Vector Capital plc (LON: VCAP), a commercial lending group that offers secured loans primarily to businesses located in the United Kingdom, has announced its final results for the year ended 31st December 2021.
Highlights
| · | Loan book growth of 27.2% to £46.3m (FY20: £36.4m) |
| · | Revenue growth of 22.0% to £5.3m (FY20: £4.3m) |
| · | PBT growth up 20.4% to £2.8m (FY20: £2.3m) |
| · | EPS of 5.24p (FY20: 5.58p) |
| · | Proposed final dividend for the year of 1.51p per share (FY20: 1.43p) |
Agam Jain, CEO of Vector Capital, commented: ” We have delivered an excellent performance in the year under review and achieved strong growth across our key performance indicators, Including impressive growth of 27.2% in our loan book to £46.3m.We continue to grow and explore further options to expand our loan book, maximise shareholder returns and further establish our place in the market segment.
Subject to the approval of shareholders at the Company’s annual general meeting, the Directors are proposing a final dividend of 1.51p per share (2020: 1.43p), reflecting the Boards aim to reward investors with a progressive dividend policy. The dividend timetable will be announced at the time of posting of the AGM notice.
CHAIRMAN’S STATEMENT
I’m delighted to present our 2021 Annual Report and Accounts, which reflect the results of the continued growth in Vector’s loan book, the extension of our network of business introducers and the creation of a strong and growing presence in our chosen market, being the provision of secured loans to the SME sector. Vector’s customers are mainly small property developers operating in England who buy properties to develop or refurbish and then re-sell.
Having achieved admission to the AIM market in December 2020, the Company returned to the market in June 2021 to raise a further £1.5m from shareholders which was applied to grow the loan book, together with retained profits, increased wholesale bank facilities of £35m and finance received from co-lending arrangements. This deployment of debt and equity facilities is reflected in the Group’s outstanding results for the year, achieving revenue growth of 22.0% to £5.3m, an increase in profits before tax of 20.4% to £2.8m, and a 27.2% rise in the value of the loan book from £36.4m to £46.3m. Such growth is also attributable to the efforts and abilities of the operational team, the strength of the underlying loan management systems and the robust nature of the Vector business model.
We are keen to build on these strong foundations and to continue to grow the loan book utilising our own resources and the external facilities provided by our wholesale lenders. However, we are also fully aware of the attendant risk and uncertainty arising from the economic and financial implications in the post COVID-19 pandemic era and the outlook for the UK economy where inflation and higher interest rates are going to be with us for the foreseeable future. We continue to factor in these risks and uncertainties as we progress our strategies in the coming months and beyond, building on our team’s considerable experience, and we will report on progress on a timely and open basis.
As a Board we are also mindful and accepting of our responsibilities to act responsibly and ethically in all we do, and to follow the core principles of corporate governance set out in the Quoted Company Alliance Code. These principles will be followed in all we do as a public company. We also recognise our wider environmental, social and governance responsibilities to shareholders and other stakeholders and we have developed, from what we believe to be market best practice, underlying principles and developing procedures to address these important issues. Details of our ESG policies and procedures, aimed principally at responsible lending and encouraging sustainability and avoidance of waste in all we do, are set out on the Company’s website, www.vectorcapital.co.uk.
The results for the period were only possible due to the efforts of Vector’s employees and my fellow Board members and considerable thanks are due to them. I am delighted that post the year end we were able to welcome to the Board Gordon Robinson, a banking professional steeped in relevant operational and business development experience in the lending sector, as our third non-executive Director.
We are also indebted to our business partners, our past and current advisers and of course our shareholders, with whom we look forward to a continuing and rewarding relationship. This relationship is in part reflected in our proposed final dividend for the year of 1.51 pence per share, an increase of 0.08 pence (5.59%) over 2020, consistent with our stated intention to adopt a progressive dividend policy.
I am confident that we have the skills, strategy and experience to navigate the economic challenges that will surely arise and to capitalise on the market opportunities that exist, and thereby continue our growth through 2022.
Robin Stevens
Chairman
22 April 2022
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.
