13th Dec 2022 14:49
Vector Capital PLC - London-based commercial lending group - Expects revenue, pretax profit for 2022 and the aggregate loan book at the year-end to be in line with expectations. "Whilst external borrowing costs have begun to rise on new loans, the company has been able to pass on the majority of these increases to customers and in some cases reduce gearing to maintain margins", Vector Capital notes. Says it has undertaken a review of its lending book and believes it would be prudent to "make a provision of approximately GBP200,000 for doubtful debts for the current year which may or may not be required". Vector says the demand for new loans remains strong, and the GBP5 million increase in debt facilities provided by wholesale lenders in the second half of the year to an aggregate of GBP40 million, will help it continue to grow its loan book.
Chief Executive Officer Agam Jain says: "We are pleased that our business model has remained resilient despite the uncertain conditions that have developed during the year and that demand for our loans remains strong from within our proven introducer base. We have taken what we believe to be a prudent step to recognise the potential impact of current interest rates and cost pressures on borrowers within the provision and we will, as always, endeavour to maximise collections."
In September, the company had reported revenue for six months to June 30 rose to GBP3.0 million from GBP2.5 million a year before. Pretax profit improved to GBP1.6 million from GBP1.3 million. It noted that loan book at end of period was GBP51.6 million, up from GBP46.3 million at end of December and GBP40.6 million a year ago.
Current stock price: 43.55 pence, down 10% on Tuesday in London
12-month change: down 10%
By Xindi Wei, Alliance News reporter
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