Time Finance Share Discussion Threads

[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)

[lennonsalive] 29/6/2023 09:40

Lolz this is typical sell behaviour. Will rise again on write ups later or over the weekend I hold for now in profit

[squarepeg86] 29/6/2023 08:50

273% increase in PBT and the share price doesn't even reach the 52 week high! This one is definitely well under the radar!

[gswredland] 29/6/2023 08:39

I noticed they had it wrong on ADVN. Sells are really buys.
Interesting that you think this is a multi bagger Doobz

[doobz] 29/6/2023 08:32

Could well be some profit taking however with an illiquid stock and the PE so low now, its hard to see anyone wanting to offload much. A few of the marked sells today are Buys from me

[gswredland] 29/6/2023 08:25

Looking very good.
Just wonder if there will be some profit taking now but a drop will provide an opportunity to add

[doobz] 29/6/2023 08:21

Averaged up into this today, should have gapped up higher IMO. Looks very solid now though and still confident of it becoming a solid multi from here

[hastings] 29/6/2023 07:20

Excellent performance and Cenkos upgrades 2024 numbers again to £5m pre-tax and EPS of 4.2p!

[lennonsalive] 29/6/2023 07:06

273% increase in Profit Before Tax ("PBT") to GBP4.1m (FY 2021/22: GBP1.1m)

[lennonsalive] 27/6/2023 15:46

Here come the buys. Will it be the usual uplift in the morning and then drop off over the week or will this breakout over 30p!

[someuwin] 27/6/2023 13:08

Update this Thursday

"The Group will provide a full trading update for FY23 on Thursday 29 June 2023"

[gswredland] 27/6/2023 13:00

That probably tells us price will jump!

[nakedmolerat] 27/6/2023 10:50

i have 5k in TIME in good profit, couldnt go long this morning on IG to add a few spreadbetting as not taking bets on this tempted to purchase more.....but that would break my rule on being overinvested!

[squarepeg86] 27/6/2023 09:00

Bought back again this morning, I've been in and out of these over the past few years and was hoping for a drop back to 22/23p to buy again but I really can't complain at ~26p. Let's see what Thursday brings!

[lennonsalive] 26/6/2023 17:52

I would have thought the climate for Time was better than ever

[hastings] 26/6/2023 16:10

PE of less than 8 falling to little more than 6 and people selling!Can't see the climate has changed since the last update, so it'll be interesting to hear what they've got to say. Would have had another catch up with management, but I should be away by then.

[gswredland] 26/6/2023 12:35

Just a nervous market I think
Bring on those results on Thursday!