Time Finance clocks up record results again as it embarks on new strategy

Revenue and profits growth at specialist funder Time Finance has again hit a new record along with the firm achieving its all-time strongest lending book.

The Bath-headquartered group, which provides asset, loan and invoice finance products to more than 10,000 small and medium-sized enterprises across the UK, has spent the past four years focusing on generating more secured lending.

In comments accompanying a third-quarter trading update today chief executive officer Ed Rimmer said the group now had “real confidence that it remained well placed to continue building long-term value for all our shareholders”.

The update revealed pre-tax profit rose by 40% to £5.9m on revenue up 14% to £27.3m during the period to 28 February.

Continued strong demand from businesses for the group’s multi-product funding offering drove further growth in its gross lending book, which stood at a record high of more than £210m at the end of February.

This was Time Finance’s 15th consecutive quarter of loan book growth.

The group said its four-year strategy, which is now coming to and end, had aimed to grow lending primarily by providing invoice finance and the ‘hard’ element of asset finance.

These two core areas had accounted for 91% of new lending volume in the nine months of trading to 28 February and now made up 81% of the total lending book.

This compares to 51% of new deal volume origination and 52% of the total lending book prior to the strategy launch.

In January Time Finance launched a new, three-year strategy to increase its lending by 50%.

Ed Rimmer added: “With three quarters of the current financial year now delivered, the board is very encouraged by the group’s financial performance.

“To be able to report all-time record nine-month levels of both revenue and profit before tax is particularly pleasing.

“As is the fact that the profit generated in the first nine months of the current financial year has already surpassed the level achieved for the whole of the previous year.

“To have made these strides forward without compromising on credit quality, as shown by the consistent and stable nature of our arrears and our write-offs, is another key performance indicator that we are proud of.

“As a result of all these factors, as we close-out the current four-year strategy and enter our new three-year growth trajectory through to May 2028, the board has real confidence that the group remains well placed to continue building long-term value for all our shareholders.”