Time Finance reports 11% rise in Q1 profit to £2.1m

Time Finance plc, the AIM-listed independent specialist finance provider, has reported record revenues, record Net Tangible Assets and a record lending book in its first quarter trading update for the three months to 31 August 2025.

The update follows closely on the company’s strong full-year results to May 2025 and shows continued momentum across all key metrics. Own-Book Lending Origination rose 30% year-on-year to £28.5 million, driving revenue growth of 3% to £9.4 million. Profit Before Tax increased 11% to £2.1 million, with margins improving by 100 basis points to 22%.

At the end of the quarter, Net Tangible Assets had risen 14% to £45.6 million, while the Group’s gross lending book reached a record £221.1 million, up 8% compared to the same period last year. Importantly, credit quality remained stable, with net arrears unchanged at 5% of the lending book and bad debt write-offs steady at 1%.

The growth is underpinned by the Group’s strategic focus on secured lending. Invoice Finance and the “Hard” subset of Asset Finance now make up around 85% of the lending book, compared with 76% a year earlier, and accounted for more than 95% of new business written during the quarter.

Chief Executive Officer Ed Rimmer said the performance demonstrates the strength of the Group’s market position as it embarks on its new three-year strategy through to May 2028:

“As we enter the first year of our new three-year medium-term strategic plan, I am very encouraged that the initial quarter has continued to deliver increased growth in our lending book; a strengthened Balance Sheet with increased Net Tangible Assets; and record quarterly Revenues and Profit Before Tax. The lending book has now seen consistent increases for seventeen consecutive quarters, reflecting the demand for our multi-product offering and the value that is placed on our first-class customer service by UK businesses seeking access to finance.”

He added that stable arrears and write-offs underline the Group’s commitment to “responsible and sustainable lending.”

Looking ahead, the Board confirmed that trading for the financial year ending 31 May 2026 is expected to be at least in line with market expectations.