Time Finance has reported record first-half revenues and profits after delivering its eighteenth consecutive quarter of lending book growth, according to its interim results for the six months ended 30 November 2025.

The AIM-listed specialist finance provider said continued demand from UK SMEs for its multi-product funding solutions drove strong performance across the business, with own-book new business origination rising sharply during the period.

Gross own-book new business climbed 48% year-on-year to £62.6m, up from £42.2m in the same period last year. This helped push the group’s gross lending book up 12% to a record £235.3m at the end of November, compared with £209.4m a year earlier.

Revenue increased by 4% to £18.8m, while profit before tax rose 10% to £4.3m. Improved operational efficiency also supported margin growth, with PBT margin rising to 23% from 22%. Earnings per share increased by 7% to 3.47p.

STRONGER BALANCE SHEET

Time Finance also reported a strengthening balance sheet, with net assets rising 9% year-on-year to £75.0m, and net tangible assets up 14% to £47.2m. Unearned income increased 13% to £29.6m, providing what the group described as strong visibility of future earnings.

Credit quality improved over the period, with net deals in arrears falling to 4.5% of the gross lending book, down from 5.3% a year earlier. Net bad debt write-offs also declined to 1.0% of the average gross lending book, compared with 1.2% in the prior period.

The lender said its continued focus on secured finance saw secured lending account for 87% of the total lending book, up from 77% last year. Own-book origination represented 98% of all new deals written during the period.

Looking ahead, Time Finance said trading momentum remained positive through December 2025, giving the board confidence that performance for the full financial year ending 31 May 2026 will be at least in line with market expectations.

SOLID PERFORMANCE

Tanya Raynes (main picture), non-executive chair, said: “The first six months trading of FY2025/26 mark a solid financial performance and strong start in terms of delivery against our current strategic plan through to May 2028, with robust demand from UK SMEs helping to drive the Lending Book to record highs.

“While Revenues continue to grow, the focus on efficiencies has resulted in growth in both margins, Profits and EPS.

“Net Tangible Assets are at an all-time high; cash reserves and funding sources remain healthy; while arrears and write-offs have both fallen, reflecting the strong credit controls in place across the Group.

“The Board, therefore, feel confident that the Group remains well positioned to deliver further long-term growth and increased value to the Company’s shareholders.”