Time Finance plc (LON:TIME), the AIM listed independent specialist finance provider, has announced the following update on the Group’s trading performance for the first quarter of the current financial year which ended on 31 August 2023.
Unaudited financial highlights:
· Own-Book lending origination up 29% to £20.2m (Q1 2022/23: £15.7m)
· Revenue up 21% to £7.6m (Q1 2022/23: £6.3m)
· Profit before Tax up 44% to £1.3m (Q1 2022/23: £0.9m)
· The lending-book continues to grow; increasing 3% to £175.8m since year-end (31 May 2023: £170.1m) and 23% from 12 months prior (31 August 2022: £142.8m)
· Net Arrears remain stable at 6% of the gross lending book (6% at 31 May 2023 and 6% 12 months prior at 31 August 2022)
· Net Tangible Assets also continue to increase; up 3% since year-end to £35.2m (31 May 2023: £34.2m) and 13% from 12 months prior (31 August 2022: £31.3m)
The increase in revenue is a result of the continued growth in the lending book and its compounding nature. As outlined in the Company’s strategic plan, the lending book growth is driven by both the Invoice Finance division and the ‘Hard’ subset of the wider Asset division. Both these areas operate in the more secured lending arena and with larger average deal sizes.
Ed Rimmer, Time Finance Chief Executive Officer commented:
“As we enter the second half of our four-year medium-term strategic plan, I am very encouraged that the first quarter of the new financial year has delivered continued growth in both revenue and profits. These results are driven by the increasing size of our lending book, which has now grown consistently for over twenty-four months. Such growth reflects both the demand for our multi-product offering; the value placed on our excellent customer service, and also the robust nature and resilience of small and medium sized businesses across the UK. The Board has real confidence that the Group remains well positioned to continue on its growth trajectory and to build long-term value for its shareholders”.
