RNS Number : 4230Q Time Finance PLC 27 January 2026 The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain. 27 January 2026 Time Finance plc (the "Group" or the "Company") INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2025 Record high Lending Book, Record H1 Revenues and Profits Eighteen consecutive quarters of lending book growth Time Finance plc, the AIM listed independent specialist finance provider, today announces its unaudited interim results for the six-months ended 30 November 2025 ("Results", "Interims" or "H1 2025/26"). The Results reflect the continued strong demand for the multi-product range of finance solutions offered by the Group and the strength of the lending book. Financial Highlights: · Own-Book New Business Origination up 48% to £62.6m (H1 2024/25: £42.2m) · Gross lending book up 12% to a record £235.3m at 30 November 2025 (30 November 2024: £209.4m) · Revenue up 4% to £18.8m (H1 2024/25: £18.1m) · Profit before Tax ("PBT") up 10% to £4.3m (H1 2024/25: £3.9m) · PBT margin improved by 1% to 23% (H1 2024/25: 22%) · Earnings Per Share ("EPS") up 7% to 3.47 pence per share (H1 2024/25: 3.24 pence per share) · Net Assets up 9% to £75.0m at 30 November 2025 (30 November 2024: £69.0m) · Net Tangible Assets up 14% to £47.2m at 30 November 2025 (30 November 2024: £41.5m) · Net deals in arrears fell to 4.5% of the gross lending book at 30 November 2025 (30 November 2024: 5.3%) · Net Bad Debt Write-Offs fell to 1.0% of the average gross lending book at 30 November 2025 (30 November 2024: 1.2%) · Unearned income up 13% to £29.6m at 30 November 2025 (30 November 2024: £26.1m), providing strong visibility of future earnings · Secured Lending now makes up 87% of the total lending book, up from 77% at 30 November 2024 · Own-Book Origination accounted for 98% of all new deals written in the period (30 November 2024: 97%) Outlook Continued positive trading momentum throughout December 2025 underpins significant Board confidence that trading for the current financial year ending 31 May 2026 will be at least in line with market expectations. Commenting on the Interim Results, Tanya Raynes, 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." Notice of Investor Presentation The Company will deliver a live presentation relating to these H1 2025/26 Interims via the Group's investor website at 1pm today. Existing and potential shareholders can sign up for free via: https://investors.timefinance.com/webinars/oPBYlr-hy- results-25-26. For more information and the chance to have your questions directly answered by the management team, please head to our interactive investor hub via: https://investors.timefinance.com/s/71ba43. Here you will find all company news and additional content to further explain Time Finance's strategy and developments. Ends For further information, please contact: Time Finance plc 01225 474230 Ed Rimmer (CEO) / James Roberts (CFO) ir@timefinance.com Cavendish (NOMAD and Broker) 0207 220 0500 Ben Jeynes / Teddy Whiley (Corporate Finance) Michael Johnson / Matt Lewis (Sales and ECM) Walbrook PR 0207 933 8780 Nick Rome / Marcus Ulker Timefinance@walbrookpr.com Subscribe to our news alert service: https://investors.timefinance.com/auth/signup About Time Finance: Time Finance's purpose is to help UK businesses thrive and survive through the provision of flexible funding facilities. It offers a multi-product range for SMEs primarily concentrating on Asset Finance, Invoice Finance and Secured Loans. While focused on being an 'own-book' lender, the Group does retain the ability to broke-on deals where appropriate, enabling it to optimize business levels through market and economic cycles. More information is available on the Company website, www.timefinance.com, and the interactive investor hub, https://investors.timefinance.com CHIEF EXECUTIVE OFFICER'S STATEMENT FOR THE SIX-MONTH PERIOD ENDED 30 NOVEMBER 2025 Introduction Time Finance plc is a multi-product, alternative finance provider to UK businesses. While primarily a lender of the working capital requirements of UK SMEs, it can also act as a broker in arranging funding where it is more appropriate to do so. The Group comprises two core, own-book divisions - Asset Finance and Invoice Finance - as well as smaller Asset Based Lending and Secured Commercial Loan product offerings. Lending proposals are originated through a variety of introductory channels, including finance brokers and other professional firms, equipment vendors, suppliers and dealers, and to an increasing degree, direct from borrowers. The target market is generally businesses who have a funding requirement of between £10k and £5m. Financial Results I am pleased to report this set of Interim financial results. Despite wider macro-economic headwinds, solid progress has been made in the first half of the financial year both strategically and financially. Own-Book deal origination is a key performance indicator for the Group as increased lending underpins future income generation and profitability and, in turn, the inherent value of the Balance Sheet. In the six-month period to 30 November 2025, this own-book origination increased by 48% to £62.6m compared to the six months to 30 November 2024. This led to the Group's gross lending book reaching all-time record highs of £235.3m. It is also encouraging to see that the key metrics on the Profit and Loss account - Revenue, Profit Before Tax and PBT Margin - all show growth from the previous year's equivalent six-month comparative period. Given the compound nature of the Asset Finance business, this gives the Board further confidence for future performance. With regards to the Group's Balance Sheet, the quality of the lending portfolio is a key performance indicator and a key focus of the Board. Despite the aforementioned wider economic difficulties, it is, therefore, extremely pleasing to report further improvements in the overall quality of the lending book. As at 30 November 2025, Net Arrears as a percentage of the lending book fell to 4.5%, while net Bad Debt Writes-Offs also reduced, standing at 1.0% as at 30 November 2025. The Group's increasing level of deal origination, lending portfolio management and continued support from external funders have all combined to further strengthen the Group's balance sheet. Net Tangible Assets stood at £47.2m as at 30 November 2025 compared to £41.5m twelve months earlier, an increase of 14% Strategy and Outlook June 2025 marked the start of the Group's new three-year strategic plan through to the end of May 2028. The focus on our key initiatives - increased own-book lending but not at the expense of credit quality; improved margins through efficiency gains, and the leveraging of the Group's increasing brand awareness - continue apace. As a result, The Board firmly believe this strategy will lead to increased shareholder value over time. Taking into account the wider macro-economic and geo-political concerns, the Board is pleased with these interim financial results and also with the operational progress made during the first half of the current financial year. The new strategic plan has started solidly and, whilst remaining vigilant as to the potential impact that further economic uncertainty could have on the Group and recognising the requirement for ongoing investment into Business Improvement initiatives, the Board is confident that the results for the full-year will be at least in-line with current Board expectations. Ed Rimmer Chief Executive Officer, Time Finance plc CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS TO 30 NOVEMBER 2025 Unaudited 6 months to 30 November 2025 £'000 Unaudited 6 months to 30 November 2024 £'000 Audited 12 months to 31 May 2025 £'000 Note Revenue 18,816 18,110 37,120 Cost of sales (7,737) (7,554) (15,441) GROSS PROFIT 11,079 10,556 21,679 Administrative expenses (6,738) (6,512) (13,805) Share-based payments (20) (12) (23) OPERATING PROFIT 4,321 4,032 7,851 Finance expense (237) (223) (333) Finance income 196 139 338 PROFIT BEFORE INCOME TAX 4,280 3,948 7,856 Income Tax (1,070) (948) (1,994) PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR 3,210 3,000 5,862 Attributable to: Owners of the parent company 3,210 3,000 5,862 Pence per share Pence per share Pence per share - basic 6 3.47 3.24 6.34 - diluted 6 3.47 3.24 6.34 All of the above amounts are in respect of continuing operations. CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE SIX MONTHS TO 30 NOVEMBER 2025 Unaudited 6 months to 30 November 2025 Audited 12 months to 31 May 2025 NON-CURRENT ASSETS £'000 £'000 Goodwill 27,263 27,263 Intangible assets 458 374 Property, plant and equipment 342 330 Right-of-use property, plant & equipment 816 892 Trade and other receivables 87,201 78,822 Deferred tax 1,168 1,168 117,248 108,849 CURRENT ASSETS Trade and other receivables 124,078 116,395 Cash and cash equivalents 3,635 4,970 Tax receivable - 127 127,713 121,492 TOTALASSETS 244,961 230,341 Called up share capital 9,252 9,252 Share premium 25,543 25,543 Employee Shares 335 315 Treasury Shares (1,115) (1,065) Retained Earnings 40,935 37,725 TOTAL EQUITY 74,950 71,770 LIABILITIES NON-CURRENT LIABILITIES Trade and other payables 82,565 72,910 Lease liability 463 600 83,028 73,510 CURRENT LIABILITIES Trade and other payables 86,426 84,337 Financial liabilities - borrowings 104 294 Tax payable 2 - Provisions 165 149 Lease liability 286 281 86,983 85,061 TOTAL LIABILITIES 170,011 158,571 TOTAL EQUITY AND LIABILITIES 244,961 230,341 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS TO 30 NOVEMBER 2025 Unaudited 6 months to 30 November 2025 Unaudited 6 months to 30 November 2024 £'000 £'000 Cash generated from operations Profit before tax 4,280 3,948 Depreciation and amortisation charges 343 300 Finance costs 237 223 (Increase) in trade and other receivables (16,062) (8,948) Increase in trade and other payables 11,744 8,665 Movement in other non-cash items 312 (56) 854 4,132 Cash flows from operating activities Interest paid (237) (223) Tax paid (1,311) (1,145) Net cash generated from operating activities (694) 2,764 Cash flows from investing activities Purchase of software, property, plant & equipment (212) (312) Sale of own shares to EBT 54 63 Net cash generated from investing activities (158) (249) Cash flows from financing activities Payment of lease liabilities (204) (164) Loan repayments in period (229) (512) Purchase of own shares in EBT (50) (150) Net cash generated from financing activities (483) (826) (Decrease)/increase in cash and cash equivalents (1,335) 1,689 Cash and cash equivalents at the beginning of the period 4,970 1,590 Cash and cash equivalents at the end of the period 3,635 3,279 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS TO 30 NOVEMBER 2025 Share Capital Share Premium Retained Earnings Treasury Shares Employee Shares Total Equity £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 May 2025 9,252 25,543 37,725 (1,065) 315 71,770 Total comprehensive income - - 3,210 - - 3,210 Transactions with owners Sale of treasury shares Value of employee services - - - - - - (50) - - 20 (50) 20 Balance at 30 November 2025 9,252 25,543 40,935 (1,115) 335 74,950 Share Capital Share Premium Retained Earnings Treasury Shares Employee Shares Total Equity £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 May 2024 9,252 25,543 31,863 (815) 292 66,135 Total comprehensive income - - 3,000 - - 3,000 Transactions with owners Sale of treasury shares Value of employee services - - - - - - (150) - - 11 (150) 11 Balance at 30 November 2024 9,252 25,543 34,863 (965) 303 68,996 1 BASIS OF PREPARATION The financial information set out in the interim report does not constitute statutory accounts as defined in section 434(3) and 435(3) of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 May 2025 prepared in accordance with IFRS as adopted by the European Union and with the Companies Act 2006 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006. These interim financial statements have been prepared under the historical cost convention. These interim financial statements have been prepared in accordance with the accounting policies set out in the most recently available public information, which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 31 May 2025. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union. The financial information for the six months ended 30 November 2024 and the six-month period to 30 November 2025 are unaudited and do not constitute the Group's statutory financial statements for these periods. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements. Going Concern Due to the nature of the Group's trading the Directors do not have any concerns over the key assumptions concerning the future and do not consider there to be any key sources of estimation uncertainty. The Group has ample headroom in its funding facilities. As such, the Directors are confident that the Group will continue to operate as a going concern. 2 SEGMENTAL REPORTING The Group provides a range of financial services and product offerings throughout the UK and has two core trading divisions, namely: Asset Finance and Invoice Finance. The Group's ancillary product offerings, Commercial Loans and Vehicles fleet brokering are included within the Asset Finance segment as they operate under the same management team, office locations and with the same back-office teams. Asset Based Lending is included within the Invoice Finance segment for the same reason. The operating segments, therefore, reflect the Group's organisational and management structures. The Group reports internally on these segments in order to assess performance and allocate resources. The segments are differentiated by the type of products provided. The segmental results and comparatives are presented with intergroup charges allocated to each division based on actual revenues generated. Intergroup expenses are recharged at cost and largely comprise plc Board and listing costs, Marketing, Compliance, IT and Human Resource costs. 6 months to 30 November 2025 £'000 Asset Finance Invoice Finance Other TOTAL Revenue 10,871 7,945 - 18,816 Profit before Tax 1,801 3,209 (730) 4,280 6 months to 30 November 2024 £'000 Asset Finance Invoice Finance Other TOTAL Revenue 10,651 7,598 - 18,249 Profit before Tax 1,919 2,897 (868) 3,948 3 BASIS OF CONSOLIDATION The consolidated financial statements incorporate the financial statements of the parent company (Time Finance plc) and entities controlled by the company (its subsidiaries) made up to 31 May each year. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation. 4 TAXATION Taxation charged for the period ended 30 November 2025 is calculated by applying the Directors' best estimate of the expected tax rate to the result for the period. 5 SHARE CAPITAL The Articles of Association of the company state that there is an unlimited authorised share capital. Each share carries the entitlement to one vote. 6 EARNINGS PER ORDINARY SHARE Earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. For diluted earnings per share, the weighted average number of shares is adjusted to assume conversion of all dilutive potential ordinary shares. There are no dilutive items impacting the Group and, as such, the Basic EPS and Diluted EPS are identical. Any share options that are vested are fully expected to be met from the Group's Employee Benefit Trust. Therefore, issuance of new shares is not expected to be required and as a result, there is no associated dilution. 6 months to 6 months to 12 months to 30 Nov 2025 30 Nov 2024 31 May 2025 £'000 Earnings attributable to ordinary shareholders 3,210 3,000 5,862 Basic EPS Weighted average number of shares 92,512,704 92,512,704 92,512,704 Per-share amount pence 3.47 3.24 6.34 Adjusted earnings 3,210 3,000 5,862 Diluted EPS Weighted average number of shares 92,512,704 92,512,704 92,512,704 Per-share amount pence 3.47 3.24 6.34 7 DIVIDENDS At the current time, as per the current strategy published in January 2025, cash reserves are being deployed for business growth. This approach to future dividends is kept under regular review and any change to the policy would be notified at that point in time. 8 TRADE RECEIVABLES Trade receivables represent finance lease, loan and invoice finance receivables stated net of unearned income and credit risk provisions, as follows: £'000 6 months to 30 November 2025 12 months to 31 May 2025 Gross receivables from finance leases, loans and invoice finance 235,302 217,390 Unearned future finance income on finance leases, loans and invoice finance (29,560) (26,649) Total Net Trade Receivables 205,742 190,741 9 SHARE-BASED PAYMENT TRANSACTIONS The Group has one active unapproved Share Scheme, the "2026 Scheme", that was previously announced on 19th November 2025. The period covered by the previous share scheme, the 2022 Scheme, that was announced on 22nd July 2022, concluded at the end of the last financial year, 31st May 2025. Following the achievement of profit-based criteria in that financial year, as announced on 3rd October 2025, the final elements of the 2022 Scheme, 611,667 nil-cost options over ordinary shares of 10 pence each in the capital of the Company, vested. As was then announced on 14th November 2025, these vested options were exercised with the issuance being met through the Group's Employee Benefit Trust. As previously stated, it remains the Board's intention that, wherever possible, any future vested options that are exercised will be met through the Group's Employee Benefit Trust and so would not dilute any existing shareholders. 10 COPIES OF THE INTERIM REPORT Copies of the Interim Report are available from www.timefinance.com and the Company Secretary at the registered office: Time Finance plc, St James House, The Square, Lower Bristol Road, Bath, BA2 3BH. This information is provided by RNS, the news service of the London Stock Exchange. 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