Northern 2 VCT making progress

Northern 2 VCT says that it continues to make "encouraging progress" despite the difficult environment for small companies. The venture capital trust's net asset value at the end of July 2010 was slightly lower at 76.7p a share but the decline in NAV of 1.2p a share was more than covered by the final dividend of 3.5p a share that was paid during the period. The interim dividend is 2p a share - 1p per capital share and 1p per income share. Northern 2 VCT has made four new investments in the six months to July 2010. They include a £1.74m investment in the distribution sector software developer Redditch Kerridge Commercial Systems and £995,000 in Tunbridge Wells-based acquisition vehicle Evolve Investments, which is looking to buy underperforming businesses. The VCT received deferred consideration of £480,000 relating to its past investment in DxS. There have been no significant changes in the values of existing investments but the manager is aware that government spending cuts could have an impact on some businesses. The short-term outlook is unlikely to improve but there are a "promising flow of potential new investments for appraisal". Northern 2 VCT is buying back shares at a 15% discount to published NAV and it has purchased 400,000 shares at 64p each. Northern 2 Vct