Vector Capital PLC Update on the Aggregate Loan Book (9118Z)
January 17 2024 - 2:00AM
UK Regulatory
TIDMVCAP
RNS Number : 9118Z
Vector Capital PLC
17 January 2024
17 January 2024
Vector Capital plc
("Vector Capital", the "Company" or the "Group")
Update on the Aggregate Loan Book and Inter-Company Loan
Balance
Vector Capital plc (AIM: VCAP), the commercial lending group
that offers secured loans to property developers and investors in
England & Wales, is pleased to provide the following update on
the Group's aggregate loan book at 31 December 2023, and its
inter-company loan balance with Vector Holdings Limited.
Aggregate Loan Book
As expected, the Group's aggregate loan book at 31 December 2023
was GBP48.9 million, compared with a balance of GBP53.4 million at
31 December 2022. The lower balance reflects the Group's focus on
caution and stability for the year, in what have clearly been
challenging market conditions. Despite this cautious approach, the
Group's loan pipeline remains strong, and it has debt finance
facilities of GBP45 million provided by its principal wholesale
lenders, of which GBP27.8 million was undrawn at the year end and
is available for deployment. In addition to the inter-company loan
from Vector Capital Holdings Limited referred to below, the Group
has also received GBP2 million from smaller third-party
lenders.
The number of live loans at the year-end rose slightly to 108,
from 107 at 1 January 2023 and the average loan value continued to
fall in line with the previously communicated more prudent approach
from GBP499,000 to GBP452,500 at the end of the year.
Intercompany Loan Reduction
At a Company Board meeting on 17 January 2024, following a
request from Vector Holdings Limited, and in accordance with the
terms of the Vector Holdings Limited inter-company loan agreement,
the Company agreed to repay GBP500,000 of the GBP4 million loan
(the "Transaction"). The terms of the loan remain unchanged for the
remaining term of the loan to 31 December 2024.
The balance of the inter-company loan of GBP3.5 million will
continue to provide the Company with competitively priced finance
that can be employed to grow the loan book.
Related Party Transaction
Vector Holdings Limited is the parent company of the Group and
holds a 75.1 per cent. interest in the Company. Mr. Agam Jain, a
director of Vector Capital, is a controlling shareholder of Vector
Holdings Limited along with his immediate family. Accordingly, the
partial repayment of the inter-company loan is deemed to be a
related party transaction pursuant to AIM Rule 13 of the AIM Rule
for Companies.
The Company's Directors (excluding Mr. Agam Jain, who is
directly related to this Transaction), having consulted with Vector
Capital's Nominated Adviser, WH Ireland Limited, consider the
partial repayment of the inter-company loan to be fair and
reasonable in so far as the Company's shareholders are
concerned.
Agam Jain, CEO of Vector Capital Plc, commented : " Throughout
the year, w e have managed our loan book well. With the decline in
inflation and more optimistic expectations regarding the timing of
interest rate reductions, we expect our aggregate loan book to
resume its upward trajectory from previous years. Demand for our
loans remaining strong and we look forward to 2024 with renewed
confidence."
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) Via IFC below
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
Notes to Editors
Vector Capital plc provides secured, business-to-business loans
to SMEs based principally in England and Wales. Loans are
predominately 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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