# Time Finance Profit Before Tax up 172%

- Link: https://www.directorstalkinterviews.com/time-finance-profit-before-tax-up-172/4121109114
- Published: 2023-03-08T07:34:14+00:00
- Author: Madison Wilson

**[Time Finance plc](https://www.directorstalkinterviews.com/company/time.l)** (
[LON:TIME](https://www.directorstalkinterviews.com/company/time.l)), the AIM listed
independent specialist finance provider has provided a trading update for the nine-
months ended 28 February 2023. These results reflect the continued success of streamlining
the Group to focus on core, own-book lending to UK businesses; with significant 
increases now being seen in the lending book, revenues and profits and across other
key performance indicators.

**Unaudited financial highlights:**

·    Own-Book lending origination up 34% to £52.9m (As at Q3 2021/22: £39.5m)

·    Revenue up 28% to £20.0m (As at Q3 2021/22: £15.6m)

·    Profit Before Tax (“PBT”) up 172% to £3.0m (As at Q3 2021/22: £1.1m)

·   Strong visibility of future earnings with unearned income up 30% to £19.4m as
at 28 February 2023 (28 February 2022: £14.9m)

·    Gross lending-book up 26% to £157.2m as at 28 February 2023 (28 February 2022:
£124.6m)

·    Net Arrears reduced to 6% of the gross lending book as at 28 February 2023 (
28 February 2022: 8%)

·    Net Tangible Assets up 12% to £33.0m (28 February 2022: £29.5m)

·    Continued positive trading momentum throughout Q3 of 2022/23 has given the 
Board further confidence that full-year trading will now be further ahead of the
latest market expectations^(1), with PBT for the full year now expected to be not
less than £3.6m

The increase in revenue continues to be driven primarily by growth in both the Invoice
Finance division and the ‘Hard Asset’ subset of the Asset division. Both growth 
areas operate in the larger-ticket, more secured lending arena. This is reflective
of the previously stated strategic focus on increasing the Group’s average deal 
size and, where appropriate, taking greater security on lending.

The Group will provide an update on trading for the full year to 31 May 2023 in 
late June 2023.

> **Ed Rimmer, Time Finance Chief Executive Officer commented:**
> _“I am delighted to report that the Group’s ongoing trading performance during
> Q3 has enabled the Board to confirm that the expected results for the full-year
> to 31 May 2023 are being further uplifted. This is the second time since the start
> of the calendar year that these have been raised, bearing testament to the successful
> implementation of our Medium-Term Strategy._
> _“Despite the well-publicised wider macro-economic ‘headwinds’, the Group has 
> continued to grow at a faster rate than expected, demonstrating that demand for
> finance from UK businesses is robust. The Group’s multi-product tailored offering
> to UK SMEs, its own-book lending strategy and its quality of service have become
> ever more appreciated by our introducers and I am confident that we can deliver
> increasing value for our shareholders”._

_1.    _ _FY23 market expectations at time of announcement of £25.7m of revenue 
and £3.2m of PBT_.

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