Time Finance plc (LON:TIME) the AIM listed independent specialist finance provider, has issued the following trading update for the twelve months ended 31 May 2023. The results reflect the success of the Company’s continued focus on own-book lending to UK businesses, with the Lending Book reaching an all-time high of c£169m as at 31 May 2023. Significant increases have also been achieved in revenue, profit and across other key performance indicators.
Unaudited financial highlights:
· Own-Book lending origination up 14% to £73.4m (FY 2021/22: £64.4m)
· Revenue increased 16% to £27.4m (FY 2021/22: £23.6m)
· 273% increase in Profit Before Tax (“PBT”) to £4.1m (FY 2021/22: £1.1m)
· 250% increase in Earnings Per Share up to 3.5 pence per share (FY 2021/22: 1.0pps)
· Strong visibility of future earnings with unearned income up 24% to £20.7m as at 31 May 2023 (31 May 2022: £16.7m)
· Gross lending-book up 23% to £168.9m as at 31 May 2023 (31 May 2022: £136.8m)
· Net Arrears reduced to 6% of the gross lending book as at 31 May 2023 (31 May 2022: 7%)
· A prudent increase in the Credit Risk Provision to £4.2m as at 31 May 2023 (31 May 2022: £3.6m)
· Net Tangible Assets up 11% to £33.9m as at 31 May 2023 (31 May 2022: £30.5m)
· Supportive, long-term funding partners with unused lending headroom of approximately £50m at year-end
The significant increase in revenue has been driven primarily by growth in the Invoice Finance division and the ‘Hard Asset’ subset of the Asset division. Both of these growth areas operate in the larger-ticket, more secured lending space. The performance highlights the effectiveness of the strategic focus on increasing the Group’s average deal size and, where appropriate, taking greater security on lending.
The Group will publish its audited Annual Report and Financial Statements on 26 September 2023.
Ed Rimmer, Chief Executive Officer commented:
“I am delighted to report these full-year results which demonstrate the successful implementation of the Group’s Medium-Term Strategy. Two years in, we remain on track to achieve our four-year plan’s stated targets.
I am also very pleased to confirm that the significant growth achieved during the year has been made whilst continuing to generate appropriate margins, control credit and spread risk. To have delivered such growth, despite much publicised, wide-ranging and challenging macroeconomic factors, is testament to the hard work of our team, the investments we have made over the last few years which are starting to have a very positive impact, and to the continued robust nature of demand for finance from UK businesses.
We have built strong foundations for continued growth. The Board is committed to further increasing shareholder value through the delivery of its stated strategy and continues to look forward with cautious optimism.”
