Trading Update

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)	[phone] www.allenbycapital.com
TB Cardew Shan Shan Willenbrock/ Charlotte Anderson	+ 44 (0)7775 848537 + 44 (0)20 7930 0777 [e-mail]

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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