Trading Update and Notice of Final Results

Time Finance PLC

27 June 2024

 

27 June 2024

Time Finance plc

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

Trading Update and Notice of Final Results

Strong trading momentum continues

Lending Book increased to c£200m - a twelfth consecutive quarter of growth

Time Finance plc, the AIM listed independent specialist finance provider, is pleased to issue the following trading update for the financial year ended 31 May 2024 ("FY 2023/24"). In FY 2023/24, the Company delivered significant increases across its key performance indicators, with revenue and profitability ahead of market expectations.

The results reflect the continued success of the Company's strategic focus on own-book lending to UK businesses. This approach has seen the Lending Book reach an all-time high of c£200m.

Unaudited financial highlights:

·   20% increase in Revenue to £33.0m (FY 2022/23: £27.6m)

·   38% increase in Profit Before Tax to £5.8m (FY 2022/23: £4.2m)

·   Own-Book deal origination up 25% to £91.5m (FY 2022/23: £73.4m)

·   Gross lending-book up 18% to £200m at 31 May 2024 (31 May 2023: £170m)

·   Strong future visibility of earnings with Unearned Income up 19% to £25.2m at 31 May 2024 (31 May 2023: £21.2m)

·   Net deals in Arrears reduced to 5% of the gross lending book (31 May 2023: 6%)

·   Net Bad Debt Write-Offs reduced to 1% of the average lending book (FY 2022/23: 2%)

·   Net Tangible Assets up 13% to £38.5m at 31 May 2024 (31 May 2023: £34.2m)

·   Extended and enhanced funding facilities agreed with supportive, long-term partners resulting in facilities with headroom in excess of £60m at 31 May 2024

The increase in revenue has been primarily driven by the growth in both the Invoice Finance division and the 'Hard Asset' subset of the wider Asset division. They are both areas which operate in the larger-ticket, more secured lending space, and they now comprise over 75% of the Group's entire lending book.

Notice of Results

The Group will publish its audited final results and its Annual Report and Financial Statements for the financial year to 31 May 2024 on 25 September 2024.

Ed Rimmer, Chief Executive Officer commented:

"I am delighted to provide this trading update in respect of Time's full-year results which clearly demonstrate the ongoing success of the Group's strategy. To have delivered such growth, despite wider macroeconomic headwinds, is testament to the hard work of our team, to the clear focus on our strategy and the strong demand for finance from UK businesses which continue to prove remarkably robust. What is especially pleasing is that the performance is based on maintaining appropriate margins, underwriting robustly and in keeping a wide spread of risk. As a result, I am confident the Group is well positioned for future growth and in delivering further increased shareholder value."

For further information, please contact:

Time Finance plc                                                                                                          01225 474230

Ed Rimmer, Chief Executive Officer

James Roberts, Chief Financial Officer

Cavendish Capital Markets (Nominated Adviser 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.

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.

 

END