Announcements

Northern Investors Company PLC.


RNS Number:3611W
Northern Investors Co PLC
10 May 2007

10 MAY 2007

NORTHERN INVESTORS COMPANY PLC

PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 MARCH 2007


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


Financial highlights (with comparative figures as at 31 March 2006):

2007 2006
* Net assets #55,043,000 #50,417,000
* Net asset value per share 279.1p 255.7p
* Revenue return per share 7.0p 6.7p
* Total return for the year
Pence per share 29.6p 19.6p
As % of opening net asset value 11.6% 8.1%
* Dividend per share declared
in respect of the year 6.7p 6.0p
* Share price at end of year 208.5p 200.0p
* Discount to net asset value 25.3% 21.8%


For further information, please contact:


NVM Private Equity Limited
Christopher Mellor, Director 0191 244 6000
Website: www.nvm.co.uk

Lansons Communications
Karen Mignon 020 7294 3616


CHAIRMAN'S STATEMENT


The Chairman of Northern Investors Company PLC, Peter Haigh, included the
following points in his statement to shareholders:


I am pleased to report that good progress has been made towards the objective,
set out last year, of concentrating the company's investment portfolio on a
smaller number of higher value holdings. This has been achieved by increasing
the average size of the new investments completed during the year to over #2.1
million whilst reducing the number of holdings in the portfolio by disposing of
a number of smaller investments. Over the past twelve months the total number
of holdings has been reduced from 62 to 51 and the average value per holding has
risen from #678,000 to #923,000. At 31 March 2007 the top twenty holdings
represented 62.5% of net assets, compared with 53.7% a year earlier.


Against this background of transition the total return for the year rose to
29.6p per share, equivalent to 11.6% of the net asset value per share at the
start of the period. The total dividend proposed in respect of the year
increased by 11.7% to 6.7p per share.


Net asset value and share price

The net asset value per share at 31 March 2007 was 279.1p, up by 9.2% from the
corresponding figure of 255.7p at 31 March 2006. Over the same period the FTSE
All-Share index rose by 7.7%. The share price rose by 4.3% over the year to 208
1/2p, representing a discount of 25.3% to the year-end net asset value. We
believe this is a much higher discount than is appropriate in the light of
current performance and prospects, and if it remains at an excessive level we
are ready to make opportunistic use of the company's powers to buy back its own
shares in the market.


Revenue statement and dividend

Investment income was marginally down from the preceding year at #2.33 million.
The revenue return before tax was virtually unchanged at #1.67 million but as a
result of a slightly lower tax charge the revenue return per share increased by
4.5% to 7.0p. The directors are pleased to be able to recommend an increased
final dividend of 4.7p per share, taking the total for the year to 6.7p. The
proposed final dividend will be paid on 6 July 2007 to shareholders on the
register on 15 June 2007.


Investment portfolio

The Business Review in the annual report gives detailed information about
developments in the investment portfolio during the year. Additions to the
portfolio totalled #9.6 million, balanced by sales proceeds of #9.8 million.
The process of reducing the level of quoted holdings continued and the
significant sale of AFI Aerial Platforms in September, reported at the interim
stage, was followed by a number of other exits from unquoted holdings. There
have been three further disposals since the year end and several other companies
are currently the subject of sale negotiations. With a promising flow of
potential new deals, we expect another active year in the portfolio.


Reporting to shareholders

Under the London Stock Exchange's Listing Rules, the company will in future be
required to publish a biannual 'interim management statement' as well as the
usual half-yearly interim report to shareholders. Having considered the
guidance issued by the Association of Investment Companies, our intention is to
issue interim management statements in early August and early February,
reporting the unaudited net asset value per share as at 30 June and 31 December
together with a brief review of performance and of significant events and
transactions during the preceding quarter. Half-yearly interim and annual
reports will continue to be published in November and May.


Management

As I reported last year, with effect from April 2006 the contractual
arrangements with our managers were changed with the objective of linking their
remuneration more closely to investment performance. The basic level of NVM's
investment management fee was reduced to 1.75% of net assets and a new
performance-related element was introduced. In addition a co-investment scheme
was introduced whereby NVM's investment executives are required to invest
personally, and on the same terms as Northern Investors, in the ordinary shares
of new investee companies. The board is keeping the new arrangements under
close review.


Board of directors

Martin Hamilton-Sharp and Matt Ridley have indicated their intention to retire
from the board at the conclusion of the annual general meeting in June 2007.
Both have served as directors since 1994 and I would like to thank each of them
on behalf of shareholders for their significant contribution to the company over
the past 13 years.


In July 2006, as noted in the interim report, we welcomed Mark Nicholls,
formerly head of private equity at Royal Bank of Scotland and head of corporate
finance at Warburgs, as a new director. I am now pleased to report that in
April 2007 we appointed Frank Neale, an experienced venture capitalist who was
formerly a partner in Phildrew Ventures and vice-chairman of the British Venture
Capital Association, to the board. We have already benefited from the input of
our new directors and look forward to working with them in the future.


The future

Over the next 12 months our managers will continue the process of streamlining
the investment portfolio, by disposing of smaller holdings and maintaining the
recent increase in the size of new investments. Discussions are currently in
progress with a view to the sale or flotation of several investments. We have
sufficient liquidity to continue our active investment programme and we believe
the company is well placed to achieve continuing growth in the value of the
portfolio.


Peter Haigh
Chairman


The audited financial statements for the year ended 31 March 2007 will show the
results below.


INCOME STATEMENT
for the year ended 31 March 2007
Year ended 31 March 2007 Year ended 31 March 2006
Revenue Capital Total Revenue Capital Total
#000 #000 #000 #000 #000 #000
Gain/(loss) on disposal of
Investments - 868 868 - (1,074) (1,074)
Unrealised adjustments to
fair value of investments - 4,379 4,379 - 3,871 3,871
---------- ---------- ---------- ---------- ---------- ----------
- 5,247 5,247 - 2,797 2,797
Income 2,331 - 2,331 2,363 - 2,363
Investment management fee (311) (1,102) (1,413) (372) (868) (1,240)
Other expenses (351) - (351) (327) - (327)
---------- ---------- ---------- ---------- ---------- ----------
Return on ordinary activities
before tax 1,669 4,145 5,814 1,664 1,929 3,593
Tax on return on ordinary activities (296) 331 35 (336) 615 279
---------- ---------- ---------- ---------- ---------- ----------
Return on ordinary activities
after tax 1,373 4,476 5,849 1,328 2,544 3,872
---------- ---------- ---------- ---------- ---------- ----------
Return per share 7.0p 22.6p 29.6p 6.7p 12.9p 19.6p


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 March 2007
Year ended Year ended
31 March 2007 31 March 2006

#000 #000
Equity shareholders' funds at 1 April 2006 50,417 47,639
Return on ordinary activities after tax 5,849 3,872
Dividends recognised in the year (1,223) (1,094)
----------- -----------
Equity shareholders' funds at 31 March 2007 55,043 50,417

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


BALANCE SHEET
as at 31 March 2007
31 March 2007 31 March 2006
#000 #000
Fixed asset investments:
Unquoted 44,548 38,201
Quoted 2,500 3,833
----------- -----------
Total fixed asset investments 47,048 42,034
----------- -----------
Current assets:
Investments 5,973 3,737
Debtors 1,155 472
Cash at bank 1,140 4,241
----------- -----------
8,268 8,450
Creditors (amounts falling due within one year) (273) (67)
----------- -----------
Net current assets 7,995 8,383
----------- -----------

Net assets 55,043 50,417
----------- -----------

Capital and reserves:
Called-up equity share capital 4,930 4,930
Share premium 12,694 12,694
Capital redemption reserve 225 225
Capital reserve - realised 26,180 24,542
Capital reserve - unrealised 8,832 5,994
Revenue reserve 2,182 2,032
----------- -----------
Total equity shareholders' funds 55,043 50,417
----------- -----------
Net asset value per share 279.1p 255.7p


CASH FLOW STATEMENT
for the year ended 31 March 2007
Year ended Year ended
31 March 2007 31 March 2006
#000 #000 #000 #000
Cash flow statement
Net cash inflow from operating activities 125 847
Taxation:
Corporation tax paid - -
Financial investment:
Purchase of investments (9,572) (4,327)
Sale/repayment of investments 9,805 8,687
---------- ----------
Net cash inflow from financial investment 233 4,360
Equity dividends paid (1,223) (1,094)
---------- ----------
Net cash inflow/(outflow) before use of liquid resources (865) 4,113
Net cash outflow from management of liquid resources (2,236) (1,131)
---------- ----------
Increase/(decrease) in cash at bank (3,101) 2,982
---------- ----------
Reconciliation of net revenue before
taxation to net cash flow from
operating activities
Net revenue before taxation 1,669 1,664
Decrease in debtors (648) 48
Increase in creditors 206 3
Management fees charged to capital (1,102) (868)
---------- ----------
Net cash inflow from operating activities 125 847
---------- ----------
Reconciliation of movement
in net funds
1 April 2006 Cash flows 31 March 2007
#000 #000 #000
Cash at bank 4,241 (3,101) 1,140
Short-term investments 3,737 2,236 5,973
---------- ---------- ----------
Net funds 7,978 (865) 7,113
---------- ---------- ----------


INVESTMENT PORTFOLIO SUMMARY
as at 31 March 2007

Valuation % of net assets
#000 by valuation
Venture capital investments:
John Laing Partnership 4,309 7.8
Product Support (Holdings) 3,703 6.7
CGI Group 2,547 4.6
Longhirst Group 2,537 4.6
Promanex Group Holdings 1,974 3.6
Envirotec 1,871 3.4
DMN 1,718 3.1
IG Doors 1,695 3.1
Weldex (International) Offshore 1,609 2.9
Crantock Bakery 1,464 2.7
----------- ----------
Top ten investments 23,427 42.5
KCS Global Holdings 1,211 2.2
Arrow Industrial Group 1,199 2.2
TFB Group 1,195 2.2
Pivotal Laboratories Holdings 1,190 2.1
Liquidlogic 1,182 2.1
Ithaca Holdings 1,130 2.1
Computer Software Group* 986 1.8
Direct Valeting 976 1.8
Touchstone Asset Management 970 1.8
Abermed Group 960 1.7
----------- ----------
Top twenty investments 34,426 62.5
Other investments 12,622 23.0
----------- ----------
Total fixed asset investments 47,048 85.5

Net current assets 7,995 14.5
----------- ----------
Net assets 55,043 100.0
----------- ----------
*Quoted on Alternative Investment Market


The above summary of results for the year ended 31 March 2007 does not
constitute statutory financial statements within the meaning of Section 240 of
the Companies Act 1985 and has not been delivered to the Registrar of Companies.
Statutory financial statements will be filed with the Registrar of Companies
in due course; the auditors' report on those financial statements under S235 of
the Companies Act 1985 is unqualified and does not contain a statement under
S237(2) or (3) of the Companies Act 1985.

The proposed final dividend of 4.7p per share for the year ended 31 March 2007
will, if approved by shareholders, be paid on 6 July 2007 to shareholders on the
register at the close of business on 15 June 2007.

A copy of the full annual report and financial statements for the year ended 31
March 2007 is expected to be posted to shareholders on 25 May 2007 and will be
available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.

ENDS


This information is provided by RNS
The company news service from the London Stock Exchange
END

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