# Time Finance reports 44% profit increase as lending book grows

- Link: https://www.directorstalkinterviews.com/time-finance-reports-44-profit-increase-as-lending-book-grows/4121181604
- Published: 2024-12-19T07:37:13+00:00
- Author: Amilia Stone

**[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 in respect
of the Group’s performance for the six-months ended 30 November 2024. 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, Time Finance 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.”_

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