The year-end figures suggest that a deliberate tightening of focus can become the catalyst for unexpected acceleration. Far from pursuing volume at any cost, this specialist finance provider has quietly redesigned its playbook, delivering a blend of measured discipline and robust growth that hints at something more profound on the horizon.
Time Finance’s latest annual update reveals a narrative of cautious ambition brought to life. Over the twelve months to 31 May 2025, the gross lending book expanded to £217 million, marking an eighth consecutive rise and delivering a fresh milestone for a lender that seems to thrive on restraint. By concentrating almost exclusively on secured products, principally invoice finance and hard asset finance, the business has steered clear of riskier exposures and channelled resources into deals underpinned by tangible collateral. This pivot has propelled new lending volumes up by 8% year-on-year, ensuring that growth has been both steady and sustainable.
Crucially, this deliberate approach has not stifled profitability. Revenues climbed by 11 per cent to £37 million, comfortably beyond the consensus expectation of £36 million, while profit before tax surged by a striking 34 per cent to nearly £8 million. The resulting profit margin has widened from 18 per cent to 21 per cent, underscoring how well the portfolio’s shift towards higher-security lending has translated into operational leverage. All the while, credit performance has remained sound: net arrears hold at 5 per cent of the book, and bad debt write-offs stand resolutely at 1 per cent, reflecting the discipline ingrained in every underwriting decision.
Behind these figures lies a deliberate strategy that has evolved over the last four years. When the board first set out its multi-year plan in June 2021, secured assets made up just over half of new business. Today, more than 90 per cent of recent deals carry security, and secured loans account for roughly 83 per cent of the total portfolio. Such a transformation has required patience and a willingness to forgo short-term volume for longer-term stability. In the process, Time Finance has built a book that is markedly more resilient to economic swings, reaffirming the notion that a cautious stance need not be synonymous with stagnation.
Balance sheet strength is equally evident beyond the headline lending figures. Net tangible assets have climbed by 14% to £44.1 million, underpinning the group’s ability to absorb shocks and seize new opportunities. Deferred income, which provides a line of sight into revenue yet to be recognised, stands at £26.7 million, offering further visibility into future earnings. The lender has also bolstered its firepower by securing additional funding facilities, leaving it with over £90 million of headroom to deploy at pace should compelling opportunities present themselves.
While the numbers speak for themselves, leadership’s outlook is equally instructive. Chief Executive Ed Rimmer reflects on the conclusion of the initial four-year strategy with satisfaction, noting that record revenues, enhanced margins and a growing lending book have all been achieved without compromising credit quality. This disciplined growth story feeds directly into a new three-year plan, running through to May 2028, which promises to build on the existing foundation. Rimmer’s confidence in continuing to deliver long-term value to shareholders suggests that Time Finance views its current model not as an endpoint, but as a springboard for further expansion and refinement.
For investors, the appeal lies in the blend of growth and control. In a market where many lenders chase headline volume, Time Finance has chosen to let its secured-asset bias do the heavy lifting. The result is a lender that can demonstrate predictable earnings, transparent risk metrics and a clear line of sight into its future revenues. Moreover, its geographic footprint, anchored in Bath with additional offices in Reading, Manchester and Warrington, provides a balanced platform for reaching SMEs across the UK, ensuring that the business is neither overly concentrated nor stretched too thin.
As the economic environment becomes ever more complex, a strategy that marries prudent underwriting with targeted growth could well prove the difference between fleeting success and enduring value creation. Time Finance’s record year may not have arrived with the fanfare of a dramatic surge; instead, it has been forged through consistent application of a risk-aware playbook. Yet it is precisely this understated approach that has yielded some of the most compelling results in the specialist finance space.
Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
