Time Finance makes strong start after record year

(Sharecast News) - AIM-listed finance provider Time Finance has reported a strong start to the new financial year following a record 12 months to 31 May, with annual profits surging by a third. Full-year revenues were up 12% at £37.1m, with 31% growth seen in the 'hard' subset of asset finance to £111m and 8% growth in the invoice finance division to £70m.

Deal origination improved 5% to £96.5m, while the lending book expanded 5% to £96.5m.

That helped pre-tax profits jump 34% to £7.9m, while earnings per share rose 31% to 6.3p.

"Our strong financial performance reflects the strategic decision to pursue growth through aggressive own book lending targets. This is facilitated by utilising our available cash resources to leverage our funding facilities to maximum effect," said non-exec chair Tanya Raynes.

Since the year-end, results have been ahead of management's initial projections, Time Finance said, with full-year results expected to be "at least in line with market expectations".

Revenues in the three months to 31 August were up a further 3% to a quarterly record of £9.4m, as the gross lending book reached an all-time high of £221.1m. First-quarter profits were 11% higher at £2.1m.

"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," said chief executive Ed Rimmer.