To the year ended 31 December 2020, Vector Capital has delivered a robust performance, in line with management expectations, despite the impact of COVID-19, particularly during the months of April to June, when prudent action was taken to cease new loans.

The company recommenced the provision of new loans in June 2020 and has subsequently experienced strong demand with increased levels of new business origination. As a consequence, the company’s loan book, a key driver for revenue generation, grew to £36.4 million as at 31 December 2020, an increase of 8.2% (FY2019: £33.6m).

Vector Capital had 63 live loans at the year end with an average loan size of approximately £577,000 and an average loan to value (LTV) of 44.2%.

The company’s shares were admitted to trading on AIM on 29 December 2020 and the company raised gross proceeds of £3.1m at that time.

The net proceeds will be used to further grow the Group’s loan book and meet demand for short term loans which are typically used for general working capital purposes, bridging ahead of refinancing, land development and property acquisition.

Subject to completion of the 2020 audit, the Group generated growth in revenue during the year with revenue expected to be c. £4.3m, an increase of c. 20% (FY2019: £3.6m).

At 31 December 2020, the Group’s cash balances were £2.57m (FY2019: £0.34m).

The company expects to announce its results and declare its final dividend for the year ended 31 December 2020 in early April 2021.

Agam Jain, CEO of Vector Capital, commented: “We are pleased to report on the excellent performance of the Group, which has been delivered during a very challenging economic environment.

“Our resilient business model has enabled us to deliver on our strategy and it is pleasing to see strong demand for new loans and new business opportunities arising. In addition to this, our recent fundraising, combined with existing bank facilities of £25m means we are well placed to build upon a robust foundation to scale the business and support future growth.”