20 December 2023

Vector Capital plc

("Vector", the "Company" or the "Group")

Trading Update

"Trading in line with market expectations and interest rate on Inter Company Loan"

Vector Capital plc (AIM: VCAP), the commercial lending group that offers secured loans primarily to businesses located in the United Kingdom, is pleased to provide the following update on trading for the year ending 31 December 2023.The Company also provides confirmation of the interest rate payable on an inter-company loan.

Current Trading

The Group has continued to trade positively during the second half of the year, continuing the trend in its interim results, and the Board expects revenue, profit before tax for the full year and the aggregate loan book at the year-end to be in line with market expectations. Despite continued challenging conditions for many of our customers, and the relentless increase in interest rates earlier in the year, the Company has been able to generate new lending opportunities from our introducer base, and work with our existing clients to maintain profitable trading margins. The Board will continue to make prudent provision for doubtful debts within the full year financial statements. Demand for new loans remains strong and the Company expects to announce its full year results and recommend a final dividend for the year ended 31 December 2023 in early April 2024.

Intercompany Loan Interest Rate

At a Company Board meeting on 19 December 2023, in accordance with the terms agreed on 28 December 2022, it was decided that the interest rate on the Vector Holdings Limited inter-company loan, currently standing at £4 million, will remain unchanged at 6.25 percent for the remaining term of the loan to 31 December 2024. The interest accrues daily and is payable quarterly on the last business day of March, June, September, and December

The loan continues to provide the Company with medium term competitively priced finance that can continue to be employed to grow the loan book.

Related Party Transaction

Vector Holdings Limited is the parent company of the Group and holds a 75.1 per cent. interest in the Company. Mr. Agam Jain, a director of Vector, is a controlling shareholder of Vector Holdings Limited along with his immediate family. Accordingly, the renegotiation of the inter-company loan is deemed to be a related party transaction pursuant to AIM Rule 13 of the AIM Rule for Companies.

The Company's Directors (excluding Mr. Agam Jain, who is directly related to this transaction), having consulted with Vector Capital's Nominated Adviser, WH Ireland Limited, consider the renegotiated terms of the loan to be fair and reasonable in so far as the Company's shareholders are concerned.

Agam Jain, CEO of Vector Capital Plc commented: "Our business model and loan management systems have demonstrated resilience throughout the challenging conditions of the last two years which has allowed us to continue to lend with confidence from our strong asset base. With demand for our loans remaining strong we look forward to 2024 with cautious optimism."

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Enquiries

Vector Capital plc                                                                                              

Robin Stevens (Chairman)                                                                                   Via IFC below

Agam Jain (CEO)

WH Ireland Limited                                                                                           020 7220 1666

Hugh Morgan Chris Hardie, Darshan Patel

IFC Advisory Limited                                                                                       020 3934 6630

Graham Herring, Florence Chandler, Zach Cohen

Notes to Editors

Vector Capital Plc provides secured, business-to-business loans to SMEs based principally in England and Wales. Loans are typically secured by a first legal charge against real estate. The Group's customers typically borrow for general working capital purposes, bridging ahead of refinancing, land development and property acquisition. The loans provided by the Group are typically for renewable 12-month terms with fixed interest rates.