Time Finance Profit Before Tax up 172%

Time Finance plc (LON:TIME), the AIM listed independent specialist finance provider, has provided a trading update for the nine-months ended 28 February 2023. These results reflect the continued success of streamlining the Group to focus on core, own-book lending to UK businesses; with significant increases now being seen in the lending book, revenues and profits and across other key performance indicators.

Unaudited financial highlights:

·    Own-Book lending origination up 34% to £52.9m (As at Q3 2021/22: £39.5m)

·    Revenue up 28% to £20.0m (As at Q3 2021/22: £15.6m)

·    Profit Before Tax (“PBT”) up 172% to £3.0m (As at Q3 2021/22: £1.1m)

·   Strong visibility of future earnings with unearned income up 30% to £19.4m as at 28 February 2023 (28 February 2022: £14.9m)

·    Gross lending-book up 26% to £157.2m as at 28 February 2023 (28 February 2022: £124.6m)

·    Net Arrears reduced to 6% of the gross lending book as at 28 February 2023 (28 February 2022: 8%)

·    Net Tangible Assets up 12% to £33.0m (28 February 2022: £29.5m)

·    Continued positive trading momentum throughout Q3 of 2022/23 has given the Board further confidence that full-year trading will now be further ahead of the latest market expectations1, with PBT for the full year now expected to be not less than £3.6m

The increase in revenue continues to be driven primarily by growth in both the Invoice Finance division and the ‘Hard Asset’ subset of the Asset division. Both growth areas operate in the larger-ticket, more secured lending arena. This is reflective of the previously stated strategic focus on increasing the Group’s average deal size and, where appropriate, taking greater security on lending.

The Group will provide an update on trading for the full year to 31 May 2023 in late June 2023.

Ed Rimmer, Chief Executive Officer commented:

“I am delighted to report that the Group’s ongoing trading performance during Q3 has enabled the Board to confirm that the expected results for the full-year to 31 May 2023 are being further uplifted. This is the second time since the start of the calendar year that these have been raised, bearing testament to the successful implementation of our Medium-Term Strategy.

“Despite the well-publicised wider macro-economic ‘headwinds’, the Group has continued to grow at a faster rate than expected, demonstrating that demand for finance from UK businesses is robust. The Group’s multi-product tailored offering to UK SMEs, its own-book lending strategy and its quality of service have become ever more appreciated by our introducers and I am confident that we can deliver increasing value for our shareholders”.

1.     FY23 market expectations at time of announcement of £25.7m of revenue and £3.2m of PBT.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Time Finance plc

More articles like this

Time Finance plc

Cash flow forecasting best practices for 2024:

No matter what sector you work in, cash flow shortages can cause plenty of stress.  Whether that’s issues paying suppliers, looming overheads, or trying to retain savings, cash flow management can help. The outlook for the current

Time Finance plc

Empowering women in finance: Insights from Time Finance

This International Women’s Day we sat down with the incredible women making a difference across Time Finance, who share their experience of working in an industry perceived to be male dominated, and how they have inspired

Time Finance plc

Time Finance notable Profit Surge and Promising Future

Time Finance shines with a notable profit surge and insider buying, indicating robust growth and financial health. A deep dive into its promising future. As investors constantly seek out companies with strong growth prospects and financial

Time Finance plc

Empowering SMEs for economic strength and growth

As the Government rolls out its Help to Grow campaign, designed to boost small businesses across the UK, our Chief Executive, Ed Rimmer, explores the measures that will help the business community and shares his thoughts on

Time Finance plc

Time Finance reports Record Lending Book of £188.6m

Following several months of sustained growth, alternative finance lender Time Finance reported a record lending book of £188.6m for the six months ending November 2023. This was a 23% increase on the previous 12 months. Time

Time Finance plc

The balance of investing in the workforce

Apprenticeships have been the cornerstone of workplace training since the 16th century, and have helped nurture skills for countless industries. But in the modern business landscape, how do smaller businesses continue to invest in this vital