Half Year Trading Update & Investor Presentation
9 December 2020
Time Finance plc
("Time Finance", the "Group" or the "Company")
HALF YEAR TRADING STATEMENT
NOTICE OF INVESTOR PRESENTATION
Positive trading momentum continues.
Time Finance (formerly 1pm plc), the AIM listed independent specialist finance provider, is pleased to announce the Company's trading performance and expected financial results for the first half of the current financial year, which ended on 30 November 2020. The results are in line with management's internal budget expectations and continue to strengthen month on month as the Group gradually returns to pre COVID-19 trading levels.
Since the low-point of trading activity caused by the impact of COVID-19 in the period April to June 2020, the Group has experienced steadily increasing new business origination levels, lending book and revenue growth and profit generation in each of the subsequent months of trading. Over the period, the Group's balance sheet and lending book have both remained robust and have continued to demonstrate their resilience.
The net lending book, which is the principal driver of the Group's revenue, is now steadily growing and is expected to stand in excess of £105m as at 30 November 2020 having fallen to less than £95m in June 2020 and from approximately £125m as at 30 November 2019. The amount of the lending book in arrears has been reduced by more than £6.5m during the period while the aggregate value of deals in some form of forbearance has also been reduced from over £25m at its peak to under £3m as at 30 November 2020. Furthermore, part of the reduction in the lending book has occurred as a result of a number of borrowers settling early through accessing alternative government-backed funding. Although this reduces the amount of future interest income to be earned from the Group's lending, it de-risks the lending portfolio and results in further strengthening of the balance sheet.
The unaudited balance sheet as at 30 November 2020 now shows cash and cash equivalents of over £3.5m and net tangible assets of approximately £28m compared to £1.3m and £26.5m respectively at 31 May 2020.
Largely as a consequence of the size of the lending book, the Company's 2020/21 interim results to be published on Tuesday 19 January 2021, are expected to report unaudited Group revenues for H1 2020/21 of not less than £11.6m (H2 2019/20: £13.6m and H1 2019/20: £15.6m). However, as trading activity and the value of the lending book have increased month on month over the period, the expected unaudited profit before tax will not be less than £1.2m compared to a loss of £1.0m in the second half of 2019/20 (H1 2019/20: profit of £3.0m).
Ian Smith, Chief Executive Officer commented:
"The past six months have shown the strength and resilience of the Group during what has been a very challenging time for the entire country. Our proposition - market positioning, multi-product offering, sector spread and flexibility to either fund on our own balance sheet or to broke-on - has stood us in good stead through these challenges and I am pleased with the Group's performance so far this financial year. Equally pleasing is how the Group has also continued to develop in other areas to enhance future growth through initiatives such as being approved by British Business Bank as an accredited CBILS lender and completing a group-wide rebranding. The Group is extremely well-placed to not only withstand any further impact of the pandemic, but also to take advantage of new opportunities and ultimately return to strong growth as the country emerges from the pandemic over the coming months."
Notice of Investor Presentation and Interim Results
Ian Smith, CEO, and James Roberts, CFO, will provide a live presentation detailing the Company's rebranding, own-book resilience and trading performance for the six-month period to 30 November 2020 at 1pm on Tuesday 15 December 2020. The meeting will be broadcast via the Investor Meet Company ("IMC") platform. The online presentation is open to all existing and potential shareholders and questions can be submitted pre-event either at [email protected] or via the IMC dashboard or during the presentation. Whilst the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to questions from the live presentation will be published at the earliest opportunity on the IMC platform. Investors can sign up to Investor Meet Company for free and add to meet Time Finance via:
Investors who have already registered and added to meet the Company will be automatically invited.
As previously announced, the Group's 2020/21 Interim Results are scheduled for release on 19 January 2021 and it is the Board's current expectation that it will be in a position to reassess the reinstatement of market guidance for the current financial year and to provide an update on its dividend policy at that time.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
For further information, please contact:
Time Finance plc
Ian Smith, Chief Executive Officer
James Roberts, Chief Financial Officer
Cenkos Securities plc (NOMAD)
Max Hartley / Ben Jeynes (Nomad)
Julian Morse (Sales)
0207 397 8900
0207 933 8780
Paul Vann/Nicholas Johnson
About Time Finance:
Time Finance's strategy is to focus on providing or arranging the finance UK SMEs require to fund their businesses and arranging vehicle and property-backed finance for consumers. The multi-product range for SMEs includes asset, vehicle, loan and invoice finance facilities. The Group operates a "hybrid" lending and broking model enabling it to optimize business levels through market and economic cycles
More information is available on the Company website www.timefinance.com