Time Finance plc (TIME) AI Stock Analysis

• Market Cap: £55.97M
• Dividend Yield: N/A
• Average Volume (3M): 243.47K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.83
• Revenue Growth: 21.71%
• EPS Growth: 31.07%
• Country: UK
• Employees: 154
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): 0.03
• Shares Outstanding: 92,512,700
• 10 Day Avg. Volume: 252,713
• 30 Day Avg. Volume: 243,465
• PEG Ratio: 0.46
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £64.00
• Price Target Upside: 3.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: 68.00p ▲(9.68%Upside)

Time Finance plc scores well due to strong financial performance and positive technical indicators, supported by strategic corporate events. While cash flow management needs improvement, the overall outlook remains positive.

Time Finance plc Business Overview & Revenue Model

Company Description

Time Finance plc, together with its subsidiaries, provides financial products and services to consumers and businesses in the United Kingdom. It operates through four segments: Asset Finance, Vehicle Finance, Loan Finance, and Invoice Finance. The company offers vendor finance, hire purchase, finance leasing, asset-based lending, and invoice finance; business loans comprising unsecured, secured, and VAT loans; property finance, including second charge mortgages, bridging loans, and specialist but-to-let loans; coronavirus business interruption loans; recovery loan schemes; and vehicle finance solutions. The company was formerly known as 1pm plc and changed its name to Time Finance plc in December 2020. Time Finance plc was founded in 2000 and is based in Bath, the United Kingdom.

How the Company Makes Money

Time Finance plc generates revenue through interest and fees charged on the financial products and services it offers to SMEs. The company provides asset finance solutions that allow businesses to acquire equipment and machinery by spreading the cost over time, earning from the interest on these agreements. In invoice finance, Time Finance advances funds against unpaid invoices, charging fees and interest for this service, thus helping businesses improve their cash flow. The company's loan finance division provides unsecured and secured loans, where revenue is derived from interest payments and associated fees. Additionally, vehicle finance services allow businesses to finance company vehicles, with revenue coming from interest on financing agreements. Time Finance may also engage in partnerships with brokers and other financial institutions to extend its reach and enhance service offerings, contributing to its revenue streams.

Time Finance plc Financial Statement Overview

Summary

Time Finance plc demonstrates solid revenue growth and effective cost management, evidenced by a strong gross profit margin and stable operating margins. However, the company faces challenges in cash flow management, with negative free cash flow indicating potential liquidity concerns.

Income Statement

Time Finance plc has shown consistent revenue growth with a notable 23.21% increase from 2023 to 2024. The gross profit margin stands strong at 58.3% for 2024, indicating efficient cost management. However, the net profit margin is slightly lower at 13.37%, suggesting room for improvement in net profitability. The EBIT and EBITDA margins are healthy at 18% and 19.31%, respectively, contributing to stable operating performance.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.03, showcasing financial stability and low leverage. Return on equity is respectable at 6.72%, though there is potential for higher returns. The equity ratio is 31.54%, indicating a moderate level of equity financing. Overall, the balance sheet reflects a stable financial position with manageable liabilities.

Cash Flow

Free cash flow has turned negative in 2024, indicating challenges in cash generation. The operating cash flow to net income ratio is negative, highlighting issues in converting net income into cash flow. The free cash flow to net income ratio is also negative, which could signal potential liquidity concerns. Overall, cash flow management requires improvement to strengthen financial health.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	35.70M	33.23M	26.97M	22.49M	22.16M	29.06M
Gross Profit	20.25M	19.38M	15.37M	13.82M	12.85M	14.86M
EBITDA	7.90M	6.42M	4.72M	3.94M	3.55M	3.80M
Net Income	5.29M	4.44M	3.45M	921.00K	1.78M	1.55M
Balance Sheet
Total Assets	220.36M	209.74M	183.69M	153.31M	137.79M	138.59M
Cash, Cash Equivalents and Short-Term Investments	3.28M	1.59M	3.77M	3.17M	7.97M	1.30M
Total Debt	1.25M	1.87M	3.56M	4.25M	5.23M	2.84M
Total Liabilities	151.36M	143.60M	122.02M	95.26M	80.67M	83.37M
Stockholders Equity	69.00M	66.14M	61.67M	58.05M	57.12M	55.22M
Cash Flow
Free Cash Flow	3.56M	-420.00K	2.31M	-3.77M	5.35M	2.92M
Operating Cash Flow	4.02M	-170.00K	2.43M	-3.62M	5.66M	3.30M
Investing Cash Flow	-365.00K	-154.00K	-129.00K	-154.00K	-511.00K	-1.44M
Financing Cash Flow	-1.45M	-1.86M	-1.45M	-979.00K	2.38M	-2.06M

Time Finance plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TIME, the sentiment is Positive. The current price of 62 is above the 20-day moving average (MA) of 61.38, above the 50-day MA of 59.12, and above the 200-day MA of 57.64, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TIME.

Time Finance plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DFCH	76 Outperform	£67.95M	5.33	13.00%	―	26.02%	340.22%
TIME	74 Outperform	£55.97M	10.73	7.96%	―	21.71%	31.07%
ORCH	74 Outperform	£12.07M	5.23	11.96%	1.77%	17.87%	52.54%
Sector *	67 Neutral	$16.92B	11.85	9.77%	3.75%	12.07%	-8.35%
LEND	49 Neutral	£2.72M	―	-1088.89%	―	31.87%	―
ZAIM		£2.31M	―		―	―	―
ASAI		£147.50M	6.44	32.74%	1.51%	―	―

Time Finance plc Corporate Events

Time Finance Reports Record Revenues and Profitability for FY 2024/25

Time Finance plc has announced record revenues and profitability for the financial year ending 31 May 2025, surpassing market expectations. The company’s strategic focus on own-book lending and secured lending through Invoice Finance and Asset Finance has resulted in significant growth across key financial metrics, with a lending book that has grown for 16 consecutive quarters. As the company transitions into a new three-year growth plan, it remains well-positioned to continue its success and build long-term value for shareholders.

Time Finance Reports Record Revenues and Profitability, Exceeds Market Expectations

Time Finance plc has reported record revenues and profitability for the financial year ending 31 May 2025, surpassing market expectations. The company’s strategic focus on secured lending through Invoice Finance and Asset Finance has driven significant growth, with the lending book experiencing 16 consecutive quarters of expansion. Despite this growth, the company has maintained stable levels of arrears and write-offs, indicating strong credit quality. As Time Finance embarks on a new three-year growth plan, it remains well-positioned to continue building long-term value for shareholders.

Time Finance Enhances Stakeholder Engagement with New Investor Hub

Time Finance plc has launched an interactive investor hub website aimed at enhancing communication and engagement with its stakeholders, including existing and prospective shareholders. The new platform consolidates investor-focused content such as presentations, educational material, interviews, regulatory announcements, and financial reports, and offers an interactive experience where stakeholders can engage directly with the Time Finance team. This initiative is expected to strengthen the company’s relationship with its investors by providing a clearer view of its business operations and long-term ambitions, ultimately supporting its market positioning and stakeholder engagement.

Time Finance Announces Key Financial Calendar Dates Amid Strong Performance

Time Finance plc has announced key dates for its financial calendar, highlighting its strong performance throughout the first three quarters of the financial year ending 31 May 2025. The company has maintained positive trading momentum, driven by continued demand from UK businesses for its multi-product funding offerings. This has led the Board to express confidence that the financial performance will meet or exceed current market expectations. The company will release its full-year trading update on 26 June 2025 and its audited final results on 24 September 2025, along with a trading update for Q1 2025/26.