REG - Vector Capital PLC - Year-end Trading Update

Vector CapitalAnnouncement

31/01/2023 07:01

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RNS Number : 3081O  Vector Capital PLC  31 January 2023

Vector Capital plc

 

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

 

Year-end Trading Update

 

A strong performance with revenue growth of 12% - in line with market
expectations

 

Vector Capital plc (AIM: VCAP), the commercial lending group that offers
secured loans to property developers and investors in England & Wales, is
pleased to provide an update on trading for the year ended 31 December 2022.

 

The Group has delivered a strong operational performance, despite the
challenging market conditions in the UK, where certain borrowers have been
adversely affected by delays in completions, supply chain delays, interest
rate increases, inflation, and a general softening of residential property
values. Arising from the Group's strong loan book performance described
below, and subject to completion of the 2022 audit, revenue for the year is
expected to be in line with market expectations at not less than £5.9
million, representing year on year growth of 12% (2021: £5.3 million).

 

As previously announced, the Group's loan book, a key driver for revenue
generation, grew to £53.4 million at 31 December 2022, an annual increase of
15.4% (2021: £46.3 million). At 31 December 2022, the Group had 107 live
loans (2021: 79), representing an annual 35.4% increase with an average loan
size of approximately £499,000 (2021: £586,000).

 

During 2022 the Group was also able to increase its wholesale bank debt
facilities by £5 million to £40 million and renew its £3 million
inter-company funding agreement with its parent company Vector Holdings
Limited.

 

Despite current market conditions, the Group is able in most cases to pass on
interest rate increases and continues to witness strong demand from potential
customers introduced by its established broker network. The Company is
benefitting from its diverse portfolio as it increases it weighting towards
lower value loans, reflected in the average year end loan figures referred to
above.

 

The Company expects to announce its results and declare its final dividend for
the year ended 31 December 2022 in early April 2023.

 

Agam Jain, CEO of Vector Capital, commented: "We are delighted to report on
the Group's strong and resilient revenue performance in FY 2022, achieved
despite the challenging market conditions. The expected outturn for FY2022 is
in line with market expectations and reflects the continuing demand for our
loans, the robustness of our operating systems and the strong relationships
with supportive wholesale debt providers. Our proven business model has
created attractive revenue and loan book growth and places us in a strong
position to continue to deliver on our strategy and to support continued
growth in 2023. The Company has an optimistic outlook for the business and
this confidence is demonstrated in its intention to deliver on its continued
progressive dividend policy."

 

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.

 

Enquiries

 Vector Capital plc                             020 8191 7615
 Robin Stevens (Chairman)
 Agam Jain (CEO)

 WH Ireland Limited                             020 7220 1666
 Chris Hardie, Megan Liddell

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

Notes to Editors

Vector Capital Plc provides secured, business-to-business loans to SMEs based
principally 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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