Time Finance has reported a record secured lending book and improved profitability in its interim results for the six months ended 30 November 2025, underlining continued demand for its specialist finance solutions from UK SMEs.
The AIM-listed lender said its gross lending book increased 12% year-on-year to a record £235.3m, marking the eighteenth consecutive quarter of growth.
Secured lending now accounts for 87% of the total book, up from 77% a year earlier, reflecting the group’s ongoing focus on asset-backed and lower-risk lending.
Own-book new business origination rose sharply during the period, increasing 48% to £62.6m, as brokers and borrowers continued to seek flexible funding solutions in a challenging market environment.
IMPROVED PROFITABILITY
Despite only modest top-line growth, profitability improved as a result of tighter cost control and operational efficiencies.
Revenue increased by 4% to £18.8m, while profit before tax climbed 10% to £4.3m. The PBT margin improved to 23%, up from 22% in the prior period, and earnings per share rose 7% to 3.47p.
Balance sheet strength also improved, with net assets up 9% to £75.0m.
Balance sheet strength also improved, with net assets up 9% to £75.0m and net tangible assets rising 14% to £47.2m. Unearned income increased 13% to £29.6m, providing strong visibility of future earnings.
Credit performance strengthened over the half year, with net deals in arrears falling to 4.5% of the gross lending book, compared with 5.3% a year earlier. Net bad debt write-offs also reduced to 1.0% of the average gross lending book, down from 1.2 per cent.
Time Finance said trading momentum remained positive through December 2025, supporting the board’s confidence that full-year performance for the year ending 31 May 2026 will be at least in line with market expectations.
SOLID PERFORMANCE
Tanya Raynes (main picture), non-executive chair, says: “The first six months trading of FY2025/26 mark a solid financial performance and strong start in terms of delivery against our current strategic plan through to May 2028, with robust demand from UK SMEs helping to drive the Lending Book to record highs.
“While Revenues continue to grow, the focus on efficiencies has resulted in growth in both margins, Profits and EPS.
“Net Tangible Assets are at an all-time high; cash reserves and funding sources remain healthy; while arrears and write-offs have both fallen, reflecting the strong credit controls in place across the Group.
“The Board, therefore, feel confident that the Group remains well positioned to deliver further long-term growth and increased value to the Company’s shareholders.”
