Investors NVM Private Equity say they are expecting to make further exits in the next six months as it has substantially increased its return per share.
The firm’s quoted investment trust, Northern Investors Company, which holds stakes in North East firms such as Kitwave and Wear Inns, increased its return per share of its for the six months to the end of September from 36.5p to 21p.
A half yearly management report to shareholders said transactional activity had been low during the period but the business expected to see further exits completed in the second half of the current financial year.
In line with a change in strategy since 2011, the trust did not make any new investments during the period but said its top three holdings, in Kerridge Commercial Systems, Control Risks Group Holdings and Kitwave One, represented firms with a strong record of profitability and cash generation.
Chairman Nigel Guy said: “Although progress over the past six months has been relatively modest in terms of cash generation, a considerable amount of effort is being devoted by the board and managers to positioning investments for exit at the appropriate time.
“We have some highly attractive assets within the portfolio and we believe that the realisation process remains currently on track, with an unchanged objective of completing the distribution of assets during the calendar year 2017 so as to provide shareholders with satisfactory overall returns.”