Half-yearly report
(Thomson Reuters ONE) - 9 NOVEMBER 2009NORTHERN INVESTORS COMPANY PLCUNAUDITED HALF-YEARLY FINANCIAL REPORTFOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009Northern Investors Company PLC is an investment trust managed by NVMPrivate Equity Limited. Launched in 1984 and listed on the LondonStock Exchange since 1990, it invests mainly in unquoted venturecapital holdings and aims to provide high long-term returns toshareholders through a combination of capital growth and dividendyield.Financial highlights (comparative figures as at 30 September 2008): 2009 2008Net assets £50.3m £49.7mNet asset value per share 259.6p 255.9pMid-market share price 186.0p 156.0pShare price discount tonet asset value 28.4% 39.0%Return per share after tax: 2.9p 3.9p Revenue 17.9p (40.3)p Capital 20.8p (36.4)p TotalInterim dividend per sharedeclared in respect of the period 2.2p 2.2pFor further information, please contact:NVM Private Equity LimitedAlastair Conn/Christopher Mellor 0191 244 6000Website: www.nvm.co.ukHALF-YEARLY MANAGEMENT REPORT TO SHAREHOLDERSDuring the past six months our company has continued to operateagainst a background of economic recession and wide fluctuations inthe financial markets. We are therefore pleased to be able to reportan increase in net asset value (NAV) per share, a maintained interimdividend, a further strengthening of the company's cash reservesthrough several successful realisations and a strong recovery in theshare price.Net asset value and share priceThe following table shows the NAV per share, mid-market share priceand discount as at 30 September 2009 compared with the correspondingfigures at 31 March 2009 and 30 September 2008:+-------------------------------------------------------------------+| | 30 September | 31 March | 30 September || | 2009 | 2009 | 2008 ||--------------------------+--------------+----------+--------------|| NAV per share | 259.6p | 243.9p | 255.9p ||--------------------------+--------------+----------+--------------|| Share price | 186.0p | 96.0p | 156.0p ||--------------------------+--------------+----------+--------------|| Share price discount to | 28.4% | 60.6% | 39.0% || NAV | | | |+-------------------------------------------------------------------+The steep fall in the Northern Investors share price during late 2008and early 2009 appears to have been largely due to a change in marketsentiment towards private equity investment trusts, driven byconcerns about investment valuations and unfunded investmentcommitments. Over the past six months, however, the share price hasalmost doubled, perhaps reflecting a better appreciation by themarket of our conservative valuation methodology and strong cashposition.The directors have continued to take a cautious view in assessing thevalue of the unquoted investment portfolio, notwithstanding theremarkable upturn in the quoted markets over the past six months, andas a result the recent increase in NAV has been only modest. Thefollowing table shows the movement in NAV and share price over thelatest six and 12 month periods compared with the movement in theFTSE All-Share index:+-------------------------------------------------------------------+| Periods to 30 Sept | NAV per | Share price | FTSE All-Share || 2009 | share | | ||---------------------+--------------+-------------+----------------|| Six months | +6.4% | +93.8% | +32.8% ||---------------------+--------------+-------------+----------------|| 12 months | +1.4% | +19.2% | +6.1% |+-------------------------------------------------------------------+Revenue and dividendInvestment income for the half year was lower than in thecorresponding period, reflecting the continuing depressed level ofinterest rates as well as the present inability of some investeecompanies fully to service their loans whilst under pressure fromsevere bank lending covenants. Consequently the revenue return pershare fell to 2.9p (corresponding period 3.9p). The interim dividendis maintained at 2.2p per share, payable on 8 January 2010 toshareholders on the register on 4 December 2009.Investment portfolioThe period under review has seen a continuation of the strong flow ofinvestment realisations which began in the preceding year, with salesproceeds in the period totalling £7.9 million. The most significantevent was the sale of DxS, the Manchester-based molecular diagnosticsbusiness which NVM funds backed as an early-stage investment in2001. The sale to Qiagen NV in September 2009 produced £5.9 millionin cash from our original investment of £841,000, with thepossibility of further payments over the next three years dependenton future performance - overall an outstanding result. Our holdingin public sector software developer Liquidlogic was sold to theAIM-quoted System C Healthcare for £1.2 million, compared with anoriginal cost (net of previous loan stock repayments) of £175,000.Subsequent to the period end we have also exited from theoccupational healthcare group Abermed at a price reflected in thecarrying value at 30 September 2009.There were no significant additions to the portfolio during theperiod, although our managers report an upturn recently in the volumeand quality of enquiries received. It has been our previousexperience that attractively-priced investment opportunities canbecome available in the aftermath of recession, and following therecent series of realisations we expect the emphasis to turn over thenext 12 months to making new additions to the portfolio. We are alsoprepared to provide additional funding to existing portfoliocompanies where appropriate, particularly in those cases where bankfinancing is not available on acceptable terms.Corporate strategyAt the annual general meeting in June 2009, the directors askedshareholders to approve their strategy of postponing the nextcontinuation vote until the 2012 meeting, with subsequent resolutionsat the customary five-yearly interval. This proposal was stronglyendorsed, giving us a helpful additional visibility at a time whenlong-term decision-making is inevitably subject to a measure ofuncertainty. On behalf of the board I would like to thankshareholders for their ongoing support.Risk managementThe board carries out a regular review of the risk environment inwhich the company operates. There has been no significant change tothe key risks discussed on page 9 of the annual report for the yearended 31 March 2009, including those resulting from the size andrelative illiquidity of the unquoted and AIM-quoted investments heldby the company.ProspectsA year ago we noted that conditions in the UK economy would probablyworsen further before any improvement became apparent. Thisexpectation has subsequently been fulfilled and the search for the UKeconomy's green shoots continues to be largely frustrated.Nevertheless our managers have been successful in reaping someexcellent gains. The next phase of the cycle is likely to see a moveto re-stocking the portfolio with a new vintage of investments,carefully redeploying the substantial liquidity which has been builtup over the past two years. There are few short cuts available inthis process, but we believe that the consistent application of ourestablished approach to selection and management of venture capitalholdings will continue to produce good returns for shareholders inthe future.On behalf of the BoardPeter HaighChairmanThe unaudited half-yearly financial statements for the six monthsended 30 September 2009 are set out below.INCOME STATEMENT(unaudited) for the six months ended 30 September 2009 Six months ended Six months ended 30 September 2009 30 September 2008 Revenue Capital Total Revenue Capital Total £000 £000 £000 £000 £000 £000Gain on disposalof investments - 1,766 1,766 - 1,679 1,679Movements in fairvalueof investments - 1,922 1,922 - (9,251) (9,251) ------ ------ ------ ------ ------ ------ - 3,688 3,688 - (7,572) (7,572)Income 970 - 970 1,271 - 1,271Investment management (124) (289) (413) (152) (354) (506)feeRecoverable VAT - - - - - -Other expenses (172) - (172) (178) - (178) ------ ------ ------ ------ ------ ------Return on ordinaryactivities before tax 674 3,399 4,073 941 (7,926) (6,985)Tax on return on (117) 81 (36) (192) 99 (93)ordinary activities ------ ------ ------ ------ ------ ------Return on ordinaryactivities after tax 557 3,480 4,037 749 (7,827) (7,078) ------ ------ ------ ------ ------ ------Return per share 2.9p 17.9p 20.8p 3.9p (40.3)p (36.4)p Year ended 31 March 2009 Revenue Capital Total £000 £000 £000Gain on disposalof investments - 2,483 2,483Movements in fair valueof investments - (12,387) (12,387) ------ ------ ------ - (9,904) (9,904)Income 2,267 - 2,267Investment management fee (303) (707) (1,010)Recoverable VAT 115 - 115Other expenses (325) - (325) ------ ------ ------Return on ordinary activities before tax 1,754 (10,611) (8,857)Tax on return on ordinary activities (370) 198 (172) ------ ------ ------Return on ordinary activities after tax 1,384 (10,413) (9,029) ------ ------ ------Return per share 7.1p (53.6)p (46.5)pRECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS(unaudited) for the six months ended 30 September 2009 Six months ended Six months ended Year ended 30 September 30 September 31 March 2009 2008 2009 £000 £000 £000Equity shareholders'funds at 1 April 2009 47,297 57,755 57,755Return on ordinaryactivities after tax 4,037 (7,078) (9,029)Dividends recognisedin the period (989) (971) (1,399)Shares purchasedfor cancellation - - (30) ------ ------ ------Equity shareholders'funds at 30 September 2009 50,345 49,706 47,297 ------ ------ ------BALANCE SHEET(unaudited) as at 30 September 2009 30 September 30 September 31 March 2009 2008 2009 £000 £000 £000Fixed asset investments Unquoted 28,279 36,462 32,079 Quoted 349 736 333 ------ ------ ------Total fixed asset 28,628 37,198 32,412investments ------ ------ ------Current assets: Investments 232 906 2,427 Debtors 50 675 323 Cash and deposits 21,770 11,214 12,420 ------ ------ ------ 22,052 12,795 15,170Creditors (amountsfallingdue within one year) (335) (287) (285) ------ ------ ------Net current assets 21,717 12,508 14,885 ------ ------ ------Net assets 50,345 49,706 47,297 ------ ------ ------Capital and reservesCalled-up equity share 4,849 4,856 4,849capitalShare premium 12,694 12,694 12,694Capital redemption 306 299 306reserveCapital reserve 32,962 30,631 31,582Revaluation reserve (2,424) (957) (4,524)Revenue reserve 1,958 2,183 2,390 ------ ------ ------Total equityshareholders' funds 50,345 49,706 47,297 ------ ------ ------Net asset value per 259.6p 255.9p 243.9pshareCASH FLOW STATEMENT(unaudited) for the six months ended 30 September 2009 Six months ended Six months Year ended 30 September ended 31 March 2009 2009 30 September 2008 £000 £000 £000 £000 £000 £000Cash flow statementNet cash inflow from operating 672 835 1,580activitiesTaxation:Corporation tax paid - - (98)Financialinvestment:Purchase of (379) (3,831) (5,701)investmentsSale/repayment of 7,851 11,504 15,912investments ------ ------ ------Net cash inflow from financial 7,472 7,673 10,211investmentEquity dividends (989) (971) (1,399)paid ------ ------ ------Net cash inflowbeforeuse of liquidresourcesand financing 7,155 7,537 10,294Financing:Purchase of sharesfor cancellation - - (30) ------ ------ ------Net cash inflowbeforeuse of liquid 7,155 7,537 10,264resourcesNet cashinflow/(outflow)from use of liquid 2,195 (45) (1,566)resources ------ ------ ------Increase in cash at 9,350 7,492 8,698bank ------ ------ ------Reconciliation ofrevenuereturn before tax tonetcash flow fromoperating activitiesRevenue return onordinaryactivities before 674 941 1,754taxDecrease in debtors 273 398 666Increase/(decrease) 14 (150) (133)in creditorsManagement fees (289) (354) (707)charged to capital ------ ------ ------Net cash inflow from operating 672 835 1,580activities ------ ------ ------Reconciliation ofmovement in net funds 1 April 2009 Cash flows 30 September 2009 £000 £000 £000Short-term 2,427 (2,195) 232investmentsCash at bank 12,420 9,350 21,770 ------ ------ ------Net funds 14,847 7,155 22,002 ------ ------ ------INVESTMENT PORTFOLIO SUMMARYas at 30 September 2009Company Cost Valuation % of net assets £000 £000 by valuationWeldex (International) Offshore 200 4,880 9.7Axial Systems Holdings 2,311 2,542 5.1Britspace Holdings 3,603 2,205 4.4Paladin Group 1,407 2,066 4.1Crantock Bakery 1,061 1,782 3.5Envirotec 1,008 1,772 3.5Optilan Group 1,900 1,558 3.1Promanex Group Holdings 1,974 1,480 2.9Abermed 800 1,432 2.8Closerstill Holdings 1,234 1,234 2.5 ------ ------ -----Ten largest investments 15,498 20,951 41.6Arleigh International 480 1,010 2.0Longhirst Venues 397 998 2.0IG Doors 1,185 889 1.8S&P Coil Products 510 880 1.8Promatic Group 968 726 1.4Wear Inns 762 643 1.3e-know.net 480 623 1.2Direct Valeting 764 573 1.1CGI Group Holdings 1,723 431 0.9Alaric Systems 1,618 350 0.7 ------ ------ -----Twenty largest investments 24,385 28,074 55.8Other investments 6,667 554 1.1 ------ ------ -----Total fixed asset investments 31,052 28,628 56.9 ------Net current assets 21,717 43.1 ------ -----Net assets 50,345 100.0 ------ -----The above half-yearly financial statements for the six months ended30 September 2009 do not constitute statutory financial statementswithin the meaning of Section 240 of the Companies Act 1985 and havenot been delivered to the Registrar of Companies. The figures forthe year ended 31 March 2009 have been extracted from the auditedfinancial statements for that year, which have been delivered to theRegistrar of Companies; the independent auditors' report on thosefinancial statements under Section 235 of the Companies Act 1985 wasunqualified. The half-yearly financial statements have been preparedon the basis of the accounting policies set out in the annualfinancial statements for the year ended 31 March 2009.Each of the directors confirms that to the best of his or herknowledge the half-yearly financial statements have been prepared inaccordance with the Statement "Half-yearly financial reports" issuedby the UK Accounting Standards Board and the half-yearly financialreport includes a fair review of the information required by (a) DTR4.2.7R of the Disclosure and Transparency Rules, being an indicationof important events that have occurred during the first six months ofthe financial year and their impact on the condensed set of financialstatements, and a description of the principal risks anduncertainties for the remaining six months of the year, and (b) DTR4.2.8R of the Disclosure and Transparency Rules, being related partytransactions that have taken place in the first six months of thecurrent financial year and that have materially affected thefinancial position or performance of the entity during that period,and any changes in the related party transactions described in thelast annual report that could do so.The directors of the company at the date of this announcement were MrP J Haigh (Chairman), Mr J C Barnsley, Mr E M P Denny, Mr F L GNeale, Mr M P Nicholls and Mrs S L Stewart.The calculation of the revenue and capital return per share is basedon the return on ordinary activities after tax for the period and on19,395,440 (2008 19,425,440) ordinary shares, being the weightedaverage number of shares in issue during the period.The interim dividend of 2.2p for the year ending 31 March 2010 willbe paid on 8 January 2010 to shareholders on the register at theclose of business on 4 December 2009.A copy of the half-yearly financial report for the six months ended30 September 2009 is expected to be posted to shareholders on 20November 2009 and will be available to the public at the registeredoffice of the company at Northumberland House, Princess Square,Newcastle upon Tyne NE1 8ER and on the NVM Private Equity Limitedwebsite, 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.
Datum: 09.11.2009 - 15:17 Uhr
Sprache: Deutsch
News-ID 8127
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 205 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Half-yearly report"
steht unter der journalistisch-redaktionellen Verantwortung von
Northern Investors Co PLC (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
