Time Finance PLC Corporate Update (2772W)
22 Abril 2021 - 1:00AM
UK Regulatory
TIDMTIME
RNS Number : 2772W
Time Finance PLC
22 April 2021
22 April 2021
Time Finance plc
("Time Finance", the "Group" or the "Company")
Corporate Update
Net Tangible Assets and Net Cash continue to grow. Arrears below
pre-pandemic levels and forbearance down 90% from June 2020
peak
Time Finance plc, the AIM listed independent specialist finance
provider, is pleased to announce the continued strengthening of its
balance sheet with increasing Net Tangible Assets ("NTA") and
further increases in its cash reserves. Additionally, the Group
continues to be supported by its key funding partners, having
recently negotiated renewals and funding increases across a number
of facilities within its Asset and Loan divisions.
Robust Balance Sheet
Notwithstanding the wider macroeconomic environment, the Group's
NTA continue to increase month on month. At 31 March 2021,
unaudited NTA amounted to approximately GBP28.5m compared to
GBP26.5m at 31 May 2020. Over the same period, the Group's focus on
cash generation has continued to have a positive impact on
liquidity with cash and cash equivalents of over GBP6m at 31 March
2021 compared to approximately GBP1.5m as at 31 May 2020. These
healthy cash levels are vital for future lending growth.
The Group's lending book remains robust and resilient with
pandemic-related forbearance having reduced from over GBP25m in
June 2020 to under GBP2.5m at 31 March 2021. Most significantly, as
at 31 March 2021, total arrears had fallen below the pre-Covid
Levels of 28 February 2020 for the first time since the start of
the pandemic.
Improved Funding Facilities
The Group has distinct funding lines for each of its three
own-book lending divisions - Asset, Loan and Invoice Finance - and
is pleased to report that it continues to enjoy significant support
from all of its key funding partners. The Group has recently
negotiated renewed and increased Block Discounting facilities for
its Asset and Loan divisions totalling approximately GBP103.5m.
These facilities sit alongside the Group's GBP42m back-to-back
facility for the invoice finance division and the GBP25m
medium-term loan note programme which is used primarily in the
Loans division.
As has always been the case with the Group's asset and loan
funding, these renewed borrowing facilities require the Group to
fund between 10% and 20% of each deal from its own resources, with
the funder providing the balance. The term lengths with funders are
largely "matched" with the Group's own-book lending to UK SMEs. As
such, the funding amortises over the duration of the lease or loan
term, which is typically three years, and is not impacted by
interest rate changes. This matching practice and fixed interest
rate policy are key elements of the Group's risk management and
governance policies.
James Roberts, Chief Financial Officer commented:
"I am pleased to report the further strengthening of the Group's
commercial partnerships with a number of key funders, many of whom
have been long-standing supporters of the Group. I believe this
support is reflective of the regard the Group is held in by many
parties within our industry. We now have sizeable funding
facilities with significant headroom in place across all of our
lending divisions. This affords both confidence and visibility in
our funding capabilities to help achieve steady organic growth over
the foreseeable future as we navigate a return to normality.
"I am also delighted that the value of deals in arrears is now
below the level experienced before the pandemic began back in the
first quarter of 2020. This is testament to both the resilience of
our lending book and also the hard work and dedication of our
credit and collections staff over the past twelve months. "
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (as amended), which forms
part of domestic UK law pursuant to the European Union (Withdrawal)
Act 2018. Upon publication of this announcement via a Regulatory
Information Service, this inside information is now considered to
be in the public domain.
For further information,
please contact:
Time Finance plc
Ed Rimmer, Chief Executive
Officer 01225 474230
James Roberts, Chief Financial
Officer 01225 474230
Cenkos Securities plc (NOMAD)
Max Hartley / Ben Jeynes
(Nomad)
Julian Morse (Sales) 0207 397 8900
Walbrook PR 0207 933 8780
Paul Vann / Nicholas Johnson 07768 807631
paul.vann@walbrookpr.com
About Time Finance:
Time Finance's strategy is to focus on providing or arranging
the finance UK SMEs require to fund their businesses and arranging
vehicle and property-backed finance for consumers. The
multi-product range for SMEs includes asset, vehicle, loan and
invoice finance facilities. The Group operates a "hybrid" lending
and broking model enabling it to optimize business levels through
market and economic cycles
More information is available on the Company website
www.timefinance.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDDKBBNPBKKOQB
(END) Dow Jones Newswires
April 22, 2021 02:00 ET (06:00 GMT)
Time Finance (LSE:TIME)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Time Finance (LSE:TIME)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
