Time Finance Share Price (TIME)

TIME are presenting on MelloMonday on 14th July. Webinar starts at 5pm. TIME giving a trading update around 5:50pm.

Use code LSE40 for 40% off (£12 usually £20).

If you are a TIME shareholder, you are eligible for a free ticket. Use code MMSHComp25 for a free ticket.

Tickets available via our website...

Don’t hold your breath waiting for a dividend. To continue growing Time will lend more money and therefore need bigger bank lines. These facilities come with gearing covenants attached which are linked to net worth . So making dividend payments is very difficult in growth periods .

In a new article yesterday. The tip starts:

https://www.investorschronicle.co.uk/content/e917ca55-9569-4d5a-bcef-1efc48ac9048

"An earnings upgrade cycle that will keep on going

Simon Thompson: This stock has posted another earnings beat and prompted analyst upgrades

Published on July 1, 2025

• Full-year earnings beat guidance

• Upgrades for new financial year

• Forward PE ratio of 9.3

• Trades on 1.15 times forecast net tangible assets

Bath-based Time Finance (TIME:64.5p), a provider of invoice finance, asset finance and loan finance to more than 10,000 small and medium-sized enterprises (SMEs), has posted an earnings beat and prompted another round of earnings upgrades from analysts.

In the 12 months to 31 May 2025, the group increased pre-tax profit by a third to £7.9mn (5 per cent beat) on 11 per cent higher revenue of £37mn, and closed the year with a record gross loan book of £217mn, up 8 per cent year on year. Importantly, there are no signs that the quality of Time Finance’s loan book has deteriorated as net bad debt write-offs were stable at 1 per cent and net arrears unchanged at 5 per cent of the gross lending book. A focus on hard assets and invoice financing, segments that represent 83 per cent of total lending and accounted for 90 per cent of new lending volume, explains why. "

And concludes:

"On this basis, the shares trade on an attractive forward price/earnings (PE) ratio of 9.3 and are also priced on a modest 1.15 times 12-month forward net tangible assets. A price/earnings growth (PEG) ratio of 0.9 times highlights scope for a far higher rating, too.

Time Finance’s share price is up 130 per cent since I first suggested buying at 26.5p (‘Alpha Research: Business is booming for this underrated lender to SMEs’, 18 August 2023) and has risen 31 per cent in the seven weeks since I last reiterated that advice (‘Time to bottom-fish this small-cap lender’, IC, 14 April 2025). Offering more than 70 per cent upside to Cavendish’s maintained target price of 112p, the investment risk remains skewed to the upside. Buy."

good to see ****ney rebel very positive on time - he posted as follows on his blog for the weekend (i've left out the charts, eps forecasts etc):

"there’s an old saying that says ‘you can’t buy time’, well actually can.

time finance, (time), is a finance company providing loans for assets, vehicles and invoice factoring. formerly known as 1pm, bringing all subsidiaries under one name. shortly after in jan 2021, the chairman stepped down, then in february, ed rimmer took over as ceo, 20 years in finance and time’s previous coo.

in october 2022, time announced their “own-book lending portfolio reaches all-time record high of over £145m”. from this point on, the shares have progressed excellently, rising from 15p, to 65p at the start of this year.

on thursday they had their trading update:

you can read the rest of the update where you read your rns news.

stand outs for me were revenues £37m, this is £2m ahead of consensus according to sharepad and inline with next years forecasts. pbt of £7.9m is £400k ahead of the £7.5m forecasts. assuming this tweaks the eps number, they should do something like 6.3p eps i would imagine, placing them on a pe of 10.

there has been no share dilution since 2019.

with pbt margins improved 300 bpt to 21%, pbt up 34%, lending book at a record £217m.

i like the way things have improved since rimmer became ceo from 2021 onwards:

director buying:

tanya raynes, non-executive chair of the company, purchased 10,000 and 1,898 ordinary shares of 10 pence each in the capital of the company ("ordinary shares") at a price of 55.00 pence and 52.675 pence per share respectively.

james roberts, chief financial officer of the company, and tracy watkinson, a non-executive director of the company, purchased 9,433 and 18,231 ordinary shares of 10 pence each in the capital of the company ("ordinary shares") at a price of 53.00 pence and 54.85 pence per share respectively.

the cfo now holds 663k. ceo ed rimmer has 920k

stocko has them with £2m net cash, sharepad says £5m net cash.

forecasts have risen 20% over the past year:

looks a decent co with all the metrics going the right way i thought and cheap for the performance, just needs a divi to start being paid."

FYI here's an extract from Cavendish's new research, with a 112p price target and an upgrade to 7p EPS this year.

Incidentally, most people I know value broker research as an important guide to each company and a useful summary of financial info and forecasts. Even the paid-for stuff from Edison etc serves as a useful guide for clarity imo, just ignore the blue sky company price targets etc and draw your own conclusions - as I did in an earlier post in justifying Cavendish's 112p price target for TIME :

"A tick-up to forecasts to start FY26E

Time Finance has delivered an impressive performance for FY25E, reporting record revenues of £37.0m (FY24A: £33.2m) and a 34% growth in PBT to £7.9m (FY24A: £5.9m), ahead of our forecasts by 3% and 5%, respectively. These results conclude the end of the four-year strategy and highlight the success of the Group’s strategic pivot towards its own-book, secured lending, with a particular focus on Invoice Finance and the Hard Asset component of Asset Finance. This approach has generated 16 consecutive quarters of loan book growth, with the book reaching an all-time high of £217m at year-end, while credit quality has remained stable with net arrears and write-offs both holding steady YoY at 5% and 1%, respectively.

Time’s PBT margin expansion of 3pp YoY to 21% reflects the attractive operational leverage instilled as the book continues to scale. Time Finance has bolstered its funding capacity to over £90m in facility headroom, positioning it well for further growth as it begins executing on its new threeyear plan to FY28E. This will see the lending book grow by a further c.50%, arrears remaining stable, PBT margins increasing to the mid-twenties and RoTE increasing to c.15%.

The strength of the trading in FY25E and the positive outlook for Group leads us to upgrade our FY26E revenue forecast by 4% to £38.5m, and upgrade our PBT forecast by 5% to £8.4m. The current valuation looks highly compelling, trading on an FY26E P/E of just 8.8x, PEG ratio of 0.5x and FY26E P/TNAV of 1.1x."