Northern AIM VCT PLC – Interim Results

17th June 2007


RNS Number:5342Y
Northern AIM VCT PLC
18 June 2007

18 JUNE 2007

NORTHERN AIM VCT PLC

UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 APRIL 2007

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

Financial highlights:
(comparative figures for the six months ended 30 April 2006 in italics)
2007 2006
* Net assets #14.5m #14.4m
* Net asset value per share 64.5p 61.6p
* Return per share
Revenue 0.1p 0.4p
Capital 7.7p 2.8p
Total 7.8p 3.2p
* Interim dividend per share
in respect of the period – –
* Share price at end of period 56.0p 55.0p
* Cumulative returns to shareholders since launch
Net asset value per share 64.5p 61.6p
Dividends paid per share 13.3p 12.3p
Net asset value plus dividends
paid per share 77.8p 73.9p

For further information, please contact:
NVM Private Equity Limited
Norman Yarrow, Investment Director 0131 260 1000
Website: www.nvm.co.uk

Lansons Communications
Karen Mignon 020 7294 3685

NORTHERN AIM VCT PLC

CHAIRMAN’S STATEMENT

The Chairman of Northern AIM VCT PLC, James Dawnay, included the following
points in his statement to shareholders:

Our portfolio has made good progress over the past six months; the AIM market
as a whole has recovered strongly during the period after falling in the six
months to October 2006. The net asset value (NAV) per share at 30 April 2007
was 64.5p, compared to the audited year end figure of 57.6p at 31 October 2006.
The total return (revenue and capital) of 7.8p for the half year as shown in the
income statement is equivalent to 13.5% of the opening NAV.

On a total return basis (ie taking account of dividends paid), the company’s
performance relative to the FTSE AiM index over the past 6 and 12 months is as
follows:

Movement to 30 April 2007 Past 6 months Past 12 months
Northern AIM VCT PLC net asset value +13.5% +6.1%
Northern AIM VCT PLC share price +7.3% +3.4%
FTSE AiM index +18.3% -5.3%

The unaudited net asset value per share at 31 May 2007 was 64.5p, unchanged from
30 April 2007. The FTSE AiM index rose by 2.8% during the month.

Investments

During the half year the managers have reduced the number of holdings in the AIM
portfolio. Proceeds from the disposals of AIM holdings during the half year
totalled #1,171,000, of which #486,000 was received after the period end.
Recommended cash bids led to successful exits from both PM Group and Computer
Software Group, realising gains of #88,000 and #183,000 respectively. The
remaining holding in Media Square was sold for a small profit and the balance of
the holding in Atlantic Global was sold at a small loss. The shareholding in
Fulcrum Pharma was exchanged for shares in Advance AIM Value Realisation
Company. The holdings in RC Group (Holdings) and Sectorguard were both reduced,
realising gains totalling #150,000. No new investments were made but an
additional #95,000 was invested in Zenith Hygiene Group.

On the whole, the trading news from the AIM holdings has been good. RC Group
(Holdings), the Hong Kong-based biometrics company, announced excellent results;
the share price has been strong and the managers took the opportunity to
realise 20% of the holding and a gain of #102,000. Aero Inventory, the
aerospace parts procurement specialist, reported that its major contract with
Qantas is going well. Pilat Media, which provides software to the broadcasting
industry worldwide, has recently announced that it is hoping to sign three
substantial contracts over the next few months. Bond International Software,
which specialises in the recruitment and human resources sector, has seen its
share price rise by 58% in the half year, reflecting both strong organic growth
and the announcement of two acquisitions. Jelf Group, the financial
consultancy, has been highly acquisitive and the shares are up 145% since our
initial investment in March 2006.

Within the AIM portfolio Zenith Hygiene Group, Adept Telecom and Spectrum
Interactive have traded below expectations. Your managers meet regularly with
these companies and monitor their strategies for recovering shareholder value.
There are signs of improvement at Adept Telecom, which provides
telecommunications services for landline calls, line rental and broadband, and
the share price has recently been stronger. Zenith Hygiene Group has been
strengthening its management team and has had some encouraging client wins.

The unquoted portfolio now comprises 11 companies with a total value of #5.3
million, representing approximately 37% of the company’s assets. Most of the
companies are making good progress and in several cases our managers believe
there are prospects of exit within the next 12 months. However Nightingales
Holdings, the mail order and internet retailer of women’s clothing, has found
trading conditions difficult since mid-2006 and a 50% provision has been made
against the cost of the investment to reflect this, although there are currently
indications of some improvement in performance.

Revenue account and dividend

The revenue surplus after tax for the six months to 30 April 2007 was #12,000
and as last year, no interim revenue dividend is declared. As I indicated in my
statement six months ago, the directors are seeking to achieve an appropriate
balance between maximising dividend distributions and maintaining the company’s
capital base at a viable level, and it is intended that a full review of the
position will be carried out at the year end before deciding on the dividend for
the full year.

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.

Prospects

The UK economy continues to show steady if modest growth, although with the
recent increases in interest rates there are signs that the growth in both
residential and commercial property prices may be slowing down. The US dollar
has been weak, which is affecting some of the holdings within the portfolio
which have significant dollar earnings. However the majority of the AIM
holdings are showing good organic growth and in many cases this has been
enhanced by a sensible acquisition strategy. We hope to see continued positive
progress during the second half of the year.

JAMES DAWNAY

Chairman

The unaudited interim financial statements for the six months ended 30 April
2007 are set out below.

INCOME STATEMENT

(unaudited) for the six months ended 30 April 2007

Six months ended 30 April 2007 Six months ended 30 April 2006
Revenue Capital Total Revenue Capital Total
#000 #000 #000 #000 #000 #000
Gain on disposal of investments – 193 193 – 179 179
Unrealised adjustments to fair value
of investments – 1,691 1,691 – 608 608
———- ———- ———- ———- ———- ———-
– 1,884 1,884 – 787 787
Income 133 – 133 208 – 208
Investment management fee (39) (117) (156) (41) (124) (165)
Other expenses (82) – (82) (80) – (80)
———- ———- ———- ———- ———- ———-
Return on ordinary activities
before tax 12 1,767 1,779 87 663 750
Tax on return on ordinary activities – – – (2) 2 –
———- ———- ———- ———- ———- ———-
Return on ordinary activities
after tax 12 1,767 1,779 85 665 750
———- ———- ———- ———- ———- ———-
Return per share 0.1p 7.7p 7.8p 0.4p 2.8p 3.2p

Year ended 31 October 2006

Revenue Capital Total
#000 #000 #000
Gain on disposal of investments – 70 70
Unrealised adjustments to fair value

of investments – (123) (123)
———- ———- ———-
– (53) (53)
Income 332 – 332
Investment management fee (84) (251) (335)
Other expenses (154) – (154)
———- ———- ———-
Return on ordinary activities
before tax 94 (304) (210)
Tax on return on ordinary activities – – –
———- ———- ———-
Return on ordinary activities
after tax 94 (304) (210)
———- ———- ———-
Return per share 0.4p (1.3)p (0.9)p

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS

(unaudited) for the six months ended 30 April 2007

Six months Six months Year ended
ended ended 31 October
30 April 2007 30 April 2006 2006
#000 #000 #000
Equity shareholders’
funds at
1 November 2006 13,250 14,308 14,308
Return on ordinary 1,779 750 (210)
activities after tax
Dividends recognised in (227) (474) (472)
the period
Net proceeds of share 26 55 55
issues
Shares purchased for (348) (232) (431)
cancellation
Expenses charged to (18) – –
capital
———- ———- ———-
Equity shareholders’
funds at 30 April 2007 14,462 14,407 13,250
———- ———- ———-

BALANCE SHEET

(unaudited) as at 30 April 2007

30 April 30 April 31 October
2007 2006 2006
#000 #000 #000
Fixed asset investments
held at fair value:
Venture capital
investments
Quoted on AiM 8,600 9,518 8,274
Unquoted 5,331 4,817 4,697
———- ———- ———-
Total fixed asset 13,931 14,335 12,971
investments
———- ———- ———-
Current assets:
Debtors 555 126 97
Cash at bank 28 7 232
———- ———- ———-
583 133 329
Creditors (amounts falling (52) (61) (50)
due within one year)
———- ———- ———-
Net current assets 531 72 279
———- ———- ———-

Net assets 14,462 14,407 13,250
———- ———- ———-

Capital and reserves:
Called-up equity share 1,121 1,169 1,150
capital
Share premium 1,919 11,896 11,896
Capital redemption reserve 144 93 112
Capital reserve – realised 9,402 590 74
Capital reserve – 1,806 519 (132)
unrealised
Revenue reserve 70 140 150
———- ———- ———-
Total equity shareholders’ 14,462 14,407 13,250
funds
———- ———- ———-
Net asset value per share 64.5p 61.6p 57.6p

CASH FLOW STATEMENT

(unaudited) for the six months ended 30 April 2007

Six months ended Six months ended Year ended
30 April 2007 30 April 2006 31 October 2006
#000 #000 #000 #000 #000 #000
Net cash outflow
from
operating (93) (104) (158)
activities
Taxation:
Corporation tax paid – – –
Financial
investment:
Purchase of (247) (1,837) (1,839)
investments
Sale/repayment of 685 520 998
investments
———- ———- ———-

Net cash inflow/
(outflow)
from financial 438 (1,317) (841)
investment
Equity dividends (227) (474) (472)
paid
———- ———- ———-

Net cash inflow/
(outflow)
before financing 118 (1,895) (1,471)
Financing:
Issue of ordinary 30 61 61
shares
Share issue expenses (4) (6) (6)
Purchase of ordinary
shares
for cancellation (348) (232) (431)
———- ———- ———-

Net cash outflow (322) (177) (376)
from financing
———- ———- ———-

Decrease in cash at (204) (2,072) (1,847)
bank
———- ———- ———-

Reconciliation of
return before tax
to net cash flow
from operating
activities
Return on ordinary
activities
before tax 1,779 750 (210)
Gain on disposal of
investments
held at fair value (193) (179) (70)
Unrealised
adjustments to fair
value
of investments (1,691) (608) 123
Decrease/(increase) 28 (67) 10
in debtors
Increase/(decrease) 2 – (11)
in creditors
Expenses charged to (18) – –
capital reserve
———- ———- ———-

Net cash outflow
from
operating (93) (104) (158)
activities
———- ———- ———-

Analysis of movement in net funds

1 November 2006 Cash flows 30 April 2007
#000 #000 #000

Cash at bank 232 (204) 28
———- ———- ———-

INVESTMENT PORTFOLIO SUMMARY

as at 30 April 2007
Cost Valuation % of net assets
#000 #000 by valuation
AiM quoted investments:
Pilat Media Global 301 1,142 7.9
Bond International Software 151 831 5.8
Jelf Group 297 728 5.0
Aero Inventory 448 701 4.8
RC Group (Holdings) 236 688 4.8
Colliers CRE 332 539 3.7
Cello Group 301 424 2.9
Inspicio 250 418 2.9
Andor Technology 292 367 2.5
Zenith Hygiene Group 320 353 2.4
Quadnetics Group 235 310 2.1
Prologic 300 260 1.8
SectorGuard 117 205 1.4
Fountains 250 198 1.4
1st Dental Laboratories 350 194 1.3
Twenty 198 158 1.1
IDOX 250 156 1.1
Belgravium Technologies 143 156 1.1
OMG 200 147 1.0
Intercytex Group 250 134 0.9

First Artist Corporation 502 126 0.9
Adept Telecom 233 73 0.5
Individual Restaurant Company 250 56 0.4
Widney 208 55 0.4
Baydonhill 251 52 0.4
Advance AIM Value Realisation Company 54 52 0.4
Spectrum Interactive 250 43 0.3
Hartest Holdings 450 34 0.2
———- ———- ——–
7,419 8,600 59.4
———- ———- ——–
Unquoted investments:
John Laing Partnership 229 880 6.1
DMN 858 858 5.9
Longhirst Group 560 858 5.9
Crantock Bakery 490 621 4.3
Stainton Metal Company 751 563 3.9
IG Doors 315 433 3.0
KCS Global Holdings 234 344 2.4
Pivotal Laboratories Holdings 250 307 2.1
GB Industries 591 296 2.1
Nightingales Holdings 248 124 0.9
PKL Holdings 180 47 0.3
———- ———- ——–
4,706 5,331 36.9
———- ———- ——–
Total fixed asset investments 12,125 13,931 96.3
———-
Net current assets 531 3.7
———- ——–
Net assets 14,462 100.0
———- ——–

The above summary of results for the six months ended 30 April 2007 does not
constitute statutory financial statements within the meaning of Section 240 of
the Companies Act 1985 and has not been delivered to the Registrar of Companies.
The figures for the year ended 31 October 2006 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.

A copy of the interim report for the six months ended 30 April 2007 is expected
to be posted to shareholders on 29 June 2007 and will be available to the public
at the registered office of the company at Northumberland House, Princess
Square, Newcastle upon Tyne NE1 8ER.

ENDS

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

IR LVLFFDQBBBBZ