Time Finance reports strong growth in FY2024

Time Finance, an independent specialist finance provider, has announced its final results for the financial year ending 31 May 2024. The Group reported significant increases in key financial metrics, including a 20% rise in revenue, a 41% increase in profit before tax (PBT), and a 30% uplift in earnings per share (EPS).

These strong results underscore the success of Time Finance’s four-year strategic plan, now in its third year, which has allowed the company to weather broader economic challenges and deliver performance ahead of market expectations.

Financial highlights include:

• Revenue: £33.2 million (FY 2023: £27.6 million), a 20% year-on-year increase.
• Profit before tax: £5.9 million (FY 2023: £4.2 million), up by 41%.
• Earnings per share (fully diluted): 4.8 pence per share (FY 2023: 3.7 pence), representing a 30% increase.
• Own-book deal origination: £91.6 million (FY 2023: £73.4 million), a 25% growth.
• Lending book: £201.2 million as of 31 May 2024 (FY 2023: £170.1 million), up by 18%.
• Net tangible assets: £38.6 million (FY 2023: £34.2 million), a 13% increase.
• Net arrears: 5%, down from 6% the previous year.
• Bad debt write-offs: Reduced to 1% of the average lending book (FY 2023: 2%).

“The Group’s financial performance, over the third year of our four-year strategy, was particularly strong. Despite wider macro-economic headwinds, revenue, profit and earnings per share all saw double-digit growth, with revenue and profit ahead of market expectations. At the same time, the Group’s Balance Sheet has continued to strengthen with the lending book and Net Tangible Assets hitting record highs at 31 May 2024 and growing further still through the current financial year. As a result, we remain confident in achieving the targets we set in our 2021 strategic plan.”

Time Finance’s two core divisions, Asset Finance and Invoice Finance, showed robust growth. The Invoice Finance division expanded its lending book by 16% to £65 million, while the Asset Finance division, particularly in its Hard Asset offering, grew by 37% to £85 million. Furthermore, the company’s focus on “own-book” lending reached 97% compared to just 3% in broked-on lending, demonstrating a stronger reliance on internal funding.

The Group also received approval as an accredited lending partner under the UK Government’s Growth Guarantee Scheme, further enhancing its financial position with over £65 million in lending headroom available as of 31 May 2024.

“Great strides forwards have been taken in both of our core divisions – Asset Finance and Invoice Finance – which have seen significant increases in their lending books while, crucially, adhering to strong portfolio management and control. Our brand has continued to grow and be enhanced within our key introducer base and the focus on recruiting high-calibre staff has continued. The Group, therefore, remains very well positioned and there is real optimism in our ability to continue to increase shareholder value.”

The Board expects trading for the current financial year ending 31 May 2025 to align with or exceed market expectations.