Time Finance lending book surpasses £250m as profits reach record high

Time Finance plc has reported record revenues and profits for the year ended 31 May 2026, with its lending book exceeding £250 million for the first time as the specialist lender delivered its 20th consecutive quarter of growth.

In an unaudited trading update, the AIM-listed lender said its gross lending book increased 15% year-on-year to a record £250.9 million, up from £217.4 million a year earlier, while own-book deal origination rose 26% to £122 million.

Revenue increased 4% to an all-time high of £38.5 million, while profit before tax and exceptional items grew 8% to £8.5 million. Reported profit before tax rose 6% to £8.4 million, with the group’s profit margin improving from 21% to 22%.

The company said the improved performance reflected continued lending book growth, increased operational efficiencies and disciplined credit management.

Credit quality remained stable during the year, with net arrears standing at 4.8% of the gross lending book compared with 4.6% a year earlier, while net bad debt write-offs improved slightly to 0.9% of the average lending book from 1.0%.

Net tangible assets increased 14% to £50.1 million, while deferred income rose 17% to £31.3 million, providing what the company described as strong visibility over future earnings.

Time Finance also strengthened its funding position during the year by extending and enhancing facilities with long-term funding partners, leaving more than £80 million of available headroom to support future lending growth.

The lender said its strategy of focusing on secured lending continued to gather momentum. Invoice finance and the “hard” asset finance segment accounted for more than 95% of all new lending originated during the year and now represent over 89% of the total lending book.

Ed Rimmer, chief executive officer of Time Finance, said: “The Group ends the year having enjoyed all-time high revenues, improved margins and record profits.

“The lending book also hit a significant milestone, surpassing £250m, an important feat that has been achieved without the lowering of credit quality, as demonstrated by the consistent and stable nature of both our arrears and our net write-offs.

“We have a proven, simple model that continues to deliver and the Board is confident that the Group remains appropriately positioned on its growth strategy and, as a result, is well placed to build long-term value for all our shareholders.”

The company said it remains on track to deliver against its strategic growth plan through to May 2028, with management focused on expanding the lending book further, increasing operational leverage and enhancing profitability.

Time Finance will publish its audited results for the year ended 31 May 2026 on 23 September, alongside a trading update for the first quarter of the new financial year.