Partner Article

Northern Investors remains optimistic

INVESTMENT trust Northern Investors has predicted an upturn in activity despite the snail’s pace at which the economy is recovering and the threat of impending tax rises and public spending cuts.

The Newcastle-based plc said it has been encouraged by a gradual improvement in recent months in the quality of new investment propositions available and, on past experience, has forecast a climb in activity.

However, as it reported its performance in the year to 31 March 2010, the company also warned that the coming months will not be an easy period for its portfolio companies.

The trust, which is managed by NVM Private Equity and has been listed since 1990, increased its net assets from £47.3m to £52.9m during the period.

This included £16.9m worth of cash and near cash investments, compared to £14.8m the previous year.

The revenue return before tax for the year fell from £1.75m to £1.62m – a fall which the company described as “relatively modest” given the movement in interest rates since early 2009.

The amount committed to new holdings was relatively low by historical standards at £7.2m, with a further £3.0m invested in existing portfolio companies.

Chairman Peter Haigh said: “We have a strong balance sheet and in recent months there has been a gradual improvement in the quality of new investment propositions available to us.

“Our managers’ priority for the immediate future will be to make the most of these opportunities whilst continuing to monitor the existing investments closely.”

The net asset value per share at 31 March 2010 was 272.9p, up by 11.9% from the corresponding figure of 243.9p at 31 March 2009.

The group largely invests in unquoted venture capital holdings with the aim of providing high long-term returns to shareholders through a combination of capital growth and dividend yield.

This was posted in Bdaily's Members' News section by Ruth Mitchell .