Trading Update

RNS Number : 4534J

Vector Capital PLC

13 December 2022

 

Vector Capital plc

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

Trading Update

"In line with 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 the following update on the Board's expectations for trading for the year ending 31 December 2022.

The Group's has continued its positive operational performance, as outlined in its interim results, and the Board expects revenue, profit before tax for the full year and the aggregate loan book at the year-end to be in line with market expectations. Whilst external borrowing costs have begun to rise on new loans, the Company has been able to pass on the majority of these increases to customers and in some cases reduce gearing to maintain margins.

Despite the Group's own resilience in these challenging economic and financial conditions, certain borrowers have been adversely affected by delays in completions, supply chain and cost issues and a general softening of values in the residential property market. Accordingly, the Board has undertaken a review of our lending book and believe it would be prudent to make a provision of approximately £200,000 for doubtful debts for the current year which may or may not be required. Recovery of all debts will continue to be actively progressed.

Current trading

The demand for new loans remains strong and , as already announced, the Board is pleased that a £5 million increase in debt facilities provided by our wholesale lenders in the second half of the year to an aggregate of £40 million, will help Vector continue to grow its loan book.

The Company expects to announce its results and recommend a final dividend for the year ended 31 December 2022 in early April 2023.

Agam Jain, CEO of Vector Capital Plc commented : "We are pleased that our business model has remained resilient despite the uncertain conditions that have developed during the year and that demand for our loans remains strong from within our proven introducer base. We have taken what we believe to be a prudent step to recognise the potential impact of current interest rates and cost pressures on borrowers within the provisionand we will, as always, endeavour to maximise collections."

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     

Robin Stevens (Chairman)    020 8191 7615

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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