REG - Vector Capital PLC - Quarterly trading update

Vector CapitalAnnouncement

22/05/2023 07:00

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RNS Number : 0881A  Vector Capital PLC  22 May 2023

22 May 2023

Vector Capital Plc

("Vector Capital", the "Company" or the "Group")

Quarterly trading update

"Stability, caution and resilience during a period of rising interest rates"

Vector Capital Plc (AIM: VCAP), a commercial lending group that offers secured
loans to property developers and investors in England & Wales, is pleased
to provide an update on the Group's loan book and a trading update for the
quarter ended 31 March 2023.

Loan book summary

As summarised below, the Company's loan book at 31 March 2023 was £48.6m
(average for the three months period was £51m), reflecting planned
redemptions of £7.8m and new loans advanced of £3m during the period. The
overall average loan to value at the period end was 57.2%.

 

                        As at 31/03/23  As at 31/12/22  As at 31/12/21
 Loan book              £48.6m          £53.4m          £46.3m
 Number of live loans   102             107             79
 Average loan size      £476,000        £499,000        £586,000
 Average loan to value  57.2%           60.0%           53.5%

 

Trading update

As indicated in our 2022 Annual Report, the Board sees 2023 as a year of
consolidation where the Company will seek to strengthen its position in a
lending market which is still being impacted by increasing interest rates and
persistent inflation. Vector Capital is well placed to withstand these issues
with a strong balance sheet, excellent relationships with its broker network
and the continued backing from wholesale and specialist lenders.

The Company has been more cautious on new lending as higher interest rates
impact borrower affordability. Redemptions have materialised as due, which is
pleasing in the current environment, and enquiry levels and pipeline remain
strong.

Agam Jain, CEO of Vector Capital added: "I am pleased with our Q1 2023 trading
performance in the context of the planned redemptions and new loans advanced
during the period. While at the margins some borrowers are struggling to adapt
to the current market conditions, and transactions are generally taking longer
to close, our pipeline of new loan opportunities is encouraging. We have the
proven strength and resilience of the loan management systems, and the backing
of our wholesale funders that underpins our ability to re-start the growth
trajectory once interest rates stabilise."

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

For further information please contact:

 Vector Capital plc                                                              c/o IFC Advisory

 Robin Stevens (Chairman)
 Agam Jain (CEO)

 WH Ireland                                                                      020 7220 1666
 Limited

 Hugh Morgan, Chris Hardie, Darshan Patel

 IFC Advisory                                                                    020 3934 6630
 Limited
 Graham Herring, Florence Chandler, Zach Cohen

 

About Vector Capital:

Vector Capital provides secured, business-to-business loans to SMEs based in
England and Wales. Loans are typically secured by a first legal charge against
real estate. The Company's customers typically borrow for general working
capital purposes, bridging ahead of refinancing, land development and property
acquisition. The loans provided by the Company are typically for renewable
12-month terms with fixed interest rates.

 

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