Northern 2 VCT PLC’s Strategic Investment Update and Growth Plans
Overview of Northern 2 VCT PLC
Northern 2 VCT PLC is a distinguished Venture Capital Trust known for its strategic investments in innovative companies. Managed by Mercia Fund Management Limited since its inception in 1999, it aims to generate tax-efficient income for investors through a well-curated portfolio of unquoted venture capital investments.
Latest Net Asset Value Report
The unaudited net asset value (NAV) per ordinary share for Northern 2 VCT PLC, as of 31 December, is reported at 58.6 pence. This reflects a growth from 57.2 pence as recorded in the previous quarter. This consistent valuation showcases the strong management and performance of the underlying investments.
Importantly, this NAV is calculated before accounting for an interim dividend of 1.7 pence per share, which was disbursed to eligible shareholders recently. Such dividends are vital as they demonstrate the company's commitment to delivering shareholder value.
Investment Activities: New Ventures
During the last quarter, Northern 2 VCT PLC successfully completed three new venture capital investments, solidifying its commitment to nurturing pioneering companies. Here is a closer look at these investments:
Semble Technology
This company specializes in enterprise AI focused on automating surgical tray validation, receiving a significant investment of £2,072,000. This innovative approach not only enhances operational efficiency in healthcare settings but also demonstrates Northern 2’s commitment to supporting advancements in medical technology.
Scalpel AI
Another noticeable investment was made in Scalpel AI, which provides practice management software aimed at healthcare clinicians. The company secured £1,036,000, reflecting Northern 2's strategy to invest in companies that improve healthcare operations and patient care.
Napo
Napo, focusing on pet insurance with a strong emphasis on preventative care and customer satisfaction, attracted an investment of £2,052,000. This highlights the Trust's diversification into innovative consumer services, aiming to enhance client experiences in a growing market.
Furthermore, the company also allocated £2,456,000 to bolster five existing portfolio companies. This strategic investment underlines the importance of both nurturing established entities and searching for new growth opportunities.
Realisation Insights
In line with its investment strategy, Northern 2 VCT PLC also realized two venture capital investments during the recent quarter. Notably, two companies marked their successes:
Grip-UK
Known as The Climbing Hangar, Grip-UK led to sale proceeds of £2,525,000, despite an original cost of £3,536,000. This reflects both the growth potential and market dynamics that the company navigated.
musicMagpie plc
Another realization was with musicMagpie plc, which yielded proceeds of £376,000 against an original cost of £222,000. Such realizations are crucial as they contribute significantly to the ongoing portfolio management and overall shareholder returns.
Impact on Shareholder Value
As of 31 December, there were 221,196,352 ordinary shares in circulation. Throughout this period, Northern 2 VCT PLC also undertook the repurchase of 1,979,367 shares for cancellation, priced at 54.34 pence each. These measures are strategic in managing capital and enhancing shareholder value, thus acting as a positive signal to the market.
Contact Information for Investors
Investors seeking more information or wishing to discuss these updates in detail can contact:
James Sly / Sarah Williams at Mercia Asset Management PLC by calling 0330 223 1430. For further details, you can also visit www.mercia.co.uk/vcts.
Frequently Asked Questions
What is the recent net asset value of Northern 2 VCT PLC?
The recent unaudited net asset value per share is 58.6 pence as of 31 December.
How does Northern 2 VCT PLC support its portfolio companies?
Northern 2 VCT PLC invests in both new and existing companies to provide growth capital and support their development strategies.
What types of companies does Northern 2 VCT PLC invest in?
The company focuses on unquoted venture capital holdings, primarily in innovative sectors like healthcare and technology.
How has the company fared in terms of shareholder returns?
Northern 2 VCT PLC consistently aims to improve shareholder returns through dividends and strategic investments.
Who manages Northern 2 VCT PLC?
The company is managed by Mercia Fund Management Limited, providing expert guidance in its investment decisions.
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