Time Finance Share Discussion Threads

[the oak tree] 27/6/2024 09:17

Im a long term holder but have the following question out of general interest.

How does this company move to own book lending from 3rd party without increasing their advertising costs?

Being able to sell direct is wondeful but there is normally a reason many companies dont or cant.

Great results.

[davidosh] 27/6/2024 08:44

These are excellent results with all metrics very positive except for the p/e rating which is derisory and should be at least low double digits considering the track record of growth and constantly beating expectations over the past two years.

When interest rates start to come down and with some post election optimism returning I expect the share price to rise to 60p and if they keep beating forecasts then even at that price it will still be a single digit p/e rating

[boonkoh] 27/6/2024 08:13

I've now topped up my holding.At 40p it's still below the recent price (before the irrational plunge), and I actually think FY25 EPS could come in at 6p+, and buying at below 7x PE is a bargain as these should really be trading at 10x, maybe even 12x.

[boonkoh] 27/6/2024 07:25

If write-offs go from 2% to 1% and gross lending book is like gbp200m...My simple maths say that PBT should increase by gbp2m? Of course not in a year, but over the lifetime of the lending book (1.5yrs?)Have had a look at Cavendish forecasts for FY25 and don't think they've added this to their FY25 revised forecast, which means further upside on the 5.6p EPS to come. Maybe to 6.2p or 6.3p.

[owenski] 27/6/2024 06:54

Indeed, total arrears moving down to 5% and write offs down from 2% to 1%. Their risk pricing is admirable.

[boonkoh] 27/6/2024 06:47

That arrears getting better, from 6% to 5%... That's really going to turbocharged profits in FY25....!This is the goldilocks share. Fast growing top line (lending book) AND also expanding profit margins (lower arrears, operational gearing)

[gswredland] 27/6/2024 06:45

Excellent!

[lennonsalive] 27/6/2024 06:43

Cavendish have just issued a note with PBT forcast of 6.9 million for 2025

[rivaldo] 27/6/2024 06:42

Terrific stuff, as usual.

Cavendish have raised their forecast for the current year to May'25 by 10% to 5.8p EPS, so the rating here looks extremely good value.

Their target price is 71p.

[hastings] 27/6/2024 06:27

Excellent update as others have said.

[joe say] 27/6/2024 06:27

Given the share price movement in recent days I was prepared for the worst - so what a pleasant 'surprise' reading that update.

Guess its proof of the voting/weighing machine adage

[chester9] 27/6/2024 06:22

Totally agree. Focus is on growth and driving share price Really motoring now.

[owenski] 27/6/2024 06:16

that TU is at odds with the recent sell off.

Super update.

[someuwin] 27/6/2024 06:04

Trading Update and Notice of Final Results

Strong trading momentum continues

Lending Book increased to c£200m - a twelfth consecutive quarter of growth

Time Finance plc, the AIM listed independent specialist finance provider, is pleased to issue the following trading update for the financial year ended 31 May 2024 ("FY 2023/24"). In FY 2023/24, the Company delivered significant increases across its key performance indicators, with revenue and profitability ahead of market expectations.

The results reflect the continued success of the Company's strategic focus on own-book lending to UK businesses. This approach has seen the Lending Book reach an all-time high of c£200m.

Unaudited financial highlights:

· 20% increase in Revenue to £33.0m (FY 2022/23: £27.6m)

· 38% increase in Profit Before Tax to £5.8m (FY 2022/23: £4.2m)

· Own-Book deal origination up 25% to £91.5m (FY 2022/23: £73.4m)

· Gross lending-book up 18% to £200m at 31 May 2024 (31 May 2023: £170m)

· Strong future visibility of earnings with Unearned Income up 19% to £25.2m at 31 May 2024 (31 May 2023: £21.2m)

· Net deals in Arrears reduced to 5% of the gross lending book (31 May 2023: 6%)

· Net Bad Debt Write-Offs reduced to 1% of the average lending book (FY 2022/23: 2%)

· Net Tangible Assets up 13% to £38.5m at 31 May 2024 (31 May 2023: £34.2m)

· Extended and enhanced funding facilities agreed with supportive, long-term partners resulting in facilities with headroom in excess of £60m at 31 May 2024

The increase in revenue has been primarily driven by the growth in both the Invoice Finance division and the 'Hard Asset' subset of the wider Asset division. They are both areas which operate in the larger-ticket, more secured lending space, and they now comprise over 75% of the Group's entire lending book.

Notice of Results

The Group will publish its audited final results and its Annual Report and Financial Statements for the financial year to 31 May 2024 on 25 September 2024.

Ed Rimmer, Chief Executive Officer commented:

"I am delighted to provide this trading update in respect of Time's full-year results which clearly demonstrate the ongoing success of the Group's strategy. To have delivered such growth, despite wider macroeconomic headwinds, is testament to the hard work of our team, to the clear focus on our strategy and the strong demand for finance from UK businesses which continue to prove remarkably robust. What is especially pleasing is that the performance is based on maintaining appropriate margins, underwriting robustly and in keeping a wide spread of risk. As a result, I am confident the Group is well positioned for future growth and in delivering further increased shareholder value."

[gswredland] 26/6/2024 15:37

Very optimistic, but here's hoping

[harrywilliam] 26/6/2024 14:36

Back to 44p on results and a nice 20 percent trade I'm thinking. Positioned for this outcome today and yesterday, fingers crossed

[doobz] 25/6/2024 11:47

I normally expect a drop on results days, regardless of strength but hopefully this is a seller also anticipating profit taking on Thursday. Unless anything in background we should build back a base from there

[chester9] 25/6/2024 07:19

It's a few games hopefully or a background seller. Nothing in any of the presentations, TU and results. Their focus is share price growth. Let's see what happens on Thursday.

[owenski] 24/6/2024 20:03

Last TU was end of March - 3 months ago - can't see much will have changed.
Unaudited 9 month 2023/24 financial highlights:



"· Own-Book lending origination up 25% to £66.0m (9M 2022/23: £52.9m)

· Revenue up 20% to £24.0m (9M 2022/23: £20.0m)

· Profit Before Tax ("PBT") up 40% to £4.2m (9M 2022/23: £3.0m)

· Strong visibility of future earnings with unearned income up 27% to £24.6m at 29 February 2024 (28 February 2023: £19.4m)

· Gross lending-book up 21% to £190.3m at 29 February 2024 (28 February 2023: £157.2m)

· Net Arrears unchanged at 6% of the gross lending book at 29 February 2024 (28 February 2023: 6%)

· Net Tangible Assets up 14% to £37.6m (28 February 2023: £33.0m)



Revenue continues to be driven by strong growth in the larger-ticket, more secured lending areas of Invoice Finance and the 'Hard Asset' subset of Asset Finance."

[davr0s] 24/6/2024 17:41

Certainly weak price action. Is there that anything that Labour might be proposing that could lead to a sell off? I am a trend follower and for me it's getting close to a trend break now

[rimau1] 24/6/2024 14:31

Chester, TU already confirmed for Thursday.

[chester9] 24/6/2024 14:26

Last year they put a TU out on Thurs 29th June. They could do with repeating this week.

[lennonsalive] 24/6/2024 14:11

Did not think I would see it this low again

[peddlers] 17/6/2024 14:48

Doobz, agreed ! I'm holding.

[doobz] 17/6/2024 13:12

Peddlers, I think any purchases in the last 2 weeks were likely poor timing. Most stocks had a rough setback. Mostly unjustified across the board. Topping up one last time here. Fab stock