olivLaw · European equity research
Northern 2 VCT PLC NTV.L
United Kingdom · London Stock Exchange · Vertical: Listed companies from United Kingdom
Northern 2 VCT PLC is a London-listed venture capital trust that invests mainly in unquoted UK companies in technology, consumer and health, managed by Mercia Fund Management. Its 56-company portfolio, valued at 98.4 million GBP at 31 March 2026, matters for investors seeking exposure to small UK growth companies with tax advantages.
At the close of 05 Nov 2026, Northern 2 VCT PLC (NTV.L) stock was 0.53 GBP (+0.00% on the day), with market capitalisation 116.7 m GBP, dividend yield 3.21%, beta -4.13, 52-week range 0.01–0.57 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 53.3
- neutral
- Bollinger (20, 2)
- 0.28 – 0.73
- in the upper half of the band · %B 0.56 · band width 90.9%
- SMA 50 / 200
- 0.47 / 0.53
- mixed trend
- MACD (12, 26, 9)
- 0.02 / 0.02
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | 0.0% | −0.6% | +0.6 pp | — |
| 3 months | 0.0% | −4.2% | +4.2 pp | — |
| 6 months | −0.9% | +4.3% | −5.3 pp | — |
| Year to date | −0.9% | +7.5% | −8.4 pp | — |
| 1 year | unavailable | +9.9% | unavailable | +6.7% |
| 3 years | unavailable | +49.8% | unavailable | +24.8% |
| 5 years | unavailable | +42.8% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | unavailable | unavailable | unavailable |
| Revenue YoY | unavailable | unavailable | unavailable |
| Net income | 2.8 m | 8.4 m | -1.5 m |
| Net income YoY | unavailable | +193.8% | −118.4% |
| Diluted EPS | 0.01 | 0.04 | -0.01 |
| Diluted EPS YoY | unavailable | +171.4% | −115.8% |
| net % | unavailable | unavailable | unavailable |
| Free cash flow | unavailable | unavailable | unavailable |
Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 39.3 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 137.8 m GBP
- Total assets
- unavailable GBP
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- -1.2%
- ROA
- unavailable
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (GBP)
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Pre-tax income | 2.8 m | 8.4 m | -1.5 m | esef· 30 Jun 2026verified |
| Income tax | 0 | 0 | 0 | esef· 30 Jun 2026verified |
| Net income | 2.8 m | 8.4 m | -1.5 m | esef· 30 Jun 2026verified |
| Diluted EPS | 0.01 | 0.04 | -0.01 | esef· 30 Jun 2026verified |
| Dividend per share | 0.03 | 0.03 | 0.02 | esef· 30 Jun 2026verified |
Balance sheet · GBP
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -20.0 k | 298.0 k | -1.3 m | esef· 30 Jun 2026verified |
| Investing cash flow | 6.6 m | -5.4 m | -8.7 m | esef· 30 Jun 2026verified |
| Financing cash flow | 7.1 m | 186.0 k | 11.3 m | esef· 30 Jun 2026verified |
| Dividends paid | 6.3 m | 6.4 m | 7.5 m | esef· 30 Jun 2026verified |
| Share repurchases | 2.6 m | 4.2 m | 6.4 m | esef· 30 Jun 2026verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 1 of at least 6
- score weight coverage: 6.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 116.7 m GBP
Key indicators
Coverage and freshness
Score by group
6% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 1 of at least 6; score weight coverage: 6.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | unavailable | unavailable | — |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 11.9% | 100 (on a fixed band) | 100% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partialunavailable · 0/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
NORTHERN 2 VCT PLC (NTV.L). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: ROE -1.2%.
The estimated value range is 0.17–0.21 GBP per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 0.18 GBP, the price of 0.53 GBP leaves a potential of -65.2% (value / price − 1) and a margin of safety of -187.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 1 of at least 6; score weight coverage: 6.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Shareholder yield (distributions): 11.9%
What contradicts it
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Net margin, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, P/E (TTM), EV/EBITDA, FCF yield, Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 40 companies
Multiples and returns vs the median
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| BMS.LBraemar PLC | 78.3 m | 39.2 | 2.7% | 1.7% | −4.4% | +13% / −11% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for NTV.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Northern 2 VCT PLC is a London-listed venture capital trust that invests mainly in unquoted UK companies in technology, consumer and health, managed by Mercia Fund Management. Its 56-company portfolio, valued at 98.4 million GBP at 31 March 2026, matters for investors seeking exposure to small UK growth companies with tax advantages.
SWOT
Strengths
- A diversified portfolio of 56 companies with significant exposure to software and AI, and a cash position that allows follow-on funding for existing companies 1.
- Management by a group specialised in capital for growing UK businesses, with the option of co-investing alongside Mercia's own funds 1.
- VCT status that gives investors tax advantages, which may make the company attractive to UK private investors 1.
Weaknesses
- Concentration in a few sectors, mainly software and AI, which are sensitive to quoted market volatility and investor sentiment 1.
- Much of the portfolio is valued using models rather than market prices, which introduces uncertainty into reported values 1.
- The business depends on continued compliance with VCT tax conditions, and breaches could lead to loss of status 1.
Opportunities
- Bank of England rate cuts could improve financing conditions and valuations of portfolio companies 1.
- The UK's position as a European hub for AI and health tech could favour exits from the portfolio over the medium term 1.
- Available capital can be used selectively to fund growth rounds and new investments in companies with credible paths to profitability 1.
Threats
- Macroeconomic uncertainty and weak forecast UK growth could slow financing for portfolio companies 1.
- Trade policy and geopolitical tensions may affect supply chains and the activity of target companies 1.
- Volatility in the software and AI market could reduce the value of some holdings, as seen at the end of the financial year 1.
Risks
- Concentration in software and AIhigh
More than half of the portfolio is in software and AI, which exposes the company to shifts in sentiment and valuation volatility in that sector 1.
- Unquoted valuationshigh
Most investments are valued using multiples or the price of a recent investment, which could lead to significant adjustments in reported values 1.
- Risk of losing VCT statusmedium
Failing to meet qualifying asset conditions, investment thresholds or funding limits could lead to loss of approved VCT status 1.
- Liquidity of investmentsmedium
Unquoted companies are hard to sell, and exits depend on favourable market conditions, which may delay the realisation of value 1.
- Conflicts of interest within the Mercia grouplow
The adviser manages several VCTs and its own funds that may invest in the same companies, which could create allocation conflicts 1.
Investment thesis
What would need to be true (bull case)
- If interest rates fall and financing conditions improve, valuations of private portfolio companies could rise, supporting net asset value 1.
- Available cash gives the company capacity to fund follow-on rounds for existing companies and to invest in new opportunities 1.
- The UK's position as a hub for AI and health tech could open profitable exits from the portfolio over the medium term 1.
What would break the thesis
- Concentration in software and AI could amplify losses if investor sentiment towards those sectors deteriorates 1.
- Unquoted valuations are sensitive to assumptions, and adjustments could reduce the reported value of the portfolio 1.
- Weak economic growth and trade tensions could delay exits and affect small target companies 1.
What to watch
- Changes in portfolio value and adjustments for quoted and unquoted holdingsNext annual report
- Bank of England decisions on interest rates and their effect on company financing2026
- Realisations or partial disposals from the larger portfolio companies2027
- Compliance with VCT thresholds: qualifying holdings and deployment of new funds within 12 monthsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Northern 2 VCT PLC is a Venture Capital Trust listed on the London Stock Exchange since January 1999, which invests mainly in unquoted companies and holds its remaining assets in money market funds and bank deposits 1. The company is managed by Mercia Fund Management Limited, a wholly owned subsidiary of Mercia Asset Management PLC, a specialist alternative asset manager providing capital to high-growth UK SMEs 1. Mercia also advises Northern Venture Trust PLC and manages Northern 3 VCT PLC, known together as the Northern VCTs 1. At 31 March 2026 net assets stood at 137.8 million GBP, including 39.3 million GBP of cash and cash equivalents 1.
The VCT model is designed to attract private investors into small unquoted UK companies through tax incentives such as income tax relief of up to 20% on new subscriptions and exemption from income tax on dividends and capital gains tax on disposals 1. The company must keep meeting ongoing conditions under the Income Tax Act 2007, including at least 80% by value in qualifying holdings, of which at least 70% in eligible shares 1. Failure to meet these conditions could result in loss of approved VCT status 1.
Investments are concentrated in software and AI, consumer and health and life sciences; unquoted holdings are valued mainly using revenue or earnings multiples, with a smaller part valued at the price of a recent investment 1.
Segments
Software & AI
Software and AI make up about half of the portfolio by value, at 51%, and are the largest sector concentration for the company 1.
Consumer
The Consumer sector accounts for 22% of the portfolio and includes companies such as Pure Pet Food and The Beauty Tech Group, among the largest positions by value 1.
Health & Life Sciences
The Health & Life Sciences sector accounts for 19% of the portfolio, with holdings active in biotechnology and pharmaceuticals 1.
Market context
The company operates in the UK venture capital market for small and mid-sized companies, where VCT rules cap how much funding target companies can receive, for example a lifetime limit of 24 million GBP, or 40 million GBP for knowledge-intensive companies 1. The UK is described as Europe's leading hub for AI, deep tech and health tech investment, which could support exits from the portfolio over the medium term 1.
The macroeconomic backdrop remains mixed: UK GDP growth is forecast to be low again in 2026, and once the Bank of England can reduce interest rates, financing conditions could ease and support private market valuations 1.
Trends
- Bank of England rate cutstailwind
If the Bank of England is able to reduce interest rates, financing conditions for businesses could ease, which would support valuations of the private companies in the portfolio 1.
- Quoted market volatilityheadwind
Late-March 2026 volatility, linked to investor sentiment about AI and software valuations, affected the carrying value of some holdings, although several have since recovered 1.
- Demand for capital-efficient businessestailwind
Demand for innovative, capital-efficient businesses continues to grow in the sectors where the portfolio is concentrated, which could support growth at portfolio companies 1.
- Geopolitical tensions and trade policymixed
Geopolitical tensions and the impact of US trade tariff policy on international supply chains could slow economic activity and exits from the portfolio 1.
Competitive position
The company competes with other VCTs and venture capital funds that pursue the same small UK companies, and Mercia also manages sister vehicles in the Northern family, so some investments are co-financed within the group 1. Co-investment alongside Mercia Asset Management funds is an advantage, since those funds can provide replacement capital without the restrictions of the VCT Rules 1.
Mercia Asset Management focuses on capital for high-growth UK businesses, and for Northern 2 VCT competition also comes from other entities that could offer similar funding without VCT constraints 1.
- Northern Venture Trust PLC
VCT advised by the same Mercia group, investing in similar small UK companies and co-financing some of the same positions 1.
- Northern 3 VCT PLC
Third VCT in the Northern family, managed by Mercia, with joint investments in many portfolio companies 1.
- Mercia Asset Management PLC
Parent group whose own funds can co-invest alongside VCTs and provide replacement capital without VCT restrictions 1.
- Other UK VCTs and venture capital funds
Funds pursuing the same small and mid-sized UK companies and competing for capital to finance growth rounds 1.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202630 Jun 2026
- Annual report 202521 Aug 2025
- Annual report 202530 Jun 2026
- Annual report 202421 Aug 2025
Sources
- [1] Annual report, fiscal year ended 2026-03-31 (ESEF) · SEC / Northern 2 VCT PLC · 31 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.