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Northern 2 VCT reports 1.5 per cent fall in NAV per share

Northern 2 VCT, a venture capital trust managed by NVM Private Equity, has reported a net asset value per share at 31 July 2010, after deducting the 2009/10 final dividend of 3.5p per share paid in June 2010, of 76.7p.

This represents a fall of 1.5 per cent over the six month period. 

The return per share for the period before dividends was 2.1p compared with 10.8p in the corresponding period last year, reflecting a relatively low level of investment sales and the cautious view taken on investment valuations in the current economic climate.
Investment income for the period amounted to just over GBP1.0m, a 26 per cent reduction from the corresponding period last year – a period which included a significant non-recurring income receipt from DxS just prior to the sale of that investment. As a result the revenue return per share fell from 1.5p to 1.1p. The level of income continues to be affected by the low level of interest rates.
The board has declared an unchanged interim dividend of 2.0p per share, comprising 1.0p revenue and 1.0p capital distribution, which will be paid on 3 December 2010 to shareholders on the register on 5 November 2010. 
The rate of new venture capital investment has improved after a relatively quiet year to 31 January 2010, and four new holdings totalling GBP4.5m were completed during the half year.
A further GBP2.1m was invested in six existing portfolio companies.

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