15 Jan 2020
1 PM - Interim results underline earnings power
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1 PM - Interim results underline earnings power
Time Finance plc (TIME:LON) | 41.0 0 0.0% | Mkt Cap: 37.9m
- Published:
15 Jan 2020 -
Author:
Cavendish Research -
Pages:
3
1pm’s results for the six months to 30 November showed an annualised ROE of 8.7% although the return in period was affected by increased brokered on business (generating lower income than own underwritten lending, but does not result in credit risk) and increased loan loss provision cover, both illustrating conservative credit outlook. Maintaining a high profitability while managing credit risk and investing in the business illustrates the group’s earnings power even in less benign conditions. The interim results are in sharp contrast to the low valuation. We maintain our 60p price target and Buy recommendation.