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Break out today?
The return of the bull market co-coinciding with TIME upping guidance. This should double over the next 6 months IMO
it's been ****ed over by the seller in the background
I guess an announcement of returning to dividends might be the catalyst, how about it bods ?
Same frustrating hold for me too, director buys, profit beats, and still it's like going through treacle. In profit though so that's a plus. No doubt we'll all sell just at the wrong time
Been a holder for sometime from circa 19p but it has been frustratingly slow despite upgrades.
This mornings news will hopefully change sentiment!
I have spoken with management a few times now, the most recent in September.
Write up below for interest
https://martinflitton1.wixsite.com/privatepunter/post/time-finance-moving-the-numbers-29-09-23
Although the announcement says profit expectations were £5m not £3.45m. Stockopedia was obviously not up to date. This looks remarkably cheap
Wow - that’s a 57% profit guidance increase. £3.45m to £5.4
Trendz,
A positive trading update, which included the statement: "arrears remaining static despite the wider macro-economic environment"
https://www.londonstockexchange.com/news-article/TIME/trading-update/16202150
And, profit is "expected to be not less than £5.4m" which is an upgrade. That takes the simple PE to 5/1. I Expect a small uplift today.
ShareSoc is hosting a webinar with Time Finance plc (TIME) on 15 November 2023, which may be of interest to current shareholders or potential investors. Ed Rimmer (CEO) and James Roberts (CFO) will be presenting. You can register here: https://www.sharesoc.org/events/sharesoc-webinar-with-time-finance-plc-time15-nov-2023/
Good point, although one would expect more companies to turn to TIME with bank financing more and more difficult and expensive.
It might be the 'Boring Ed' factor? The CEO is not the most charismatic leader. That said, I would rather have Steady Eddie than Flash Harry. And, I agree, the company seems to be fairing fairly well and there could be a fair amount of upside
The 'Bear Case' must be the rising level of distressed businesses and the accompanying wave of bankruptcies. Q1 update included: "Net Arrears remain stable at 6% of the gross lending book". Small swings in bad debts make a big impact on the bottom line as the Lending Book is £175m.
https://tradingeconomics.com/united-kingdom/bankruptcies
Not sure what i'm missing but this seems ludicrously cheap for a company with strong tail winds. Is anyone able to highlight the bear case?
Quite a few recently, very undervalued, but the market isnt taking any notice.
HTtps://www.investorschampion.com/channel/blog/bonkers-bargains-1pm
Results for the year ending 31 May 2023 (28/09/23)
Revenue for the year ending 31 May 2023 climbed 17% to £27.6m while profit before tax soared 281% to £4.2m with earnings per share up similarly to 3.7 pence.
Own-Book deal origination increased 14% to £73.4m lifting the period end Lending book to £170.1m, an increase of 24%. This lifted the ratio of own-book lending to broked-on lending to 96% vs 4% during the year, up from 87% vs 13% in the prior year.
The Invoice Finance division saw lending increase 30% over the previous year to £56m and the "Hard Asset" offering within the Asset Finance division was up 55% to £62m.
The non-core consumer mortgage brokerage was offloaded in the period.
The Group closed the period with unused lending headroom of approximately £50m.
Net Tangible Assets at 31 May 2023 were up 12% to £34.2m.
Trading update for 1st quarter
Own-Book lending origination in the first quarter of the current year rose 29% to £20.2m helping to lift revenue 21% to £7.6m. Profit before Tax was 44% higher at £1.3m.
The lending-book has increased 3% to £175.8m since the May 2023 year-end with net arrears remaining stable at 6% of the gross lending book.
Net Tangible Assets also continue to increase; up 3% since year-end to £35.2m and up 13% from 12 months prior.
Broker forecasts
For the year ending May 2024 updated forecasts are for revenue of £30.1m, pre-tax profit of £5.0m (+19%) and adjusted earnings per share of 4.0 pence (+14%).
For May 2025 forecasts have been upgraded to revenue of £33.1m, pre-tax profit to £6.3m with adjusted earnings per share 5.1 pence (+27%).
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 c25% discount to net tangible assets at 31 August 2023, 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 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 o
Well I've no doubt they will all give themselves a pat on the back and reward themselves handsomely.. they can afford to because they're not rewarding shareholders.
The progress continues; full year Profit Before Tax ("PBT") of £4.2m (2022: £1.1m), an increase of 281%. My only question would be how many customers are at the new increased exposure threshold of £750k (it is easy to make more money taking more risk but it hurts more when it goes wrong). Seems a solid set of results; short AI summary of the accounts:
Key Financial Highlights
Revenue increased 17% to £27.6 million (2022: £23.6 million)
Profit Before Tax increased 281% to £4.2 million (2022: £1.1 million)
Earnings Per Share increased to 3.7p (2022: 1.0p)
Lending book grew 24% to record £170.1 million (2022: £136.8 million)
Net Tangible Assets increased 12% to £34.2 million (2022: £30.5m)
Strategic Progress
Focus on core secured lending - grew own-book origination 14% to £73.4 million
Exited non-core businesses like consumer loans brokerage
Launched new Asset Based Lending product
Continued investing in sales team - doubled in size over past year
Operational Performance
Invoice Finance and Asset Finance now represent 70% of lending
Average deal size in Asset Finance division increased from £22k to £36k
Maximum customer exposure limit increased from £500k to £750k
Outlook
Macroeconomic environment remains challenging but SME demand for financing is strong
Good progress made on strategic objectives positions company well for continued growth
Balance sheet strengthened provides funding capacity to meet medium-term growth plans
P/E now 8.2 Profit before tax £4,1M, EPS 3.5p,Net Tangible Assets £33.9M=Market Capitalisation $26.4 seems very low
The turnaround is getting there but most of the increase in earnings seems baked into the share price already. Not complaining though... hopefully progress will continue.
It has taken a while for an uplift but the sp is slowly getting there - Google Finance showing this news item from yesterday; maybe it sparked more interest?
https://londonlovesbusiness.com/time-finance-achieves-lending-milestone-with-1-1-million-asset-based-lending-facility/
Great update! Good for them.
Now give me back my small dividend.
Another profit uplift; Boring-Ed is turning into Steady Eddy:
"Continued positive trading momentum throughout Q3 of 2022/23 has given the Board further confidence that full-year trading will now be further ahead of the latest market expectations"
the report says no anticipated dividends while the focus on growth per their 2020 plan - so not looking like anytime soon. Nontheless really good results and would nice to get back to closer to my entry point here!