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Vector Capital PLC (VCAP)

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Tuesday 11 May, 2021

Vector Capital PLC

AGM statement and quarterly trading update

RNS Number : 1412Y
Vector Capital PLC
11 May 2021
 

 

Vector Capital plc

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

 

AGM statement and quarterly trading update

 

Tracking to growth plan

 

Ahead of the Company's maiden Annual General Meeting ("AGM") as an AIM company later today, Vector Capital Plc (AIM: VCAP), a commercial lending group that offers secured loans primarily to property developers located in England & Wales, is pleased to provide an update on trading for the Quarter ended 31 March 2021.

 

As the AGM is being held as a closed meeting due to ongoing government restrictions on public gatherings, the Company invited shareholders to submit questions ahead of the AGM and this statement seeks to answer those questions to the extent possible. 

 

Loan book summary

 

 

As at 31/03/21

As at 31/12/20

As at 31/12/19

Loan book

£38.6 million

£36.4 million

£33.6 million

Number of live loans

69

63

56

Average loan size

£559,000

£577,000

£600,485

Average loan to value

46.0%

44.2%

57.46%

 

Trading update

 

Vector Capital's shares were admitted to trading on AIM on 29 December 2020 and the Company raised gross proceeds of £3.1m (net £2.6m) at that time. The net proceeds have largely been deployed into new lending and will provide the base for drawing down further on its debt facilities. 

 

Current trading in 2021 has been in line with expectations and the Company's pipeline of new loan opportunities remains strong.

 

The Company is now concentrating on loan book growth by enhancing its engagements with its broker network. The Company is also introducing additional staff training programs so that the existing team can handle increased activity. It is not anticipated that the Company will be required to increase its headcount this year.

 

Discussions have been held with the Company's two wholesale lenders, Shawbrook Bank and Aldermore Bank. Both banks are fully supportive of the Group's operations and have indicated that they would be ready to increase the facilities should the Company request them. The Group has also been approached by three other wholesale banking providers who have offered indicative terms on additional facilities. The Company will continue discussions with these providers to maintain flexibility as the business grows, however, the board considers that the Group's existing facilities are the best fit for its current requirements.

 

In these early days as a public company, the Board has been exploring how best to raise the Group's profile and increase engagement with individual and institutional investors and with the market. The Company will report further on this initiative at the time of the announcement of its interim results to 30 June 2021 and as the year progresses.

 

Agam Jain, CEO of Vector Capital will make the following statement at the AGM:

 

  " We have continued to trade strongly since our year end and our pipeline of new loan opportunities remain at a historically high level.   We are supported by the improving property and construction sectors, the latter of which has experienced its strongest growth phase for circa six and half years, driven by the easing of COVID-19 restrictions which has led to increased activity in housing and other commercial developments1

 

"The Group continues to be well placed to benefit from these opportunities to further grow revenue, profits and dividends and we are on track against our strategy to establish ourselves as the go to lender of choice in our market segment.  The Board is confident of the Group's continued success."

 

1 Source: IHS Markit

 

 

Enquiries

 

Vector Capital Plc

Agam Jain

 

c/o TB Cardew

Allenby Capital Limited

James Reeve/George Payne (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

[email protected]

 

 

 

About Vector Capital:

 

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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