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Time Finance reports record growth and outlines 2028 strategy

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Time Finance plc, the AIM-listed independent specialist finance provider, has announced its unaudited interim results for the six months ended 30 November 2024, showcasing record-breaking performance and unveiling a bold corporate strategy aimed at driving the Group’s growth through to May 2028.

The results highlight robust demand for the Group’s alternative finance products from UK businesses, with key metrics reflecting significant financial and operational progress. Revenue for the period rose 16% to £18.2 million, up from £15.7 million in the same period last year. Profit before tax saw an even sharper increase, climbing 44% to £3.9 million, compared to £2.7 million in H1 2023/24, while the profit before tax margin improved from 17% to 21%. This growth translated into a 39% rise in earnings per share to 3.24 pence.

The Group’s lending book reached a record £209.4 million, up 11% year-on-year, reflecting fourteen consecutive quarters of growth. Net assets increased by 8% to £69.0 million, and net tangible assets rose 14% to £41.5 million, underscoring the Group’s strong financial position. Lending quality remained high, with net deals in arrears falling to 5% of the lending book and net bad debt write-offs stable at just 1% of the average lending book.

Operationally, the Group continued to focus on risk management and operational efficiencies. This included strengthening its senior management team and securing extended funding facilities, such as a £65 million back-to-back Invoice Finance facility with NatWest and a £64 million Asset Finance facility with the British Business Bank. These moves further underpin the Group’s capacity for sustainable growth.

Time Finance also used the announcement to unveil its updated corporate strategy, which builds on the success of its medium-term plan launched in 2021. Having achieved its earlier goals of doubling the lending book and strengthening profitability, the Company now targets a lending book exceeding £300 million by May 2028, with ambitions to improve PBT margins to the mid-twenty percent range and drive return on equity to the mid-teens. The strategy emphasises resilient lending practices, ensuring that arrears and write-offs remain at current controlled levels, while operational leverage enhances profitability.

Tanya Raynes, Non-Executive Chair of Time Finance, expressed confidence in the Group’s continued momentum:

“H12024/25 marks another period of strong financial performance and delivery against our strategic plan. Demand from UK SMEs remained robust helping drive the Lending Book to record highs and, while Revenues continue to grow, our focus on efficiencies has resulted in even more significant growth in both Profits and EPS. Net Tangible Assets are at record highs, and cash reserves and funding sources remain solid, while arrears and write-offs are well controlled.”

“The Group remains in an excellent position to deliver further growth and increased value to our shareholders, and we are pleased to launch the pillars of the Group’s updated corporate strategy targets in this regard.”