Time Finance Share Discussion Threads

[lennonsalive] 13/10/2023 14:44

I can't even go long on IG for spreads, already hold two lots of shares btw

[lennonsalive] 13/10/2023 14:43

It's breaking 30p, could this be the rocket ?

[arthur_lame_stocks] 13/10/2023 14:37

I'm going in the car!

[davidosh] 13/10/2023 13:10

Looks like a breakout is coming though....Agm will probably provide a trading update.

Anyone going to the Agm in Bath?

[lennonsalive] 11/10/2023 12:44

Yup, again today

[eeza] 11/10/2023 07:46

A few small BOD buys yesterday was the reason for the lift in share price


But 25k seller still coming out to play every day.

[smithie6] 04/10/2023 13:49

Option scheme from 2022 vesting share options in 2023.

1 year perf. period looks far far too short imo.

Normally , for listed companies, it is a min. of 3years, up to X years.

[eeza] 29/9/2023 15:01

It had a write-up in IC on 26th (Tues)

[nakedmolerat] 29/9/2023 14:48

nice buying today, expect it's tipped on the sheets or newsletters by the end of the week.

[eeza] 29/9/2023 12:41

Thanks also to Hastings.

[nakedmolerat] 29/9/2023 12:38

interesting arena has 19%, also institutional investors dont have divs as priority

[owenski] 29/9/2023 12:27

Hastings, thanks for the write up, appreciated.

[red ninja] 29/9/2023 11:13

Results for the year ending 31 May 2023 (28/09/23)
Revenue for the year ending 31 May 2023 climbed 17% to £27.6m while profit before tax soared 281% to £4.2m with earnings per share up similarly to 3.7 pence.

Own-Book deal origination increased 14% to £73.4m lifting the period end Lending book to £170.1m, an increase of 24%. This lifted the ratio of own-book lending to broked-on lending to 96% vs 4% during the year, up from 87% vs 13% in the prior year.

The Invoice Finance division saw lending increase 30% over the previous year to £56m and the "Hard Asset" offering within the Asset Finance division was up 55% to £62m.

The non-core consumer mortgage brokerage was offloaded in the period.

The Group closed the period with unused lending headroom of approximately £50m.

Net Tangible Assets at 31 May 2023 were up 12% to £34.2m.

Trading update for 1st quarter

Own-Book lending origination in the first quarter of the current year rose 29% to £20.2m helping to lift revenue 21% to £7.6m. Profit before Tax was 44% higher at £1.3m.

The lending-book has increased 3% to £175.8m since the May 2023 year-end with net arrears remaining stable at 6% of the gross lending book.

Net Tangible Assets also continue to increase; up 3% since year-end to £35.2m and up 13% from 12 months prior.

Broker forecasts
For the year ending May 2024 updated forecasts are for revenue of £30.1m, pre-tax profit of £5.0m (+19%) and adjusted earnings per share of 4.0 pence (+14%).

For May 2025 forecasts have been upgraded to revenue of £33.1m, pre-tax profit to £6.3m with adjusted earnings per share 5.1 pence (+27%).

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 c25% discount to net tangible assets at 31 August 2023, which has also been subjected to meaningful provisions. Despite the strong share price performance over the past 12 months the PE multiple is a lowly 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.

[smithie6] 29/9/2023 10:39

I've just posted over the MFX msg board, comparing Time with MFX.
So, I'll post it here as well.

----

"... interesting

LSE:time
Comparing Time with MFX, the MFX loan book is more than double that at Time, whose business is lending to SMEs.
Both businesses make ~£4.4m/yr pbt.
Yet the loan book at Time is ~170 million versus ~£350m I think at MFX.

So, in terms of return from its loan book the return at MFX is about half that at LSE:time.

Which supports my argument from a few days ago that MFX should be able to increase the yield from its loan book. Which would increase the profit (& the share price)."

[eeza] 29/9/2023 10:36

25k seller determined to hold the share price below 28p.

[hastings] 29/9/2023 08:56

Write up for interest, after my catch up with Ed Rimmer yesterday.https://martinflitton1.wixsite.com/privatepunter/post/time-finance-moving-the-numbers-29-09-23

[eeza] 26/9/2023 20:47

Was a large seller in the background. Almost every buy was at a lower price than the preceding trade, so MMs had plenty in their satchels to offload.

[arthur_lame_stocks] 26/9/2023 19:58

I'd just like to see a dividend reinstated.

[boonkoh] 26/9/2023 19:57

Disappointing trade volume today for a results day. Market just doesn't love this share, thematically. A pity as the results will be stunning over the next few years, driven by that rapidly growing unearned income book.Hope a predator doesn't swoop in and buy it for a song.

[eeza] 26/9/2023 18:38

Another good write-up from IC - although mostly re-iterating what is already known, but helps to spread the word.

[gswredland] 26/9/2023 15:49

Yep seems to happen all the TIME. (ha ha....sorry couldn't resist)
Frustrating

[nakedmolerat] 26/9/2023 15:32

eeza, it's the same pattern of reaching around buys of 30p, then sells come in and it drops down to 24/25/26p. needs some bigger players to buy volume and hold

[the oak tree] 26/9/2023 14:02

Great set of results.
They made a typo on the % below. Should be a 6.2% increase.

-- Consolidated Net Assets at 31 May 2023 of GBP61.7m (2022: GBP58.1m), an increase of 15%

[eeza] 26/9/2023 12:17

Offer is dropping with each buy trade. Now 28.55p.

[someuwin] 26/9/2023 09:24

If the market doesn't buy this up, then someone else will.