Time Finance delivers record lending book and profits

Time Finance plc has reported a robust first half of its 2025/26 financial year, delivering record lending book levels, record H1 revenues and profits, and achieving its eighteenth consecutive quarter of lending book growth.

The AIM-listed independent specialist finance provider said the results reflect sustained demand from UK SMEs and the continued strength of its multi-product lending model.

For the six months ended 30 November 2025, the Group generated own-book new business origination of £62.6m, up 48% from £42.2m a year earlier. The gross lending book rose 12% to a record £235.3m, while revenue increased 4% to £18.8m.

Profitability also strengthened. Profit before tax climbed 10% to £4.3m, with the Group’s PBT margin improving to 23%. Earnings per share increased 7% to 3.47p, and net assets rose 9% to £75m, with net tangible assets up 14% to £47.2m.

Credit performance remained strong, with net arrears falling to 4.5% of the lending book (from 5.3% the prior year) and net bad debt write-offs reducing to 1.0% of the average gross lending book. Unearned income increased 13% to £29.6m, providing strong visibility over future earnings. Secured lending now accounts for 87% of the total book, up from 77% in 2024.

The Group continued to prioritise its own-book strategy, with 98% of all new business written in H1 funded directly from its balance sheet.

The company reported continued positive trading momentum through December 2025 and said it expects full-year results to be at least in line with market expectations for the year ending 31 May 2026.

Commenting on the results, Tanya Raynes, Non-Executive Chair, said:

“The first six months trading of FY2025/26 mark a solid financial performance and strong start in terms of delivery against our current strategic plan through to May 2028, with robust demand from UK SMEs helping to drive the Lending Book to record highs.

“While Revenues continue to grow, the focus on efficiencies has resulted in growth in both margins, Profits and EPS.”

She added that the Group enters the second half with “cash reserves and funding sources remaining healthy,” while arrears and write-offs have fallen due to strong credit controls.

“The Board, therefore, feel confident that the Group remains well positioned to deliver further long-term growth and increased value to the Company’s shareholders.”