Vector Capital PLC Year-end Trading Update (3081O)
January 31 2023 - 2:00AM
UK Regulatory
TIDMVCAP
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 GBP5.9
million, representing year on year growth of 12% (2021: GBP5.3
million).
As previously announced, the Group's loan book, a key driver for
revenue generation, grew to GBP53.4 million at 31 December 2022, an
annual increase of 15.4% (2021: GBP46.3 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
GBP499,000 (2021: GBP586,000).
During 2022 the Group was also able to increase its wholesale
bank debt facilities by GBP5 million to GBP40 million and renew its
GBP3 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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