Bath-based alternative financial services group Time Finance is aiming to more than double lending over the next four years as part of a major expansion of the business.
The group, which appointed a CEO earlier this month, also plans to fund more of its loans rather than act as a broker to other lenders through its core asset, loan and invoice finance products.
This would increase overall margins and provide greater visibility of earnings and be underpinned by taking greater security and increasing the average deal size, enabling the business to position itself as a lender to a wider range of established clients.
In this way it would more than double its gross lending book organically from its current level to approximately £250m by May 31, 2025, it said.
The strategic review, instigated by new CEO Ed Rimmer, was announced as the group said it expects its pre-tax profits for the 12 months to May 31 to be around £3m, the same as last year, on revenue down 17% to £24.1m.
In a year-end trading update the London Stock Exchange-listed group – formerly known as 1pm – also said the value of its net lending book had fallen by 8% to £98.8m.
Mr Rimmer, who returned to the business four months ago having left following a reorganisation of the senior management team last year, said the group had a clear goal of becoming a leading alternative multi-product independent SME funder, helping UK businesses to recover and grow post-Covid.
He said: “I firmly believe a number of fantastic opportunities lie ahead for Time Finance. The foundations of the group are extremely strong and my first three months back in the business have convinced me that evolution not revolution is the right next step on the group’s journey.
“We now have a clear vision focussing on the three key products that are very much in our DNA – asset finance, invoice finance and loan finance – with an exciting growth plan to return to and in time exceed pre-Covid performance.
“I strongly believe this is the direction that will add real value to all our stakeholders and I am looking forward to the challenges ahead.”
He said the financial year to May 31 had been profitable for the group with it continuing to demonstrate the resilience and diversification of its lending book, further strengthening its balance sheet and improving liquidity.
This was achieved despite trading being severely impacted by the ongoing effect of the Covid-19 pandemic, he said, which included a further period of interruption to normal trading conditions as a result of the third lockdown.
Time Finance chairman John Newman added: “The impact of the global pandemic made the financial year to May 31 a challenging one for the group, especially with the impact of a further lockdown after our half year results were published.
“The period has, however, also demonstrated the resilience and robust nature of the group, highlighting its ability to withstand the significant headwinds it has faced and bringing to the fore the benefits of being a multi-product provider of finance to UK SMEs, spread across multiple business sectors, with the ability to act as both a funder and a broker.
“The group starts the new financial year on more solid foundations having navigated the impact of Covid-19 well, emerging with a stronger balance sheet and better liquidity.
“Whilst the economic environment remains uncertain, we are cautiously optimistic by the positive signs we are seeing across the markets in which we operate and the group is well-positioned to deliver future shareholder value.”
Time Finance was established in 2006 and is listed on the London Stock Exchange’s AIM market.
Operating under the Time Finance brand are Onepm Finance, Academy Leasing, Bradgate Business Finance, Intelligent Loans, Positive Cashflow Finance and Gener8 Finance.
