Announcements

Northern Investors Company PLC.




TIDMNRI

8 NOVEMBER 2010

NORTHERN INVESTORS COMPANY PLC

UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010


Northern Investors Company PLC is an investment trust managed by NVM Private
Equity Limited. Launched in 1984 and listed on the London Stock Exchange since
1990, it invests mainly in unquoted private equity holdings and aims to provide
high long-term returns to shareholders through a combination of capital growth
and dividend yield.


Financial highlights (comparative figures as at 30 September 2009):

2010 2009


Net assets ÂGBP55.3m ÂGBP50.3m


Net asset value per share 285.2p 259.6p


Mid-market share price 178.5p 186.0p


Share price discount to

net asset value 37.4% 28.4%


Return per share after tax:
Revenue 2.7p 2.9p
Capital 15.1p 17.9p
Total 17.8p 20.8p


Interim dividend per share

declared in respect of the period 2.2p 2.2p



For further information, please contact:

NVM Private Equity Limited
Alastair Conn/Christopher Mellor 0191 244 6000
Website: www.nvm.co.uk



HALF-YEARLY MANAGEMENT REPORT TO SHAREHOLDERS

Against the background of continuing economic uncertainty our company has
continued to make steady progress. Whilst new investments remain difficult, the
portfolio has held up relatively well.

Net asset value and share price
The following table shows the NAV per share, mid-market share price and discount
as at 30 September 2010 compared with the corresponding figures at 31 March
2010 and 30 September 2009:

+-----------------+-------------+-----------------+
|30 September 2010|31 March 2010|30 September 2009|
+---------------------------+-----------------+-------------+-----------------+
|NAV per share | 285.2p | 272.9p | 259.6p |
+---------------------------+-----------------+-------------+-----------------+
|Share price | 178.5p | 165.0p | 186.0p |
+---------------------------+-----------------+-------------+-----------------+
|Share price discount to NAV| 37.4% | 39.5% | 28.4% |
+---------------------------+-----------------+-------------+-----------------+

For most of the past 12 months the share price has moved in a range between
150p and 180p, as a result of which the discount to NAV has remained high in
relation to historical levels. Adjusting for cash balances, the implied
discount to the directors' valuation of the unlisted portfolio at 30 September
2010 was approximately 60%. Our valuation methodology has stood up well to the
challenges of the economic downturn, and over the 2Å? year period since 31 March
2008 the overall uplift over carrying value on exits (including investments
written off) has been 28%. Our managers have been working to increase market
awareness of the company's long-term performance record.

The following table shows the movement in NAV and share price over the latest
six and 12 month periods compared with the movement in the FTSE All-Share index:

+---------------+-------------+----------------+
Periods to 30 September 2010: | NAV per share | Share price | FTSE All-Share |
+-------------------------------+---------------+-------------+----------------+
| Six months | +4.5% | +8.2% | -1.5% |
+-------------------------------+---------------+-------------+----------------+
| 12 months | +9.9% | -4.0% | +8.8% |
+-------------------------------+---------------+-------------+----------------+

Revenue and dividend
Investment income for the half year was marginally higher than in the
corresponding period, but continues to be affected by the low level of market
interest rates, and some investee companies continue to have difficulty in
paying loan stock interest due to bank covenant restrictions. The revenue
return per share for the period was 2.7p (corresponding period 2.9p). The
interim dividend is maintained at 2.2p per share and will be paid on 7 January
2011 to shareholders on the register on 3 December 2010.

Investment portfolio
The level of investment activity in the period was relatively low, following the
completion of two new investments totalling ÂGBP4.9 million just before the March
2010 year end. In June 2010 another private equity firm made an offer for
Weldex (International) Offshore, the largest UK-based crawler crane hire
company, as a result of which we sold our investment for a total of ÂGBP7.1 million
compared with its March 2010 carrying value of ÂGBP5.4 million. ÂGBP3.8 million of
the sale proceeds were received in cash and the opportunity was taken to re-
invest the balance of ÂGBP3.3 million in the new Weldex group holding company
alongside the incoming private equity funder. Since our original investment in
1996, Weldex has grown its business steadily and it has a strong order book
particularly in the wind turbine construction sector. A further ÂGBP0.6 million
was credited to the income statement during the period in respect of deferred
proceeds received from the sale of DxS, the molecular diagnostics business which
was acquired by Qiagen NV in September 2009.

We have been able to maintain a strong reserve of balance sheet liquidity and
look forward to an improving flow of new investment opportunities as the economy
tentatively emerges from recession.

Risk management
The board carries out a regular review of the risk environment in which the
company operates. There has been no significant change to the key risks
discussed on page 9 of the annual report for the year ended 31 March 2010,
including those resulting from the size and relative illiquidity of the unquoted
and AIM-quoted investments held by the company.

Prospects
The recent return to modest GDP growth in the UK appears fragile, and the impact
on small and medium-sized businesses of the Government's proposed public sector
spending cuts has yet to be felt. The board monitors the progress of investee
companies closely with the manager and so far the portfolio has generally proved
resilient in the face of difficult conditions. Our managers will continue to
apply their well-tried and rigorous approach to the selection of new investments
and to the management of existing holdings. Although future prospects depend to
a certain extent on the wider economic environment, we believe that our company
is well placed to make further progress with new investments and as the
portfolio continues to mature.

On behalf of the Board

Peter Haigh
Chairman


The unaudited half-yearly financial statements for the six months ended 30
September 2010 are set out below.

INCOME STATEMENT
(unaudited) for the six months ended 30 September 2010

Six months ended Six months ended
30 September 2010 30 September 2009

Revenue Capital Total Revenue Capital Total
ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000

Gain on - 2,436 2,436 - 1,766 1,766
disposal of
investments

Movements
in fair
value

of - 725 725 - 1,922 1,922
investments

---------- ---------- ---------- ---------- ---------- ----------

- 3,161 3,161 - 3,688 3,688

Income 1,027 - 1,027 970 - 970

Investment (139) (324) (463) (124) (289) (413)
management
fee

Recoverable - - - - - -
VAT

Other (184) - (184) (172) - (172)
expenses

---------- ---------- ---------- ---------- ---------- ----------

Return on
ordinary
activities

before 704 2,837 3,541 674 3,399 4,073
tax

Tax on (175) 91 (84) (117) 81 (36)
return on
ordinary
activities

---------- ---------- ---------- ---------- ---------- ----------

Return on
ordinary
activities

after tax 529 2,928 3,457 557 3,480 4,037

---------- ---------- ---------- ---------- ---------- ----------

Return per 2.7p 15.1p 17.8p 2.9p 17.9p 20.8p
share


Year ended 31 March 2010

Revenue Capital Total
ÂGBP000 ÂGBP000 ÂGBP000

Gain on disposal of investments - 3,194 3,194

Movements in fair value

of investments - 2,686 2,686

---------- ---------- ----------

- 5,880 5,880

Income 2,138 - 2,138



Investment management fee (248) (580) (828)

Recoverable VAT 69 124 193

Other expenses (340) - (340)

---------- ---------- ----------

Return on ordinary activities

before tax 1,619 5,424 7,043

Tax on return on ordinary activities (125) 128 3

---------- ---------- ----------

Return on ordinary activities

after tax 1,494 5,552 7,046

---------- ---------- ----------

Return per share 7.7p 28.6p 36.3p



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
(unaudited) for the six months ended 30 September 2010

Six months ended Six months ended Year ended
30 September 2010 30 September 2009 31 March 2010
ÂGBP000 ÂGBP000 ÂGBP000

Equity shareholders' funds

at 1 April 2010 52,927 47,297 47,297

Return on ordinary 3,457 4,037 7,046
activities after tax

Dividends recognised in the (1,067) (989) (1,416)
period

---------- ---------- ----------

Equity shareholders' funds

at 30 September 2010 55,317 50,345 52,927

---------- ---------- ----------



BALANCE SHEET
(unaudited) as at 30 September 2010

30 September 2010 30 September 2009 31 March 2010
ÂGBP000 ÂGBP000 ÂGBP000

Fixed asset investments

Unquoted 34,317 28,279 35,212

Quoted 477 349 367

---------- ---------- ----------

Total fixed asset 34,794 28,628 35,579
investments

---------- ---------- ----------

Current assets:

Investments 1,040 232 1,037

Debtors 140 50 563

Cash and deposits 19,592 21,770 15,816

---------- ---------- ----------

20,772 22,052 17,416

Creditors (amounts falling
due

within one year) (249) (335) (68)

---------- ---------- ----------

Net current assets 20,523 21,717 17,348

---------- ---------- ----------



Net assets 55,317 50,345 52,927

---------- ---------- ----------

Capital and reserves

Called-up equity share 4,849 4,849 4,849
capital

Share premium 12,694 12,694 12,694

Capital redemption reserve 306 306 306

Capital reserve 38,620 32,962 31,374

Revaluation reserve (3,082) (2,424) 1,236

Revenue reserve 1,930 1,958 2,468

---------- ---------- ----------

Total equity shareholders' 55,317 50,345 52,927
funds

---------- ---------- ----------

Net asset value per share 285.2p 259.6p 272.9p



CASH FLOW STATEMENT
(unaudited) for the six months ended 30 September 2010

Six months ended Six months ended Year ended
30 September 2010 30 September 2009 31 March 2010

ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000 ÂGBP000

Cash flow statement

Net cash inflow
from

operating 900 672 1,290
activities

Taxation:

Corporation tax - - (176)
paid

Financial
investment:

Purchase of (1,045) (379) (10,211)
investments

Sale/repayment of 4,991 7,851 12,519
investments

---------- ---------- ----------

Net cash inflow
from

financial 3,946 7,472 2,308
investment

Equity dividends (1,067) (989) (1,416)
paid

---------- ---------- ----------

Net cash inflow
before use

of liquid 3,779 7,155 2,006
resources and
financing

Net cash
inflow/(outflow)
from

use of liquid (3) 2,195 1,390
resources

---------- ---------- ----------

Increase in cash at 3,776 9,350 3,396
bank

---------- ---------- ----------

Reconciliation of
revenue return

before tax to net
cash flow from

operating
activities

Revenue return on
ordinary activities

before tax 704 674 1,619

Decrease in debtors 423 273 165

Increase/(decrease) 97 14 (38)
in creditors

Management fees (324) (289) (456)
charged to capital

---------- ---------- ----------

Net cash inflow
from

operating 900 672 1,290
activities

---------- ---------- ----------

Reconciliation of
movement

in net funds

1 April 2010 Cash flows 30 September 2010

ÂGBP000 ÂGBP000 ÂGBP000

Short-term 15,816 3,776 19,592
investments

Cash at bank 1,037 3 1,040

---------- ---------- ----------

Net funds 16,853 3,779 20,632

---------- ---------- ----------





INVESTMENT PORTFOLIO SUMMARY
as at 30 September 2010

Company Cost Valuation % of net assets
ÂGBP000 ÂGBP000 by valuation



Kerridge Commercial Systems 3,978 3,978 7.2

Promanex Group Holdings 3,346 3,656 6.6

Weldex (International) Offshore Holdings 3,253 3,253 5.9

Axial Systems Holdings 2,311 2,649 4.8

Closerstill Holdings 1,234 1,809 3.3

Crantock Bakery 1,061 1,773 3.2

Arleigh International 1,033 1,564 2.8

IG Doors 957 1,460 2.6

Wear Inns 1,304 1,304 2.4

Envirotec 1,008 1,295 2.3

---------- ---------- -------

Ten largest investments 19,485 22,741 41.1



Britspace Group 2,381 1,190 2.1

Paladin Group 1,407 1,103 2.0

Alaric Systems 1,619 1,048 1.9

Longhirst Venues 397 980 1.8

Promatic Group 1,195 952 1.7

Optilan Group 1,900 950 1.7

S&P Coil Products 435 918 1.7

Lanner Group 891 891 1.6

CGI Group Holdings 1,723 862 1.6

Direct Valeting 647 859 1.5

---------- ---------- -------

Twenty largest investments 32,080 32,494 58.7



Other investments 5,796 2,300 4.2



---------- ---------- -------

Total fixed asset investments 37,876 34,794 62.9

----------

Net current assets 20,523 37.1

---------- -------

Net assets 55,317 100.0

---------- -------





The above half-yearly financial statements for the six months ended 30 September
2010 do not constitute statutory financial statements within the meaning of
Section 434 of the Companies Act 2006 and have not been delivered to the
Registrar of Companies. The figures for the year ended 31 March 2010 have been
extracted from the audited financial statements for that year, which have been
delivered to the Registrar of Companies; the independent auditors' report on
those financial statements under Sections 495, 496 and 497 of the Companies Act
2006 was unqualified. The half-yearly financial statements have been prepared
on the basis of the accounting policies set out in the annual financial
statements for the year ended 31 March 2010.

Each of the directors confirms that to the best of his or her knowledge the
half-yearly financial statements have been prepared in accordance with the
Statement "Half-yearly financial reports" issued by the UK Accounting Standards
Board and the half-yearly financial report includes a fair review of the
information required by (a) DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during the first six
months of the financial year and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the year, and (b) DTR 4.2.8R of the Disclosure and
Transparency Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have materially
affected the financial position or performance of the entity during that period,
and any changes in the related party transactions described in the last annual
report that could do so.

The directors of the company at the date of this announcement were Mr P J Haigh
(Chairman), Mr J C Barnsley, Mr E M P Denny, Mr F L G Neale, Mr M P Nicholls and
Mrs S L Stewart.

The calculation of the revenue and capital return per share is based on the
return on ordinary activities after tax for the six months ended 30 September
2010 and on 19,395,440 (2009 19,395,440) ordinary shares, being the weighted
average number of shares in issue during the period.

The interim dividend of 2.2p per share for the year ending 31 March 2011 will be
paid on 7 January 2011 to shareholders on the register at the close of business
on 3 December 2010.

A copy of the half-yearly financial report for the six months ended 30 September
2010 is expected to be posted to shareholders on 19 November 2010 and will be
available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER and on the
NVM Private Equity Limited website, www.nvm.co.uk.


[HUG#1460084]








This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Northern Investors Co PLC via Thomson Reuters ONE


(END) Dow Jones Newswires



November 08, 2010 08:30 ET (13:30 GMT)