Half-Year Trading Update & Notice of Results

Time Finance PLC

19 December 2024

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

19 December 2024

Time Finance plc

("Time Finance", the "Group" or the "Company")

Half Year Trading Statement

Notice of Interim Results and Investor Presentation

Record Lending Book, Record H1 Revenues, Record H1 Profits

Fourteen consecutive quarters of growth in lending book

Time Finance plc, the AIM listed independent specialist finance provider, is pleased to provide a trading update in respect of the Group's performance for the six-months ended 30 November 2024 ("H1 2024/25"). This update is provided in advance of the scheduled publication of the Group's H1 2024/25 unaudited Interim Results on 28 January 2025.

H1 2024/25 Unaudited Highlights

·   Revenue up 16% to £18.2m (H1 2023/24: £15.7m)

·   Profit before Tax up 44% to £3.9m (H1 2023/24: £2.7m)

·   PBT margin improved by 4% to 21% (H1 2023/24: 17%)

·   Net Tangible Assets up 14% to £41.5 at 30 November 2024 (30 November 2023: £36.4m)

·   Gross lending-book up 11% to a record £209.4m at 30 November 2024 (30 November 2023: £188.6m)

·   Net Arrears remain stable at 5% of the gross lending book at 30 November 2024 (30 November 2023: 6%)

·   Net Bad Debt Write-Offs remain stable at 1% of the average lending book at 30 November 2024 (30 November 2023: 1%)

·   Continuing positive trading momentum; leading to expectation of Group financial performance for the full year to be at least in line with recently upgraded market guidance

A key element of the Company's four-year strategic plan, from June 2021 to May 2025, was to increase the size of its lending book by primarily focussing on Invoice Finance and the 'Hard' subset of Asset Finance as they are, typically, both larger in average loan size and more secure. Reflecting this focus, these core areas accounted for approximately 85% of new deal volume originated in H1 2024/25, and now make up approximately 77% of the total lending book as at 30 November 2024. This compares to their contribution of 51% of new deal volume origination and 52% of the total lending book at the start of the four-year strategic plan.

Ed Rimmer, Chief Executive Officer commented:

"The Board are very encouraged by the performance in the first half of the current financial year. In line with our strategy, we have continued to increase the size of our lending book and, crucially, have done so without compromising on credit quality. This is borne out by the stable nature of both our arrears and our write-offs. This approach, combined with a renewed focus on margins, has led to significant increases in both revenues and profitability, both of which are record figures for the first half of a financial year. We have real confidence that the Group is well placed to continue on this growth trajectory, building long-term value for our shareholders, and I look forward to updating our shareholders on our future strategy through to May 2028 in Q1 of 2025."

Notice of Interim Results and Investor Presentation

The Company also announces that Ed Rimmer, CEO, and James Roberts, CFO, will deliver a live presentation covering the H1 2023/24 Interim Results via the Investor Meet Company platform at 1pm on Tuesday, 28 January 2025. This presentation will follow the publication of the Interim Results for H1 2024/25 earlier that same day.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Time Finance plc via: https://www.investormeetcompany.com/time-finance-plc/register-investor. Investors who already follow Time Finance plc on the Investor Meet Company platform will automatically be invited.

For further information, please contact:
Time Finance plc
Ed Rimmer, Chief Executive Officer	01225 474230
James Roberts, Chief Financial Officer	01225 474230
Cavendish Capital Markets (NOMAD and Broker)	0207 220 0500
Ben Jeynes / Dan Hodkinson (Corporate Finance) Michael Johnson / George Budd / Charlie Combe (Sales and ECM)
Walbrook PR	0207 933 8780
Nick Rome / Joe Walker	[e-mail]

About Time Finance:

Time Finance's purpose is to help UK businesses thrive and survive through the provision of flexible      funding facilities. It offers a multi-product range for SMEs concentrating on Asset, Loan and Invoice Finance. While focussed on being an 'own-book' lender, the Group does retain the ability to broke-on deals where appropriate, enabling it to optimize business levels through market and economic cycles.

More information is available on the Company website: www.timefinance.com.

 

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