share and paying a regular dividend are 
priorities for your board.  Our aim over the medium term is to pay a 
sustainable tax-free yield on opening net assets of not less than 5% per 
annum.  The new investment environment will lead to greater volatility 
in the timing and quantum of returns and we hope to augment the target 
yield from time to time by additional payments where investment gains 
permit. 
 
   Results and dividend 
 
   In the year ended 30 September 2018 the company achieved a return on 
ordinary activities of GBP4,281,000 (2017: GBP3,675,000) or 3.3 pence 
per share (2017: 3.7 pence), representing a total return of 4.5% on the 
opening net asset value (NAV) per share.  The NAV per share at 30 
September 2018, after deducting dividends paid during the year of 5.0 
pence, was 70.8 pence compared with 72.6 pence as at 30 September 2017. 
The cumulative return to shareholders was increased to 235.3 (2017: 
232.1) pence per share which marks the thirteenth consecutive year of 
growth.  Investment income was lower than in the prior year at GBP2.5 
million (2017: GBP3.0 million), however adjusting for non-repeating 
items, investment income was broadly consistent year on year. 
 
   The board has proposed a final dividend of 2.0 pence per share, bringing 
the total dividend for the year to 4.0 pence.  A 4.0 pence dividend 
represents a tax free yield of 5.5% on the opening net asset value per 
share of 72.6 pence.  The final dividend, if approved, will be paid on 
21 December 2018 to shareholders on the register on 23 November 2018. 
 
   Investment portfolio 
 
   During the past year, 12 new VCT-qualifying investments were made at a 
total cost of GBP11.0 million.  These have all been in innovative 
earlier stage companies requiring capital for the development of new 
products and markets, as required by the current VCT rules.  Many of 
these earlier stage businesses will require further capital in order for 
them to fully realise their growth potential and we continue to channel 
a proportion of our investment activity into follow-on funding rounds. 
A total of GBP1.3m was invested across seven existing portfolio 
companies during the year and we expect both the quantum and proportion 
of follow-on investment activity to increase in the coming years. 
Future funding requirements are typically anticipated at the point of 
initial investment and for most of our follow-on investments over the 
past year, we have sought to broaden the shareholder base of our 
investee companies by introducing other venture capital investors in 
parallel with our own additional commitments. 
 
   Our investment adviser, NVM has continued to build its early stage 
investment capability having hired four 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.  NVM has developed a 
strong pipeline of investment opportunities and there were several 
potential investments in process at the year end. 
 
   The proceeds from venture capital investments realised in the year 
amounted to GBP10.8 million, generating a gain of GBP4.9m over the 30 
September 2017 carrying values.  Over 60% by value of our venture 
capital portfolio at the year-end comprises investments in more mature 
businesses acquired under previous VCT rules.  These investments 
continue to provide diversity to the overall investment portfolio and 
will determine the liquidity available from realisations in the short to 
medium term whilst the earlier stage portfolio develops. 
 
   Share offers and liquidity 
 
   We launched a full prospectus offer of new ordinary shares in September 
2017, which was fully subscribed within approximately three weeks, 
raising gross proceeds of GBP20 million.  In addition to the public 
offer, 1,913,530 shares were issued during the year via our dividend 
investment scheme for overall consideration of GBP1.3 million.  Around 
20% of shares in issue during the year were registered to participate in 
the dividend investment scheme as at the relevant dividend payment 
dates. 
 
   Your directors have reviewed the liquidity dynamics of the company over 
the coming years in light of the strong pipeline of investment 
opportunities that NVM has developed as well as the opportunities to 
support existing companies with additional growth capital and have 
proposed a further non-prospectus top-up share offer to launch early in 
the new year to raise up to GBP6.6m. 
 
   In proposing the top-up offer, we have weighed up the potential drag on 
overall returns caused by holding significant levels of liquidity 
against the benefit of securing sufficient funding to support our 
expanding portfolio.  Whilst interest rates prevailing in the UK have 
started to rise this year, they remain low by comparison to historical 
levels.  We therefore continue to hold a portion of our liquid funds in 
readily realisable quoted investment funds, with a view to generating a 
higher return than by holding all liquid resources in cash deposits 
alone.  Whilst this may give rise to some short-term volatility in the 
capital valuation of the investments, we expect the capital value will 
at least be protected in the longer term. 
 
   Share buy-backs 
 
   We have maintained our policy of being willing to buy back the company's 
shares in the market, when necessary in order to maintain liquidity, at 
a 5% discount to NAV.  During the year ended 30 September 2018 a total 
of 1,339,428 shares were repurchased by the company for cancellation, 
representing 1.3% of the opening issued share capital. 
 
   VCT qualifying status 
 
   The company has maintained its approved venture capital trust status 
with HM Revenue & Customs.  The company's compliance with the VCT 
qualifying conditions is closely monitored by the board, who receive 
regular reports from NVM and from our VCT taxation advisers, Philip Hare 
& Associates LLP. 
 
   VCT legislation and regulation 
 
   Updates to the VCT rules announced by the Government in the Autumn 
Budget in November 2017 have now been confirmed by the enactment of the 
Finance Act 2018. The changes were made in response to the Government's 
Patient Capital Review in 2017, which was conducted with the aim of 
considering the availability of long-term finance for growing 
businesses.  The principle intention of the most recent changes is to 
ensure that VCT investment is appropriately targeted to earlier stage 
businesses seeking funding for internal growth and development.  The 
detailed changes, which are being introduced on a phased basis, also 
require VCTs to invest newly raised funds within a shorter timeframe and 

to maintain a higher overall proportion of investments in qualifying 
holdings; this is likely to lead to smaller and more frequent share 
offers in future.  Further details of the current regulations can be 
found on page 5 of the annual report. 
 
   The VCT scheme rules have been subject to regular legislative changes 
and whilst there were no further amendments announced by the Chancellor 
in his recent Autumn Budget statement, it is possible that further 
changes will be made in the future.  We will continue to work closely 
with our investment adviser to maintain compliance with the scheme rules 
at all times. 
 
   Company secretary 
 
   Chris Mellor retired as company secretary of Northern Venture Trust on 
31 March 2018, having held that position since the company's formation 
in 1995.  On behalf of the directors I would like to thank him for his 
dedication, wise advice and support during his period in office.  We 
welcome James Bryce, NVM's head of legal and compliance, as Mr Mellor's 
successor. 
 
   Annual general meeting 
 
   The 2018 annual general meeting will take place in London on Friday 14 
December 2018.  Details of the formal business of the meeting are set 
out in a separate circular which is being sent to shareholders with the 
annual report.  We look forward to meeting shareholders on that 
occasion. 
 
   Outlook 
 
   The political and economic environment has remained uncertain over the 
past year and little clarity has been obtained as to the eventual result 
of the ongoing negotiations between Britain and the rest of the EU.  The 
investment rate is encouraging and our investment adviser continues to 
identify attractive opportunities to invest in growing businesses, many 
of which are developing disruptive technologies or services.  We remain 
committed to expanding the portfolio of innovative earlier stage 
companies and believe that the potential returns from these investments 
in the medium to long term are attractive. In the mean time we take 
confidence in the overall diversity of the portfolio and in the 
company's and NVM's ability to deal with change. 
 
   Simon Constantine 
 
   Chairman 
 
   Extracts from the audited financial statements for the year ended 30 
September 2018 are set out below. 
 
   INCOME STATEMENT 
 
   for the year ended 30 September 2018 
 
 
 
 
                                        Year ended 30 September           Year ended 30 September 
                                                  2018                     2017 
                                  Revenue     Capital          Total        Revenue       Capital     Total 
                                   GBP000      GBP000          GBP000        GBP000        GBP000      GBP000 
Gain on disposal of 
 investments                          -         4,997          4,997            -          1,651        1,651 
Movements in fair value 
 of investments                       -        (1,039)        (1,039)           -          1,072        1,072 
                                  ----------    ----------    ----------    ----------    ----------    ---------- 
                                      -         3,958          3,958            -          2,723        2,723 
Income                            2,491             -          2,491        2,989              -        2,989 
Investment management fee          (427)       (1,281)        (1,708)        (407)        (1,222)      (1,629) 
Other expenses                     (449)          (11)          (460)        (408)             -         (408) 
                                  ----------    ----------    ----------    ----------    ----------    ---------- 
Return on ordinary activities 
 before tax                       1,615         2,666          4,281        2,174          1,501        3,675 
Tax on return on ordinary 
 activities                        (257)          257              -         (373)           373            - 
                                  ----------    ----------    ----------    ----------    ----------    ---------- 
Return on ordinary activities 
 after tax                        1,358         2,923          4,281        1,801          1,874        3,675 
                                ----------    ----------    ----------    ----------    ----------    ---------- 
Return per share                1.0p          2.3p     3.3p               1.8p          1.9p          3.7p 
 
   BALANCE SHEET 
 
   as at 30 September 2018 
 
 
 
 
                                       30 September 2018   30 September 2017 
                                             GBP000         GBP000 
Fixed asset investments                        69,318               65,699 
                                               ----------           ---------- 
Current assets: 
 Debtors                                          141                  661 
 Cash and deposits                             24,557                9,981 
                                               ----------           ---------- 
                                               24,698               10,642 
 
Creditors (amounts falling due 
 within one year)                                (106)                 (81) 
                                               ----------           ---------- 
Net current assets                             24,592               10,561 
                                               ----------           ---------- 
 
Net assets                                     93,910               76,260 
                                               ----------           ---------- 
Capital and reserves 
Called-up equity share capital                 33,142               26,256 
Share premium                                     817                6,941 
Capital redemption reserve                        879                  544 
Capital reserve                                51,617               34,150 
Revaluation reserve                             6,346                5,972 
Revenue reserve                                 1,109                2,397 
                                               ----------           ---------- 
Total equity shareholders' funds               93,910               76,260 
                                      ----------           ---------- 
Net asset value per share             70.8p                72.6p 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 30 September 2018 
 
 
 
 
                         ---------------Non-distributable                                               Distributable 
                          reserves---------------                                                          reserves              Total 
 
                           Called-up                              Capital 
                           share                  Share          redemption      Revaluation         Capital          Revenue 
                           capital               premium          reserve          reserve           reserve          reserve 
                          GBP     000      GBP        000       GBP      000   GBP        000  GBP       000      GBP      000   GBP      000 
At 1 October 2017              26,256               6,941                544            5,972         34,150             2,397         76,260 
 
Return on ordinary 
 activities after 
 tax                                -                   -                  -              374          2,549             1,358          4,281 
Net proceeds of share 
 issues                         7,221              13,647                  -                -              -                 -         20,868 
Dividends paid                      -                   -                  -                -         (3,966)           (2,646)        (6,612) 
Shares purchased 
 for cancellation                (335   )               -                335                -           (887   )             -           (887   ) 
Cancellation of the 
 share premium reserve                       -    (19,771   )              -                -         19,771                 -              - 
                         ----------                ----------     ----------       ----------         ----------     ----------        ---------- 
At 30 September 2018           33,142                 817                879            6,346         51,617             1,109         93,910 
 ----------                                ----------          ----------     ----------       ----------         ----------     ---------- 
 
   STATEMENT OF CHANGES IN EQUITY 
 
   for the year ended 30 September 2017 
 
 
 
 
                        ---------------Non-distributable                                         Distributable 
                         reserves---------------                                                    reserves             Total 
 
                          Called-up                      Capital 
                          share             Share       redemption       Revaluation       Capital       Revenue 
                          capital          premium       reserve           reserve         reserve       reserve 
                          GBP      000    GBP    000   GBP      000   GBP      000      GBP     000   GBP     000   GBP      000 
At 1 October 2016               24,110         2,599            544          7,360           40,514         2,073         77,200 
Return on ordinary 
 activities 
after tax                            -             -              -         (1,388)           3,262         1,801          3,675 
Net proceeds of share 
 issues                          2,146         4,342              -              -                -             -          6,488 
Shares purchased 
 for cancellation                    -             -              -              -                -             -              - 
Dividends paid                       -             -              -              -           (9,626)       (1,477)       (11,103) 

                        ----------        ----------     ----------         ----------    ----------    ----------     ---------- 
At 30 September 2017            26,256         6,941            544          5,972           34,150         2,397         76,260 
 ----------                             ----------    ----------     ----------         ----------    ----------    ---------- 
 
   STATEMENT OF CASH FLOWS 
 
   for the year ended 30 September 2018 
 
 
 
 
                                 Year ended            Year ended 
                                 30 September 2018     30 September 2017 
                                    GBP          000     GBP          000 
Cash flows from operating 
activities: 
Return on ordinary activities before 
 tax                                           4,281                3,675 
Gain on disposal of investments               (4,997)              (1,651) 
Movement in fair value of investments          1,039               (1,072) 
Decrease/(increase) in debtors                   520                 (292) 
Increase/(decrease) in creditors                  25                 (866) 
                                 ----------                       ---------- 
Net cash inflow/(outflow) from 
 operating activities                            868                 (206) 
                                 ----------                       ---------- 
Cash flows from investing 
activities: 
Purchase of investments                      (14,257)              (6,458) 
Sale/repayment of investments                 14,596               17,054 
                                 ----------                       ---------- 
Net cash inflow from investing 
 activities                                      339               10,596 
                                 ----------                       ---------- 
Cash flows from financing 
activities: 
Issue of ordinary shares                      21,317                6,592 
Share issue expenses                            (449)                (104) 
Purchase of ordinary shares for 
 cancellation                                   (887)                   - 
Equity dividends paid                         (6,612)             (11,103) 
                                 ----------                       ---------- 
Net cash inflow/(outflow) from 
 financing activities                         13,369               (4,615) 
                                 ----------                       ---------- 
Increase in cash and cash equivalents         14,576                5,775 
Cash and cash equivalents at beginning 
 of year                                       9,981                4,206 
                                 ----------                       ---------- 
Cash and cash equivalents at end of 
 year                                         24,557                9,981 
 ----------                                            ---------- 
 
   INVESTMENT PORTFOLIO SUMMARY 
 
   as at 30 September 2018 
 
 
 
 
                                        Cost     Valuation   % of net assets 
Company                                GBP000      GBP000      by valuation 
Fifteen largest venture capital 
 investments: 
No 1 Lounges                              2,006       3,202              3.4 
Sorted Holdings                           2,166       3,178              3.4 
Agilitas IT Holdings                      1,662       3,172              3.4 
MSQ Partners Group                        1,695       2,928              3.1 
Lineup Systems                              974       2,910              3.1 
Closerstill Group                         1,747       2,598              2.7 
Entertainment Magpie Group                1,610       2,004              2.1 
Biological Preparations Group             2,366       1,906              2.0 
Volumatic Holdings                        1,250       1,684              1.8 
Weldex (International) Offshore 
 Holdings                                 3,262       1,670              1.8 
It's All Good                             1,205       1,661              1.8 
Medovate                                  1,593       1,593              1.7 
Graza                                     1,581       1,581              1.7 
Intuitive Holding                         1,674       1,500              1.6 
Currentbody.com                           1,413       1,413              1.5 
                                     ----------  ----------          ------- 
                                         26,204      33,000             35.1 
Other venture capital investments: 
Customs Connect Group                     1,406       1,406              1.5 
Channel Mum                                 859       1,361              1.4 
Soda Software Labs                        1,308       1,308              1.4 
Intelling Group                           1,222       1,222              1.3 
Volo Commerce                             1,173       1,173              1.2 
Idox*                                       238       1,108              1.2 
Clarilis                                  1,092       1,092              1.2 
Primal Food                               1,063       1,063              1.1 
Grip-UK                                   1,059       1,059              1.1 
Knowledgemotion                           1,048       1,048              1.1 
Buoyant Upholstery                        1,173       1,007              1.1 
Rockar                                      999         999              1.1 
SHE Software Group                          995         995              1.1 
Ridge Pharma                                969         969              1.1 
AVID Technology Group                       964         964              1.0 
Haystack Dryers                           1,661         960              1.0 
Axial Systems Holdings                    1,004         859              0.9 
Other investments each valued at 
 less than GBP750,000                    10,039       7,648              8.2 
                                     ----------  ----------          ------- 
Total venture capital investments        54,476      59,241             63.1 
Listed equity investment funds            6,112       7,744              8.2 
Listed interest-bearing investment 
 funds                                    2,382       2,333              2.5 
                                     ----------  ----------          ------- 
Total fixed asset investments            62,970      69,318             73.8 
                                     ---------- 
Net current assets                                   24,592             26.2 
                                                 ----------          ------- 
Net assets                                           93,910            100.0 
                                                 ----------  ------- 
*Quoted on AIM 
**Listed on London Stock Exchange 
 
 
   BUSINESS RISKS 
 
   The board carries out a regular and robust review of the risk 
environment in which the company operates. The principal risks and 
uncertainties identified by the board which might affect the company's 
business model and future performance, and the steps taken with a view 
to their mitigation, are as follows: 
 
   Investment and liquidity risk:  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 investment adviser on a 
regular basis. 
 
   Financial risk:  most of the company's investments involve a medium to 
long-term commitment and many are relatively illiquid.  Mitigation:  the 
directors consider that it is inappropriate to finance the company's 
activities through borrowing except on an occasional short-term basis. 
Accordingly they seek to maintain a proportion of the company's assets 
in cash or cash equivalents in order to be in a position to pursue new 
unquoted investment opportunities and 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 advisers, 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 investment adviser monitor political developments and 
where appropriate seek to make representations either directly or 
through relevant trade bodies. 
 
   Internal control risk:  the company's assets could be at risk in the 
absence of an appropriate internal control regime.  Mitigation:  the 
board regularly reviews the system of internal controls, both financial 
and non-financial, operated by the company and the investment adviser. 
These include controls designed to ensure that the company's assets are 
safeguarded and that proper accounting records are maintained. 
 
   VCT qualifying status risk:  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 
adviser keeps the company's VCT qualifying status under continual review 
and its reports are reviewed by the board on a quarterly basis.  The 
board has also retained Philip Hare & Associates LLP to undertake an 
independent VCT status monitoring role. 
 
   DIRECTORS' RESPONSIBILITIES 
 
   The directors are responsible for preparing the annual report and the 
financial statements in accordance with applicable law and regulations. 
 
   Company law requires the directors to prepare financial statements for 
each financial year.  Under that law 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 S 
J Constantine (Chairman), Mr N J Beer, Mr R J Green, Mr T R Levett, Mr D 
A Mayes and Mr H P Younger. 
 
   OTHER MATTERS 
 
   The above summary of results for the year ended 30 September 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 
130,205,209 (2017 100,330,704) ordinary shares, being the weighted 
average number of shares in issue during the year. 
 
   The calculation of the net asset value per share is based on the net 
assets at 30 September 2018 divided by the 132,567,448 (30 September 
2017 105,026,156) ordinary shares in issue at that date. 
 
   The proposed final dividend of 2.0 pence per share for the year ended 30 
September 2018 will, if approved by shareholders, be paid on 21 December 
2018 to shareholders on the register at the close of business on 23 
November 2018. 
 
   The full annual report including financial statements for the year ended 
30 September 2018 is expected to be posted to shareholders on 16 
November 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. 
 
 
 
 

(END) Dow Jones Newswires

November 12, 2018 07:30 ET (12:30 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.