Vector Capital Plc (LON:VCAP), a commercial lending group that offers secured loans to property developers and investors in England & Wales, has provided an update on the Group’s loan book and a trading update for the quarter ended 31 March 2023.
Loan book summary
As summarised below, the Company’s loan book at 31 March 2023 was £48.6m (average for the three months period was £51m), reflecting planned redemptions of £7.8m and new loans advanced of £3m during the period. The overall average loan to value at the period end was 57.2%.
| As at 31/03/23 | As at 31/12/22 | As at 31/12/21 | |
| Loan book | £48.6m | £53.4m | £46.3m |
| Number of live loans | 102 | 107 | 79 |
| Average loan size | £476,000 | £499,000 | £586,000 |
| Average loan to value | 57.2% | 60.0% | 53.5% |
Trading update
As indicated in our 2022 Annual Report, the Board sees 2023 as a year of consolidation where the Company will seek to strengthen its position in a lending market which is still being impacted by increasing interest rates and persistent inflation. Vector Capital is well placed to withstand these issues with a strong balance sheet, excellent relationships with its broker network and the continued backing from wholesale and specialist lenders.
The Company has been more cautious on new lending as higher interest rates impact borrower affordability. Redemptions have materialised as due, which is pleasing in the current environment, and enquiry levels and pipeline remain strong.
Agam Jain, CEO of Vector Capital added: “I am pleased with our Q1 2023 trading performance in the context of the planned redemptions and new loans advanced during the period. While at the margins some borrowers are struggling to adapt to the current market conditions, and transactions are generally taking longer to close, our pipeline of new loan opportunities is encouraging. We have the proven strength and resilience of the loan management systems, and the backing of our wholesale funders that underpins our ability to re-start the growth trajectory once interest rates stabilise.”
