Time Finance plc (AIM:TIME) shares soared 13% after the independent specialist finance provider reported bumper trading in the third quarter and said full-year profit would be above market expectations.
In a trading update, the AIM-listed firm said pre-tax profit in the nine months to 28 February 2023 leapt 172% to £3.0mln from £1.1mln in the comparative period in financial year 2021/22. Revenue jumped 28% to £20.0mln from £15.6mln.
The increase in revenue continues to be driven primarily by growth in both the invoice finance division and the hard asset subset of the asset division, Time Finance said.
The positive trading momentum has given the company “further confidence that full-year trading will now be further ahead of the latest market expectations, with pre-tax profit for the full year now expected to be not less than £3.6mln”.
The company noted a strong visibility of future earnings with unearned income up 30% to £19.4mln as at 28 February against £14.9mln last time while the gross lending-book increased 26% to £157.2mln from £124.6mln.
Shares in Time Finance jumped 13% to 25.25p in London on Wednesday.