Time Finance Plc (LON:TIME), the AIM listed independent specialist finance provider, has provided a trading update for the nine-month period ended 28 February 2025. The Group’s strong performance in the first half of the current financial year has been maintained throughout the third quarter. Continued strong demand from UK businesses for the Group’s multi-product funding offering has driven further growth in the gross lending book which stands at a record high of more than £210m at the end of February 2025. This is the fifteenth consecutive quarter of loan book growth for the Company.
Unaudited Nine Month 2024/25 Highlights
· Own-Book lending origination up 5% to £69.3m (9M 2023/24: £66.0m)
· Revenue up 14% to £27.3m (9M 2023/24: £24.0m)
· Profit before Tax up 40% to £5.9m (9M 2023/24: £4.2m)
· PBT margin improved by 200 bps to 21% (9M 2023/24: 19%)
· Net Tangible Assets up 14% to £43.0m at 28 February 2025 (29 February 2024: £37.7m)
· Gross lending-book up 11% to a record £210m at 28 February 2025 (29 February 2024: £190m)
· Deferred income up 7% to £26.4m at 28 February 2025 (29 February 2024: £24.6m) providing strong visibility of future earnings
· Net Arrears improved to 5% of the gross lending book at 28 February 2025 (29 February 2024: 6%)
· Net Bad Debt Write-Offs unchanged at 1% of the average lending book at 28 February 2025 (29 February 2024: 1%)
· Continuing positive trading momentum; leading to expectation that Group financial performance for the full year will be at least in line with recently upgraded market guidance provided in February 2025[1]
A key element of the Company’s four-year strategic plan through to 31 May 2025 has been to focus on more secured lending. This was to be achieved primarily though the provision of Invoice Finance and the ‘Hard’ element of Asset Finance. These two core areas have accounted for 91% of new lending volume originated in the nine months of trading to 28 February 2025, and now make up 81% of the total lending book. This compares to 51% of new deal volume origination and 52% of the total lending book prior to the strategy launch.
Ed Rimmer, Time Finance Chief Executive Officer commented:
“With three quarters of the current financial year now delivered, the Board is very encouraged by the Group’s financial performance. To be able to report all-time record nine-month levels of both Revenue and Profit Before Tax is particularly pleasing. As is the fact that the profit generated in the first nine months of the current financial year has already surpassed the level achieved for the whole of the previous year. To have made these strides forward without compromising on credit quality, as shown by the consistent and stable nature of our arrears and our write-offs, is another key performance indicator that we are proud of.
“As a result of all these factors, as we close-out the current four-year strategy and enter our new three-year growth trajectory through to May 2028, the Board has real confidence that the Group remains well placed to continue building long-term value for all our shareholders.”
1 FY2024/25 market expectations were upgraded on 27th February 2025 to £36.0m of Revenue and £7.5m of Profit Before Tax.
