Q3 Trading Update

In brief · summary, not quotable

Time Finance plc reported a strong third quarter, maintaining its positive performance with a record gross lending book exceeding £236m by February 2026, marking the nineteenth consecutive quarter of growth. For the nine months ended 28 February 2026, unaudited figures show own-book lending origination up 27% to £86.5m, revenue increased by 4% to £28.3m, and profit before tax rose 5% to £6.2m, with a PBT margin improving to 22%. Net tangible assets grew 13% to £48.5m, deferred income increased 10% to £29.1m, and net arrears and bad debt write-offs both improved. The company expects full-year financial performance to be in line with market guidance.

Full announcement

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Time Finance plc, the AIM listed independent specialist finance provider, is pleased to provide a trading update for the nine-month period ended 28 February 2026 ("9M 2025/26"). The Group's strong performance in the first half of the current financial year has been maintained throughout the third quarter. Continued demand from UK businesses for the Group's multi-product funding offering has driven further growth in the gross lending book which stands at a record high of more than £236m at the end of February 2026. This is the nineteenth consecutive quarter of loan book growth for the Company.

Unaudited Nine Month 2025/26 Highlights

Own-Book lending origination up 27% to £86.5m (9M 2024/25: £69.3m)
Revenue up 4% to £28.3m (9M 2024/25: £27.3m)
Profit before Tax up 5% to £6.2m (9M 2024/25: £5.9m)
PBT margin improved by 100 bps to 22% (9M 2024/25: 21%)
Net Tangible Assets up 13% to £48.5m at 28 February 2026 (28 February 2025: £43.0m)
Gross lending-book up 12% to a record £236.4m at 28 February 2026 (28 February 2025: £210.2m)
Deferred income up 10% to £29.1m at 28 February 2026 (28 February 2025: £26.4m), providing strong visibility of future earnings
Net Arrears improved to 4.7% of the gross lending book at 28 February 2026 (28 February 2025: 5.3%)
Net Bad Debt Write-Offs improved to 1.0% of the average lending book at 28 February 2026 (28 February 2025: 1.3%)

A key element of the Company's strategy is to focus on more secured lending. This is to be achieved primarily though the provision of Invoice Finance and the 'Hard' element of Asset Finance. These two core areas have accounted for 96% of new lending volume originated in the nine months of trading to 28 February 2026 (9M 2024/25: 91%), and now make up 88% of the total lending book (28 February 2025: 81%).

The continued positive trading momentum leads to the expectation that Group financial performance for the full year will be in line with market guidance.

Ed Rimmer, Chief Executive Officer commented:

"To be able to report all-time record nine-month Group Revenue and Profit Before Tax in what remain challenging macro-economic conditions is particularly pleasing. To have made these strides forward while maintaining robust credit criteria, as shown by the continued improvement in our arrears and our write-offs, is another key performance indicator that we feel underlines the robust nature of the business.

"As a result of all these factors, and as we near the end of the first year of our three-year growth strategy through to May 2028, the Board has confidence that the Group remains well placed to continue building long-term value for all our shareholders."

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