Vector Capital Plc (LON:VCAP), a commercial lending group that offers secured loans primarily to businesses located in England and Wales, has announced its interim results for the six months ended 30 June 2023.
Highlights
| · | Revenue for the period £2.9m (H1 2022: £3.0m) reflecting a prudent approach to new lending. |
| · | Profit before tax £1.3m (H1 2022: £1.6m) reflecting an increase in the doubtful debt reserve of £167,000 and an inflationary effect on overheads. |
| · | Loan book at 30 June 2023 £48.8m (December 2022: £53.2m), as a result of net redemptions during the period. |
| · | Interim dividend of 1.00p per share (2022: 1.00p), recognising a resilient performance in challenging market conditions. |
Operational Highlights
| · · | Increase in wholesale banking facilities from £40m to £45m during the period. Extended and more flexible facilities to allow greater capacity for loans secured on second charges. |
| · | Continued investment in the technology platform to improve operational resilience and efficiency. |
| · | Further engagement in staff training and development. |
| · | Best practice ESG policies in place to support responsible lending and encourage sustainability across the business. |
Agam Jain, CEO of Vector Capital, commented: “We are very pleased to report a robust set of interim results. The trading climate for the first six months of this year has been set by the backdrop of historic base rate rises from 0.10% in March 2020 to 5% in June 2023, and now 5.25 %. For those borrowers experiencing difficulty, our approach is to be flexible and supportive where we believe that the circumstances justify this methodology.
Our strategy this year has been to seek to maintain higher liquidity, with a correspondingly lower loan book and reduced wholesale borrowings. To the extent that we lend our own capital we can now earn a much higher return than previously. We have a strong capital base which provides the Board with a high level of confidence that we can weather continued or increased economic headwinds.
Our pipeline is healthy with a steady stream of enquiries from our Broker network allowing us to pick and choose the deals that suit us.”
