Time Finance plc (TIME) AI Stock Analysis

• Market Cap: £41.17M
• Dividend Yield: N/A
• Average Volume (3M): 261.70K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.63
• Revenue Growth: 11.71%
• EPS Growth: 31.15%
• Country: UK
• Employees: 154
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.04
• Shares Outstanding: 92,512,700
• 10 Day Avg. Volume: 192,539
• 30 Day Avg. Volume: 261,699
• PEG Ratio: 0.28
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 11.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: 51.00 p ▼(-5.56% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Time Finance plc's strong financial performance and positive corporate events are the most significant factors driving the score. The technical analysis suggests potential for further gains, while the valuation indicates the stock is undervalued. The absence of earnings call data does not impact the overall assessment.

Positive Factors

Balance-sheet strength

Extremely low leverage and a sizable equity ratio provide durable financial flexibility for a lender. Minimal debt reduces refinancing and liquidity risk, supports regulatory capital buffers, and enables measured portfolio growth and loss absorption without destabilising funding.

High and stable margins

Strong gross and net margins reflect an efficient SME finance model with pricing power across asset and invoice finance. Durable margins help absorb credit costs, fund operations and intermediary distribution, underpinning sustainable profitability through credit cycles.

Robust free cash flow

Healthy FCF growth and an FCF/net income near 0.9 indicate the business converts earnings into usable cash for reinvestment or balance-sheet strengthening. Reliable cash generation supports lending capacity expansion and capital returns over the medium term.

Negative Factors

Weak operating cash conversion

Very low operating cash conversion signals earnings may be accrual-driven and not yet realised as cash. For a lender, this raises persistent liquidity and quality concerns: higher impairments or funding stress could expose a gap between reported profits and cash available for lending or obligations.

Funding and SME credit sensitivity

Business economics depend on spread between customer yields and funding costs and on SME credit performance. Structural rises in funding costs or prolonged SME stress would compress margins and origination, challenging durable profitability absent pricing power or cheaper funding sources.

Moderate returns and growth

An ROE in the mid-single digits and modest revenue growth imply limited shareholder returns unless scale, margins or leverage improve. For a capital-intensive lender, raising ROE materially may require higher leverage or margin expansion, both of which raise structural risk.

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 makes money primarily by earning finance income and fees from lending and related financing services to SMEs. Key revenue streams typically include: (1) Interest/finance charges on asset finance: the company funds the purchase of business assets (e.g., equipment or vehicles) for customers through hire purchase/lease-style arrangements and earns a margin between the customer yield and the company’s own funding/operating costs over the term of the agreement. (2) Discount/interest and service fees from invoice finance: under invoice discounting/factoring-style facilities, the company advances funds against a client’s receivables and earns fees for providing the facility plus finance charges on amounts drawn, with income linked to the level and duration of client utilisation and the volume of invoices financed. (3) Fees and other income: the company may earn arrangement, documentation, renewal, and early settlement fees associated with originating and servicing facilities (specific fee types and magnitudes: null). Factors contributing to earnings include origination volume, portfolio credit performance (impairments reduce profitability), funding costs (net interest margin sensitivity), and distribution through introducers/brokers and other referral channels that support deal flow (specific named partnerships: null).

Time Finance plc Financial Statement Overview

Summary

Time Finance plc demonstrates solid financial health with consistent revenue growth and strong profitability metrics. The balance sheet is robust with low leverage, and cash flow generation is improving, although the operating cash flow conversion is an area to watch.

Income Statement

Time Finance plc has shown consistent revenue growth over the years, with a 3.97% increase in the latest period. The company maintains strong profitability metrics, with a gross profit margin of 58.40% and a net profit margin of 15.79%. The EBIT and EBITDA margins are also robust at 22.20% and 23.63%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. The return on equity is 8.17%, which shows a decent return for shareholders. The equity ratio of 31.14% suggests a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, with a growth rate of 28.44%. The operating cash flow to net income ratio is 0.06, which is relatively low, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is strong at 0.89, indicating good cash generation relative to net income.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	37.69M	37.12M	33.23M	26.97M	22.49M	22.16M
Gross Profit	21.68M	21.68M	33.05M	15.37M	13.82M	12.85M
EBITDA	8.57M	8.77M	6.42M	4.72M	3.94M	3.55M
Net Income	6.07M	5.86M	4.44M	3.45M	921.00K	1.78M
Balance Sheet
Total Assets	244.96M	230.34M	209.74M	183.69M	153.31M	137.79M
Cash, Cash Equivalents and Short-Term Investments	3.63M	4.97M	1.59M	3.77M	3.17M	7.97M
Total Debt	1.32M	1.18M	1.87M	3.75M	4.25M	5.23M
Total Liabilities	170.01M	158.57M	143.60M	122.02M	95.26M	80.67M
Stockholders Equity	74.95M	71.77M	66.14M	61.67M	58.05M	57.12M
Cash Flow
Free Cash Flow	1.48M	4.57M	-420.00K	2.31M	-3.77M	5.35M
Operating Cash Flow	1.93M	5.11M	-170.00K	2.43M	-3.62M	5.66M
Investing Cash Flow	-389.00K	-205.00K	-154.00K	-129.00K	-154.00K	-511.00K
Financing Cash Flow	-1.18M	-1.52M	-1.86M	-1.45M	-979.00K	2.38M

Time Finance plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TIME, the sentiment is Negative. The current price of 54 is above the 20-day moving average (MA) of 47.95, above the 50-day MA of 50.62, and above the 200-day MA of 53.23, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TIME.

Time Finance plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIME	80 Outperform	£41.17M	3.46	8.28%	―	11.71%	31.15%
ORCH	75 Outperform	£11.96M	4.32	14.61%	3.33%	8.91%	94.32%
TRU	73 Outperform	£113.36M	10.48	16.60%	―	203.09%	―
DFCH	73 Outperform	£93.53M	2.79	11.93%	―	17.35%	91.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASAI	61 Neutral	£194.50M	2.44	-965.56%	4.74%	―	―
FCH	55 Neutral	£370.78M	8.64	21.54%	―	7.90%	―

Time Finance plc Corporate Events

Time Finance hits record £236m lending book on sustained SME demand

Time Finance plc, the AIM-listed specialist finance provider to UK SMEs, continues to expand its multi-product lending franchise built around asset finance, invoice finance and secured loans, largely through an own-book model. The group targets small and medium-sized businesses seeking flexible funding solutions and supplements direct lending with selective broking to smooth activity through varying economic conditions.

The company reported that its gross lending book reached a record level of more than £236m at the end of February 2026, up 12% year-on-year and marking the nineteenth consecutive quarter of loan book growth. Growth is being driven by its strategic focus areas, with the invoice finance book rising to £78m and the ‘hard’ asset finance book to £129m, increases of 20% and 22% respectively, and Time Finance plans further trading updates in March and June covering its current financial year performance.

The most recent analyst rating on (GB:TIME) stock is a Buy with a £51.00 price target. To see the full list of analyst forecasts on Time Finance plc stock, see the GB:TIME Stock Forecast page.

Time Finance posts record lending book and higher profits as SME demand drives growth

Time Finance reported a strong first half to 30 November 2025, posting record gross lending book of £235.3m and 18 consecutive quarters of lending book growth, driven by a 48% jump in own-book origination to £62.6m as demand from UK SMEs remained robust. Revenue edged up 4% to £18.8m while profit before tax rose 10% to £4.3m, lifting margins and earnings per share, supported by tighter cost efficiencies, an improvement in credit quality with lower arrears and bad debt write-offs, and an increasing skew towards secured lending, which now represents 87% of the portfolio. Strengthened net tangible assets, higher unearned income providing visibility of future earnings and continued funder support underpin the board’s confidence that full-year trading will be at least in line with expectations, marking a solid start to its strategic plan running to May 2028 and reinforcing its positioning as a growing specialist lender to UK SMEs.

The most recent analyst rating on (GB:TIME) stock is a Buy with a £60.00 price target. To see the full list of analyst forecasts on Time Finance plc stock, see the GB:TIME Stock Forecast page.