Finance firm announces 270 per cent increase in profits

Bath based asset lender Time Finance saw profits increase by more than 270 per over the last 12 months.

The company said in a trading update the increase was due to a rise in own book lending over the year.

The AIM listed independent specialist finance provider said its  lending book reached an all-time high of £169m by the end of May.

Significant increases have also been achieved in revenue, profit and across other key performance indicators.

Revenue increased 16 per cent to £27.4m profit before tax was £4.1m compared to £1.1m last year.

There is a strong visibility of future earnings with unearned income up 24 per cent to £20.7m.

The company said 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.

Chief executive Ed Rimmer said: “I am delighted to report these full-year results which demonstrate the successful implementation of the group’s medium-term strategy. Two years in, we remain on track to achieve our four-year plan’s stated targets.

“I am also very pleased to confirm that the significant growth achieved during the year has been made whilst continuing to generate appropriate margins, control credit and spread risk.”

He added: “To have delivered such growth, despite much publicised, wide-ranging and challenging macroeconomic factors, is testament to the hard work of our team, the investments we have made over the last few years which are starting to have a very positive impact, and to the continued robust nature of demand for finance from UK businesses.

“We have built strong foundations for continued growth. The board is committed to further increasing shareholder value through the delivery of its stated strategy and continues to look forward with cautious optimism.”