They must've read Cavendish's latest BUY note...
"We have upgraded our 12-month price target to 112p based on Time trading on a FY26E PEG of 1x versus just 0.5x today." |
Yes great news, and thanks for posting Chester |
Not just buying - but topping up existing shareholdings |
Gosh that is interesting. They are both buying AFTER a spectacular run up to 60p - but they clearly envisage plenty of upside. Very positive. I might have to top up a few more... ;-) |
CFO and NonExec Chair buying at 60p great confidence on the journey of Time. |
New Invoice Finance Deal Alert! 🚨
We provided this engineering company with a £1 million confidential invoice finance facility to support them through their next chapter and bring their new plans to life.
We structured the facility to give the new business the peace of mind through the process, enabling them to enhance their operational efficiencies while significantly lowering their overhead costs. This strategic approach not only streamlines their processes but also positions their business for future sustainable growth.
✅ Our flexible team also offered the business our optional Selective Bad Debt Protection service which provides protection if one of their customers fail to pay. |
 Time Finance plc
Extended and Improved £65m NatWest Funding Facility
Additional funding providing further headroom for future growth in the Invoice Finance division
Time Finance plc, the AIM listed independent specialist finance provider, is pleased to announce that it has renewed and increased its back-to-back invoice finance funding facility with NatWest to £65m, with £55m fully committed and an additional £10m Accordian element (the "Facility").
The Facility will be applied exclusively to lending to UK businesses and provides the Group's invoice finance business, Time Invoice Finance ("TIF"), with additional funding to meet continued demand from its growing number of SME clients. Since the start of the Company's four-year strategic plan in June 2021 to the end of August 2024, TIF has achieved consistent growth with funds advanced to clients during this period increasing by over 170% to £68m as the business continues to experience robust demand.
Together with recently extended asset finance facilities, that were arranged with other long-standing and supportive funding partners and previously announced on 3 April 2024, the Group is extremely well positioned to continue to fund its future growth plans with total funding facilities available to the Group of over £225 million.
James Roberts, Chief Financial Officer, commented:
"I am delighted that the Group has further strengthened its long-standing relationship with NatWest which continues to thrive not just in our Invoice Finance division but also across the wider Group. We have substantial funding facilities with ample headroom in place across all of our lending divisions. The provision of these larger and more flexible facilities will contribute significantly to our growth strategy and provide additional funding solutions for UK businesses - for whom a flexible and dependable funding partner can make all the difference." |
Another positive-looking write-up post-results not posted here before (subscription-only):
"Time Finance gains momentum
The investment put into IT and processes at small business finance provider Time Finance (LON: TIME) is paying off. More of the additional revenues are dropping through to profit and the share price is above net tangible assets for the first for many years.
Net deals in arrears are around 5% and the bad debt provisions are 1%, which shows the quality of the lending.
In the year to May 2024, revenues improved from £27.6m to £33.2m, while pre-tax profit rose from £4.4m to £6m.
Momentum h..." |
Thanks for posting that Rivaldo |
Commentary from Master Investor - TIME is trading at a "giveaway" price:
"Today I follow-up on an old favourite of mine, Time Finance (LON:TIME), after yesterday’s Final Results for the year to end May.
Revenue for the year was £33.2m, a 20% increase of £5.6m year-on-year, while the pre-tax profit was £5.9m, a significant uplift on the previous year (£4.2m).
Chair Tanya Raynes stated that:
"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 31st 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."
The Business
Time Finance considers that its 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-on̵7; deals where appropriate, enabling it to optimise business levels through market and economic cycles. The company is recognised as an alternative finance provider offering highly relevant and flexible business finance products for a diverse and expanding base of UK SMEs.
Outlook
Amidst the turmoil of the external economic and political environment, the group’s financial results for the year were above initial expectations, leaving it confident that of delivering another strong outcome.
The strength of the balance sheet, together with its liquidity in the form of available operational debt facilities for lending and cash held, ensures that it is well-placed to take advantage of future opportunities over the short-to-medium term.
CEO Ed Rimmer stated that:
“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. With the changes made over the last three years to the business, including the people tasked with delivering our strategy, and the work we are doing to deliver growth in a more efficient way, I am confident we will continue to see the business deliver shareholder value.”
Analyst View
At Cavendish Capital Markets, its analyst Andrew Renton is estimating that the current year to end-May 2025 will show total revenues of £34.5m (£33.2m), while adjusted pre-tax profits could increase to £7.2m (£6.0m), lifting earnings to 5.8p (4.9p) per share.
For the following year he sees £37.0m revenues, £8.3m profits and earnings of 6.8p per share.
He is very confident that his estimates will be achieved and, accordingly, he has increased his Price Objective to 112p (71p) per share.
In My View
This £50m capitalised group’s shares are trading at only 54p, which I consider to be a ‘giveaway price’ and one not to be missed." |
Reposted to make the link work... |
All good ta, trust you are too.Yes, that Q1 was incredibly strong, so hopefully bodes well for the current and coming period! |
Thank you hastings, hope all is well with you?
I asked a couple of questions at yesterday’s IMC, but I should also have asked why Q1 was so incredibly strong, and whether we can draw any conclusions from that for the rest of the year. |
Write up for interest, following my catch up yesterday.https://martinflitton1.wixsite.com/privatepunter/post/time-isn-t-standing-still-26-09-24 |
Thank you for posting guys |
Cheers Someuwin. The rest of Cavendish's summary page is also worth a read:
"Clocking up another strong set of annual results
Time has released positive FY24A annual results which showed a continuation of the growth story as the gross book hit £200m and PBT increased over 40% to £5.9m, 3% ahead of the recently upgraded forecasts at the trading update. The momentum has continued into FY25E, and it remains on track to hit or exceed current expectations. We have released FY26E forecasts which show another year of double-digit earnings growth and PBT increasing 16% to £8.1m as the easing of interest rates will likely further improve the operating environment. The valuation looks compelling given it trades on a FY26E Basic P/E of just 8x and FY26E P/TNAV of 1x. We have upgraded our 12-month price target to 112p based on Time trading
on a FY26E PEG of 1x versus just 0.5x today.
— Financial highlights – FY24A was another impressive year of growth for Time Finance, defying what should have been more challenging conditions with higher interest rates. The focus on its own-book lending, a key tenet of its 4-year plan, has continued with own-book deal origination up 25% to £91.6m pushing the gross book to over £200m by year-end. In turn, revenues grew by 20% to £33.2m (FY23A:
£27.6m) and the operational gearing in the business meant that flowed through to a 40% increase in PBT. The remarkable performance shows that growth has been achieved whilst simultaneously improving the quality of the book. Net deals in arrears dropped by 1% YoY to 5% and net bad debt write offs halved to 1%. Underlying this is the successful ongoing pivot to secured asset lending and invoice financing.
— Q1/25A update – The momentum in the business has reassuringly continued into Q1/25A with revenue increasing 20% YoY to £9.1m (Q1/24A: £7.6m). PBT rose 46% to £1.9m (Q1/24A: £1.3m) which represented a PBT margin improvement of 4pp to 21%. Net Tangible Asset Value surpassed £40m at the end of August whilst the book maintained its high-quality metrics of arrears at 5% and net bad debt write-offs at 1%. This gives us a lot of confidence that FY25E forecasts will be met or exceeded, but we will wait for further evidence before potentially upgrading." |
Cavendish yesterday...
Forecasts and valuation – We have released FY26E forecasts which show revenue increasing 7% YoY whilst PBT rises by 16% to £8.1m. The valuation looks compelling, trading on a FY26E Basic P/E of just 8x and FY26E P/TNAV of 1x. We have upgraded our price target from 71p to 112p based on Time trading on a FY26E PEG ratio of 1x compared to 0.5x today. This also aligns with the Group returning to trading on a P/TNAV of 2x, as was seen pre-covid. |
Really nice to see a rapid rise to wipe out the loss from yesterday. The old adage of "better to travel than arrive" but very strong results and still on a P/E discount compared to the sector. Bring it on! |
Exactly. I remember the last set of results. Went from 44p down to 40p despite it being good results... I picked up some more...And since then the shares haven't looked back as they got into the 50s.(I hold in the Boon Fund) |
Just look at the chart for the last two years....like a set of stairs where you can move down a little whilst catching a rest then up another two steps and repeat. |
Not unusual for Time to fall on results day. It usually rebounds strongly after a day or so. |
Somewhat surprised by market reaction given the update but what do I know |
What was the Q1 v Q2 split last year?
I see Cavendish have released forecasts to 2026. I have the 2024 just announced in brackets
Revenue.... £37m (£33.2m)
PBT........ £8.1m £5.9m)
Basic EPS.. 6.5p (4.8p)
That would be impressive growth still to come |
Just enjoyed a good catch up with management, so I'll try and add a write up in the next few days. A key notable for me in chatting was that Q1 is typically a more challenging period for Time, so clearly the performance is commendable. The Autumn months tend to be better, so if they follow that normal trend, then it's looking potentially very good! |
Added also. Looking foreword to hearing about the next strategic growth plan. Maybe get a few clues in the presentation later today.
"The continued strong performance highlights the benefits of the four-year plan we implemented in 2021. With an eye firmly on the future and building on this momentum, management is focused on establishing a new medium-term strategy that will commence from June next year and guide the Company's next period of growth. I look forward to updating our shareholders on that plan towards the end of this calendar year." |
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