REG - Vector Capital PLC - Year-end trading update

Vector CapitalAnnouncement

31/01/2022 07:00

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RNS Number : 0555A  Vector Capital PLC  31 January 2022

This announcement contains Inside Information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).  Upon the publication of this
announcement this Inside Information is now considered to be within the public
domain.

 

31 January 2022

Vector Capital Plc

("Vector" or the "Group")

 

Year-end trading update

 

A strong performance with revenue growth of 24% - ahead of market expectations

 

Vector Capital Plc (AIM: VCAP), the commercial lending group that offers
secured loans primarily to businesses located in the United Kingdom, is
pleased to provide an update on trading for the year ended 31 December 2021.

 

During 2021, the Group increased its wholesale bank debt facilities by £10
million to £35 million and raised additional equity of £1.5 million by way
of a placing in June 2021. The net proceeds of the equity finance raised,
alongside the increase in the wholesale debt facilities, have been used to
grow the Group's loan book and meet the continued demand it is seeing for
short term loans.

 

The Group has delivered a strong performance for the year, which reflects
increasing demand from customers and greater utilisation of the expanded
business origination network. As a consequence, and as previously announced,
the Group's loan book, a key driver for revenue generation, grew to £46.3
million at 31 December 2021, an annual increase of 27% (31 December 2020:
£36.4 million).

 

The Group had 79 live loans at the year-end (31 December 2020: 63) with an
average loan size of approximately £586,000 (31 December 2020: £577,000). As
a result of the strong loan book performance, subject to completion of the
2021 audit, revenue for 2021 is expected to be ahead of current market
expectations at not less than £5.3million, representing 24% growth over the
prior year (FY 2020: £4.3 million revenue).

 

The Company expects to announce its results and declare its final dividend for
the year ended 31 December 2021 in early April 2022.

 

Agam Jain, CEO of Vector Capital, commented: "We are delighted to report on
the excellent performance of the Group for FY 2021, which is above
expectations and reflects the increasing demand for our loans generated from
an expanding introducer base, and the benefit of strong relationships with
supportive wholesale debt providers. Our proven business model has enabled us
to continue to deliver on our strategy and to build the foundation to expand
the business and support future growth in 2022."

 

Further enquiries:

 

 Vector Capital Plc

 Agam Jain                                                                                  +44 (0)20 8191 7615
 Allenby Capital Limited

 James Reeve / George Payne / Nick Naylor (Corporate Finance)                               +44 (0)20 3328 5656

 Tony Quirke (Sales and Corporate Broking)                                                  www.allenbycapital.com (http://www.allenbycapital.com/)

 IFC Advisory Ltd

 Graham Herring / Flo Chandler / Zach                                                       +44 (0)20 3934 6630
 Cohen.

 

 

Notes to Editors

 

Vector Capital Plc 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 Group's customers typically borrow for general
working capital purposes, bridging ahead of refinancing, land development and
property acquisition. The loans provided by the Group are typically for
renewable 12-month terms with fixed interest rates.

 

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