REG - Time Finance PLC - Full Year Trading Update

Time FinanceAnnouncement

29/06/2023 07:00

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RNS Number : 2982E  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

                              paul.vann@walbrookpr.com

 

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
(http://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.

 

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