Northern AIM VCT PLC – Interim Management Statement

3rd September 2008

RNS Number : 7527C
Northern AIM VCT PLC
04 September 2008
 



4 SEPTEMBER 2008

NORTHERN AIM VCT PLC

INTERIM MANAGEMENT STATEMENT

FOR THE QUARTER ENDED 31 JULY 2008

Northern AIM VCT PLC presents its interim management statement for the quarter ended 31 July 2008. This constitutes the company’s second interim management statement for the financial year ending 31 October 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 company’s objective is to provide high long-term tax-free returns to investors through a combination of dividend yield and capital growth, by investing in a portfolio of investments mainly comprising holdings in UK AIM-quoted and unquoted companies. The company is a venture capital trust approved by HM Revenue & Customs and is required to comply on a continuing basis with the provisions of Section 274 of the Income Tax Act 2007.
 
The unaudited net asset value (NAV) per ordinary share as at 31 July 2008 was 42.4p (30 April 2008 53.7p). The following table shows the movement in the company’s NAV and share price and the FTSE AIM index during the nine months ended 31 July 2008:

 

 

 
31 July
2008
31 October
2007
Increase/(decrease)
during period
 
 
 
 
NAV per share
42.4p
64.0p
(33.8)%
Share price
40.5p
52.0p
(22.1)%
FTSE AIM All-share index
823.4
1150.3
(28.4)%

The company has continued to be affected by adverse stock market conditions, with a number of AIM-quoted investments suffering significant falls in value. A full review of the unquoted portfolio has been carried out and in the light of the worsening economic outlook several holdings have been reduced in value as at 31 July 2008. During the quarter the investment in DMN Limited was sold for a nominal consideration following problems with a major customer contract, giving rise to a write-off of £342,000 against book value. There were no other significant portfolio transactions during the period.
 
The number of ordinary shares in issue at 31 July 2008 was 21,785,766. During the quarter ended 31 July 2008 no shares were allotted or bought back for cancellation by the company.
 

The summarised balance sheet of the company as at 31 July 2008 is as follows:

 

 

 
31 July 2008
30 April 2008
 
(unaudited)
(unaudited)
 
£000
£000
 
 
 
Fixed asset investments:
 
 
Quoted on AIM
4,420
5,863
Unquoted
4,456
5,423
 
——
——
 
8,876
11,286
Net current assets
369
403
 
——
——
Net assets
9,245
11,689
 
——
——
Represented by:
 
 
Equity shareholders’ funds
9,245
11,689
 
——
——

Quoted investments are carried at bid price as at 31 July 2008. Unquoted investments are carried at fair value as at 31 July 2008 as determined by the directors.
 
The Government announced in the 2008 Budget that, with effect from 1 October 2008, investment management fees paid by VCTs would be exempt from VAT. HM Revenue & Customs has subsequently accepted that under European Union VAT law this exemption should have applied from 1 January 1990 onwards, and has indicated that claims may be made for repayment of VAT previously paid by VCTs on management fees, subject to certain restrictive time limits.
 
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. An update will be given in the company’s annual report for the year ending 31 October 2008, which is expected to be published in December 2008.
 
The directors are not aware of any other events or transactions which have taken place between 30 April 2008 and the date of publication of this statement and which have had a material effect on the financial position of the company.

 

 

Enquiries:


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

Website:  www.nvm.co.uk

This information is provided by RNS
The company news service from the London Stock Exchange
 

END

 
 

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