DJ Northern Aim VCT plc Half-yearly report

13th June 2010



TIDMNNA

14 JUNE 2010

NORTHERN AIM VCT PLC

UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 APRIL 2010


Northern AIM VCT PLC is a Venture Capital Trust (VCT) managed by NVM Private
Equity. The trust was launched in October 2000. Its portfolio of
VCT-qualifying investments is focused on companies quoted on AIM but also
includes a number of later-stage unquoted holdings.


Financial highlights:
(with comparative figures as at 30 April 2009)

2010 2009


- Net assets ÂGBP7.3m ÂGBP6.9m


- Net asset value per share 32.8p 31.3p


- Return per share:

Revenue 0.1p 0.2p

Capital 1.4p 1.4p

Total 1.5p 1.6p


- Cumulative return to shareholders

since launch:

Net asset value per share 32.8p 31.3p

Dividends per share 22.3p 19.3p

Net asset value plus dividends

paid per share 55.1p 50.6p


- Share price at end of period 27.5p 24.5p




For further information, please contact:
NVM Private Equity Limited
Alastair Conn/Christopher Mellor 0191 244 6000
Website: www.nvm.co.uk <https://nvm.co.uk/>



NORTHERN AIM VCT PLC

HALF-YEARLY MANAGEMENT REPORT TO SHAREHOLDERS

During the six month period under review the UK economic environment has
remained difficult for small companies, with marginal GDP growth overshadowed by
continuing concerns over the public sector deficit. The new coalition
government is faced with the difficult task of achieving significant spending
cuts whilst seeking to avoid pushing the economy back into recession. The FTSE
All-Share index showed a net rise over the period, albeit with some fluctuation
along the way, but has since fallen sharply.

Net asset value, dividend and share price
The net asset value (NAV) per share at 30 April 2010 was 32.8p, after deducting
the final dividend of 3.0p per share in respect of the preceding year which was
paid in March 2010. The NAV per share as shown in the audited accounts at 31
October 2009 was 34.4p. The return per share for the half year was 1.5p,
compared to 1.6p in the corresponding period last year. The net cash outflow
for the half year was ÂGBP587,000, reflecting the dividend distribution of ÂGBP662,000
which was partly offset by a small overall cash inflow from other activities.

The mid-market share price rose from 26p at 31 October 2009 to 27.5p at 30 April
2010, a discount of 16.2% to the published NAV.

On a total return basis (ie taking account of dividends paid), the NAV and share
price performance relative to the FTSE AIM index over the past 6 and 12 months
is as follows:

+-----------------------------------------------+-------------+--------------+
|Movement to 30 April 2010 |Past 6 months|Past 12 months|
+-----------------------------------------------+-------------+--------------+
|Northern AIM VCT PLC - NAV total return | +3.7% | +14.0% |
+-----------------------------------------------+-------------+--------------+
|Northern AIM VCT PLC - share price total return| +16.5% | +23.7% |
+-----------------------------------------------+-------------+--------------+
|FTSE AIM index - total return | +13.1% | +53.9% |
+-----------------------------------------------+-------------+--------------+

In accordance with the practice adopted in recent years, no interim dividend has
been declared. However it remains the objective of the directors to maintain
the annual dividend at 3.0p per share, and in the absence of unforeseen
circumstances a final dividend of this amount for the year ending 31 October
2010 will be proposed in due course.

Investments
Despite the overall buoyancy of the AIM index over the past year, many of the
smaller AIM-quoted companies which form the core of AIM VCTs' portfolios have
remained out of favour even when trading performance has in many cases been
encouraging. Some boards of directors have reacted by taking their companies
private, including Spectrum Interactive which has been transferred to our
unquoted portfolio. UK exporters have derived some benefit from the recent
weakness of sterling and this has helped companies such as Andor Technologies,
IS Pharma and Pilat Media Global which have a significant proportion of export
sales.

There have been relatively few changes to the AIM portfolio over the past six
months. ÂGBP296,000 was invested in Nationwide Accident Repair Services, which has
a national network of vehicle repair workshops mainly serving motor insurers.
The company has strong reserves of cash for future acquisition opportunities and
the dividend yield is currently over 5%. We have added to our holding in CVS
Group, the largest UK operator of veterinary practices, which continues to act
as a major acquirer and consolidator in the sector. We also increased our
investment in Brulines Group, the UK market leader in the design, sale and
rental of fluid monitoring equipment for use by the licensed trade, which is
increasingly building on its expertise by expanding into related areas such as
petrol forecourt monitoring. The number of VCT-qualifying new issues on AIM has
continued to be very low.

Our investment in RCG Holdings, the Hong Kong-based biometric security solutions
developer, was sold for ÂGBP477,000, realising a gain of ÂGBP232,000. Profits were
taken through part sales of Advanced Computer Software and Andor Technologies in
response to strong share price performance.

In the unquoted portfolio, ÂGBP251,000 was invested in the management buyout of
Kerridge Commercial Systems, which develops computer software for the wholesale
and retail distribution sectors. Britspace Holdings was sold to a new group
holding company, Britspace Group, with the sale proceeds reinvested as part of
an exercise to rationalise shareholdings and the financing structure.

VCT qualifying status
The company retains PricewaterhouseCoopers LLP as advisers on matters relating
to VCT status and has continued to satisfy the HM Revenue & Customs requirements
for the maintenance of formal approval as a VCT.

Risk management
The board carries out a regular review of the risk environment in which the
company operates. There have been no significant changes to the key risks
discussed on page 11 of the annual report for the year ending 31 October 2009
including those resulting from the size and relative illiquidity of the
AIM-quoted and unquoted investments held by the company.

Future prospects
The process of adjusting to the new UK political landscape, coupled with the
slow rate of economic recovery, will present stiff challenges to our portfolio
companies in the coming months. We believe that, in many cases, current market
valuations do not reflect the underlying commercial progress achieved, and there
is some potential for re-rating if the economy is able to sustain a better
growth rate in the future.

On behalf of the Board

James Dawnay
Chairman


The unaudited half-yearly financial statements for the six months ended 30 April
2010 are set out below.

INCOME STATEMENT

(unaudited) for the six months ended 30 April 2010

Six months ended 30 April 2010 Six months ended 30 April 2009

Revenue Capital Total Revenue Capital Total
ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000

Gain on
disposal

of - 25 25 - 149 149
investments

Movements
in fair
value

of - 316 316 - 158 158
investments

---------- ---------- ---------- ---------- ---------- ----------

- 341 341 - 307 307

Income 116 - 116 129 - 129

Investment (8) (26) (34) (7) (21) (28)
management
fee

Recoverable - - - 7 22 29
VAT

Other (88) - (88) (96) - (96)
expenses

---------- ---------- ---------- ---------- ---------- ----------

Return on
ordinary
activities

before 20 315 335 33 308 341
tax

Tax on
return on

ordinary - - - - - -
activities

---------- ---------- ---------- ---------- ---------- ----------

Return on
ordinary
activities

after tax 20 315 335 33 308 341

---------- ---------- ---------- ---------- ---------- ----------



Return per 0.1p 1.4p 1.5p 0.2p 1.4p 1.6p
share


Year ended 31 October 2009

Revenue Capital Total
ÂGBP000 ÂGBP000 ÂGBP000

Gain on disposal

of investments - 135 135

Movements in fair value

of investments - 895 895

---------- ---------- ----------

- 1,030 1,030

Income 236 - 236

Investment management fee (18) (55) (73)

Recoverable VAT 7 22 29

Other expenses (199) - (199)

---------- ---------- ----------

Return on ordinary activities

before tax 26 997 1,023

Tax on return on

ordinary activities - - -

---------- ---------- ----------

Return on ordinary activities

after tax 26 997 1,023

---------- ---------- ----------



Return per share 0.1p 4.6p 4.7p



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

(unaudited) for the six months ended 30 April 2010

Six months ended Six months ended Year ended

30 April 2010 30 April 2009 31 October 2009

ÂGBP000 ÂGBP000 ÂGBP000

Equity shareholders' funds
at

1 November 2009 7,585 7,152 7,152

Return on ordinary 335 341 1,023
activities after tax

Dividends recognised in the (662) (654) (653)
period

Net proceeds of share 67 69 63
issues

---------- ---------- ----------

Equity shareholders' funds
at

30 April 2010 7,325 6,908 7,585

---------- ---------- ----------



BALANCE SHEET

(unaudited) as at 30 April 2010

30 April 2010 30 April 2009 31 October 2009

ÂGBP000 ÂGBP000 ÂGBP000

Fixed asset investments:

Venture capital investments

Quoted on AIM 3,972 3,284 3,734

Unquoted 2,535 1,954 2,138

---------- ---------- ----------

Total fixed asset investments 6,507 5,238 5,872

---------- ---------- ----------

Current assets:

Debtors 35 87 353

Cash at bank 874 1,670 1,461

---------- ---------- ----------

909 1,757 1,814

Creditors (amounts falling due

within one year) (91) (87) (101)

---------- ---------- ----------

Net current assets 818 1,670 1,713

---------- ---------- ----------



Net assets 7,325 6,908 7,585

---------- ---------- ----------



Capital and reserves:

Called-up equity share capital 1,116 1,103 1,103

Share premium 2,092 2,044 2,038

Capital redemption reserve 183 183 183

Capital reserve 6,210 7,764 7,272

Revaluation reserve (2,374) (4,271) (3,089)

Revenue reserve 98 85 78

---------- ---------- ----------



Total equity shareholders' funds 7,325 6,908 7,585

---------- ---------- ----------



Net asset value per share 32.8p 31.3p 34.4p



CASH FLOW STATEMENT

(unaudited) for the six months ended 30 April 2010

Six months ended Six months ended Year ended

30 April 2010 30 April 2009 31 October 2009

ÂGBP000 ÂGBP000 ÂGBP000

Net cash inflow

from operating 302 239 267
activities



Taxation:

Corporation tax paid - - -



Financial investment:
+----------------------------------------------------+
Purchase of investments | (1,324) (2) (476)|
| |
Sale/repayment of | 1,030 1,980 2,222 |
investments | |
+----------------------------------------------------+


Net cash inflow/(outflow)

from financial (294) 1,978 1,746
investment



Equity dividends paid (662) (654) (653)

---------- ---------- ----------

Net cash inflow/(outflow)

before financing (654) 1,563 1,360



Financing:
+----------------------------------------------------+
Issue of shares | 77 77 77 |
| |
Share issue expenses | (10) (8) (14)|
+----------------------------------------------------+
Net cash inflow from 67 69 63
financing

---------- ---------- ----------

Increase/(decrease) in (587) 1,632 1,423
cash at bank

---------- ---------- ----------



Reconciliation of return
before tax to

net cash flow from
operating activities

Return on ordinary 335 341 1,023
activities before tax

Gain on disposal of (25) (149) (135)
investments

Movements in fair value of (316) (158) (895)
investments

Decrease in debtors 318 165 220

Increase/(decrease) in (10) 40 54
creditors

---------- ---------- ----------

Net cash inflow

from operating 302 239 267
activities

---------- ---------- ----------



Analysis of movement in
net funds

1 November 2009 Cash flows 30 April 2010

ÂGBP000 ÂGBP000 ÂGBP000



Cash at bank 1,461 (587) 874

---------- ---------- ----------



INVESTMENT PORTFOLIO SUMMARY

as at 30 April 2010

Cost Valuation % of net assets

ÂGBP000 ÂGBP000 by valuation

Quoted investments (AIM unless otherwise
indicated):

Andor Technology 211 511 7.0

Advanced Computer Software 176 413 5.6

IS Pharma 385 377 5.1

Pilat Media Global 151 308 4.2

Nationwide Accident Repair Services 296 299 4.1

CVS Group 259 273 3.7

Bond International Software 182 246 3.4

Brulines Group 262 242 3.3

IDOX 250 234 3.2

Connaught (London Stock Exchange) 178 143 2.0

Quadnetics Group 235 136 1.8

Jelf Group 297 123 1.7

Prologic 300 100 1.4

Cello Group 301 99 1.4

Legion Group 117 88 1.2

Colliers CRE 332 60 0.8

Shieldtech 248 55 0.8

Baydonhill 251 54 0.7

1st Dental Laboratories 350 45 0.6

Twenty 198 45 0.6

Adept Telecom 233 37 0.5

Hartest Holdings 450 31 0.4

Belgravium Technologies 143 31 0.4

First Artist Corporation 502 17 0.2

Individual Restaurant Company 250 5 0.1

---------- ---------- --------

6,557 3,972 54.2

---------- ---------- --------

Unquoted investments:

Crantock Bakery 490 832 11.4

IG Doors 315 386 5.3

Longhirst Venues 145 331 4.5

Britspace Group 372 275 3.7

Axial Systems Holdings 251 256 3.5

Kerridge Commercial Systems 251 251 3.4

Optilan Group 250 204 2.8

Spectrum Interactive 250 - -

---------- ---------- --------

2,324 2,535 34.6

---------- ---------- --------



Total fixed asset investments 8,881 6,507 88.8

----------

Net current assets 818 11.2

---------- --------

Net assets 7,325 100.0

---------- --------



The above summary of results for the six months ended 30 April 2010 does not
constitute statutory financial statements within the meaning of Section 434 of
the Companies Act 2006, has not been audited or reviewed by the company's
independent auditors and has not been delivered to the Registrar of Companies.
The figures for the year ended 31 October 2009 have been extracted from the
financial statements for that year, which have been delivered to the Registrar
of Companies; the independent auditors' report on those financial statements
was unqualified and did not contain a statement under Section 498(2) or (3) of
the Companies Act 2006. The half-yearly financial statements have been prepared
on the basis of the accounting policies set out in the financial statements for
the year ended 31 October 2009.

Each of the directors confirms that to the best of his knowledge the half-yearly
financial statements have been prepared in accordance with the Statement
"Half-yearly financial reports" issued by the UK Accounting Standards Board and
the half-yearly financial report includes a fair review of the information
required by (a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months of
the financial year and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the year, and (b) DTR 4.2.8R of the Disclosure and
Transparency Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have materially
affected the financial position or performance of the entity during that period,
and any changes in the related party transactions described in the last annual
report that could do so.

The directors of the company at the date of this announcement were Mr C J P
Dawnay (Chairman), Mr S D Bullock, Mr A M Conn, Mr I A Macdonald and Mr J W J
Moxon.

The calculation of the revenue and capital return per ordinary share is based on
the return on ordinary activities after tax for the period and on 22,147,798
(2009 21,872,696) ordinary shares, being the weighted average number of shares
in issue during the period.

A copy of the half-yearly financial report for the six months ended 30 April
2010 is expected to be posted to shareholders by 25 June 2010 and will be
available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER and on the
NVM Private Equity Limited website, www.nvm.co.uk.



[HUG#1423571]

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June 14, 2010 04:03 ET (08:03 GMT)