REG - Time Finance PLC - Own Book Lending Portfolio reaches record £145m

Time FinanceAnnouncement

19/10/2022 07:00

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RNS Number : 3826D  Time Finance PLC  19 October 2022

19 October 2022

 

Time Finance plc

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

 

Own-Book Lending Portfolio reaches all-time record high of over £145m

Key Performance Indicator to help drive profitable growth

 

Time Finance plc, the AIM listed specialist finance provider, is pleased to
give the following update on the performance of its unaudited lending book
portfolio. Increasing the Company's own-book lending forms a key pillar of its
medium-term growth strategy, announced in June 2021, which targeted a doubling
of the lending portfolio by 31 May 2025.

 

Own book growth continues

The Company has recorded a fifteenth consecutive month of growth in its
own-book lending portfolio. As at 30 September 2022 the value of the lending
portfolio had reached a Group historic high of £145.1m. This compares with
the previous Group high of £144.1m recorded in February 2020, immediately
prior to the onset of the pandemic, and demonstrates the strength of its
recovery from a pandemic induced low of £115.7m in May 2021. The current
lending portfolio value is 6% higher than the 31 May 2022 year-end level of
£136.8m and is a further 2% up on the 31 August 2022 level of £142.8m,
announced in the Group's Q1 Trading Update.

 

The average own-book deal size is also continuing to increase. It currently
stands at approximately £25,000, compared with £14,000 when the medium-term
strategy was launched.

 

Arrears continue to fall

As the lending portfolio continues to grow, total net arrears have continued
to fall. As at 30 September 2022 net deals in arrears stood at £8.8m, down a
further 4% from the 31 August 2022 level of £9.2m announced in the Q1 Trading
Update; down 5% from the 31 May 2022 year-end balance of £9.3m; and down 38%
on the pandemic induced £14.3m as at 31 May 2021. The arrears balance is now
6% by value of the total lending portfolio, compared to 7% at the 31 May 2022
financial year-end and 12%  at 31 May 2021, having now remained consistently
below pre-pandemic levels since September 2021.

 

Ed Rimmer, Chief Executive Officer, commented:

"Our Medium-Term Strategy has a clear focus on substantially increasing
own-book lending and strengthening the Group's balance sheet. I am therefore
delighted to see real traction being gained in both areas over the last half
year. This has resulted in the Group's own-book lending portfolio now standing
at record-high levels; marks the portfolio's full recovery, and more, from the
COVID pandemic, and should result in growing income and profit streams for the
Group over the life of these deals.

 

"Equally pleasing is that the increase in the portfolio continues to be driven
by both the Group's Invoice Finance and 'Hard' part of the Asset Finance
divisions. This is very much In line with our strategy as both of these areas
operate in the more secured lending space."

 For further information, please contact:

 Time Finance plc
 Ed Rimmer, Chief Executive Officer            01225 474230
 James Roberts, Chief Financial Officer        01225 474230

 Cenkos Securities plc (NOMAD and Broker)      0207 397 8900
 Ben Jeynes / Max Gould (Corporate Finance)

 Michael Johnson / George Budd (Sales)

 Walbrook PR                                   0207 933 8780
 Paul Vann / Joe Walker                        07768 807631
                                               Timefinance@walbrookpr.com

 

About Time Finance:

Time Finance's core strategy is to focus on providing or arranging the finance
UK SMEs require to fund their businesses. It offers a multi-product range for
SMEs including asset, vehicle, loan and invoice finance. While primarily an
'own-book' lender the Group does operates a 'hybrid' lending and broking model
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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