17 January 2024

Vector Capital plc

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

Update on the Aggregate Loan Book and Inter-Company Loan Balance

Vector Capital plc (AIM: VCAP), the commercial lending group that offers secured loans to property developers and investors in England & Wales, is pleased to provide the following update on the Group's aggregate loan book at 31 December 2023, and its inter-company loan balance with Vector Holdings Limited.

Aggregate Loan Book

As expected, the Group's aggregate loan book at 31 December 2023 was £48.9 million, compared with a balance of £53.4 million at 31 December 2022. The lower balance reflects the Group's focus on caution and stability for the year, in what have clearly been challenging market conditions. Despite this cautious approach, the Group's loan pipeline remains strong, and it has debt finance facilities of £45 million provided by its principal wholesale lenders, of which £27.8 million was undrawn at the year end and is available for deployment. In addition to the inter-company loan from Vector Capital Holdings Limited referred to below, the Group has also received £2 million from smaller third-party lenders.

The number of live loans at the year-end rose slightly to 108, from 107 at 1 January 2023 and the average loan value continued to fall in line with the previously communicated more prudent approach from £499,000 to £452,500 at the end of the year.

Intercompany Loan Reduction

At a Company Board meeting on 17 January 2024, following a request from Vector Holdings Limited, and in accordance with the terms of the Vector Holdings Limited inter-company loan agreement, the Company agreed to repay £500,000 of the £4 million loan (the "Transaction"). The terms of the loan remain unchanged for the remaining term of the loan to 31 December 2024.

The balance of the inter-company loan of £3.5 million will continue to provide the Company with competitively priced finance that can 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 Capital, is a controlling shareholder of Vector Holdings Limited along with his immediate family. Accordingly, the partial repayment 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 partial repayment of the inter-company loan to be fair and reasonable in so far as the Company's shareholders are concerned.

Agam Jain, CEO of Vector Capital Plc, commented: "Throughout the year, we have managed our loan book well. With the decline in inflation and more optimistic expectations regarding the timing of interest rate reductions, we expect our aggregate loan book to resume its upward trajectory from previous years. Demand for our loans remaining strong and we look forward to 2024 with renewed confidence."

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 predominately 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.