2nd Aug 2024 14:09
(Alliance News) - Vector Capital PLC on Friday said revenue and pretax profit decreased during the first half of 2024, driven by a sustained "cautious" approach to new lending.
The Berkhamsted, England-based company is a commercial lending firm that offers secured loans to UK businesses.
For the six months that ended June 30, Vector Capital reported a 46% decline in pretax profit to GBP707,000 from GBP1.3 million a year prior.
Revenue fell 14% to GBP2.5 million from GBP2.9 million a year before.
In light of this, the firm announced a tender offer to buyback up to 11.2 million shares at a price of 33 pence each, representing GBP3.7 million.
Vector Capital shares were up 15% to 31.72 pence each in London on Friday afternoon.
Chief Executive Officer Agam Jain commented: "This will reduce the company's ability to expand its loan book in the short to medium term, but in view of the generally challenging market conditions and limited expectations for expansion at our previously intended rate, we believe it is important to provide shareholders with the opportunity to withdraw their investment and re-invest in the market as they think fit."
Looking ahead, the firm said it hopes to return to a growth pattern "when market conditions improve".
By Lydia Doye, Alliance News reporter
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