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VCAP - Vector Capital News Story

40.5p 0.0  0.0%

Last Trade - 19/02/21

Sector
Financials
Size
Micro Cap
Market Cap £17.0m
Enterprise Value £17.2m
Revenue £4.13m
Position in Universe 1488th / 1809

Vector Capital PLC - Trading Update

Wed 27th January, 2021 7:00am
RNS Number : 9759M
Vector Capital PLC
27 January 2021
 

This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (amendment) (EU Exit) Regulations 2019/310.

 

 

Vector Capital plc

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

 

Year-end trading update

 

A Robust Full Year Performance and Foundation to Scale

 

Vector Capital plc (AIM: VCAP), a commercial lending group that offers secured loans primarily to businesses located in the United Kingdom, today provides an update on trading for the year ended 31 December 2020.

 

Loan book summary

 


As at 31/12/20

As at 31/12/19

Loan book

£36.4 million

£33.6 million

Number of live loans

63

56

Average loan size

£577,000

£600,485

Average loan to value

44.2%

57.46%

 

Trading update

 

The Company's shares were admitted to trading on AIM on 29 December 2020 and the Company raised gross proceeds of £3.1m at that time. The net proceeds will be used to further grow the Group's loan book and meet demand for short term loans which are typically used for general working capital purposes, bridging ahead of refinancing, land development and property acquisition.

 

The Company has delivered a robust performance, in line with management expectations, despite the impact of COVID-19, particularly during the months of April to June, when prudent action was taken to cease new loans.  The Company recommenced the provision of new loans in June 2020 and has subsequently experienced strong demand with increased levels of new business origination.  As a consequence, the Company's loan book, a key driver for revenue generation, grew to £36.4m as at 31 December 2020, an increase of 8.2% (FY2019: £33.6m). The Company had 63 live loans at the year end with an average loan size of approximately £577,000 and an average loan to value (LTV) of 44.2%. 

 

Subject to completion of the 2020 audit, the Group generated growth in revenue during the year with revenue expected to be c. £4.3 million, an increase of c. 20% (FY2019: £3.6 million). 

 

At 31 December 2020, the Group's cash balances were £2.57 million (FY2019: £0.34 million). 

 

The Company expects to announce its results and declare its final dividend for the year ended 31 December 2020 in early April 2021.

 

Agam Jain, CEO of Vector Capital, commented: "We are pleased to report on the excellent performance of the Group, which has been delivered during a very challenging economic environment. Our resilient business model has enabled us to deliver on our strategy and it is pleasing to see strong demand for new loans and new business opportunities arising. In addition to this, our recent fundraising, combined with existing bank facilities of £25 million means we are well placed to build upon a robust foundation to scale the business and support future growth."

 

Further enquiries:

 

Vector Capital plc

Agam Jain

 

 

 

c/o TB Cardew

 

Allenby Capital Limited

James Reeve/Nick Naylor (Corporate Finance)

Tony Quirke (Sales and Corporate Broking)

 

+44 (0)20 3328 5656

www.allenbycapital.com

 

 

TB Cardew

Shan Shan Willenbrock/

Charlotte Anderson

 

+ 44 (0)7775 848537

+ 44 (0)20 7930 0777

vector@tbcardew.com

 

 

Notes to Editors

 

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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