Annual Financial Report

18 MAY 2009

NORTHERN 3 VCT PLC

RESULTS FOR THE YEAR ENDED 31 MARCH 2009

Northern 3 VCT PLC  is a Venture Capital  Trust (VCT) managed by  NVM
Private Equity.  The trust invests mainly in unquoted venture capital
holdings and  aims  to provide  high  long-term tax-free  returns  to
shareholders through  a combination  of  dividend yield  and  capital
growth.

Financial highlights - year ended 31 March 2009:
(comparative figures  as  at  31  March  2008  (18  month  accounting
period)):


                                        2009        2008

- Net assets                          £24.3m      £28.6m

- Net asset value per share            84.0p       96.3p

- Return per share:
  Revenue                               2.6p        4.1p
  Capital                            (13.0)p        4.7p
  Total                              (10.4)p        8.8p

- Dividend per share proposed
  in respect of the year:
  Revenue                               2.5p        4.2p
  Capital                               1.5p        1.8p
  Total                                 4.0p        6.0p

- Cumulative return to
  shareholders since launch:
  Net asset value per share            84.0p       96.3p
  Dividends paid per share*            20.9p       18.9p
  Net asset value plus dividends
  paid per share                      104.9p      115.2p

- Share price at end of year           45.5p       84.5p


*Excluding proposed final dividend


For further information, please contact:


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



NORTHERN 3 VCT PLC

CHAIRMAN'S STATEMENT

The past year  has seen  investment companies operating  in a  severe
environment, with  extreme  fluctuations  in  the  financial  markets
accompanied by recession in the UK economy.  The performance of  many
small companies has been adversely  affected by low confidence,  weak
demand and restrictions  on the  availability of  bank finance.   The
financial  results  of  Northern   3  VCT  inevitably  reflect   this
unfavourable background.

Results and dividend
The net asset value  (NAV) per share  at 31 March  2009 was 84.0p,  a
fall of 12.8% from the corresponding  figure of 96.3p as at 31  March
2008.  The total return for the year as shown in the income statement
was minus 10.4p, equivalent to 10.8% of the opening net asset value.
Over the same  period the  FTSE All-share  index (on  a total  return
basis) fell by 29.3%.

An interim dividend of  2.0p per share was  paid in January 2009  and
the directors propose a final dividend also of 2.0p per share, making
a total of 4.0p for the year.  On an annualised basis, this is at the
same rate as the total dividend of 6.0p per share paid in respect  of
the 18  month period  ended 31  March 2008  following the  change  in
financial year end.  The dividend per share for the year comprises  a
2.5p revenue distribution and 1.5p paid out of capital gains realised
from venture capital investments.

Your board  continues  to  attach  a high  degree  of  importance  to
maintaining a satisfactory  flow of dividends  to shareholders.   The
achievability of this depends on  the amount of revenue derived  from
our investments, which is likely to be affected over the coming  year
by the low level of interest rates  as well as the inability of  some
investee companies to meet scheduled interest payments.

Investment portfolio
The business  review in  the annual  report gives  details of  recent
developments  in  the  investment   portfolio.   The  level  of   new
investment activity has been slow and a number of our companies  have
suffered from the  prevailing business  climate.  Your  board has  as
usual been realistic  in its  approach to valuing  the portfolio  and
this is reflected  in a  number of downward  adjustments to  carrying
values.  However there have also  been some successes, in  particular
the sales  of  our  investments in  Product  Support  (Holdings)  and
Pivotal  Laboratories  Holdings.    DxS,  which  develops   molecular
diagnostic products to  aid doctors and  drug companies in  selecting
therapies for patients, has continued to make strong progress and  is
now our largest investment by value.

Corporate brokers
At the  half-year stage  we  reported the  failure of  our  corporate
brokers and  market-makers, Landsbanki  Securities (UK),  in  October
2008.  A successor firm, Teathers, was appointed by your company  but
regrettably in March  2009 this  firm in  turn was  obliged to  cease
trading due  to  the financial  difficulties  of its  parent  group.
Following a  further review  of the  provision of  corporate  broking
services we are  now pleased  to announce the  appointment of  Singer
Capital Markets, an independent UK-based firm which acts as corporate
broker to a number of VCTs.

Share buy-backs
It has been  the board's policy  to buy back  the company's  ordinary
shares in the  market at  a 10% discount  to NAV,  subject to  market
conditions and the terms of  the authority granted by  shareholders.
During  the  year  to  31  March  2009  the  company  purchased   for
cancellation 894,966  ordinary  shares, equivalent  to  approximately
3.0% of the issued capital at the start of the year, at a total  cost
of £773,000.  We  have reviewed  our policy  in the  light of  recent
developments and current  market conditions and  have concluded  that
whilst we should maintain our ability to re-purchase shares, for  the
time being it would  not be appropriate to  seek to maintain a  fixed
10% discount.   However we  are highly  conscious of  the  importance
which shareholders  attach to  having a  readily available  means  of
realising their  investment and  we will,  with our  newly  appointed
brokers, be giving further consideration to this subject in the  near
future.  Based  on  an  annual  dividend  of  4.0p  and  the  present
mid-market price of 45p, the company's shares yield 8.9% tax-free and
we believe that the  proposed increase in the  higher rate of  income
tax next  year  will  make  VCT dividends  even  more  attractive  to
investors in future.

VCT qualifying status
The company has continued to meet the qualifying conditions laid down
by HM Revenue & Customs for  maintaining its approval as a VCT.   The
board retains PricewaterhouseCoopers LLP  as independent advisers  on
VCT taxation matters.

VAT on management fees
Following the Chancellor of the Exchequer's announcement in the  2008
Budget that investment management  fees paid by  VCTs were to  become
exempt from VAT,  HM Revenue  & Customs has  acknowledged that  under
European Union VAT law this  exemption should have applied from  1990
onwards.  Our managers had already submitted a claim for repayment of
VAT previously paid and your  company has so far recovered  £280,000,
which has  been  recognised  as  a  separate  credit  in  the  income
statement.  Our managers are in negotiation with HM Revenue & Customs
with a  view  to  pursuing  a  further  repayment  but  this  is  not
sufficiently  certain  or  quantifiable  to  be  recognised  in   the
financial statements at this stage.

Board of directors
As previously  reported,  John Hustler  retired  as chairman  of  the
company in January 2009 and  I would like to  thank him on behalf  of
shareholders and  his board  colleagues for  his guidance  since  the
formation of  the company  in 2001.   We are  delighted that  he  has
agreed to continue as a non-executive director.

Future prospects
The present difficulties in the  markets and the economy seem  likely
to persist for some time to come.   We have retained a high level  of
cash and  near-cash assets  on the  balance sheet,  whilst  remaining
within the investment requirements of the VCT legislation, and we are
in a  good  position  to  provide further  support  to  our  existing
investee companies  where  appropriate,  at a  time  when  banks  are
reluctant to lend.   For the time  being the rate  of new  investment
completions has  slowed  and we  will  continue to  take  a  cautious
approach to adding to the  portfolio.  We believe that  opportunities
will emerge to acquire good businesses with solid long-term prospects
at attractive valuations.

James Ferguson
Chairman


The audited financial statements for the year ended 31 March 2009 are
set out below.


INCOME STATEMENT
for the year ended 31 March 2009


               Year ended 31 March 2009  18 mths ended 31 March 2008
               Revenue  Capital   Total   Revenue   Capital    Total
                  £000     £000    £000      £000      £000     £000

Gain on
disposal of
investments          -      814     814         -        85       85
Movements in
fair value
of investments       -   (4,460) (4,460)        -     1,969    1,969
                 -----    -----   -----     -----     -----    -----
                     -   (3,646) (3,646)        -     2,054    2,054

Income           1,249        -   1,249     2,228         -    2,228

Investment        (140)    (420)   (560)     (259)     (903)  (1,162)
management fee
Recoverable         67      213     280         -         -        -
VAT
Other expenses    (213)       -    (213)     (295)        -     (295)
                 -----    -----   -----     -----     -----    -----
Return on
ordinary
activities         963   (3,853) (2,890)    1,674     1,151    2,825
before tax
Tax on return
on
ordinary          (208)      61    (147)     (441)      271     (170)
activities
                 -----    -----   -----     -----     -----    -----
Return on
ordinary
activities         755   (3,792) (3,037)    1,233     1,422    2,655
after tax
                 -----    -----   -----     -----     -----    -----

Return per         2.6p  (13.0)p (10.4)p      4.1p      4.7p     8.8p
share

Dividends
paid/proposed
in respect of      2.5p     1.5p    4.0p      4.2p      1.8p     6.0p
the year



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 March 2009


                                         Year ended  18 months ended
                                      31 March 2009    31 March 2008
                                               £000             £000

Equity shareholders' funds at 1 April        28,645           29,281
2008

Return on ordinary activities after          (3,037)           2,655
tax

Dividends recognised in the year               (575)          (2,418)

Net proceeds of share issues                     63              287

Shares purchased for cancellation              (773)          (1,142)

Expenses charged to capital reserve               -              (18)
                                             ------           ------
Equity shareholders' funds at 31             24,323           28,645
March 2009
                                             ------           ------



BALANCE SHEET
as at 31 March 2009


                                    31 March 2009  31 March 2008
                                             £000           £000

Venture capital investments
  Unquoted                                 13,606         17,852
  Quoted                                    1,603          1,851
                                           ------         ------
Total venture capital investments          15,209         19,703

Listed fixed-interest investments           5,700          7,497
                                           ------         ------
Total fixed asset investments              20,909         27,200
                                           ------         ------

Current assets:
  Debtors                                     848            265
  Cash and deposits                         2,785          1,526
                                           ------         ------
                                            3,633          1,791
Creditors (amounts falling due
  within one year)                           (219)          (346)
                                           ------         ------
Net current assets                          3,414          1,445
                                           ------         ------

Net assets                                 24,323         28,645
                                           ------         ------


Capital and reserves:
Called-up equity share capital              1,447          1,487
Share premium                               8,089          8,031
Capital redemption reserve                    188            143
Capital reserve                            16,432         15,997
Revaluation reserve                        (2,424)         2,749
Revenue reserve                               591            238
                                           ------         ------
Total equity shareholders' funds           24,323         28,645
                                           ------         ------

Net asset value per share                    84.0p          96.3p



CASH FLOW STATEMENT
for the year ended 31 March 2009


                                         Year ended  18 months ended
                                      31 March 2009    31 March 2008
                                       £000    £000     £000    £000

Cash flow statement

Net cash inflow from
  operating activities                           42            1,206

Taxation:
Corporation tax paid                           (143)            (105)

Financial investment:
Purchase of investments              (2,234)         (16,041)
Sale/repayment of
  Investments                         4,879           16,133
                                     ------           ------
Net cash inflow
  from financial investment                   2,645               92

Equity dividends paid                          (575)          (2,418)
                                             ------           ------
Net cash inflow/(outflow)
  before financing                            1,969           (1,225)

Financing:
Issue of shares                          72              293
Share issue expenses                     (9)              (6)
Purchase of shares
for cancellation                       (773)          (1,142)
                                     ------           ------
Net cash outflow from                          (710)            (855)
financing
                                             ------           ------
Increase/(decrease) in cash and               1,259           (2,080)
deposits
                                             ------           ------
Reconciliation of return
before tax to net cash flow
from
operating activities

Return on ordinary
activities before tax                        (2,890)           2,825
Gain on disposal of                            (814)             (85)
investments
Movements in fair value of                    4,460           (1,969)
investments
Decrease/(increase) in                         (583)             335
debtors
Increase/(decrease) in                         (131)             118
creditors
Expenses charged to capital                       -              (18)
reserve
                                             ------           ------
Net cash inflow from
  operating activities                           42            1,206
                                             ------           ------
Reconciliation of movement
in net funds

                             1 April     Cash flows    31 March 2009
                               2008
                               £000            £000             £000

Cash and deposits             1,526           1,259            2,785
                             ------          ------           ------



INVESTMENT PORTFOLIO SUMMARY
as at 31 March 2009


                                          Cost     Valuation % of net
                                          £000          £000   assets
                                                             by value

Fifteen largest venture capital
investments

DxS                                        327         2,587     10.6
Paladin Group                              861         1,127      4.6
Axial Systems Holdings                   1,004         1,101      4.5
Envirotec                                  456           822      3.4
Optilan Group                            1,000           821      3.4
CloserStill Holdings                       743           743      3.1
Britspace Holdings                       1,201           735      3.0
Crantock Bakery                            442           557      2.3
Frontier Foods                             542           542      2.2
Abermed                                    375           527      2.2
Advanced Computer Software*                429           505      2.1
Promanex Group Holdings                  1,000           500      2.0
Arleigh International                      210           405      1.7
Wear Inns                                  386           384      1.6
IDOX*                                      298           367      1.5
                                        ------        ------    -----
                                         9,274        11,723     48.2

Other venture capital investments        7,946         3,486     14.4
                                        ------        ------    -----
Total venture capital investments       17,220        15,209     62.6

Listed fixed-interest investments        6,113         5,700     23.4
                                        ------        ------    -----
Total fixed asset investments           23,333        20,909     86.0
                                        ------
Net current assets                                     3,414     14.0
                                                      ------    -----
Net assets                                            24,323    100.0
                                                      ------    -----

*Quoted on AIM


BUSINESS RISKS

The board carries  out a regular  review of the  risk environment  in
which the company operates.  The main areas of risk identified by the
board are as follows:

Investment risk:  The  majority of the  company's investments are  in
small and medium-sized  unquoted and AIM-quoted  companies which  are
VCT qualifying holdings, and  which by their  nature entail a  higher
level of risk and  lower liquidity than  investments in large  quoted
companies. The  directors aim  to  limit the  risk attaching  to  the
portfolio as a whole by  careful selection and timely realisation  of
investments, by carrying out rigorous due diligence procedures and by
maintaining a wide spread  of holdings in  terms of financing  stage,
industry sector  and geographical  location.  The  board reviews  the
investment portfolio with the investment managers on a regular basis.

Financial risk:   As  most of  the  company's investments  involve  a
medium to long-term commitment and many are relatively illiquid,  the
directors consider that it is inappropriate to finance the  company's
activities through  borrowing  except  on  an  occasional  short-term
basis.  Accordingly  they  seek  to  maintain  a  proportion  of  the
company's assets in  cash or  cash equivalents in  order to  be in  a
position to take advantage of new unquoted investment opportunities.
The company has  very little  exposure to foreign  currency risk  and
does not enter into derivative transactions.

Liquidity risk:   The  company's  investments  may  be  difficult  to
realise.  The fact that a stock  is quoted on AIM does not  guarantee
its liquidity and there may be  a large spread between bid and  offer
prices.  Unquoted investments  are not traded  on a recognised  stock
exchange and are inherently illiquid.

Internal control risk:   The board  regularly reviews  the system  of
internal controls, both financial and non-financial, operated by  the
company and the manager.  These  include controls designed to  ensure
that the company's assets are safeguarded and that proper  accounting
records are maintained.

VCT qualifying status risk:  the company is required at all times  to
observe the conditions laid down in  the Income Tax Act 2007 for  the
maintenance of approved VCT status.  The loss of such approval  could
lead to  the company  losing its  exemption from  corporation tax  on
capital gains,  to  investors  being  liable to  pay  income  tax  on
dividends received from the company and, in certain circumstances, to
investors being required to  repay the initial  income tax relief  on
their investment.   The manager  keeps the  company's VCT  qualifying
status under continual review and reports to the board on a quarterly
basis.  The  board has  also retained  PricewaterhouseCoopers LLP  to
undertake an independent VCT status monitoring role.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors  are responsible  for  preparing the  annual  financial
report in accordance  with applicable law  and regulations.   Company
law requires the directors to  prepare financial statements for  each
financial year.  Under that law the directors have elected to prepare
the financial statements in accordance with UK Accounting Standards.
The financial statements are required by law to give a true and  fair
view of  the state  of  affairs of  the company  at  the end  of  the
financial period and of the return  of the company for that  period.
In preparing these financial  statements, the directors are  required
to (i)  select  suitable  accounting policies  and  then  apply  them
consistently;  (ii) make judgements and estimates that are reasonable
and prudent;  (iii) state whether applicable UK Accounting  Standards
have been followed, subject to any material departures disclosed  and
explained  in  the  financial  statements;   and  (iv)  prepare   the
financial  statements  on  the  going  concern  basis  unless  it  is
inappropriate to presume that the company will continue in business.

In relation to the financial statements  for the year ended 31  March
2009, each of  the directors has  confirmed that to  the best of  his
knowledge (i) the financial statements,  which have been prepared  in
accordance with the  applicable set of  accounting standards, give  a
true and fair view of the assets, liabilities, financial position and
profit or  loss  of the  company;   and (ii)  the  directors'  report
includes a  fair review  of the  development and  performance of  the
business and the position of the company together with a  description
of the principal risks and uncertainties which it faces.

The directors  are also  responsible  for keeping  proper  accounting
records that  disclose  with  reasonable accuracy  at  any  time  the
financial position of the company and enable them to ensure that  its
financial statements comply with the  Companies Act 1985.  They  have
general responsibility for taking such  steps as are reasonably  open
to them to  safeguard the assets  of the company  and to prevent  and
detect fraud and other irregularities.

Under  applicable  law  and  regulations,  the  directors  are   also
responsible   for   preparing   a   directors'   report,   directors'
remuneration report and  corporate governance  statement that  comply
with that law and those regulations.

The company's financial statements are  published on the NVM  Private
Equity Limited  website.   The  maintenance  and  integrity  of  this
website is  the  responsibility  of  NVM and  not  of  the  company.
Visitors to  the website  should  be aware  that legislation  in  the
United  Kingdom  governing  the  preparation  and  dissemination   of
financial  statements   may   differ  from   legislation   in   other
jurisdictions.

OTHER MATTERS

The above summary of  results for the year  ended 31 March 2009  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 2.0p  per share for the year ended  31
March 2009 will, if approved by shareholders, be paid on 10 July 2009
to shareholders on the register at  the close of business on 19  June
2009.

The full annual  report including financial  statements for the  year
ended 31 March 2009  is expected to be  posted to shareholders on  29
May 2009 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.

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