Northern Aim VCT plc Half-yearly report

14th June 2009



TIDMNNA

15 JUNE 2009

NORTHERN AIM VCT PLC

UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 APRIL 2009


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 2008)


2009 2008

- Net assets GBP6.9m GBP11.7m

- Net asset value per share 31.3p 53.7p

- Return per share:
Revenue 0.2p 0.2p
Capital 1.4p (7.6)p
Total 1.6p (7.4)p

- Cumulative return to shareholders
since launch:
Net asset value per share 31.3p 53.7p
Dividends per share* 19.3p 16.3p
Net asset value plus dividends
paid per share 50.6p 70.0p

- Share price at end of period 24.5p 40.5p




For further information, please contact:

NVM Private Equity Limited
Alastair Conn/Christopher Mellor 0191 244 6000
Website: www.nvm.co.uk



NORTHERN AIM VCT PLC

HALF-YEARLY MANAGEMENT REPORT TO SHAREHOLDERS


Since the publication of the company's last annual report to
shareholders, in December 2008, there have been some signs of
stability returning to the financial markets, although it is much too
early to talk in terms of sustained recovery.

2008 was a unprecedented year for financial markets around the
world. The global financial system was close to breaking point and
two of Britain's largest banks might have collapsed had not the
Government intervened to provide financial support. Two major US
banks, Lehman Brothers and Washington Mutual, did fail and several
others were propped up by the US Treasury. Against this background
the FTSE AIM index fell by over 60% during the year, with many
investors forced or panicked into raising cash at any price. We
noted in the annual report that this movement had left many smaller
company shares looking extremely good value. The AIM index reached a
low point in early March 2009 but since then has bounced back,
recording a rise of some 45% by 31 May 2009. Our portfolio of
AIM-quoted investments has benefited from this effect, but despite
the recent buoyancy we believe that a number of our holdings are
still undervalued on fundamentals and have the potential for further
growth.

Net asset value and share price
The net asset value (NAV) per share at 30 April 2009 was 31.3p, after
deducting the dividend of 3.0p per share paid in March 2009. The NAV
per share as shown in the audited accounts at 31 October 2008 was
32.8p. The return per share for the half year was 1.6p, compared to
a negative return of 7.4p in the corresponding period last year.
This is a modest but welcome improvement after the difficulties
experienced in 2008. The dividend payment absorbed GBP654,000 of cash
but this was more than countered by the sale proceeds of two unquoted
investments, so that the net inflow of cash for the half year was
over GBP1.6 million.

The company's share price fell steeply in January 2009, belatedly
reflecting the fall in NAV during 2008, and has for the past four
months remained steady at around 24p mid-market. 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 2009 Past 6 months Past 12 months
Northern AIM VCT PLC - NAV total +5.9% -35.3%
return
Northern AIM VCT PLC - share price -31.4% -32.2%
total return
FTSE AIM index - total return +8.7% -50.1%


Investments
There were no significant changes in the AIM portfolio during the
period under review. The very poor market sentiment towards smaller
companies is reflected in the fact that there have been only 20 new
issues by UK companies on AIM in the six months to 30 April 2009,
compared to 65 in the corresponding period last year.

Despite the difficult conditions prevailing in the UK economy, many
of the AIM-quoted companies in the portfolio have produced good
results, and those which have found conditions tough have taken steps
to reduce costs. When the economy begins to recover, many of these
companies will benefit from having developed a leaner cost
structure. A good example is Colliers CRE, one of the top ten firms
of chartered surveyors in the UK, which has suffered a marked
downturn in its transaction-related business and has responded by
taking GBP18 million of cost out of the business on an annualised
basis. When confidence does pick up in the commercial property
sector and transactions return to a more normal level, Colliers
should be well placed to achieve a rapid recovery in profitability.
RCG Holdings, the Hong Kong-based biometric solutions provider, has
successfully floated on the Hong Kong Stock Exchange and although the
share price has more than doubled since the end of December, the
historic price/earnings ratio remains below 3 times. In August 2008
we invested in a share placing at 17p by Advanced Computer Software,
which is building a group of healthcare-related software businesses.
The company has recently raised a further GBP43 million from the market
at 30p per share and the shares have subsequently been trading as
high as 40p. IDOX, the developer of software for local authorities,
has announced a series of good contract wins over the past six months
and the share price has responded positively.

There have been some disappointments within the AIM portfolio. The
share price of Aero Inventory, the international aircraft parts
procurement company, fell by 35% in the six months to April 2009
despite excellent half-yearly results for the period to December
2008. The shares are trading on a price/earnings ratio of less than
3 and in May 2009 we added to our holding, taking advantage of what
looks like an attractive purchase price. We also recorded the
failure of Widney, which went into administration having suffered
particularly badly from its exposure to the automotive, construction
and agricultural machinery sectors. This had little impact on the
half-year results as the holding had a very small market value as at
31 October 2008.

No new unquoted investments were completed during the period but it
is pleasing to report successful exits from Stainton Metal Company
and Pivotal Laboratories Holdings, both of which were sold to US
trade buyers for cash. The aggregate proceeds received to date from
these sales amount to GBP1.9 million, compared with original cost of
GBP1.0 million and October 2008 directors' valuation of GBP1.8 million.
In both cases it is expected that further consideration will be
receivable on a deferred basis but this has not been recognised in
our accounts at this stage. Among the other holdings in the unquoted
portfolio, Britspace Holdings and John Laing Partnership continue to
find trading conditions in the construction sector challenging.

Dividend
In line with our objective stated 18 months ago, a maintained annual
dividend of 3.0p per share was paid in March 2009 in respect of the
year ended 31 October 2008. No interim dividend has been declared
but it is intended that a final dividend of 3.0p per share will in
due course be proposed in respect of the year ending 31 October 2009.

VAT on management fees
Our managers have continued to pursue the repayment of VAT paid by
the company on management fees in past periods, following the
landmark European Court decision in the JPMorgan Claverhouse case.
Up to 30 April 2009 a total VAT recovery of GBP129,000, plus interest,
has been credited to the income statement. It is hoped that a
further repayment will result from discussions currently in progress
with HM Revenue & Customs, but this is not yet sufficiently certain
to be recognised in the financial statements.

VCT qualifying status
The company retains PricewaterhouseCoopers LLP as advisers on matters
relating to VCT status, and has continued to satisfy 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 has been no significant change to
the key risks discussed on page 11 of the annual report for the year
ended 31 October 2008, including those resulting from the size and
relative illiquidity of the AIM-quoted and unquoted investments held
by the company.

Prospects
The UK economy has been hard hit by the events of the past two years
and it is clear that a rebalancing is required to reduce dependence
on the now depressed financial services sector and on debt-funded
consumer spending. A resumption of growth remains uncertain in the
short term given the prospect of rising public sector borrowing,
increased taxation and inadequately funded pension schemes. Although
we believe that many of our portfolio holdings have good upside
potential once the market begins to show a sustained recovery, it is
likely that patience will be required for some time to come.

On behalf of the Board

James Dawnay
Chairman


The unaudited half-yearly financial statements for the six months
ended 30 April 2009 are set out below.

INCOME STATEMENT

(unaudited) for the six months ended 30 April 2009


6 months ended 30 April 6 months ended 30 April
2009 2008
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Gain/(loss) on
disposal
of investments - 149 149 - 15 15
Movements in fair
value
of investments - 158 158 - (1,543) (1,543)
------ ------ ------ ------ ------ ------
- 307 307 - (1,528) (1,528)
Income 129 - 129 179 - 179
Investment management (7) (21) (28) (41) (123) (164)
fee
Recoverable VAT 7 22 29 - - -
Other expenses (96) - (96) (96) - (96)
------ ------ ------ ------ ------ ------
Return on ordinary
activities before 33 308 341 42 (1,651) (1,609)
tax
Tax on return on
ordinary activities - - - - - -
------ ------ ------ ------ ------ ------
Return on ordinary
activities after 33 308 341 42 (1,651) (1,609)
tax
------ ------ ------ ------ ------ ------

Return per share 0.2p 1.4p 1.6p 0.2p (7.6)p (7.4)p




Year ended 31 October 2008
Revenue Capital Total
GBP000 GBP000 GBP000
Gain/(loss) on disposal
of investments - (1,009) (1,009)
Movements in fair value
of investments - (5,254) (5,254)
------ ------ ------
- (6,263) (6,263)
Income 467 - 467
Investment management fee (65) (194) (259)
Recoverable VAT 25 75 100
Other expenses (190) - (190)
------ ------ ------
Return on ordinary
activities before tax 237 (6,382) (6,145)
Tax on return on
ordinary activities (29) 29 -
------ ------ ------
Return on ordinary
activities after tax 208 (6,353) (6,145)
------ ------ ------

Return per share 1.0p (29.2)p (28.2)p



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

(unaudited) for the six months ended 30 April 2009


6 months ended 6 months ended Year ended
30 April 2009 30 April 2008 31 Oct 2008
GBP000 GBP000 GBP000
Equity shareholders' funds
at
1 November 2008 7,152 13,914 13,914
Return on ordinary 341 (1,609) (6,145)
activities after tax
Dividends recognised in the (654) (652) (652)
period
Net proceeds of share 69 77 77
issues
Shares purchased for - (41) (42)
cancellation
------ ------ ------
Equity shareholders' funds
at
30 April 2009 6,908 11,689 7,152
------ ------ ------



BALANCE SHEET

(unaudited) as at 30 April 2009


30 April 2009 30 April 2008 31 October 2008
GBP000 GBP000 GBP000
Fixed asset investments:
Venture capital
investments
Quoted on AIM 3,284 5,863 2,995
Unquoted 1,954 5,423 3,914
------ ------ ------
Total fixed asset 5,238 11,286 6,909
investments
------ ------ ------
Current assets:
Debtors 87 54 252
Cash at bank 1,670 387 38
------ ------ ------
1,757 441 290
Creditors (amounts
falling
due within one year) (87) (38) (47)
------ ------ ------
Net current assets 1,670 403 243
------ ------ ------

Net assets 6,908 11,689 7,152
------ ------ ------

Capital and reserves:
Called-up equity share 1,103 1,089 1,089
capital
Share premium 2,044 1,989 1,989
Capital redemption 183 183 183
reserve
Capital reserve 7,764 8,733 7,760
Revaluation reserve (4,271) (409) (4,139)
Revenue reserve 85 104 270
------ ------ ------
Total equity
shareholders'
funds 6,908 11,689 7,152
------ ------ ------

Net asset value per share 31.3p 53.7p 32.8p



CASH FLOW STATEMENT

(unaudited) for the six months ended 30 April 2009


Six months Six months Year ended
ended ended
30 April 2009 30 April 31 October
2008 2008
GBP000 GBP000 GBP000
Net cash inflow/(outflow)
from operating activities 239 (71) (61)

Taxation:
Corporation tax paid - - -

Financial investment:
Purchase of investments (2) (946) (1,472)
Sale/repayment of investments 1,980 1,183 1,351

Net cash inflow/(outflow)
from financial investment 1,978 237 (121)

Equity dividends paid (654) (652) (652)
------ ------ ------
Net cash inflow/(outflow)
before financing 1,563 (486) (834)

Financing:
Issue of shares 77 77 77
Share issue expenses (8) - -
Purchase of shares for - (41) (42)
cancellation
Net cash inflow from financing 69 36 35
------ ------ ------
Increase/(decrease) in
cash at bank 1,632 (450) (799)
------ ------ ------

Reconciliation of return before
tax to
net cash flow from operating
activities
Return on ordinary activities 341 (1,609) (6,145)
before tax
(Gain)/loss on disposal of (149) (15) 1,009
investments
Movements in fair value of (158) 1,543 5,254
investments
(Increase)/decrease in debtors 165 19 (179)
Increase/(decrease) in creditors 40 (9) -
------ ------ ------
Net cash inflow/(outflow)
from operating activities 239 (71) (61)
------ ------ ------

Analysis of movement in net funds
1 November Cash flows 30 April
2008 2009
GBP000 GBP000 GBP000

Cash at bank 38 1,632 1,670
------ ------ ------



INVESTMENT PORTFOLIO SUMMARY

as at 30 April 2009


Cost Valuation % of net assets
GBP000 GBP000 by valuation
AIM-quoted investments:
Advanced Computer Software 198 414 6.0
Pilat Media Global 301 368 5.3
RCG Holdings 236 318 4.6
Andor Technology 292 292 4.2
Aero Inventory 373 253 3.7
IDOX 250 229 3.3
Jelf Group 297 204 3.0
IS Pharma 241 194 2.8
Bond International Software 182 140 2.0
Prologic 300 128 1.9
SectorGuard 117 102 1.5
Quadnetics Group 235 98 1.4
Cello Group 301 96 1.4
Fountains 250 90 1.3
Colliers CRE 332 67 1.0
1st Dental Laboratories 350 52 0.8
Belgravium Technologies 143 46 0.7
Shieldtech 248 40 0.6
Adept Telecom 233 38 0.5

Intercytex Group 250 23 0.3
First Artist Corporation 502 22 0.3
Spectrum Interactive 250 17 0.2
Twenty 198 15 0.2
Baydonhill 251 15 0.2
Hartest Holdings 450 10 0.1
Individual Restaurant Company 250 7 0.1
Advance AIM Value Realisation 21 6 0.1
Company
------ ------ -----
7,051 3,284 47.5
------ ------ -----
Unquoted investments:
Crantock Bakery 490 618 9.0
Longhirst Venues 136 361 5.2
Britspace Holdings 788 334 4.8
Axial Systems Holdings 251 279 4.0
Optilan Group 250 204 3.0
IG Doors 315 158 2.3
John Laing Partnership 229 - -
------ ------ -----
2,459 1,954 28.3
------ ------ -----

Total fixed asset investments 9,510 5,238 75.8
------
Net current assets 1,670 24.2
------ -----
Net assets 6,908 100.0
------ -----



The above summary of results for the six months ended 30 April 2009
does not constitute statutory financial statements within the meaning
of Section 240 of the Companies Act 1985, 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 2008 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 under Section 235 of the Companies Act 1985 was
unqualified.

The directors confirm that to the best of their 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.

A copy of the half-yearly financial report for the six months ended
30 April 2009 is expected to be posted to shareholders on 26 June
2009 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.

=--END OF MESSAGE---




This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

(END) Dow Jones Newswires

June 15, 2009 05:56 ET (09:56 GMT)