Time Finance Plc · LSE:TIME
Time Finance — Q3 FY2024 Earnings Presentation
20 slides from Time Finance's earnings presentation, Mar 26, 2024
Slide 1: Time Finance plc Q3 Trading Update
Time Finance plc Q3 Trading Update Incorporating results for the nine months ended 29 February 2024 26 March 2024
Slide 2: Disclaimer
Disclaimer This presentation ("Presentation") has been prepared by Time Finance plc (the "Company") and is confidential and is only directed at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such
Slide 3: The Presenters
The Presenters Ed Rimmer, CEO James Roberts, CFO Ed has worked within commercial finance for over 25 years holding James qualified as an accountant with PwC and has worked in financial many senior roles, including UK CEO of Bibby Financial Services. Ed has services for over 20 years. He has held lea
Slide 4: Time Finance – An Overview
SECTION ONE Time Finance – An Overview
Slide 5: Who we are and what we do
Who we are and what we do Time Finance’s purpose is to Help UK Businesses Thrive and Survive through the provision of flexible funding facilities. Alternative Supporting Lending on Flexibility Multi finance UK our to broke Product provider businesses own-book on deals portfolio A non-Bank, alternati
Slide 6: Our core products
Our core products Asset Finance Invoice Finance • Soft and Hard Assets • Disclosed and Confidential facilities • Introduction channels: finance brokers, equipment suppliers & • Introduction channels: finance brokers, insolvency practitioners, manufacturers, and existing clients professional firms •
Slide 7: Why we stand out from the crowd
Why we stand out from the crowd Challenger Banks Alternative finance Banks Generally do not operate platforms Quoted companies Private companies Lend to SMEs, but no at the smaller end of the Algorithm driven with Tend to be more single multiple regional players, longer their primary focus market. L
Slide 8: Time Finance: Award winning
Time Finance: Award winning c£138m c£30.5m own book Net Tangible lending Assets
Slide 9: Strategic Plan Update
SECTION TWO STRATEGIC PLAN UPDATE
Slide 10: The medium-term strategy - June '21 to May '25
The medium-term strategy - June ‘21 to May ‘25 To become a To more than To achieve run- To significantly nationally double our rate profits strengthen our recognised SME Gross Lending organically in Balance Sheet funder Book from its excess of 2019 through focussing June ‘21 level of pre-covid level
Slide 11: Significant Progress to February 2024
Significant Progress to 29 February 2024 £190m £80m £60m Gross Lending Book Hard Asset Invoice Finance Growth since 64% from £116m 150% from £32m 140% from £25m strategy launch Growth since start 12% from £170m 29% from £62m 7% from £56m of financial year
Slide 12: Significant Progress to February 2024
Significant Progress to 29 February 2024 £24.6m 98:2 6% Unearned Income Own-Book : Broked-On Net Arrears Growth since strategy launch (June ’21) 72% from £14.3m from 87:13 down from 13% Growth since end of 16% from £21.2m flat from 6% from 97:3 financial year (31 May ‘23)
Slide 13: Focus on Core Business and Investment in Leaders
✓ Two own-book core lending divisions: Asset Finance and Invoice Finance, from 4 UK Focus on Core locations: Bath, Manchester, Reading and Warrington Business ✓ Exited non-core consumer brokerage businesses in October ‘22 ✓ Exited small, unsecured Loans in December ‘22 Investment in ✓ Director of As
Slide 14: Unaudited Financial Results
SECTION THREE Unaudited Financial Results
Slide 15: Record High Lending Book
Record High Lending Book Own-book lending is key as the compound nature drives revenue and profit growth Gross lending book (£’m) 200 190 180 Medium term strategy launched 170 160 150 140 c£190m all-time 130 record high 120 110 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Fe
Slide 16: Unaudited 9 month results to 29 February 2024
Unaudited 9 month results to 29 February 2024 Significant growth in all key fundamentals 29/02/24 29/02/23 Movement £’m £’m £’m % • Own-book origination £66.0m £52.9m +£13.1m +25% ✓ • Gross own-book Lending book £190.3m £157.2m +£33.1m +21% ✓ • Unearned Income £24.6m £19.4m +£5.2m +27% ✓ • Net Deals
Slide 17: A robust balance sheet that weathers all storms
A robust balance sheet that weathers all storms Net tangible assets grow month on month; arrears continue to hold static Net Tangible Assets: Net Arrears: At record levels Consistently around c6% of the book; well below strategy start point 16% 14% £’m 12% May 21 £28.4 10% 8% May 22 £30.5 Total Grou
Slide 18: Funding and Other Medium-Term Plan Metrics
Funding and Other Medium-Term Plan Metrics Significant headroom for growth; larger, more secured and well spread client base Funding Lines at 29 February 2024 Key Live Funding Lines - £m Facility Usage Headroom Other medium term plan metrics: Bank Overdraft 1.0 0 1.0 i. Larger, more secured lending:
Slide 19: Summary and Outlook
SECTION FOUR SUMMARY AND OUTLOOK
Slide 20: Summary and Outlook
Summary • Focus on current strategy - B2B lending only; Hard Asset, Invoice Finance & ABL • Medium-term aims remain the same and positive momentum is being maintained • Key hires now embedded in core parts of the business and driving growth and efficiencies • Profile and brand recognition continues