Time Finance Share Discussion Threads

[rivaldo] 26/9/2024 09:49

Cheers Someuwin. The rest of Cavendish's summary page is also worth a read:

"Clocking up another strong set of annual results

Time has released positive FY24A annual results which showed a continuation of the growth story as the gross book hit £200m and PBT increased over 40% to £5.9m, 3% ahead of the recently upgraded forecasts at the trading update. The momentum has continued into FY25E, and it remains on track to hit or exceed current expectations. We have released FY26E forecasts which show another year of double-digit earnings growth and PBT increasing 16% to £8.1m as the easing of interest rates will likely further improve the operating environment. The valuation looks compelling given it trades on a FY26E Basic P/E of just 8x and FY26E P/TNAV of 1x. We have upgraded our 12-month price target to 112p based on Time trading
on a FY26E PEG of 1x versus just 0.5x today.

— Financial highlights – FY24A was another impressive year of growth for Time Finance, defying what should have been more challenging conditions with higher interest rates. The focus on its own-book lending, a key tenet of its 4-year plan, has continued with own-book deal origination up 25% to £91.6m pushing the gross book to over £200m by year-end. In turn, revenues grew by 20% to £33.2m (FY23A:
£27.6m) and the operational gearing in the business meant that flowed through to a 40% increase in PBT. The remarkable performance shows that growth has been achieved whilst simultaneously improving the quality of the book. Net deals in arrears dropped by 1% YoY to 5% and net bad debt write offs halved to 1%. Underlying this is the successful ongoing pivot to secured asset lending and invoice financing.

— Q1/25A update – The momentum in the business has reassuringly continued into Q1/25A with revenue increasing 20% YoY to £9.1m (Q1/24A: £7.6m). PBT rose 46% to £1.9m (Q1/24A: £1.3m) which represented a PBT margin improvement of 4pp to 21%. Net Tangible Asset Value surpassed £40m at the end of August whilst the book maintained its high-quality metrics of arrears at 5% and net bad debt write-offs at 1%. This gives us a lot of confidence that FY25E forecasts will be met or exceeded, but we will wait for further evidence before potentially upgrading."

[someuwin] 26/9/2024 08:05

Cavendish yesterday...

Forecasts and valuation – We have released FY26E forecasts which show revenue increasing 7% YoY whilst PBT rises by 16% to £8.1m. The valuation looks compelling, trading on a FY26E Basic P/E of just 8x and FY26E P/TNAV of 1x. We have upgraded our price target from 71p to 112p based on Time trading on a FY26E PEG ratio of 1x compared to 0.5x today. This also aligns with the Group returning to trading on a P/TNAV of 2x, as was seen pre-covid.

[buckinghamshirelad] 26/9/2024 07:45

Really nice to see a rapid rise to wipe out the loss from yesterday. The old adage of "better to travel than arrive" but very strong results and still on a P/E discount compared to the sector. Bring it on!

[boonkoh] 25/9/2024 19:23

Exactly. I remember the last set of results. Went from 44p down to 40p despite it being good results... I picked up some more...And since then the shares haven't looked back as they got into the 50s.(I hold in the Boon Fund)

[davidosh] 25/9/2024 15:27

Just look at the chart for the last two years....like a set of stairs where you can move down a little whilst catching a rest then up another two steps and repeat.

[someuwin] 25/9/2024 14:28

Not unusual for Time to fall on results day. It usually rebounds strongly after a day or so.

[irishmatt] 25/9/2024 13:31

Somewhat surprised by market reaction given the update but what do I know

[davidosh] 25/9/2024 09:53

What was the Q1 v Q2 split last year?

I see Cavendish have released forecasts to 2026. I have the 2024 just announced in brackets

Revenue.... £37m (£33.2m)

PBT........ £8.1m £5.9m)

Basic EPS.. 6.5p (4.8p)


That would be impressive growth still to come

[hastings] 25/9/2024 09:26

Just enjoyed a good catch up with management, so I'll try and add a write up in the next few days. A key notable for me in chatting was that Q1 is typically a more challenging period for Time, so clearly the performance is commendable. The Autumn months tend to be better, so if they follow that normal trend, then it's looking potentially very good!

[someuwin] 25/9/2024 09:01

Added also. Looking foreword to hearing about the next strategic growth plan. Maybe get a few clues in the presentation later today.

"The continued strong performance highlights the benefits of the four-year plan we implemented in 2021. With an eye firmly on the future and building on this momentum, management is focused on establishing a new medium-term strategy that will commence from June next year and guide the Company's next period of growth. I look forward to updating our shareholders on that plan towards the end of this calendar year."

[gswredland] 25/9/2024 08:28

Yes results were fantastic. I am hoping profit takers are out of the way and added 30 mins ago before all the tips begin as you suggest Rivaldo!

[rivaldo] 25/9/2024 08:18

The results are as good as expected, but the Q1 update is scorching.

TIME made £1.9m PBT in Q1 alone - that's 32% of last year's total £5.9m PBT. It's also 26.4% of this year's total £7.2m forecast. Which suggests that this year's 5.8p EPS forecast is capable of being well beaten.

Once the short-term profit-takers following the pre-results run-up are out - and with likely a plethora of tipsters featuring TIME - the shares should quickly resume their run-up imho.

[gswredland] 25/9/2024 07:17

Lol Shanklin!
I am waiting for the sellers to go and then want to add
Looks very good indeed

[shanklin] 25/9/2024 07:02

Sounds like the Cavendish analyst had 3 Shredded Wheat today. Perhaps he/she needs to go somewhere to calm down... ...albeit the Q125 TS read very well

[someuwin] 25/9/2024 06:42

Chief Executive Officer, Ed Rimmer, and Chief Financial Officer, James Roberts, will deliver a live presentation relating to the audited annual results and accompanying Q1 trading update via the Investor Meet Company platform at 1.00pm on 25 September 2024. The presentation is open to all existing and potential shareholders...

[hastings] 25/9/2024 06:38

Very happy with these results, lots to like, not least the arrears figure.Clearly plenty of potential for another upgrade and looking forward to speaking with management again later this morning.

[lennonsalive] 25/9/2024 06:34

Amazing results. Time normally acts weird on announcements with its moves, today I wonder if it will breakout upwards towards 60p

[someuwin] 25/9/2024 06:28

Cavendish summary...

Clocking up another strong set of annual results

Time has released positive FY24A annual results which showed a continuation of the growth story as the gross book hit £200m and PBT increased over 40% to £5.9m, 3% ahead of the recently upgraded forecasts at the trading update. The momentum has continued into FY25E, and it remains on track to hit or exceed current expectations. We have released FY26E forecasts which show another year of double-digit earnings growth and PBT increasing 16% to £8.1m as the easing of interest rates will likely further improve the operating environment. The valuation looks compelling given it trades on a FY26E Basic P/E of just 8x and FY26E P/TNAV of 1x. We have upgraded our 12-month price target to 112p based on Time trading on a FY26E PEG of 1x versus just 0.5x today.

[philly cheesesteak] 25/9/2024 06:25

The most impressive aspect from first glance is that Q125 PBT margin was just shy of 21%, a large upwards move from the last couple of years in the 16-18% range. Operational leverage starting to shine through. By my calculations that's Q1 EPS of around 1.51p so at 56.2p shares are trading on a PER of 9.3.

A very bullish upgrade out from Cavendish who have upped their 1 year target price to 112p from 71p previously

[whites123] 25/9/2024 06:18

Phenomenal set of results and an emphasis on increasing shareholder value.
What's not to like?

Final Results for the year ended 31 May 2024



Significant increases in Revenue, Profit Before Tax and Earnings Per Share

Own-Book origination and Lending continue to grow as Net Arrears fall



Time Finance plc (AIM: TIME), the AIM listed independent specialist finance provider, is pleased to announce its final results for the year ended 31 May 2024.



Commenting on the results, Tanya Raynes, Non-executive Chair, said:

"The Group's financial performance, over the third year of our four-year strategy, was particularly strong. Despite wider macro-economic headwinds, revenue, profit and earnings per share all saw double-digit growth, with revenue and profit ahead of market expectations. At the same time, the Group's Balance Sheet has continued to strengthen with the lending book and Net Tangible Assets hitting record highs at 31 May 2024 and growing further still through the current financial year. As a result, we remain confident in achieving the targets we set in our 2021 strategic plan."



Financial Highlights:

• Revenue of £33.2m (FY2223: £27.6m), an increase of 20%

• Profit Before Tax ("PBT") of £5.9m (FY2223: £4.2m), an increase of 41%

· Earnings per share ("EPS") (fully diluted) of 4.8pps (FY2223: 3.7pps), an increase of 30%

• Own-Book deal origination of £91.6m (FY2223: £73.4m), an increase of 25%

• Lending book of £201.2m at 31 May 2024 (31 May 2023: £170.1m), an increase of 18%

• Consolidated Net Assets at 31 May 2024 of £66.1m (31 May 2023: £61.7m), an increase of 7%

• Consolidated Net Tangible Assets at 31 May 2024 of £38.6m (31 May 2023: £34.2m), an increase of 13%

• Future visibility of earnings with unearned income of £25.4m (31 May 2023: £21.2m), an increase of 20%

• Net deals in arrears at 31 May 2024 of 5% (31 May 2023: 6%), a reduction of 1%

• Net Bad Debt Write-Offs equal to 1% of the average lending book (31 May 2023: 2%), a reduction of 1%



Operational Highlights:

• Ratio of own-book lending to broked-on lending improved to 97% vs 3% during the year (96% vs 4% in the prior year)

· Strong lending growth within both the Invoice Finance division (up 16% to £65m YoY) and in the Hard Asset offering within the Asset Finance division (up 37% to £85m YoY)

• Supportive funding partners with available lending headroom at 31 May 2024 of over £65m

• Approved as an accredited lending partner under the UK Government's Growth Guarantee Scheme



Ed Rimmer, Chief Executive Officer, added:

"Both from a financial and operational perspective I am very pleased with the performance of the Group. Great strides forwards have been taken in both of our core divisions - Asset Finance and Invoice Finance - which have seen significant increases in their lending books while, crucially, adhering to strong portfolio management and control. Our brand has continued to grow and be enhanced within our key introducer base and the focus on recruiting high-calibre staff has continued. The Group, therefore, remains very well positioned and there is real optimism in our ability to continue to increase shareholder value."

[eeza] 25/9/2024 06:17

Ahead of expectations - again.

[whites123] 25/9/2024 06:17

Better than expected results and a Trading update as well showing continued growth.
Amazing results.

Q1 Trading Update



Record Quarterly Revenues, Net Tangible Assets and Lending Book



Time Finance plc, the AIM listed independent specialist finance provider is pleased to announce the following update on the Group's trading performance for the first quarter of the current financial year covering the three months to 31 August 2024.



Unaudited Q1 financial highlights:

· Own-Book lending origination up 9% to £22.1m (Prior Year Q1: £20.2m)

· Revenue up 20% to £9.1m (Prior Year Q1: £7.6m)

· Profit before Tax up 46% to £1.9m (Prior Year Q1: £1.3m)

· Net Tangible Assets up 14% to £40.1 at 31 August 2024 (31 August 2023: £35.2m)

· Gross lending-book up 17% to £205.3 at 31 August 2024 (31 August 2023: £175.8m)

· Net Arrears are stable at 5% of the gross lending book at 31 August 2024 (31 August 2023: 6%)

· Net Bad Debt Write-Offs remain at 1% of the average lending book, unchanged from the same date one year prior



As targeted in the Company's four-year strategic plan (announced in June 2021), lending book growth has continued to be driven by both the Invoice Finance division and the 'Hard' subset of the wider Asset division. Both of these products are in the secured lending arena and provide scope for larger average deal sizes.



Ed Rimmer, Chief Executive Officer commented:

"As we enter the final year of our four-year medium-term strategic plan, I am very encouraged that the first quarter of the new financial year continues to deliver increased growth in our lending book, our Net Tangible Assets, our Revenues and our Profit Before Tax. The lending book has now seen consistent increases for thirteen consecutive quarters, reflecting the demand for our multi-product offering and the value placed on our first-class customer service by UK businesses seeking access to finance. Pleasingly, our net arrears and net bad debt write-offs are well within our target ranges and underline our commitment to responsible and sustainable lending. The Board, therefore, retains real confidence that the Group is positioned for further growth and will build increased value for its shareholders over time.



"The continued strong performance highlights the benefits of the four-year plan we implemented in 2021. With an eye firmly on the future and building on this momentum, management is focused on establishing a new medium-term strategy that will commence from June next year and guide the Company's next period of growth. I look forward to updating our shareholders on that plan towards the end of this calendar year."



The Company will deliver a live presentation relating to this trading update and the simultaneously released 2024 Results announcement via the Investor Meet Company platform at 1pm BST today. Existing and potential shareholders can sign up to Investor Meet Company for free and add to meet Time Finance plc via: hxxps://www.investormeetcompany.com/time-finance-plc/registerinvestor

[davr0s] 24/9/2024 17:27

Nice move today - for once, I hope that good news has leaked out

[whites123] 24/9/2024 15:28

All signs are suggesting tomorrow is going to be a day for holders to remember.

Another Funding Circle set of rises to happen?

I wouldn't bet against it.