Core Insights - Traditional banking solutions are often inadequate for businesses facing seasonal fluctuations, leading to cash flow challenges [1][2][3] - Invoice finance is becoming increasingly important as it allows businesses to manage cash flow more effectively by scaling credit limits with turnover [4][5] Group 1: Seasonal Business Challenges - Businesses in sectors with seasonal trends experience significant cash flow pressure, particularly during off-peak periods [2][3] - Seasonal fluctuations can create a cycle of feast and famine, making it difficult for firms to cover fixed costs during quieter months [3] Group 2: Limitations of Traditional Banking - Many conventional banks have tightened lending criteria or exited the market, reducing their share of lending to smaller businesses from 63% in 2014 to 41% in 2023 [4] - The lack of flexible banking solutions has driven businesses to seek alternative funding options, including invoice finance [4] Group 3: Benefits of Invoice Finance - Invoice finance allows businesses to access liquidity quickly by using receivables as collateral, with lenders typically advancing up to 90% of the invoice value [7] - This financing method offers fewer borrowing conditions and can adapt to the unique needs of businesses with irregular payment cycles [5]

Core Insights - Time Finance reported a profit before tax (PBT) of £7.9 million ($10.6 million) for the year ending 31 May 2025, marking a 34% increase from the previous year's PBT of £5.9 million ($8 million) [1] - The company's lending book value reached £217.4 million, reflecting an 8% growth, while deal origination increased by 5% to £96.5 million [1] - The asset finance division grew by 31% to £111 million, and the invoice finance division saw an 8% increase to £70 million [1] Financial Performance - The financial performance for the final year of the four-year strategy was strong, with revenue, profit before tax, and earnings per share all experiencing double-digit growth, with PBT and EPS both exceeding 30% growth [3] - The balance sheet strengthened, with record highs in the lending book and net tangible assets as of 31 May 2025, while arrears and write-offs remained controlled [4] Strategic Developments - Time Finance has introduced a specialist Materials Handling team to expand into new markets [2] - Following the completion of its four-year strategy initiated in June 2021, the company has launched a new three-year plan titled 'Continuing the Journey' aimed at enhancing lending book growth and improving operational efficiencies [2] - The company announced an expansion of its lending capabilities, with total facilities exceeding £250 million [4] Funding and Capacity - Growth has been supported by the renewal of contracts with a consortium of eight funding partners, providing an additional financial capacity of over £95 million [5]