Time Finance reports record £217m lending book

Time Finance plc, the AIM-listed specialist finance provider, has reported a record gross lending book of £217 million for the financial year ended 31 May 2025, marking its 16th consecutive quarter of growth. The company’s continued focus on secured, own-book lending to UK SMEs drove an 8% increase in lending volumes, underlining the success of its strategic shift towards Invoice Finance and hard Asset Finance.

The strong lending performance underpinned an 11% rise in revenue to £37.0 million, ahead of market expectations of £36.0 million. Profit before tax surged 34% to £7.9 million, also beating the consensus forecast of £7.5 million, while the Group’s profit margin improved to 21%, up from 18% the previous year.

Time Finance’s lending strategy – centred on more secure funding products – proved pivotal. Secured lending made up over 90% of new deals during the year and now accounts for approximately 83% of the overall lending book, a substantial increase from 52% when the Group’s four-year plan began in 2021.

The Group also maintained strong credit performance. Net arrears remained steady at 5% of the gross lending book, and net bad debt write-offs were unchanged at 1% of the average gross book, reflecting disciplined lending practices even amid rising loan volumes.

Net tangible assets rose by 14% to £44.1 million, and deferred income increased to £26.7 million, providing strong visibility of future earnings. Time Finance further strengthened its growth capacity through enhanced funding facilities, ending the year with over £90 million of available headroom.

Chief Executive Officer Ed Rimmer reflected on the successful completion of the Group’s four-year strategy:

“We can look back with great satisfaction on a period of strong delivery. The business ends the year having enjoyed record revenues, improved margins and with an ever-growing lending book as UK SMEs take advantage of our multi-product offering. This has been achieved without the lowering of our credit quality as demonstrated by the consistent and stable nature of both our arrears and our net write-offs.”

Looking ahead, the Group enters a new three-year growth plan through to 2028 with momentum and confidence. “The Board is confident that the Group remains strongly positioned to continue its success and build long-term value for all our shareholders,” Rimmer added.