Core Viewpoint - Northern 2 VCT PLC reported a significant increase in returns and net asset value per share for the year ended 31 March 2025, despite a challenging macroeconomic environment [3][30]. Financial Highlights - Net assets increased to £128.1 million from £119.5 million year-on-year [1]. - Net asset value per share rose to 58.3 pence from 57.3 pence [1]. - Total return per share was 3.8 pence, up from 1.4 pence, representing a 6.6% return on the opening NAV per share [3]. - Cumulative dividends paid per share reached 142.0 pence, up from 139.1 pence [1]. Investment Activity - The company invested £14.6 million in 17 early-stage businesses, including six new investments [3]. - Proceeds from divestments totaled £11.0 million from six companies [3]. - The investment portfolio remains diversified, with significant allocations in software & AI, consumer, and health & life sciences sectors [12]. Dividend Information - An interim dividend of 1.7 pence was declared, with a proposed final dividend of 1.3 pence, maintaining a total of 3.0 pence per share for the year [10]. - The total dividend yield for the year was 5.2% of the opening NAV [10]. Market Environment - The UK government change in July 2024 and subsequent budget announcements included an extension of the VCT scheme by 10 years, providing stability for the sector [4]. - Despite economic challenges, including inflation and interest rate fluctuations, the company maintained strong investment activity [5][30]. Share Offer and Liquidity - A share offer raised £15 million, which was oversubscribed, indicating strong investor confidence [7]. - The company plans to raise up to £10 million of new capital in the 2025/26 tax year [18]. Portfolio Valuation - The company experienced an aggregate increase in portfolio valuations of £5.3 million, with notable uplifts from Pure Pet Food and Project Glow TopCo [14]. - The company also faced necessary reductions in valuations for two portfolio companies due to funding decisions and trading performance [14]. Governance and Management - The company is set to undergo board changes, with the current Chair stepping down and a new Chair being appointed [22]. - The company continues to comply with VCT legislation and has retained independent advisors for monitoring [23][24].
Annual Report and Financial Statements for the year ended 31 March 2025