Northern Inv. Co PLC – Interim Management Statement

13th February 2008

RNS Number:8899N
Northern Investors Co PLC
13 February 2008

13 FEBRUARY 2008



Northern Investors Company PLC presents its interim management statement for the
quarter ended 31 December 2007. This constitutes the company’s second interim
management statement for the financial year ending 31 March 2008, as required by
the UK Listing Authority’s Disclosure and Transparency Rule 4.3. This statement
has been prepared solely to provide additional information in order to meet the
requirements of the Disclosure and Transparency Rules and should not be relied
on by shareholders, or any other party, for any other purpose.

The unaudited net asset value per ordinary share as at 31 December 2007 was
294.0p (30 September 2007 286.3p). The net asset value is stated before
deducting the interim dividend of 2.2p per share in respect of the year ending
31 March 2008, which was declared on 26 November 2007 and paid on 4 January

The number of ordinary shares in issue at 31 December 2007 was 19,593,440 (30
September 2007 19,593,440). During January 2008 the company repurchased in the
market for cancellation a total of 70,000 ordinary shares for an aggregate
consideration of #140,000 (average cost 200p per share).

Net assets at 31 December 2007 comprised the following:
% of net
#000 assets
Unquoted investments at fair value
as determined by the directors 48,125 83.6
Quoted investments at bid price 432 0.7
—— —–
Total fixed asset investments 48,557 84.3
Net current assets 9,041 15.7
—— —–
Net assets 57,598 100.0
—— —–

The ten largest investments by valuation at 31 December 2007 were as follows:
% of net
#000 assets
Product Support (Holdings) 4,749 8.3
Foreman Roberts Group 3,914 6.8
John Laing Partnership 2,832 4.9
Astbury Marsden Holdings 2,590 4.5
CGI Group 2,441 4.2
Crantock Bakery 2,071 3.6
Promanex Group Holdings 1,974 3.4
Weldex (International) Offshore 1,908 3.3
Envirotec 1,809 3.2
DMN 1,718 3.0
—— —–
Top ten investments 26,006 45.2
Other investments 22,551 39.1
—— —–
Total venture capital investments 48,557 84.3
—— —–

Quoted investments are carried at bid price as at 31 December 2007. Unquoted
investments are carried at fair value as at 31 December 2007 as determined by
the directors.

During the three months ended 31 December 2007 the following significant
investment transactions took place (all companies unquoted except where
otherwise indicated):

New investments:



value at
Sales Original 30 September
Name of company proceeds cost 2007
#000 #000 #000
KCS Global Holdings 2,090 754 2,094
Barony Universal Products 1,104 120 1,097
Develop Training 1,754 1,153 1,254

KCS Global Holdings, which provides HR and payroll software and outsourcing
services, was sold to The Sage Group plc in October 2007. Barony Universal
Products, which manufactures aerosol products, was sold to Questbridge Limited
in November 2007. Develop Training, a provider of training services primarily
to the utility and infrastructure sectors, was sold to a secondary management
buyout vehicle in November 2007.

Following a decision in the European Court of Justice, HM Revenue & Customs
acknowledged in November 2007 that fund management services supplied to
investment trusts should be exempt from VAT. Pending clarification of the basis
and timing of dealing with repayment claims relating to past periods, no
provision has been made in the company’s accounts for any potential VAT
recovery. The directors have estimated that the eventual benefit, net of
corporation tax, is likely to be at least an amount equivalent to 1% of the
company’s net assets. With effect from 1 January 2008 VAT will not be
chargeable on management fees payable to the company’s investment manager, NVM
Private Equity Limited.

The directors are not aware of any other events or transactions which have taken
place between 31 December 2007 and the date of publication of this statement and
which have had a material effect on the financial position of the company.


Alastair Conn/Christopher Mellor, NVM Private Equity Limited – 0191 244 6000


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