A UK-based financial services firm, Time Finance, has announced a significant 40% increase in pre-tax profits for the nine months ending February 28, 2025. The company's profit before tax reached £5.9 million ($7.6 million), surpassing the total of the previous fiscal year. This success is attributed to robust demand for its varied funding solutions across the UK. Revenues climbed by 14% to £27.3 million, while the pre-tax profit margin improved by 200 basis points to reach 21%. Additionally, operational improvements have been noted with a reduction in net arrears and stable bad debt write-offs.
Details of Financial Achievements
In the span of a golden autumn season, Time Finance achieved remarkable milestones. Based in the UK, this specialist finance provider reported an impressive rise in profits before tax (PBT) during the period ending February 28, 2025. The PBT surged by 40%, hitting £5.9 million ($7.6 million). This performance reflects strong interest in its diverse financing options throughout the UK. Moreover, revenue expanded by 14% to £27.3 million, accompanied by a gross lending book reaching a new peak at over £210 million, marking an 11% increase from the previous figure of £190 million.
The group, listed on AIM, highlighted that this marks their 15th successive quarter of loan book growth. Own-book lending originations advanced by 5% to £69.3 million. Net tangible assets as of February 28, 2025, rose by 14% to £43.0 million compared to £37.7 million a year prior. Deferred income also experienced a 7% boost to £26.4 million. Operational enhancements were evident with net arrears dropping to 5% of the gross lending book, down from 6% previously. Net bad debt write-offs stayed steady at 1% of the average lending book.
Time Finance anticipates that its annual financial results will align with recently updated market forecasts. A pivotal aspect of their four-year strategic plan, concluding May 31, 2025, centered on secured lending primarily via invoice finance and asset finance. These segments accounted for 91% of new lending volume within the nine-month period and now constitute 81% of the entire lending portfolio.
From a journalistic perspective, Time Finance's achievements underscore the importance of strategic planning and maintaining credit quality while expanding business operations. CEO Ed Rimmer's confidence in continuing to create long-term value for shareholders highlights the potential for sustained growth. This report serves as a testament to how focusing on core competencies can drive substantial financial success without compromising on essential metrics such as arrears and write-offs. It offers valuable insights into effective financial management strategies for other firms aiming for similar growth trajectories.