Time Finance, the Bath-headquartered alternative finance lender, has hailed the success of its strategy after clocking up strong increases in revenues and profits.
The firm, which specialises in a range of funding services spanning invoice finance, business loans and asset-based lending, has grown rapidly in recent years after deciding to concentrate on own-booking lending.
In its latest trading update it told its shareholders that this has resulted in a 12th consecutive quarter of growth, with its lending book increasing to a record of around £200m.
This has led to significant increases across all its key performance indicators, with revenue and profitability for the 2023/24 financial year ahead of market expectations, it said.
Along with a 38% increase in annual pre-tax profits to £5.8m on revenue up 20% at £33m, other highlights during the period included a 25% increase in own-book deal origination up to £91.5m, with its gross lending-book up 18% to £200m at 31 May.
It also said it had strong future visibility of earnings with unearned income up 19% to £25.2m.
Meanwhile, it reduced its net deals in arrears by 5% with net bad debt write-offs cut to 1% of the average lending book.
The group, which grew rapidly through a series of acquisitions in the late 2010s under its previous name of 1pm, said the increase in revenue had been primarily driven by the growth in both its invoice finance division and the ‘hard’– or physical – asset subset of the wider asset division.
These were both areas which operated in the larger-ticket, more secured lending space, it said, and now comprised more than 75% of the group's entire lending book.
Time chief executive officer Ed Rimmer, pictured, said the trading update clearly demonstrated the ongoing success of the group's strategy.
“To have delivered such growth, despite wider macroeconomic headwinds, is testament to the hard work of our team, to the clear focus on our strategy and the strong demand for finance from UK businesses which continue to prove remarkably robust,” he added.
“What is especially pleasing is that the performance is based on maintaining appropriate margins, underwriting robustly and in keeping a wide spread of risk.
“As a result, I am confident the group is well positioned for future growth and in delivering further increased shareholder value."
Time Finance will publish its audited final results and its annual report and financial statements for the financial year to 31 May on 25 September.
