The NAV dropped 4.1 per cent to stand at 68.2p per share as of 31 August 2007.

This is in line with most UK indices, says Gillespie. The comments were made as Pennine released its interim results for the period ending July 2007, showing a return of £822,000 (2006: loss £156,000), comprising revenue profits of £26,000 and capital profits of £796,000.

Two of the company’s investments were subject to takeovers during the period under review. The bid for Blooms of Bressingham resulted in a small loss against the original cost of £16,000 and the takeover of Computer Software Group resulted in a profit of £413,000 against the original cost. A small holding in Clapham House was disposed, realising a profit against the original cost of £24,000.

In addition to this, the shares benefited from the announcements of bids for Oasis Healthcare and Revenue Assurance Services. These produced uplifts in their valuations of £432,000 and £393,000 respectively, which was equivalent to a 5.9p increase in the ordinary share NAV.

Gillespie adds that it ‘is pleasing to note that some confidence and stability has now returned to the markets, although it is unclear how long this will last’.