Time Finance PLC final results YE 31 May 2024

Time Finance plc (AIM: TIME), the AIM listed independent specialist finance provider, is pleased to announce its final results for the year ended 31 May 2024.

Commenting on the results, Tanya Raynes, non-executive chair, said: “The Group’s financial performance, over the third year of our four-year strategy, was particularly strong. Despite wider macro-economic headwinds, revenue, profit and earnings per share all saw double-digit growth, with revenue and profit ahead of market expectations. At the same time, the Group’s balance sheet has continued to strengthen with the lending book and net tangible assets hitting record highs at 31 May 2024 and growing further still through the current financial year. As a result, we remain confident in achieving the targets we set in our 2021 strategic plan.”

Financial Highlights:

• Revenue of £33.2m (FY2223: £27.6m), an increase of 20%
• Profit Before Tax (“PBT”) of £5.9m (FY2223: £4.2m), an increase of 41%
• Earnings per share (“EPS”) (fully diluted) of 4.8pps (FY2223: 3.7pps), an increase of 30%
• Own-Book deal origination of £91.6m (FY2223: £73.4m), an increase of 25%
• Lending book of £201.2m at 31 May 2024 (31 May 2023: £170.1m), an increase of 18%
• Consolidated Net Assets at 31 May 2024 of £66.1m (31 May 2023: £61.7m), an increase of 7%
• Consolidated Net Tangible Assets at 31 May 2024 of £38.6m (31 May 2023: £34.2m), an increase of 13%
• Future visibility of earnings with unearned income of £25.4m (31 May 2023: £21.2m), an increase of 20%
• Net deals in arrears at 31 May 2024 of 5% (31 May 2023: 6%), a reduction of 1%
• Net Bad Debt Write-Offs equal to 1% of the average lending book (31 May 2023: 2%), a reduction of 1%

Operational Highlights:

• Ratio of own-book lending to broked-on lending improved to 97% vs 3% during the year (96% vs 4% in the prior year)
• Strong lending growth within both the invoice finance division (up 16% to £65m YoY) and in the hard asset offering within the asset finance division (up 37% to £85m YoY)
• Supportive funding partners with available lending headroom at 31 May 2024 of over £65m
• Approved as an accredited lending partner under the UK government’s Growth Guarantee Scheme

Ed Rimmer, chief executive officer, added: “Both from a financial and operational perspective I am very pleased with the performance of the Group. Great strides forwards have been taken in both of our core divisions – asset finance and invoice finance – which have seen significant increases in their lending books while, crucially, adhering to strong portfolio management and control. Our brand has continued to grow and be enhanced within our key introducer base and the focus on recruiting high-calibre staff has continued. The Group, therefore, remains very well positioned and there is real optimism in our ability to continue to increase shareholder value.”

Outlook

The Board continues to expect the Group’s trading for the current financial year ending 31 May 2025 to be at least in line with market expectations.

Notice of Investor Presentation

Chief executive officer, Ed Rimmer, and chief financial officer, James Roberts, will deliver a live presentation relating to these audited annual results and the simultaneously released Q1 trading update via the Investor Meet Company platform at 1.00pm BST today. The presentation is open to all existing and potential shareholders and questions can be submitted at any time during the live presentation via the Investor Meet Company dashboard. Investors can sign up to Investor Meet Company for free and add to meet Time Finance plc via: https://www.investormeetcompany.com/time-finance-plc/register-investor.

Please click here to view full announcement: Final Results – 07:00:03 25 Sep 2024 – TIME News article | London Stock Exchange