Market's view on Time Finance

Published on April 2024

  • Time Finance Plc featured in a webinar, the recording of which is available on YouTube.
  • Time Finance was analysed in the Mello BASH event, with a focus on Buy, Avoid, Sell, or Hold ratings.
  • There is anticipation for substantial stock price movements due to increased investor interest and trading volumes.
  • Observations made on consistent selling in 25k blocks over several months.
  • Expectations are set for the stock price to stabilize above 40p once it surges through that barrier in trading.
  • The company announced an extended and improved £64m funding facility with the British Business Bank, aiming to support more UK SMEs.
  • There are positive sentiments around the trading update provided by Time Finance’s CEO, Ed Rimmer.
  • Analysis suggests Time Finance is in a unique position of growth within the SME lending market, although concerns about the risk levels of the loans were mentioned.
  • Clarifications provided on the nature of arrears in the loan book, with a small percentage expected to be written off.
  • Financial updates show continued strong demand and record growth in the lending book, with significant revenue and profit increases.
  • The company’s stock is described as a “Bonkers Bargain,” potentially undervalued, with expectations of attracting acquisition interest if the stock remains low.
  • Forecasts predict continued revenue and profit growth, with adjustments made by analysts reflecting a positive outlook.
  • Discussions indicate that Time Finance has managed substantial growth, particularly in secured lending, maintaining stable arrears despite loan book expansion.
  • There were mentions of clumsy selling actions in the stock market, potentially affecting stock price realizations.
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