Northern 2 VCT PLC.

26 JULY 2013



Northern 2 VCT PLC presents its interim management statement for the three months ended 30 June 2013.  This constitutes the company's first interim management statement for the financial year ending 31 March 2014, as required by the UK Listing Authority's Disclosure Rules and Transparency Rules, Rule 4.3.

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 unquoted venture capital holdings.  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 per ordinary share as at 30 June 2013 was 85.8p (31 March 2013 (audited) 84.9p).  The net asset value is stated before deducting the final dividend of 3.5p per share in respect of the year ended 31 March 2013, which was approved by shareholders at the annual general meeting on 19 July 2013 and was paid to eligible shareholders on 26 July 2013.

For the purposes of calculating the net asset value per share, quoted investments are carried at bid price as at 30 June 2013 and unquoted investments are carried at fair value as at 30 June 2013 as determined by the directors.

Net assets at 30 June 2013 comprised the following:

% of net
assets by
Venture capital investments:                                  
Kerridge Commercial Systems 1,740 5,605 8.8
Volumatic 2,095 3,617 5.7
Wear Inns 1,868 2,421 3.8
Alaric Systems 1,200 2,208 3.4
Advanced Computer Software Group* 381 1,986 3.1
Tinglobal Holdings 1,988 1,903 3.0
Silverwing 1,388 1,561 2.4
Arleigh Group 698 1,557 2.4
Intuitive 1,508 1,508 2.4
Control Risks Group Holdings 746 1,315 2.1
Kitwave One 1,246 1,242 1.9
Haystack Dryers 1,157 1,157 1.8
Promatic Group 987 1,134 1.8
Kirton Group 1,041 1,041 1.6
Cawood Scientific 1,031 1,035 1.6
------------ ------------ ------------
Fifteen largest venture capital investments 19,074 29,290 45.8
Other venture capital investments 12,529 9,450 14.8
------------ ------------ ------------
Total venture capital investments 31,603 38,740 60.6
Listed equity investments 3,988 4,312 6.8
Listed fixed-interest investments 4,135 3,913 6.1
------------ ------------ ------------
Total fixed asset investments 39,726 46,965 73.5
Net current assets 16,942 26.5
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Net assets 63,907 100.0
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*Quoted on AIM

The number of ordinary shares in issue at 30 June 2013 was 74,524,954.  During the three months ended 30 June 2013 634,083 new shares were allotted at an average price of 81.2p through a public offer for subscription and 100,000 shares were re-purchased by the company for cancellation at a price of 76.4p per share.  On 26 July 2013 419,125 new ordinary shares were allotted at a price of 81.4p per share pursuant to the company's dividend investment scheme.

During the three months ended 30 June 2013 the following significant venture capital investment transactions took place:

New investments:

Name of company                          

Business activity                                    
Cleveland Biotech (Holdings) Biological products for waste treatment 1,006
Kirton Group Specialist seating and furniture 1,041


value at
Sales Original 31 March
Name of company                                                   proceeds           cost          2013
£000 £000 £000
IG Doors (sale to Hörmann Group) 1,617 101 1,273

On 31 May 2013 the company announced its intention to raise up to £15 million through a joint prospectus offer with Northern Venture Trust PLC and Northern 3 VCT PLC of new ordinary shares for subscription in the 2013/14 and 2014/15 tax years.  It is expected that the prospectus will be published on or around 31 July 2013.

On 10 July 2013 the company completed a new venture capital investment of £1,508,000 in Buoyant Holdings, a manufacturer of upholstered furniture.

The directors are not aware of any other events or transactions which have taken place between 31 March 2013 and the date of publication of this statement and which have had a material effect on the financial position of the company.

This statement has been prepared solely to provide additional information in order to meet the requirements of the Disclosure Rules and Transparency Rules and should not be relied on by shareholders, or any other party, for any other purpose.

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


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Source: Northern 2 VCT PLC via Thomson Reuters ONE