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15 MAY 2008

NORTHERN INVESTORS COMPANY PLC

RESULTS FOR THE YEAR ENDED 31 MARCH 2008

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 - year ended 31 March 2008:

(comparative figures as at 31 March 2007 in italics):

	2008	2007
Net assets	£57.8m	£55.0m
Net asset value per share	297.3p	279.1p
Return per share:   Revenue   Capital   Total	8.0p 15.8p 23.8p	7.0p 22.6p 29.6p
Total return per share as % of opening net asset value	8.5%	11.6%
Dividend per share declared in respect of the year	7.2p	6.7p
Mid-market share price at year end	195.0p	208.5p
Discount to net asset value	34.4%	25.3%

For further information, please contact:

NVM Private Equity Limited Christopher Mellor, Director Website:  www.nvm.co.uk	0191 244 6000
Lansons Communications Karen Mignon	020 7294 3685

CHAIRMAN'S STATEMENT

I am pleased to report that the company has made good progress over the past year despite the challenging conditions prevalent in the financial markets, with a high level of new investment and realisation activity, continuing concentration of the portfolio, further growth in net asset value and an increase in the dividend. The total return for the year as shown in the income statement was 23.8p, equivalent to 8.5% of the net asset value per share at the start of the year.

Net asset value and share price

The net asset value (NAV) per share at 31 March 2008 was 297.3p, up by 6.5% from the corresponding figure of 279.1p at 31 March 2007. Over the same period the FTSE All-Share index fell by 10.8%. The increase in NAV has exceeded the index in each of the last two years, following a relatively disappointing period between 2003 and 2006.

The mid-market share price rose by 8.6% over the first half of the year but fell back during the second half to end at 195p, a net fall of 6.5% over the year. This price equates to a 34.4% discount to NAV, the highest level of discount since the company's flotation in 1990. Widening discounts have been a feature of the private equity investment trust sector in recent months, with the majority of our peer group now trading at discounts of over 20%. Nevertheless the directors believe that trusts such as Northern Investors represent an attractive and flexible way for investors to obtain an exposure to the private equity market, and we are seeking to improve the company's communication of this message to potential shareholders. In the meantime it is likely that we will continue to use the directors' share buy-back powers.

Revenue statement and dividend

The revenue return before tax rose from £1.67 million to £2.14 million, a 28% increase of which approximately one third was attributable to an exceptional VAT credit which is referred to below. The revenue return per share increased by 14.3%, from 7.0p to 8.0p. The directors are pleased to be able to recommend an increased final dividend of 5.0p per share, taking the total for the year to 7.2p - a 7.5% increase. The annual dividend has increased by 69% over the past five years. The proposed final dividend will be paid on 4 July 2008 to shareholders on the register on 13 June 2008.

Investment portfolio

The Business Review in the annual report gives detailed information about developments in the investment portfolio during the year. There was a high level of activity both in terms of new investments (£13.3 million, an all-time high) and exits from existing holdings (total proceeds of £11.4 million, equalling the previous record). The portfolio has generally made good progress although inevitably there have been some individual instances of below-par performance. Since the year end there have been further realisations (one full and one partial) and several other companies are currently the subject of sale negotiations.

Two years ago we set our managers an objective of reducing the number of portfolio holdings and increasing the average size of new investments, so as to reach a position where the 20 largest venture capital holdings represented a significantly larger proportion of the company's assets. It is pleasing to note that since then the total number of investments has reduced from 62 to 39 and the average value per holding has doubled from £678,000 to £1.35 million. At 31 March 2008 the top 20 holdings represented 77% of net assets, compared with 54% two years earlier.

VAT on management fees

As was reported at the half-year stage, in June 2007 the European Court of Justice ruled against HM Revenue & Customs (HMRC) in the test case concerning the exemption of investment trust management fees from VAT. HMRC subsequently acknowledged that management fees are exempt from VAT, and accordingly our manager, NVM, ceased to charge VAT with effect from January 2008. Exemption from VAT will be a substantial ongoing benefit to our company. NVM has also submitted claims for repayment of VAT overpaid in the past and these are currently being reviewed by HMRC. At this stage the directors are reasonably certain that the VAT recoverable by Northern Investors will be at least £600,000 and an asset of this amount has been recognised in the accounts as at 31 March 2008. A further update will be given in due course.

People

I would like to thank the company's directors and managers for their efforts in the face of challenging market conditions over the past year. Michael Denny retired as executive chairman of NVM in April 2008 but has agreed to continue as a non-executive director of Northern Investors, and we are delighted that we will continue to have the benefit of his knowledge and experience.

The future

The process of rationalising the investment portfolio which commenced two years ago is now substantially complete, and this should contribute to a continuation of the recent upturn in performance. However there is no doubt that the current difficulties in the world economy and financial markets will present challenges to our investee companies, and it seems likely that in the short term the flow of attractive new investment opportunities will be restricted. Although some £23 million has been invested in new holdings over the past two years, the portfolio also contains a good representation of more mature companies and further significant realisation activity can be expected in the near future. We hope to see this healthy condition reflected in an improvement in the share price over the next year.

Peter Haigh

Chairman

The audited financial statements for the year ended 31 March 2008 are set out below.

INCOME STATEMENT

for the year ended 31 March 2008

	Year ended 31 March 2008			Year ended 31 March 2007
	Revenue  £000	Capital  £000	Total  £000	Revenue  £000	Capital  £000	Total  £000
Gain on disposal of
investments	-	830	830	-	868	868
Changes in fair value
of investments	-	2,596	2,596	-	4,379	4,379
	-----	-----	-----	-----	-----	-----
	-	3,426	3,426	-	5,247	5,247
Income	2,626	-	2,626	2,331	-	2,331
Investment management fee	(327)	(896)	(1,223)	(311)	(1,102)	(1,413)
Recoverable VAT	166	434	600	-	-	-
Other expenses	(329)	-	(329)	(351)	-	(351)
	-----	-----	-----	-----	-----	-----
Return on ordinary
activities before tax	2,136	2,964	5,100	1,669	4,145	5,814
Tax on return on
ordinary activities	(559)	139	(420)	(296)	331	35
	-----	-----	-----	-----	-----	-----
Return on ordinary
activities after tax	1,577	3,103	4,680	1,373	4,476	5,849
	-----	-----	-----	-----	-----	-----
Return per share	8.0p	15.8p	23.8p	7.0p	22.6p	29.6p

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

for the year ended 31 March 2008

		Year ended  31 March 2008  £000	Year ended  31 March 2007  £000
Equity shareholders' funds
at 1 April 2007		55,043	50,417
Return on ordinary
activities after tax		4,680	5,849
Dividends recognised
in the year		(1,354)	(1,223)
Shares purchased for
cancellation		(614)	-
		------	------
Equity shareholders' funds
at 31 March 2008		57,755	55,043
		------	------

BALANCE SHEET

as at 31 March 2008

		31 March 2008  £000	31 March 2007  £000
Fixed asset investments
Unquoted		52,114	44,548
Quoted		329	2,500
		------	------
Total fixed asset investments		52,443	47,048
		------	------
Current assets:
Investments		861	5,973
Debtors		1,073	1,155
Cash at bank		3,722	1,140
		------	------
		5,656	8,268
Creditors (amounts falling due
within one year)		(344)	(273)
		------	------
Net current assets		5,312	7,995
		------	------
Net assets		57,755	55,043
		------	------
Capital and reserves:
Called-up equity share capital		4,856	4,930
Share premium		12,694	12,694
Capital redemption reserve		299	225
Capital reserve - realised		27,177	26,180
Capital reserve - unrealised		10,324	8,832
Revenue reserve		2,405	2,182
		------	------
Total equity shareholders' funds		57,755	55,043
		------	------
Net asset value per share		297.3p	279.1p

CASH FLOW STATEMENT

for the year ended 31 March 2008

			Year ended  31 March 2008		Year ended  31 March 2007
			£000	£000	£000	£000
Cash flow statement
Net cash inflow from
operating activities				1,407		125
Taxation:
Corporation tax paid				-		-
Financial investment:
Purchase of investments			(13,336)		(9,572)
Sale/repayment of
investments			11,367		9,805
			------		------
Net cash inflow/(outflow)
from financial investment				(1,969)		233
Equity dividends paid				(1,354)		(1,223)
				-----		-----
Net cash outflow before use of
liquid resources and financing				(1,916)		(865)
Financing:
Purchase of ordinary shares for cancellation				(614)		-
				-----		-----
Net cash outflow before use of
liquid resources				(2,530)		(865)
Net cash inflow/(outflow) from
management of liquid resources				5,112		(2,236)
				-----		-----
Increase/(decrease) in cash at bank				2,582		(3,101)
				-----		-----
Reconciliation of revenue return
before tax to net cash flow from
operating activities
Revenue return on ordinary
activities before tax				2,136		1,669
Increase in debtors				(232)		(648)
Increase/(decrease) in creditors				(35)		206
Management fees charged to capital reserve				(462)		(1,102)
				-----		-----
Net cash inflow from
operating activities				1,407		125
				-----		-----
Reconciliation of movement
in net funds
	1 April 2007		Cash flows		31 March 2008
		£000		£000		£000
Cash at bank		1,140		2,582		3,722
Short-term investments		5,973		(5,112)		861
		-----		-----		-----
		7,113		(2,530)		4,583
		-----		-----		-----

INVESTMENT PORTFOLIO SUMMARY

as at 31 March 2008

	Valuation £000	% of net assets by value
Fixed asset investments:
Product Support (Holdings)	5,734	9.9
Foreman Roberts Group	3,914	6.8
Britspace Holdings	3,176	5.5
Weldex (International) Offshore	2,990	5.2
Astbury Marsden Holdings	2,590	4.5
Axial Systems Holdings	2,301	4.0
CGI Group	2,225	3.8
Paladin Group	2,021	3.5
Promanex Group Holdings	1,974	3.4
John Laing Partnership	1,958	3.4
	------	-----
Ten largest investments	28,883	50.0
Crantock Bakery	1,913	3.3
Optilan Group	1,900	3.3
Envirotec	1,795	3.1
Liquidlogic	1,743	3.0
TFB Group	1,506	2.6
Longhirst Venues	1,432	2.5
Stainton Metal Company	1,394	2.4
Pivotal Laboratories Holdings	1,337	2.3
DxS	1,188	2.1
IG Doors	1,185	2.1
	------	-----
Twenty largest investments	44,276	76.7
Other investments	8,167	14.1
	------	-----
Total fixed asset investments	52,443	90.8
Net current assets	5,312	9.2
	------	-----
Net assets	57,755	100.0
	------	-----

The above summary of results for the year ended 31 March 2008 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 independent auditors' report on those financial statements under Section 235 of the Companies Act 1985 is unqualified and does not contain a statement under Section 237(2) or (3) of the Companies Act 1985.

The proposed final dividend of 5.0p per share for the year ended 31 March 2008 will, if approved by shareholders, be paid on 4 July 2008 to shareholders on the register at the close of business on 13 June 2008.

The full annual report including financial statements for the year ended 31 March 2008 is expected to be posted to shareholders on 23 May 2008 and will be available to the public at the registered office of the company at Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER and on the NVM Private Equity Limited website, www.nvm.co.uk.

ENDS

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