Q3 Trading Update

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.

25 March 2025

Time Finance plc

("Time Finance", the "Group" or the "Company")

Q3 TRADING UPDATE

Record Lending Book and Record Nine-Month Revenues and Profits Before Tax

40% increase in Profit Before Tax over corresponding period; already equal to previous full-year total

Time Finance plc, the AIM listed independent specialist finance provider, is pleased to provide a trading update for the nine-month period ended 28 February 2025 ("9M 2024/25"). The Group's strong performance in the first half of the current financial year has been maintained throughout the third quarter. Continued strong demand from UK businesses for the Group's multi-product funding offering has driven further growth in the gross lending book which stands at a record high of more than £210m at the end of February 2025. This is the fifteenth consecutive quarter of loan book growth for the Company.

Unaudited Nine Month 2024/25 Highlights

· Own-Book lending origination up 5% to £69.3m (9M 2023/24: £66.0m)

· Revenue up 14% to £27.3m (9M 2023/24: £24.0m)

· Profit before Tax up 40% to £5.9m (9M 2023/24: £4.2m)

· PBT margin improved by 200 bps to 21% (9M 2023/24: 19%)

· Net Tangible Assets up 14% to £43.0m at 28 February 2025 (29 February 2024: £37.7m)

· Gross lending-book up 11% to a record £210m at 28 February 2025 (29 February 2024: £190m)

· Deferred income up 7% to £26.4m at 28 February 2025 (29 February 2024: £24.6m) providing strong visibility of future earnings

· Net Arrears improved to 5% of the gross lending book at 28 February 2025 (29 February 2024: 6%)

· Net Bad Debt Write-Offs unchanged at 1% of the average lending book at 28 February 2025 (29 February 2024: 1%)

· Continuing positive trading momentum; leading to expectation that Group financial performance for the full year will be at least in line with recently upgraded market guidance provided in February 2025[1]

A key element of the Company's four-year strategic plan through to 31 May 2025 has been to focus on more secured lending. This was to be achieved primarily though the provision of Invoice Finance and the 'Hard' element of Asset Finance. These two core areas have accounted for 91% of new lending volume originated in the nine months of trading to 28 February 2025, and now make up 81% of the total lending book. This compares to 51% of new deal volume origination and 52% of the total lending book prior to the strategy launch.

Ed Rimmer, Chief Executive Officer commented:

"With three quarters of the current financial year now delivered, the Board is very encouraged by the Group's financial performance. To be able to report all-time record nine-month levels of both Revenue and Profit Before Tax is particularly pleasing. As is the fact that the profit generated in the first nine months of the current financial year has already surpassed the level achieved for the whole of the previous year. To have made these strides forward without compromising on credit quality, as shown by the consistent and stable nature of our arrears and our write-offs, is another key performance indicator that we are proud of.

"As a result of all these factors, as we close-out the current four-year strategy and enter our new three-year growth trajectory through to May 2028, the Board has real confidence that the Group remains well placed to continue building long-term value for all our shareholders."

Investor Presentation

The Company will deliver a live presentation relating to this 9M 2024/25 Trading Update via the Investor Meet Company platform at 1:00pm GMT today. Existing and potential shareholders can sign up to Investor Meet Company for free and add to meet Time Finance plc via: https://www.investormeetcompany.com/time-finance-plc/registerinvestor.

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 and Invoice Finance. While focussed 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.