Time Finance Share Discussion Threads

[someuwin] 18/8/2023 22:34

From the interims in Jan...

DIVIDENDS
At the current time, under the strategy published in June 2020, cash reserves are being deployed for business growth. This approach to future dividends is kept under regular review and any change to the policy would be notified at that point in time.

[gowkirk] 18/8/2023 22:17

Why doesn't it pay a dividend?

[gswredland] 18/8/2023 15:21

Thanks pye

[lennonsalive] 18/8/2023 13:56

Normally that's a kiss of death. However the company has strong finances and growth

[pyemckay] 18/8/2023 12:35

tipped by simon thompson apparently.

[red ninja] 18/8/2023 12:11

Yes a strong move, maybe some buying before results announced on 26th Sept assuming results come out as scheduled.

[squarepeg86] 18/8/2023 12:03

Some nice buying today!

[gswredland] 10/8/2023 16:08

Thanks phar

[doobz] 10/8/2023 14:05

Looks like it's found its feet now.

[phar lap] 10/8/2023 07:57

FY results are on the 26/9/23

[gswredland] 09/8/2023 23:15

Do we know a date square please?

[squarepeg86] 09/8/2023 12:09

Someone is buying here ahead of next month's full year results.

[someuwin] 17/7/2023 15:47

Time Finance @time_finance

A proud moment as our Head of Broker Sales Laura Mollett picked up the award for Asset Finance Provider of the Year in the Asset Finance Connect Awards last week 🏆

A huge achievement for everyone in our team who continue to go above and beyond for our brokers, customers and partners. Well done all!

#AssetFinanceConnectAwards #AssetFinanceProviderOfTheYear

[doobz] 12/7/2023 11:33

Been surprisingly weak since great results. Was fully expecting to be in the 30s now

[gswredland] 11/7/2023 15:36

Not many though

[lennonsalive] 11/7/2023 09:02

26k buy from the director, nice

[lennonsalive] 11/7/2023 09:00

I stuck some sell orders in yesterday to test the water and couldn't get a price for 15, 10 or even 5k. Need some buyers here

[hastings] 11/7/2023 07:08

Good to see a decent Director buy being made.

[squarepeg86] 04/7/2023 10:16

Theres not much liquidity at the moment for any price action. Doing a dummy sell, the most I can get a price for is 1500 shares, anything more and it's NT.

[lennonsalive] 04/7/2023 07:23

I hadn't thought so much of it being bought by another company, just share holders. If it can breakout past 30p then it be on many peoples watchlists and fly

[red ninja] 01/7/2023 11:16

Investor's Champion website (paid for tip site) comment :-



Trading update for the year ending 31 May 2023 (29/06/23)
The results for the year reflect the success of the Company’s continued focus on own-book lending to UK businesses, with the Lending Book reaching an all-time high of c£169m at 31 May 2023.

Own-Book lending origination rose 14% to £73.4m supporting a 16% increase in revenue to £27.4m and 273% increase in pre-tax profit to £4.1m (margin 15%). Earnings per share rose 250% to 3.5 pence.

The significant increase in revenue has been driven primarily by growth in the Invoice Finance division and the ‘Hard Asset’ subset of the Asset division. Both growth areas operate in the larger-ticket, more secured lending space.

There is strong visibility of future earnings with unearned income up 24% to £20.7m at 31 May 2023.

The significant growth achieved during the year has been made whilst continuing to generate appropriate margins, control credit and spread risk. In recognition of this, net arrears reduced to 6% of the gross lending book at the year-end, from 7% at the prior year end. They have also prudently increased the Credit Risk Provision to £4.2m at 31 May 2023 (31 May 2022: £3.6m)

Net Tangible Assets rose 11% to £33.9m which compares to the current market capitalisation of £26.4m (share price 28.5 pence).

The group has unused lending headroom of approximately £50m at year-end.

The update brought upgrades from the house broker which we cover below.

Broker forecasts
For the year ending May 2023 updated forecasts (following the June trading update covered above) are for revenue of £27.4m, pre-tax profit of £4.2m and adjusted earnings per share of 3.6 pence (+220%).

For May 2024 forecasts have been upgraded to revenue of £30.1m, pre-tax profit to £5.0m with adjusted earnings per share 4.2 pence (+17%). The house broker has also issued forecasts for the year ending May 2025 for earnings of 5.3 pence.

As anticipated Time Finance appears to have ridden out the Covid storm through its multi-product lending offering and the flexibility of its business model.

With the significant government support packages no longer in place post-Covid, and with the ever-increasing economic challenges facing small businesses, access to finance will be a key priority for SMEs over the coming months and years.

At the current share price of 28p (previously 17p) the market capitalisation is still a lowly c£26.4m, a c22% discount to net tangible assets at 31 May 2023, which has also been subjected to meaningful provisions. Despite the strong share price performance over recent months the PE multiple is a lowly 6.7x forecast earnings for the year to May 2024. Prior to the pandemic impacting returns, which pulled down earnings per share to 2.6p for the year ending May 2020, this business consistently delivered earnings of more than 6p and 6.8p in 2019 - net income of £6.35m. This equates to a normalised price earnings multiple of 4.7x.

While the shares have had a good run in 2023 to date, they remain well down on previous highs and this business continues to look ridiculously cheap on many levels. The Group's multi-product tailored offering to UK SMEs, its own-book lending strategy and its quality of service have become ever more appreciated by introducers and we struggle to believe the shares can remain at these lowly levels for much longer. If they continue to languish, an acquirer will surely pounce.

[gswredland] 30/6/2023 08:10

Yes thanks Smithie

[smithie6] 29/6/2023 17:16

(gswredland
btw
advfn puts a trade in the sell trade or buy trade column solely depending on whether the price is above or below the mid price. So, yes it can be wrong)