Full Year Trading Update

Time Finance PLC

29 June 2023

 

29 June 2023

Time Finance plc

("Time Finance", the "Group" or the "Company")

Full Year Trading Update

Strong trading momentum maintained

 Significant increase in Profits and Earnings Per Share; Record Lending Book of c£169m at year-end

Time Finance plc, the AIM listed independent specialist finance provider is pleased to issue the following trading update for the twelve months ended 31 May 2023. The results reflect the success of the Company's continued focus on own-book lending to UK businesses, with the Lending Book reaching an all-time high of c£169m as at 31 May 2023. Significant increases have also been achieved in revenue, profit and across other key performance indicators.

Unaudited financial highlights:

·    Own-Book lending origination up 14% to £73.4m (FY 2021/22: £64.4m)

·    Revenue increased 16% to £27.4m (FY 2021/22: £23.6m)

·    273% increase in Profit Before Tax ("PBT") to £4.1m (FY 2021/22: £1.1m)

·    250% increase in Earnings Per Share up to 3.5 pence per share (FY 2021/22: 1.0pps)

·    Strong visibility of future earnings with unearned income up 24% to £20.7m as at 31 May 2023 (31 May 2022: £16.7m)

·    Gross lending-book up 23% to £168.9m as at 31 May 2023 (31 May 2022: £136.8m)

·    Net Arrears reduced to 6% of the gross lending book as at 31 May 2023 (31 May 2022: 7%)

·    A prudent increase in the Credit Risk Provision to £4.2m as at 31 May 2023 (31 May 2022: £3.6m)

·    Net Tangible Assets up 11% to £33.9m as at 31 May 2023 (31 May 2022: £30.5m)

·    Supportive, long-term funding partners with unused lending headroom of approximately £50m at year-end

The significant increase in revenue has been driven primarily by growth in the Invoice Finance division and the 'Hard Asset' subset of the Asset division. Both of these growth areas operate in the larger-ticket, more secured lending space. The performance highlights the effectiveness of the strategic focus on increasing the Group's average deal size and, where appropriate, taking greater security on lending.

The Group will publish its audited Annual Report and Financial Statements on 26 September 2023.

Ed Rimmer, Chief Executive Officer commented:

"I am delighted to report these full-year results which demonstrate the successful implementation of the Group's Medium-Term Strategy. Two years in, we remain on track to achieve our four-year plan's stated targets.

I am also very pleased to confirm that the significant growth achieved during the year has been made whilst continuing to generate appropriate margins, control credit and spread risk. To have delivered such growth, despite much publicised, wide-ranging and challenging macroeconomic factors, is testament to the hard work of our team, the investments we have made over the last few years which are starting to have a very positive impact, and to the continued robust nature of demand for finance from UK businesses.

We have built strong foundations for continued growth. The Board is committed to further increasing shareholder value through the delivery of its stated strategy and continues to look forward with cautious optimism."

For further information, please contact:

Time Finance plc

Ed Rimmer, Chief Executive Officer                                                                                       01225 474230

James Roberts, Chief Financial Officer                                                                                 01225 474230

Cenkos (NOMAD)

Ben Jeynes / Max Gould (Corporate Finance)                                                                     0207 3978900

Michael Johnson / George Budd (Sales)

Walbrook PR                                                                                                                             0207 9338780

Paul Vann /Joe Walker                                                                                                             07768 807631

                              [e-mail]

About Time Finance:

Time Finance's purpose is to help UK businesses thrive and survive through the provision of flexible funding facilities. It offers a multi-product range for SMEs concentrating on asset, loan and invoice finance. While focussed on being an 'own-book' lender, the Group does retain the ability to broke-on deals where appropriate, enabling it to optimize business levels through market and economic cycles.

More information is available on the Company website www.timefinance.com.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

 

END