I'll ask those questions. |
I'd be interested to hear about their views on the constant availability of funding to the company given the concerns raised on the podcast the other day.
Could finance be pulled at any time? |
hastings,
Please would you ask how TIME expect the budget to affect:
- their own running costs
- the ability of companies to which they have existing loans, to pay off said loans
- their opportunity set going forward
Thank you, Martin |
Have a call lined up with management on Friday, so will look to add some comment on the back of that for interest. |
FYI Cavendish's new adjusted EPS forecasts haven't been specifically noted here yet - they are:
this year : 6.1p EPS
next year : 6.8p EPS
As someuwin previously posted, Cavendish have a 112p price target. |
Yes - thank you Riv
And ST of course too |
Thanks Riv |
Thanks riv (holder) |
 Excellent update as usual.
And just tipped again today by the IC's Simon Thompson:
"Simon Thompson:
A lowly rated small business specialist is upgrading earnings guidance again and it’s unlikely to stop
This lender's upgrade cycle is far from over
Published on November 12, 2024
by Simon Thompson
Profits at least 5 per cent ahead of market expectations
Forward PE ratio of 10 and 1.2 times tangible book value
Bath-based Time Finance (TIME:55.5p), a provider of invoice finance, asset finance and loan finance to more than 10,000 small and medium-sized enterprises (SMEs) has upgraded earnings guidance in an unscheduled first-half trading update.
The positive trading environment is underpinned by the reluctance of high-street banks to provide funding to SMEs, and Bank of England base rate cuts, too. Buoyed by record revenue, a loan book at an all-time high and stable arrears, the directors expect to deliver at least 22 per cent growth in pre-tax profit to £7.2mn (upgrade from £6.9mn) on 6 per cent higher revenue of £35.1mn in the 12 months to 31 May 2025. On this basis, expect earnings per share (EPS) of 5.9p.
etc" |
Time Finance @time_finance
Another deal paid out! ✅
🌿 We provided this ecological consultancy business with a £250,000 invoice finance facility.
The company sought funding to stabilise its cash flow as they take over operations from its sister company, which had managed the archaeological side of the business ⛏️
💷 Our funding will deliver the working capital necessary for the business to accelerate their growth plans, offering peace of mind as they seamlessly integrate the businesses. This financial support will enable them to streamline their operations and invest in future projects.
⏳ Our team also offered the business our credit control service, designed to take the hassle out of chasing customer payments. With us handling the credit control, the business can spend more time on driving forward new opportunities |
I'd read my post again Arthur - which is taken from the Annual Reports
New deals are part funded by the company |
They borrow money from Natwest and lend it on taking a margin, It's only really staff costs that absorb increased cash in the short term so staff numbers might be worth paying attention to. |
Precisely - it part funds the leasing deals it makes, borrowing the remainder.
It's therefore arguably a good sign to see cash at or around Nil as it is then maximising its benefit |
What do you expect to happen to net cash when TIME has a fast growing loan book? |
It's very important agreed. I'd like to see more cashflow generation and residual cash sat on the balance sheet for liquidity. There's hefty retained earnings for acquisitions, dividends and such however |
Isn't cash King? |
Agreed. It's not a particularly cash generative company. It is however an earnings generating machine... |
Because they never generate anyt5hing like as much cash for shareholders as they report in profit. |
Arthur_lame can you advise why we should pay particular attention to cashflow statement? I do anyway but what's your reason for highlighting that specifically in your post? |
I'd urge caution with interest rates appearing to have peaked for the time being and also recommend you pay particular attention to the cashflow statement. |
Cavendish today...
"Time Finance (TIME): CORP Timely earnings upgrade Time has released a positive trading update which shows that momentum has continued into FY25E. The Company continues to grow the lending book to record sizes and generate record revenues. As ever, the quality of the book has not been lessened to achieve this growth. In-line with guidance, we have upgraded our FY25E revenue forecast by 2% to £35.1m, which feeds through to a 5% upgrade at the FY25E PBT and EPS level. Its valuation continues to look compelling trading on a FY26E Basic P/E of just 8.8x and FY26E P/TNAV of 1.1x. We reiterate our 1-year price target of 112p, representing nearly 100% upside." |
By implication margins are up on LY and/or costs are being held tight. Probably both it's the benefit of scale. Ed reads and responds. Many more could learn from his promptness. |
PBT has moved to £7.2m from £6.9m in this mornings broker note |
The last set of guidance I recall was £34.5m revenue and £6.9m PTP, so this is effectively re-affirming that guidance. It is ahead of the last guidance, yes, but not materially. Positive news nonetheless. |
Excellent announcement and perfectly timed. Should be speaking with management again on update day. |
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