Time Finance Plc · LSE:TIME
Time Finance — H1 FY2024 Earnings Presentation
18 slides from Time Finance's earnings presentation, Jan 25, 2024
Slide 1: Time Finance plc Interim Results Presentation
Time Finance plc Interim Results Presentation Six months ended 30 November 2023 25 January 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: Strategic Plan Update
SECTION ONE STRATEGIC PLAN UPDATE
Slide 5: 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 To significantly nationally double our profits strengthen our recognised SME Gross Lending organically well Balance Sheet funder Book from its in excess of 2019 through focussing June ‘21 level of pre-covid levels on
Slide 6: Significant Progress to November 2023
Significant Progress to 30 November 2023 £189m £76m £61m Gross Lending Book Hard Asset Invoice Finance Growth since 60% from £116m 138% from £32m 144% from £25m strategy launch Growth since start 11% from £170m 23% from £62m 9% from £56m of financial year
Slide 7: Significant Progress to November 2023
Significant Progress to 30 November 2023 £23.9m 98:2 6% Unearned Income Own-Book : Broked-On Net Arrears Growth since strategy launch (June ’21) 67% from £14.3m from 87:13 down from 13% Growth since end of 13% from £21.2m flat from 6% from 97:3 financial year (31 May ‘23)
Slide 8: 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 9: Unaudited Financial Results
SECTION TWO Unaudited Financial Results
Slide 10: Unaudited Interim results to November 2023
Unaudited Interim results to 30 November 2023 Significant growth in all key fundamentals 30/11/23 30/11/22 Movement £’m £’m £’m % • Own-book origination £47.3m £36.6m +£10.7m +29% ✓ • Gross own-book Lending book £188.6m £152.7m +£35.9m +24% ✓ • Unearned Income £23.9m £18.9m +£5.0m +26% ✓ • Net Deals
Slide 11: 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) 190 Other medium term plan metrics: 180 i. Larger, more secured lending: Average deal size of £44k in Nov ‘23 compared 170 to £14k at start of strategy . An increase of o
Slide 12: A robust balance sheet that weathers all storms
A robust balance sheet that weathers all storms Net tangible assets continually to grow month on month; arrears holding static Net Tangible Assets: Net Arrears: At record levels Consistently now around c6% of the book; well below strategy start point 14% £’m 12% 10% May 21 £28.4 8% May 22 £30.5 6% 4
Slide 13: Summary and Outlook
SECTION 3 SUMMARY AND OUTLOOK
Slide 14: Summary and Outlook
Summary • Simplified structure, B2B lending only • Focus on Hard Asset and Invoice Finance • Multi-product offering expanded with ABL • Key hires now embedded in core parts of the business • Arrears well controlled • Profile and brand recognition continues to increase • Positive financial performanc
Slide 15: Appendices
SECTION 4 Appendices
Slide 16: Appendix 1: Who we are and what we do
Appendix 1: Who we are and what we do Time Finance plc is a business committed to ensuring that UK businesses can access a multi- product range of funding solutions to support their growth plans. In summary: Alternative Supporting Lending on Flexibility Multi finance UK our to broke Product provider
Slide 17: Appendix 2: Our core products
Appendix 2: Our core products Asset Finance Invoice Finance • Soft and Hard Assets (including a small broked- • Disclosed and Confidential on element) • Introduction channels: finance brokers, insolvency • Introduction channels: finance brokers, practitioners, professional firms equipment suppliers/
Slide 18: Appendix 3: Why we stand out from the crowd
Appendix 3: 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 foc