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Download nowH1 ‘22 results (to 30 Nov ‘21) show steady progress on key metrics, with signs that Time’s refined strategy under the leadership of CEO Ed Rimmer (appointed 1 Jun ‘21) is resulting in a return to growth, following the Covid-induced pullbacks in lending markets in 2020 and 2021.
£58.1m of new loans were originated in H1 ‘22, up 25% over H2 ‘21, and 3% y-o-y. The gross loan book increased 4% from £115.7m on 31 May ‘21 to £120.5m. Revenue was flat y-o-y (£11.8m v £11.9m in H1 ‘21), with PBT slightly down at £1.20m vs £1.35m. However, the H1 ‘21 figures benefitted from non-recurring furlough income, so PBT would be 1% up y-o-y if this is excluded.
Time’s balance sheet remained strong, with Net Tangible Assets increasing to £29.6m, and it maintained a healthy cash position of £9.6m. Time’s price-to-book ratio is 0.41 compared to a peer median of 1.41; its market cap of £23.3m represents a 20% discount to Net Tangible Assets; and its PER of 12.7 (and forward PER of 11.0) is undemanding.
Our fundamental value stands at 45p per share, not far from double the current share price.