VCAP Vector Capital Plc

TIDMVCAP

RNS Number : 0881A

Vector Capital PLC

22 May 2023

22 May 2023

Vector Capital Plc

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

Quarterly trading update

"Stability, caution and resilience during a period of rising interest rates"

Vector Capital Plc (AIM: VCAP), a commercial lending group that offers secured loans to property developers and investors in England & Wales, is pleased to provide an update on the Group's loan book and a trading update for the quarter ended 31 March 2023.

Loan book summary

As summarised below, the Company's loan book at 31 March 2023 was GBP48.6m (average for the three months period was GBP51m), reflecting planned redemptions of GBP7.8m and new loans advanced of GBP3m during the period. The overall average loan to value at the period end was 57.2%.

 
                    As at 31/03/23  As at 31/12/22  As at 31/12/21 
Loan book                 GBP48.6m        GBP53.4m        GBP46.3m 
Number of live 
 loans                         102             107              79 
Average loan size       GBP476,000      GBP499,000      GBP586,000 
Average loan to 
 value                       57.2%           60.0%           53.5% 
 

Trading update

As indicated in our 2022 Annual Report, the Board sees 2023 as a year of consolidation where the Company will seek to strengthen its position in a lending market which is still being impacted by increasing interest rates and persistent inflation. Vector Capital is well placed to withstand these issues with a strong balance sheet, excellent relationships with its broker network and the continued backing from wholesale and specialist lenders.

The Company has been more cautious on new lending as higher interest rates impact borrower affordability. Redemptions have materialised as due, which is pleasing in the current environment, and enquiry levels and pipeline remain strong.

Agam Jain, CEO of Vector Capital added: "I am pleased with our Q1 2023 trading performance in the context of the planned redemptions and new loans advanced during the period. While at the margins some borrowers are struggling to adapt to the current market conditions, and transactions are generally taking longer to close, our pipeline of new loan opportunities is encouraging. We have the proven strength and resilience of the loan management systems, and the backing of our wholesale funders that underpins our ability to re-start the growth trajectory once interest rates stabilise."

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.

For further information please contact:

 
Vector Capital plc                              c/o IFC Advisory 
Robin Stevens (Chairman) 
Agam Jain (CEO) 
 
 
  WH Ireland Limited                               020 7220 1666 
Hugh Morgan, Chris Hardie, Darshan Patel 
 
IFC Advisory Limited                               020 3934 6630 
Graham Herring, Florence Chandler, Zach Cohen 
 

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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