Time Finance Share Discussion Threads

[davidosh] 14/4/2024 17:33

Tomorrow and Tuesday will be interesting as Time Finance are going to feature on the Mello BASH (Buy, Avoid, Sell or Hold)

MFX are presenting tomorrow evening on #MelloMonday and as a double bonus you can compare and contrast as Time Finance (TIME) will be analysed by our three BASH panelists



Do join

[boonkoh] 12/4/2024 11:32

Ready to keep marching up past 45p. Rise so far based on small volumes. Imagine when PIs get excited and more volume comes in.

[lennonsalive] 10/4/2024 09:22

Someone's paid 42p

[lennonsalive] 08/4/2024 14:54

I wonder who is the seller that has offload in 25k chunks for months

[harrywilliam] 08/4/2024 13:41

I think once we push up through 40p today that the price will then stay above 40p

[boonkoh] 03/4/2024 11:08

The growth runway continues with the increased wholesale funding...Still looks like a major seller weighing on prices. Patience will see this share surge upwards when that seller is exhausted.

[someuwin] 03/4/2024 07:09

3 April 2024

Time Finance plc

("Time Finance", the "Group" or the "Company")

Extended And Improved £64m Funding Facility Agreed With The British Business Bank

Funding line to be deployed across both Hard Asset and Vendor Finance

Time Finance plc, the AIM listed independent specialist finance provider, is pleased to announce that it has agreed an extension to its existing asset finance facility with the British Business Bank under its ENABLE funding programme with an increase in the facility and on more flexible terms. The current £35m Hard Asset facility will be increased to £64m and will also be available to fund the Group's Vendor Finance offering. This facility, along with further recently renewed and enhanced facilities with some of the Group's other long-standing and supportive funding partners, will provide over £40m of new funding capacity, increasing the total funding facilities available to the Group to over £200 million.

The Group continues to experience strong demand for asset finance particularly in the 'hard assets' sub-division of its Asset division, and the deployment of this Facility will enable the Group to continue to meet this increasing demand for business-critical equipment used by SME businesses while resolutely maintaining its strict underwriting criteria.

James Roberts, Chief Financial Officer, commented:

"Over the past five years we have developed a strong working relationship with the British Business Bank and I am delighted this will now be able to continue for the foreseeable future. The enhanced facility will enable Time Finance to provide additional funding to UK SMEs for their business-critical equipment in one of our more secured and key strategic growth areas. With the British Business Bank facility being a cornerstone of the Group's funding mix we hope to help many more UK businesses and thereby further improve our shareholder returns"

[lookagain] 02/4/2024 09:48

Decent video and worth watching


Time Finance positive trading update with CEO Ed Rimmer (VIDEO)

[boonkoh] 02/4/2024 09:04

I just read through my old notes on Time, published in early Feb before the results...hTTps://boonfund.substack.com/p/time-finance-plc-share-analysis-reportNothing changes my view. They have this sweet spot of a growth flywheel at the moment. The momentum will carry them for at least another few quarters. Of concern is why is there such a sweet spot of SME lending that others in the (mature) lending market have not noticed? Are they just taking on risky loans that no-one else will touch?Nevertheless on balance I continue to hold, as there is nothing to suggest management relaxed lending standards, and that the loan book is not good quality. This should easily trade 50p plus in the short term.

[owenski] 31/3/2024 14:14

Just to provide some clarity on the 6% arrears.

It doesn't mean 6% write offs, it means that 6% have some payment distress associated to the loan.

Of the 6%, 5% are thought to be recoverable via payment rescheduling or extensions.

1% is thought to be the 'write off' value.

Source - Q&A from IMC webcast.

[red ninja] 31/3/2024 11:47

Update from Investor's Champion paid for tip site :-




Trading update for 9 months ended 29 February 2024 (26/03/24)
Continued strong demand from UK businesses for the Group's multi-product offering is driving further growth in own-book lending origination which has contributed to a record gross lending book of more than £190m at the end of February 2024. That’s the eleventh consecutive quarter of loan book growth for Time Finance.

For the 9 months revenue is up 20% to £24.0m and pre-tax profit 40% higher at £4.2m, surpassing the level achieved for the whole of the previous year. 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.

Despite the very strong growth it is reassuring that net arrears remain unchanged at 6% of the gross lending book at 29 February 2024.

Net Tangible Assets at the period end rose 14% to £37.6m.

Full-year results are anticipated to be “at least in line with the market expectations” as upgraded on 5 March 2024.

Broker forecasts
Following the trading update covering the 9 months to the end of February (see above), the house broker upgraded forecasts for the year ending May 2024 for revenue by 2% to £31.5m, pre-tax profit by 6% to £5.7m and earnings per share by 6% to 4.6 pence (growth 31%).

For May 2025 forecasts remain for revenue of £33.1m, pre-tax profit to £6.3m and earnings per share of 5.1 pence (growth +11%).

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.

Bonkers Bargain appeal
At the current share price of 39p (initially 17p) the market capitalisation is still a lowly c£36m, a c5% discount to net tangible assets at 29 February 2024 of £37.6m, 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 8.4x 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 approx 6.5x.

While the shares have had a good run over recent months, 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.

[eeza] 31/3/2024 09:00

TIME gets some discussion as a "Bonkers Bargain" at ~19mins on latest podcast 30 March (Easter)



Also discussed in Episode #2

All quite interesting podcasts.

[gswredland] 28/3/2024 18:56

Thanks Chester
He is a big fan of TIME

[chester9] 28/3/2024 17:41

hTTps://www.investorschronicle.co.uk/ideas/2024/01/25/tap-into-this-bargain-priced-sme-lender/late Jan behind a paywall

[gswredland] 28/3/2024 16:04

It's someone else who wishes us not to mention
When did Simon Thompson tip please?

[nakedmolerat] 28/3/2024 15:35

TIME to crack on and bust that 40p! positive movement with a few buyers this afternoon, the simon thompson effect?

[rivaldo] 26/3/2024 13:44

Net tangible assets are up 3.3% in Q3 alone, so simplistically that's over 13% per annum.

Gross lending is up a fraction - but much the more important indicator is Own Book lending, which is up a whopping 40% over Q2.

And of course PBT has grown from £0.7m in Q2 to £1.5m in Q3.

[controlledmadness] 26/3/2024 12:33

It's a mixed report compared to the 6 month report. The PBT has risen a lot but the assets and gross revenue have sort of stagnated.
Would be nice to be told that 4Q will be better.

[rivaldo] 26/3/2024 11:20

Cavendish have a 71p target here.

They've raised their forecasts yet again, with PBT up 6% to £5.7m.

They now have an adjusted EPS of 4.9p to this May (up from 4.6p), rising to 5.4p EPS next year.

That's a P/E of 7.8 falling to 7.1.

In summary:

"Positive 3Q/24E Trading Update

Time has released a positive trading update for 3Q/24E revealing the 11th consecutive quarter of loan book growth to a new record of £190m (As at 3Q/23A: £157m). The loan book has reached this high following £66m (As at 3Q/23A: £53m) of new own-book lending in the 9-month period.

The growth has remained high quality, with the focus being on expanding the secured lending areas of Invoice Finance and Hard Asset Finance. The tilt towards secured lending has meant arrears have kept flat at 6% even as the book has grown substantially, and it is important to note that 6% arrears on a secured lending book is lower risk than 6% arrears on an unsecured book, given the recoverability rate of the loan is not captured in the statistic. Overall, revenues increased
20% to £24m (As at 3Q/23A: £20m) and plentiful operational gearing, aided by net interest margin discipline, pushed PBT up 40% to £4.2m (As at 3Q/23A: £3m).

In-line with management expectations, we have upgraded our FY24E revenue by 2% to £31.5m and upgraded our PBT by 6% to £5.7m. In terms of valuation, Time looks extremely cheap given it is trading on an FY25E basic P/E of just 7.7x and FY25E P/TNAV of 0.8x, despite over 20% ongoing earnings growth. We remain encouraged on Time’s outlook given it has achieved so much during a challenging period for the UK economy. The recent UK inflation figures and BOE commentary about imminent interest rate cuts bode well for continued expansion in Time’s loan book."

[chester9] 26/3/2024 08:57

I bought a few more so thanks to them

[doobz] 26/3/2024 08:45

And what a terrible market reaction

[boonkoh] 26/3/2024 08:45

Looks like quite a clumsy seller this morning.... Could have dripped more smartly over the day and achieved 40p instead of 38p....

[rivaldo] 26/3/2024 07:52

It will indeed!

An excellent 9 month update. Guidance is that trading will be "at least" in line with the upgraded expectations, but looking at the figures it would seem that TIME are on track to once again beat the latest expectations as outlined in post 560 above for both revenue and PBT.

[doobz] 26/3/2024 07:15

That will do :)

[nakedmolerat] 25/3/2024 16:56

a few sellers buying in advance this morning and a few leaving leaving by the back door