Vector Capital plc (LON:VCAP), a commercial lending group that offers secured loans primarily to businesses located in the United Kingdom, has announced its audited results for the financial year ended 31 December 2023.
Highlights
| · | Continued growth in shareholders equity with a maintained dividend and prudent bad debt provision policies |
| · | Loan book £47.9m with average loan £453k (FY22: £53.2m and £499k, respectively) |
| · | Revenue £5.7m (FY22: 5.9m) |
| · | Profit before tax (excluding bad debt provisions) of £2.8m (FY22: £3.0m) |
| · | Profit before tax of £2.1m (FY22: 2.8m) |
| · | Unutilised wholesale loan facilities available of £27.8m (FY22: £14.9m) |
| · | Net assets £25.5m (FY22: £25.1m) |
| · | Net asset value per share 56 pence (FY22: 55 pence) |
| · | Proposed final dividend 1.53 pence per share (FY22: 1.53 pence) |
Agam Jain, CEO of Vector Capital, commented: “I am pleased to present our 2023 results. Our Board and operational team are experienced, efficient and focused on maintaining financial prudence and profitability.We decided as part of our strategy to marginally reduce loan book size so as to maintain higher reserves and liquidity. The increased costs of borrowing from our bank providers has meant that our margins on debt finance have been squeezed as the borrowing costs overall have risen by 3% p.a. during the year. and it was not always pragmatic to pass the entire increase on to our borrowers. However, the higher rates have enabled a better return on the Group’s own capital which has mitigated the squeezed margin on money from the banks.
The demand for our loans remains high; however, we have chosen not to grow the loan book this year but maintain higher liquidity. We have also not sought an increase in our debt facilities which remain at £45m in 2023.
We expect base rates to start the move downwards during mid-2024. At that point we will review the scenario to get back to loan book growth. We have a strong capital base and a talented team to perform well in our market. We look forward to 2024 with more confidence.
Notice of AGM
Vector Capital plc announces that the Company has posted to shareholders copies of its annual report and accounts for the year ended 31 December 2023, along with notice of the Company’s annual general meeting to be held at 6th Floor, First Central 200, 2 Lakeside Drive, London NW10 7FQ, on 16 May 2024 at 11.00am. A copy of the annual report and accounts and AGM notice are available from the Company’s website, www.vectorcapital.co.uk .
Attendance at the AGM
Shareholders are invited to attend the AGM in person, due to space restrictions the Company requests that Shareholders confirm their attendance in writing to [email protected].
Voting at the AGM
Shareholders are permitted to appoint a proxy by filling in the proxy form accompanying the AGM notice. The Company recommends the use of the Chairman as proxy.
Questions at the AGM
Shareholders may put a question to the board of directors of the Company by submitting their questions to the Chairman during the AGM in accordance with the Company’s regulatory obligations, no material new information will be provided in the responses to questions.
Final dividend declaration
The Board is pleased to announce a final dividend for the year ended 31 December 2023 of 1.53 pence per share subject to approval at the Company’s Annual General Meeting:-
| Dividend: | 1.53p per share |
| Ex-Dividend Date: | 16 May 2024 |
| Record Date: | 17 May 2024 |
| Payment Date: | 3 June 2024 |
Related party transaction
The Board is pleased to announce that the inter-company debt of £3.5 million, at the date of this announcement, provided by Vector Holdings Ltd at a rate of 6.25% has been extended by a further 24 months from its current expiry date of 31 December 2024 to 31 December 2026. This is an extension of the loan agreement entered into on 12 November 2020 and subsequently amended on 28 December 2022. All other terms of the loan remain unchanged.
– Vector Holdings is the parent company of the Group and holds a 75% interest in the Company. Mr Agam Jain, a director of Vector Capital, is a controlling shareholder of Vector Holdings along with his immediate family. Accordingly, the renewal of the inter-company debt 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 revised terms of the loan to be fair and reasonable in so far as the Company’s shareholders are concerned.
