Slide 1: Time Finance plc Results and Q1 Trading Update
Time Finance plc Results and Q1 Trading Update Year-ended 31 May 2024 and quarter ended 31 August 2024 25 September 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 well 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 hel
Slide 4: Strategic Plan Update
SECTION ONE STRATEGIC PLAN UPDATE 3rd year of the 4-year plan
Slide 5: The medium-term strategy – June '21 to May '25
The medium-term strategy – June ‘21 to May ‘25 To become a To double our To achieve run- To strengthen our nationally Gross Lending rate profits in Balance Sheet recognised SME Book from its excess of 2019 through focussing funder June ‘21 level of pre-covid levels on own-book c£115m lending
Slide 6: Significant Progress to August 2024: Lending Book
Significant Progress to 31 August 2024 £205m £90m £68m Gross Lending Book Hard Asset Lending Invoice Finance Lending Up 2% from £201m at 31 Up 6% from £85m at 31 May Up 5% from £65m at 31 May May 2024 2024 2024 Up 78% from £115m at the Up 181% from £32m at the Up 172% from £25m at the strategy launc
Slide 7: Significant Progress to August 2024: Unearned Income, Margin, Arrears
Significant Progress to 31 August 2024 £26m 21% 5% Unearned Income PBT Margin Net Arrears Up 4% from £25m at 31 May Up from 18% for financial Flat from 5% at 31 May 2024 2024 year to 31 May 24 Up 86% from £14m at the Up from 8% for financial year Down from 13% at the strategy launch in June 2021 to
Slide 8: Significant Progress to August 2024: Focus on Core Business
Significant Progress to 31 August 2024 Focus on Core ✓ Two own-book core lending divisions: Asset Finance and Invoice Finance operating from 4 locations: Bath, Manchester, Reading and Warrington Business ✓ Exited non-core consumer brokerage businesses in October ‘22 ✓ Exited small, unsecured Loans i
Slide 9: The Financial Results
SECTION TWO THE FINANCIAL RESULTS Record Lending Book Controlled Arrears
Slide 10: Audited financial results to May 2024
Audited financial results to 31 May 2024 Strong results in every key metric 31/05/24 31/05/23 Movement £’m £’m £’m % • Own-book origination £91.6m £73.4m £18.2m 25% • Gross own-book Lending book £201.2m £170.1m £33.1m 18% • Net deals in arrears 5% 6% (1)% • Net bad debt write-offs 1% 2% (1)%
Slide 11: Unaudited financial results to August 2024
Unaudited financial results to 31 August 2024 Strong momentum continuing throughout Q1 FY2425 31/08/24 31/08/23 Movement £’m £’m £’m % • Own-book origination for quarter £22.1m £20.2m £1.9m 9% • Gross own-book Lending book £205.3m £175.8m £29.5m 17% • Net Deals in arrears 5% 5% • Net bad debt
Slide 12: Record High Lending Book
Record High Lending Book Own-book lending is key as the compound nature drives revenue and profit growth 210 Gross lending book (£’m) 200 190 180 Medium term strategy launched 170 160 150 140 c£205m all-time 130 record high 120 110 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-2
Slide 13: A robust and strengthening balance sheet
A robust and strengthening balance sheet Net tangible assets grow month on month. Arrears well controlled Net Tangible Assets: Net Arrears: At record levels Consistently around c5-6% of the book; well below strategy start point 15% £’m 12% May 21 £28.4 9% May 22 £30.5 Total Group May 23 £34.2 6% May
Slide 14: Funding and Other Metrics
Funding and Other Metrics Significant headroom for growth. Larger, more secured and well spread client base Funding Lines at 31 August 2024 Key Live Funding Lines - £m Facility Usage Headroom Other metrics: Bank Overdraft 1.0 0 1.0 i. Larger, more secured lending: Average deal size in Hard Asset of
Slide 15: Summary and Outlook
SECTION 3 SUMMARY AND OUTLOOK Strategic plan very much on track
Slide 16: Summary Investment Case
Summary • Continued 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
Slide 17: Appendices
SECTION 4 APPENDICES Background Information
Slide 18: 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 19: 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 within soft asset) • Introduction channels: finance brokers, insolvency • Introduction channels: finance brokers, practitioners, professional firms eq
Slide 20: 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