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bit weird really, but then again this is 1pm or Time Out or whatever we're called these days. someone purchased nearly 20% of the company in one go and the share price edges up 10%. perhaps 25p is fair value
Few more chunky if smaller tradeds ie 100k, 75k going into the close
Someone sensing value ...
17,475,000 at just under 22.78p ie £4 million trade has caused the price to spike someone sensing value here ...
erm, hello everyone. £4m buy just went through!! market cap is only about 22m - what could it possibly all mean??
James Tapp ‘slams’ Time Finance (TIME) in the latest PIWORLD/Stockopedia StockSlam at 55m37s
Watch the video here: https://www.piworld.co.uk/education-videos/stockopedia-piworld-stockslam-jaunary-2022/
Or listen to the podcast here: https://piworld.podbean.com/e/stockopediapiworld-stockslam-january-2022/
…. Is the key takeaway IMO
Order book is clearly growing and that is unlikely to change as government support and likelihood of further lockdowns subside.
Barring any mishaps, increased lending means increased profits.
3-4m of PBT seems very likely in the next 12 months.
Soon, someday, hopefully... The upside seems to far exceed the downside but this recovery is taking longer than expected. I do not have a significant percentage in here so it can stay gathering dust for another 6 months but I would like to see more progress then and a significant improvement in the PBT by then.
Topping up time
Agreed , the interim results show a return to growth, progress on key metrics and the balance sheet is strong.
Equity Development's fundamental value now comes out at 45p/share, nearly twice current levels. Free access to read / listen to that new note here:
https://www.equitydevelopment.co.uk/research/early-strategic-progress-not-reflected-in-valuation
Decent results:
Financial Highlights:
· Origination up 3% to £58.1m (H1 2020/21: £56.6m).
· Revenue* up 1% to £11.8m (H1 2020/21: £11.7m)
· Gross profit* up 3% to £7.6m (H1 2020/21: £7.4m)
· Profit before tax* up 1% to £1.2m (H1 2020/21: £1.2m)
· Blended cost of borrowings maintained at approximately 4% (year to 31 May 2021: 4%)
· Gross lending portfolio increased to £120.5m as at 30 November 2021 (31 May 2021: £115.7m)
· Net Assets increased to £58.2m as at 30 November 2021 (31 May 2021: £57.1m)
· Net Tangible Assets increased to £29.6m as at 30 November 2021 (31 May 2021: £28.4m)
· Net deals in arrears as at 30 November 2021 reduced by 26% representing 9% of the gross lending book (31 May 2021: 12%)
· Nil net deals in forbearance as at 30 November 2021 (31 May 2021: £0.8m)
* Excluding furlough Other Income of £0.165m in H1 2020/21.
12 Companies to follow in 2022 from @TMsreach
https://total-market-solutions.com/2021/12/12-companies-to-follow-in-2022/
Today TIME reported positive loan origination momentum plus increases in both its gross lending book and Net Tangible Assets. In a new research note Equity Development retains forecasts and its 50p/share core value: read note and listen to summary here:
https://www.equitydevelopment.co.uk/research/solid-update-amidst-pandemic-uncertainty
Share price rising again....
Interest rates look to be rising a bit again by year end which helps to boost profits in finance.
Time seems to have a CEO who is confident in his strategy in for a reasonable punt here.
All IMO. DYOR.
The share price keeps sinking - will it get to the stage were they are paying shareholders to buy the shares?
If it drops all the way to the teens I may get tempted to buy more...
Time can thus be bought at a discount to NAV and if profit rise according to the house brokers expectations then in a few years time the sp should achieve a reasonable rerating.
However, market worried about inflation, US correction, Chinese property debt so it may be that we won't see Time rerate for a while. I am biased as a holder. DYOR.
Investor'sChampion has these as a cracking buy, a few points they note :-
---Earnings per share rose 3% to 1.98 pence.
---Net assets at 31 May 2021 were £57.1m with tangible net assets (excluding Goodwill) of £28.4m. This compares to the current market capitalisation of £22m (share price 24p).
Broker forecasts
Following the June trading update the house broker reinstated forecasts.
For the year ending May 2022 these are for revenue of £27.3m and adjusted earnings per share of 2.8 pence.
For May 2023 revenue is forecast to rise to £30.8m with adjusted earnings per share 4.6 pence (+64%).
Well Equity Development is paid for research and although that does not mean it's incorrect. The market does not necessary pay a lot of attention to it
Results were reasonably good given in pandemic and several indicators improved :-
• Profit Before Tax, Exceptional Items and Share-Based Payments ("PBTE") for the year of £3.1m (2020: 3.0m), an increase of 3%
• Earnings per share of 1.98 pence per share (2020: 1.76 pence) an increase of 13%
• Consolidated Net Assets at 31 May 2021 of £57.1m (2020: £55.2m), an increase of 3%
• Consolidated Net Tangible Assets at 31 May 2021 of £28.4m (2020: £26.5m), an increase of 7%
• Cash, Cash Equivalents and Convertible "paper" of £11.3m (2020: £1.4m)
However, negatives were decrease in revenue :-
• Revenue for the year of £24.2m (2020: £29.2m), a decrease of 17%
seems like the market needs more convincing
#TIME FY21 results (to 31 May) are in line with expectations. While business volumes and revenue were hit by the pandemic slowdown, TIME stayed profitable (unlike many other lenders) with cost cutting measures actually boosting margins, and the balance sheet remaining strong. New CEO Ed Rimmer has already started to lay the foundations for a return to growth, and is looking to double the size of the lending book over four years through organic growth.
Despite lower trading volumes, profit before tax, exceptional items and share-based payments (PBTE - probably the best measure of core trading performance) was £3.1m (FY20: £3.0m). PBTE margin increased from 10.1% to 13.0%.
TIME looks well positioned to grow both the top and bottom line as: economic tailwinds favour of a return to growth; the credit environment is improving, suggesting a potential boost to profitability; and the business itself looks robust to us.
We think the business is undervalued. Our core value is 50p per share, almost double the current share price. Moreover, its market-to-book ratio is 0.41 compared to a peer median of 1.36
https://www.equitydevelopment.co.uk/research/after-solid-results-our-fair-value-is-at-twice-current-levels
Nothing guaranteed in this world, but they updates/results they have been giving us since the pandemic struck have shown upward progression.
The appear to have been recruiting new staff to lead the business forward.
I am hopeful too.
Annual Financials are released next Tuesday - praying some sort of growth is reported
As far as I can make out the company is expanding to meet a need as government lending/cash hand outs will be decreasing.
Bought a few more today at 24.8p
Mmm maybe not, but hopefully his hard work will pay for nights out and hopefully not just for himself.