UK-based specialist finance provider Time Finance has posted a 40% increase in profit before tax (PBT) for the nine months ending 28 February 2025, reaching £5.9m ($7.6m).
The rise is driven by continued strong demand for its diverse funding solutions across the UK, with profit before tax already matching the total recorded for the previous full financial year.
In its trading update, the company revealed that its revenue grew by 14% to £27.3m.
Time Finance said its pre-tax profit margin during the period improved by 200 basis points to 21%.
The gross lending book reached a record high of more than £210m, marking an 11% increase from £190m.
The AIM-listed group stated that this marks the 15th consecutive quarter of growth in its loan book.
Own-book lending origination increased by 5% to £69.3m.
Net tangible assets rose by 14% to £43.0m as of 28 February 2025, compared to £37.7m a year earlier. Deferred income also grew by 7% to £26.4m.
Operational performance showed improvement, with net arrears decreasing to 5% of the gross lending book, down from 6% a year earlier. Net bad debt write-offs remained stable at 1% of the average lending book.
The company expects its full-year financial performance to align with the recently upgraded market guidance.
A key focus of Time Finance’s four-year strategic plan, ending 31 May 2025, has been on secured lending, primarily through invoice finance and the ‘hard’ element of asset finance.
These areas accounted for 91% of new lending volume in the nine months to 28 February 2025, now comprising 81% of the total lending book.
Time Finance CEO Ed Rimmer said: “With three quarters of the current financial year now delivered, the board is very encouraged by the group’s financial performance. To be able to report all-time record nine-month levels of both revenue and profit before tax is particularly pleasing.
“To have made these strides forward without compromising on credit quality, as shown by the consistent and stable nature of our arrears and our write-offs, is another key performance indicator that we are proud of.
“As a result of all these factors, as we close out the current four-year strategy and enter our new three-year growth trajectory through to May 2028, the board has real confidence that the group remains well placed to continue building long-term value for all our shareholders.”
