REG - Time Finance PLC - Interim Results
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RNS Number : 4230Q Time Finance PLC 27 January 2026
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27 January 2026
Time Finance plc
(the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2025
Record high Lending Book, Record H1 Revenues and Profits
Eighteen consecutive quarters of lending book growth
Time Finance plc, the AIM listed independent specialist finance provider,
today announces its unaudited interim results for the six-months ended 30
November 2025 ("Results", "Interims" or "H1 2025/26"). The Results reflect the
continued strong demand for the multi-product range of finance solutions
offered by the Group and the strength of the lending book.
Financial Highlights:
· Own-Book New Business Origination up 48% to £62.6m (H1
2024/25: £42.2m)
· Gross lending book up 12% to a record £235.3m at 30 November
2025 (30 November 2024: £209.4m)
· Revenue up 4% to £18.8m (H1 2024/25: £18.1m)
· Profit before Tax ("PBT") up 10% to £4.3m (H1 2024/25: £3.9m)
· PBT margin improved by 1% to 23% (H1 2024/25: 22%)
· Earnings Per Share ("EPS") up 7% to 3.47 pence per share (H1
2024/25: 3.24 pence per share)
· Net Assets up 9% to £75.0m at 30 November 2025 (30 November
2024: £69.0m)
· Net Tangible Assets up 14% to £47.2m at 30 November 2025 (30
November 2024: £41.5m)
· Net deals in arrears fell to 4.5% of the gross lending book at
30 November 2025 (30 November 2024: 5.3%)
· Net Bad Debt Write-Offs fell to 1.0% of the average gross
lending book at 30 November 2025 (30 November 2024: 1.2%)
· Unearned income up 13% to £29.6m at 30 November 2025 (30
November 2024: £26.1m), providing strong visibility of future earnings
· Secured Lending now makes up 87% of the total lending book, up
from 77% at 30 November 2024
· Own-Book Origination accounted for 98% of all new deals written
in the period (30 November 2024: 97%)
Outlook
Continued positive trading momentum throughout December 2025 underpins
significant Board confidence that trading for the current financial year
ending 31 May 2026 will be at least in line with market expectations.
Commenting on the Interim Results, Tanya Raynes, Non-Executive Chair, said:
"The first six months trading of FY2025/26 mark a solid financial performance
and strong start in terms of delivery against our current strategic plan
through to May 2028, with robust demand from UK SMEs helping to drive the
Lending Book to record highs. While Revenues continue to grow, the focus on
efficiencies has resulted in growth in both margins, Profits and EPS. Net
Tangible Assets are at an all-time high; cash reserves and funding sources
remain healthy; while arrears and write-offs have both fallen, reflecting the
strong credit controls in place across the Group. The Board, therefore, feel
confident that the Group remains well positioned to deliver further long-term
growth and increased value to the Company's shareholders."
Notice of Investor Presentation
The Company will deliver a live presentation relating to these H1 2025/26
Interims via the Group's investor website at 1pm today. Existing and potential
shareholders can sign up for free via:
https://investors.timefinance.com/webinars/oPBYlr-hy-results-25-26
(https://investors.timefinance.com/webinars/oPBYlr-hy-results-25-26) .
For more information and the chance to have your questions directly answered
by the management team, please head to our interactive investor hub via:
https://investors.timefinance.com/s/71ba43
(https://investors.timefinance.com/s/71ba43) . Here you will find all company
news and additional content to further explain Time Finance's strategy and
developments.
Ends
For further information, please contact:
Time Finance plc 01225 474230
Ed Rimmer (CEO) / James Roberts (CFO) ir@timefinance.com
Cavendish (NOMAD and Broker) 0207 220 0500
Ben Jeynes / Teddy Whiley (Corporate Finance)
Michael Johnson / Matt Lewis (Sales and ECM)
Walbrook PR 0207 933 8780
Nick Rome / Marcus Ulker Timefinance@walbrookpr.com
Subscribe to our news alert service:
https://investors.timefinance.com/auth/signup
(https://investors.timefinance.com/auth/signup)
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 primarily concentrating on Asset Finance, Invoice Finance and Secured
Loans. While focused 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) , and the interactive investor hub,
https://investors.timefinance.com (https://investors.timefinance.com)
CHIEF EXECUTIVE OFFICER'S STATEMENT
FOR THE SIX-MONTH PERIOD ENDED 30 NOVEMBER 2025
Introduction
Time Finance plc is a multi-product, alternative finance provider to UK
businesses. While primarily a lender of the working capital requirements of UK
SMEs, it can also act as a broker in arranging funding where it is more
appropriate to do so. The Group comprises two core, own-book divisions - Asset
Finance and Invoice Finance - as well as smaller Asset Based Lending and
Secured Commercial Loan product offerings. Lending proposals are originated
through a variety of introductory channels, including finance brokers and
other professional firms, equipment vendors, suppliers and dealers, and to an
increasing degree, direct from borrowers. The target market is generally
businesses who have a funding requirement of between £10k and £5m.
Financial Results
I am pleased to report this set of Interim financial results. Despite wider
macro-economic headwinds, solid progress has been made in the first half of
the financial year both strategically and financially.
Own-Book deal origination is a key performance indicator for the Group as
increased lending underpins future income generation and profitability and, in
turn, the inherent value of the Balance Sheet. In the six-month period to 30
November 2025, this own-book origination increased by 48% to £62.6m compared
to the six months to 30 November 2024. This led to the Group's gross lending
book reaching all-time record highs of £235.3m.
It is also encouraging to see that the key metrics on the Profit and Loss
account - Revenue, Profit Before Tax and PBT Margin - all show growth from the
previous year's equivalent six-month comparative period. Given the compound
nature of the Asset Finance business, this gives the Board further confidence
for future performance.
With regards to the Group's Balance Sheet, the quality of the lending
portfolio is a key performance indicator and a key focus of the Board. Despite
the aforementioned wider economic difficulties, it is, therefore, extremely
pleasing to report further improvements in the overall quality of the lending
book. As at 30 November 2025, Net Arrears as a percentage of the lending book
fell to 4.5%, while net Bad Debt Writes-Offs also reduced, standing at 1.0% as
at 30 November 2025.
The Group's increasing level of deal origination, lending portfolio management
and continued support from external funders have all combined to further
strengthen the Group's balance sheet. Net Tangible Assets stood at £47.2m as
at 30 November 2025 compared to £41.5m twelve months earlier, an increase of
14%
Strategy and Outlook
June 2025 marked the start of the Group's new three-year strategic plan
through to the end of May 2028. The focus on our key initiatives - increased
own-book lending but not at the expense of credit quality; improved margins
through efficiency gains, and the leveraging of the Group's increasing brand
awareness - continue apace. As a result, The Board firmly believe this
strategy will lead to increased shareholder value over time.
Taking into account the wider macro-economic and geo-political concerns, the
Board is pleased with these interim financial results and also with the
operational progress made during the first half of the current financial year.
The new strategic plan has started solidly and, whilst remaining vigilant as
to the potential impact that further economic uncertainty could have on the
Group and recognising the requirement for ongoing investment into Business
Improvement initiatives, the Board is confident that the results for the
full-year will be at least in-line with current Board expectations.
Ed Rimmer
Chief Executive Officer, Time Finance plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 NOVEMBER 2025
Unaudited Unaudited Audited
6 months to 6 months to 30 November 2024 12 months to
30 November £'000 31 May
2025 2025
£'000 £'000
Note
18,816 18,110 37,120
Revenue
Cost of sales (7,737) (7,554) (15,441)
GROSS PROFIT 11,079 10,556 21,679
Administrative expenses (6,738) (6,512) (13,805)
Share-based payments (20) (12) (23)
OPERATING PROFIT 4,321 4,032 7,851
Finance expense (237) (223) (333)
Finance income 196 139 338
PROFIT BEFORE INCOME TAX 4,280 3,948 7,856
(1,070) (948) (1,994)
Income Tax
PROFIT AND TOTAL COMPREHENSIVE INCOME
FOR THE YEAR 3,210 3,000 5,862
Attributable to:
Owners of the parent company 3,210 3,000 5,862
Pence per share Pence per share Pence per share
- basic 6 3.47 3.24 6.34
- diluted 6 3.47 3.24 6.34
All of the above amounts are in respect of continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS TO 30 NOVEMBER 2025
Unaudited Audited
6 months to 12 months to
30 November 31 May
2025 2025
£'000 £'000
NON-CURRENT ASSETS
Goodwill 27,263 27,263
Intangible assets 458 374
Property, plant and equipment 342 330
Right-of-use property, plant & equipment 816 892
Trade and other receivables 87,201 78,822
Deferred tax 1,168 1,168
117,248 108,849
CURRENT ASSETS
Trade and other receivables 124,078 116,395
Cash and cash equivalents 3,635 4,970
Tax receivable - 127
127,713 121,492
TOTAL ASSETS 244,961 230,341
Called up share capital 9,252 9,252
Share premium 25,543 25,543
Employee Shares 335 315
Treasury Shares (1,115) (1,065)
Retained Earnings 40,935 37,725
TOTAL EQUITY 74,950 71,770
LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables 82,565 72,910
Lease liability 463 600
83,028 73,510
CURRENT LIABILITIES
Trade and other payables 86,426 84,337
Financial liabilities - borrowings 104 294
Tax payable 2 -
Provisions 165 149
Lease liability 286 281
86,983 85,061
TOTAL LIABILITIES 170,011 158,571
TOTAL EQUITY AND LIABILITIES 244,961 230,341
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 NOVEMBER 2025
Unaudited Unaudited
6 months to 6 months to
30 November 2025 30 November 2024
£'000 £'000
Cash generated from operations
Profit before tax 4,280 3,948
Depreciation and amortisation charges 343 300
Finance costs 237 223
(Increase) in trade and other receivables (16,062) (8,948)
Increase in trade and other payables 11,744 8,665
Movement in other non-cash items 312 (56)
854 4,132
Cash flows from operating activities
Interest paid (237) (223)
Tax paid (1,311) (1,145)
Net cash generated from operating activities (694) 2,764
Cash flows from investing activities
Purchase of software, property, plant & equipment (212) (312)
Sale of own shares to EBT 54 63
Net cash generated from investing activities (158) (249)
Cash flows from financing activities
Payment of lease liabilities (204) (164)
Loan repayments in period (229) (512)
Purchase of own shares in EBT (50) (150)
Net cash generated from financing activities (483) (826)
(Decrease)/increase in cash and cash equivalents (1,335) 1,689
Cash and cash equivalents at the beginning of the period 4,970 1,590
Cash and cash equivalents at the end of the period 3,635 3,279
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 NOVEMBER 2025
Share Capital Share Retained Treasury Employee Shares Total Equity
Premium Earnings Shares
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 May 2025 9,252 25,543 37,725 (1,065) 315 71,770
Total comprehensive income - - 3,210 - - 3,210
Transactions with owners
Sale of treasury shares - - - (50) - (50)
Value of employee services - - - - 20 20
Balance at 30 November 2025 9,252 25,543 40,935 (1,115) 335 74,950
Share Capital Share Retained Treasury Employee Shares Total Equity
Premium Earnings Shares
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 May 2024 9,252 25,543 31,863 (815) 292 66,135
Total comprehensive income - - 3,000 - - 3,000
Transactions with owners
Sale of treasury shares - - - (150) - (150)
Value of employee services - - - - 11 11
Balance at 30 November 2024 9,252 25,543 34,863 (965) 303 68,996
Share Capital Share Retained Treasury Employee Shares Total Equity
Premium Earnings Shares
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 May 2024 9,252 25,543 31,863 (815) 292 66,135
Total comprehensive income - - 3,000 - - 3,000
Transactions with owners
Sale of treasury shares - - - (150) - (150)
Value of employee services - - - - 11 11
Balance at 30 November 2024 9,252 25,543 34,863 (965) 303 68,996
1 BASIS OF
PREPARATION
The financial information set out in the interim report does not constitute
statutory accounts as defined in section 434(3) and 435(3) of the Companies
Act 2006. The Group's statutory financial statements for the year ended 31
May 2025 prepared in accordance with IFRS as adopted by the European Union and
with the Companies Act 2006 have been filed with the Registrar of Companies.
The auditor's report on those financial statements was unqualified and did not
contain a statement under Section 498(2) of the Companies Act 2006. These
interim financial statements have been prepared under the historical cost
convention. These interim financial statements have been prepared in
accordance with the accounting policies set out in the most recently available
public information, which are based on the recognition and measurement
principles of IFRS in issue as adopted by the European Union (EU) and are
effective at 31 May 2025. The condensed set of financial statements included
in this half-yearly financial report has been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting', as adopted
by the European Union. The financial information for the six months ended 30
November 2024 and the six-month period to 30 November 2025 are unaudited and
do not constitute the Group's statutory financial statements for these
periods.
The accounting policies have been applied consistently throughout the Group
for the purposes of preparation of these interim financial statements.
Going Concern
Due to the nature of the Group's trading the Directors do not have any
concerns over the key assumptions concerning the future and do not consider
there to be any key sources of estimation uncertainty. The Group has ample
headroom in its funding facilities. As such, the Directors are confident that
the Group will continue to operate as a going concern.
2 SEGMENTAL REPORTING
The Group provides a range of financial services and product offerings
throughout the UK and has two core trading divisions, namely: Asset Finance
and Invoice Finance. The Group's ancillary product offerings, Commercial Loans
and Vehicles fleet brokering are included within the Asset Finance segment as
they operate under the same management team, office locations and with the
same back-office teams. Asset Based Lending is included within the Invoice
Finance segment for the same reason. The operating segments, therefore,
reflect the Group's organisational and management structures. The Group
reports internally on these segments in order to assess performance and
allocate resources. The segments are differentiated by the type of products
provided.
The segmental results and comparatives are presented with intergroup charges
allocated to each division based on actual revenues generated. Intergroup
expenses are recharged at cost and largely comprise plc Board and listing
costs, Marketing, Compliance, IT and Human Resource costs.
6 months to 30 November 2025
Asset Finance Invoice Other TOTAL
£'000 Finance
Revenue 10,871 7,945 - 18,816
Profit before Tax 1,801 3,209 (730) 4,280
6 months to 30 November 2024
Asset Finance Invoice Other TOTAL
£'000 Finance
Revenue 10,651 7,598 - 18,249
Profit before Tax 1,919 2,897 (868) 3,948
3 BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of
the parent company (Time Finance plc) and entities controlled by the company
(its subsidiaries) made up to 31 May each year. Control is achieved where the
company has the power to govern the financial and operating policies of an
entity so as to obtain benefit from its activities. All intra-group
transactions, balances, income and expenses are eliminated on consolidation.
4
TAXATION
Taxation charged for the period ended 30 November 2025 is calculated by
applying the Directors' best estimate of the expected tax rate to the result
for the period.
5 SHARE
CAPITAL
The Articles of Association of the company state that there is an unlimited
authorised share capital. Each share carries the entitlement to one
vote.
6 EARNINGS PER ORDINARY SHARE
Earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in
issue during the year. For diluted earnings per share, the weighted average
number of shares is adjusted to assume conversion of all dilutive potential
ordinary shares.
There are no dilutive items impacting the Group and, as such, the Basic EPS
and Diluted EPS are identical. Any share options that are vested are fully
expected to be met from the Group's Employee Benefit Trust. Therefore,
issuance of new shares is not expected to be required and as a result, there
is no associated dilution.
6 months to 6 months to 12 months to
30 Nov 2025 30 Nov 2024 31 May 2025
£'000 3,210 3,000 5,862
Earnings attributable to ordinary shareholders
Basic EPS
Weighted average number of shares 92,512,704 92,512,704 92,512,704
Per-share amount pence 3.47 3.24 6.34
Adjusted earnings 3,210 3,000 5,862
Diluted EPS
Weighted average number of shares 92,512,704 92,512,704 92,512,704
Per-share amount pence 3.47 3.24 6.34
7 DIVIDENDS
At the current time, as per the current strategy published in January 2025,
cash reserves are being deployed for business growth. This approach to future
dividends is kept under regular review and any change to the policy would be
notified at that point in time.
8 TRADE RECEIVABLES
Trade receivables represent finance lease, loan and invoice finance
receivables stated net of unearned income and credit risk provisions, as
follows:
£'000 6 months to 12 months to
30 November 2025 31 May 2025
Gross receivables from finance leases, loans and invoice finance 235,302 217,390
Unearned future finance income on finance leases, loans and invoice finance (29,560) (26,649)
205,742 190,741
Total Net Trade Receivables
9 SHARE-BASED PAYMENT TRANSACTIONS
The Group has one active unapproved Share Scheme, the "2026 Scheme", that was
previously announced on 19(th) November 2025.
The period covered by the previous share scheme, the 2022 Scheme, that was
announced on 22(nd) July 2022, concluded at the end of the last financial
year, 31(st) May 2025. Following the achievement of profit-based criteria in
that financial year, as announced on 3(rd) October 2025, the final elements of
the 2022 Scheme, 611,667 nil-cost options over ordinary shares of 10 pence
each in the capital of the Company, vested. As was then announced on 14(th)
November 2025, these vested options were exercised with the issuance being met
through the Group's Employee Benefit Trust.
As previously stated, it remains the Board's intention that, wherever
possible, any future vested options that are exercised will be met through the
Group's Employee Benefit Trust and so would not dilute any existing
shareholders.
10 COPIES OF THE INTERIM REPORT
Copies of the Interim Report are available from www.timefinance.com and the
Company Secretary at the registered office: Time Finance plc, St James House,
The Square, Lower Bristol Road, Bath, BA2 3BH.
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