Year-end trading update
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:
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Vector Capital Plc Agam Jain |
+44 (0)20 8191 7615 |
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Allenby Capital Limited James Reeve / George Payne / Nick Naylor (Corporate Finance) Tony Quirke (Sales and Corporate Broking)
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+44 (0) 20 3328 5656 |
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IFC Advisory Ltd Graham Herring / Flo Chandler / Zach Cohen. |
+44 (0)20 3934 6630
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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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