Thanks Hastings but your last quote doesn't sit too well with me
"No real worries on budget (NI) as SME’s have already been dealing with high inflation, sharply upped interest rates and supply chain issues".
That implies SME's can continue to take hit after hit - which common sense tells you is nonsense. At some point the needle is tipped.
The additional NI cost for an average earning employee will increase 25% - and then there's minimum wage changes etc etc |
All in all happy to be holding and will add further on Monday. |
Had a very worthwhile chat with the CEO this morning and I'll add a write up for Monday morning.Suffice to say for now, no concerns on funding, with Ed stating that at the moment they're probably in the best position since he became involved in the business.Very recently renewed the 3 year RBS facility with a substantial increase, up by £20m.On the asset side, British Business Bank facility also renewed last May and also upped. Additional block lenders were also renewed in the summer.No real worries on budget (NI) as SME's have already been dealing with high inflation, sharply upped interest rates and supply chain issues. |
Me neither - not when the debt is effectively secured against a customer asset, and pulling finance surely would be the ultimate last resort and could make matters worse rather than better.
TIME would have to be loss making and consuming cash for such a scenario to happen I'd have thought |
I think it’s worth considering why a lender might pull funds, normally it’s to do with lack of confidence in the company/person or economic outlook.I can’t see a reason a lender would suddenly pull the rug personally |
Will you be coming to Mello next week to watch the team present and ask a few questions in-person? |
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? |
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