NVM defies private equity drought to boost profits

NVM Private Equity, the firm behind Cornish pasty maker Crantock Bakery and property group Paladin, beat the buyout crunch last year to raise profits 12 per cent.

NVM saw turnover fall by £300,000 to £5.3m but boosted net income from £850,000 to £950,000. The improvement came despite a difficult year for the private equity industry, as borrowing to fund deals became more expensive and exiting investments through flotations looked less appealing due to choppy markets.

Accounts to January 2009 show NVM’s funds under management were affected by the slide in share indices, falling from £186m to £160m.

Nonetheless, NVM managed to dispose of four portfolio companies – Stainton Metal, Product Support, Technology for Business and Develop Training. At the time of Stainton’s sale, NVM’s Jeff Holder said he was “delighted” to have sold four businesses in 2008. A spokesperson said cash was on the books and more investments were planned for 2010.