Time Finance PLC (AIM:TIME) said on Thursday it had beaten market expectations for the year to the end of May, with record revenues and profit growth fuelled by strong demand from UK businesses and a disciplined lending approach.
The specialist lender, which focuses on providing working capital and asset finance to small and medium-sized companies, posted an 11% rise in revenue to £37 million.
Profit before tax climbed 34% to £7.9 million, helping push the firm’s profit margin up to 21%, from 18% the previous year.
The group’s lending book, its portfolio of loans currently being repaid, grew for the 16th consecutive quarter, ending the financial year at a record £217 million.
Importantly, that expansion came without a rise in credit risk: arrears held steady at 5% of the book and write-offs remained low at just 1%, suggesting that borrowers are continuing to meet their repayment obligations despite a tougher economic backdrop.