Solid update amidst pandemic uncertainty

In a half-year trading update to 30 Nov 21 (H1 22), Time Finance has reported positive loan origination momentum, leading to its gross lending book increasing from £116m on 31 May 21 to approximately £121m, and its Net Tangible Assets increasing from £28.4m to over £29m.

Whilst we also caution that uncertainty certainly exists around the near-term recovery of Time’s markets, our previous forecasts look roughly in line with current trading momentum and we have not revised these. We will review our forecasts again in Jan 22 when Time releases H1 22 results, and when more visibility around the economic impact of Omicron should be available.

We remind readers that: 

• our core value, based on Time meeting its longer-term strategic objectives, is 50p per share, more than double the current share price; 
• Time’s price-to-book ratio is 0.37 compared to a peer median of 1.29; 
•  its market cap of £21.1m now represents a 27% discount to Net Tangible Assets, and 
•  a PER of 11.5 (and forward PER 8.6) is undemanding given Time’s growth prospects.