Bought in on the initial weird dip |
Ah I see the usual pattern has resumed here.A spike up before results/TU. Then a fall on the day. And then in the days ahead, it motors up strongly.It's now happened for the last few times this year. Such odd behaviour. But looks like history is repeating itself today!(I hold in the Boon Fund) |
 Cavendish
"Time Finance (TIME): CORP Time for a Christmas update Time Finance has released its 1H25E trading update pointing to a continuation of strong performance. The gross book grew 11% to £209m (1H24A: £189m) meaning the Group remains on track to hit its 4-year plan to approximately double the book by May 2025. The quality of the growth has remained high with Invoice Finance and the ‘Hard’ subset of Asset Finance representing c.85% of new deals originated in the period, leading to net bad debt write-offs remaining stable at just 1% of the average lending book. Revenue increased 16% to £18.2m (1H24A: £15.7m) whilst PBT increased an impressive 44% to £3.9m (1H24A: £2.7m) giving the company a good chance of outperforming our recently upgraded FY25E PBT of £7.2m given the compounding nature of the growing loan book. Overall, due to operational gearing and Invoice Finance growth driving higher margin revenue mix, there was a significant increase in PBT margin by 4pp to 21% (1H24A: 17%), something we expect to continue to trend higher as the business further expands. Time’s valuation looks compelling trading on a FY26E basic P/E of 9.2x and FY26E P/TNAV of 1.1x. We reiterate our 1-year price target of 112p, representing nearly 100% upside." |
On those metrics, TIME valuation seems rather cheap. |
Yep, outstanding H1 results.
The £3.9m PBT in H1 means TIME are in a position to thrash even the recently increased forecast of £7.2m PBT for the year.
Write-offs are small and stable, arrears are actually falling and margins are rising.
The group is transforming to a higher quality loan book against invoices and "Hard" assets.
Most importantly the outlook is rosy and suggestive of further upgrades:
"Continuing positive trading momentum; leading to expectation of Group financial performance for the full year to be at least in line with recently upgraded market guidance" |
Great performance as previously outlined and momentum continues. |
Ahhhh.... that explains the rise
:-) |
Trading update tomorrow |
Time Finance @time_finance
New Invoice Finance Deal Alert! 🚨
🥜 We provided this nut and dried fruits wholesaler with a £300,000 invoice finance facility.
The company needed funding to stabilise cash flow after transitioning from their previous funder. Our flexible funding solution will empower them to take on larger orders without financial limitations, which is crucial for their continued growth.
💷 This facility offers the working capital needed to expand their range of nuts, dried fruits, and granola. It also helps bridge cash flow gaps caused by long payment terms from their debtors, ensuring a steady financial footing moving forward. |
Yes this and YU. my favourite AIM shares. Both looking cheap still |
TIME is one of those rare aim gems, that you buy on the dips and there are only positive market updates, rather than profit warnings |
Thanks Owen
Makes for interesting reading |
Thanks for that hastings, clickable link - |
Write up for further interest.https://martinflitton1.wixsite.com/privatepunter/post/time-marches-on-17-11-24 |
Thanks Hastings
Great info |
Can look at that 2 ways. A) SME's will need additional cashflow and may be knocking on Times door to borrow and or b) bad debt may increase... |
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 |
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