22 Apr 2021
Momentum clearly building
In our Jan 21 initiation note ‘Time to be rerated’ we suggested that Time’s results for H1 to 30 Nov 20 showed that a recovery from a Covid-induced slump in good quality lending demand and spike in bad debt provisions was well underway. In a corporate update released today Time has confirmed ongoing momentum of that recovery. Forbearance levels have reduced from the Jun 20 pandemic peak of £25m to under £2.5m on 31 Mar 21, with total arrears now below the 28 Feb 20 pre-Covid level. This has contributed to net tangible assets rising to £28.5m on 31 Mar 21 (31 May 20: £26.5m; 30 Nov 20: £27.8m) and cash and equivalents rising to £6m (31 May 20: £1.5m; 30 Nov 20: £3m). The numbers are clearly moving in the right direction.
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
Momentum clearly building
Time Finance plc (TIME:LON) | 41.0 0.2 1.2% | Mkt Cap: 37.9m
- Published:
22 Apr 2021 -
Author:
Hannah Crowe | Paul Bryant -
Pages:
3
In our Jan 21 initiation note ‘Time to be rerated’ we suggested that Time’s results for H1 to 30 Nov 20 showed that a recovery from a Covid-induced slump in good quality lending demand and spike in bad debt provisions was well underway. In a corporate update released today Time has confirmed ongoing momentum of that recovery. Forbearance levels have reduced from the Jun 20 pandemic peak of £25m to under £2.5m on 31 Mar 21, with total arrears now below the 28 Feb 20 pre-Covid level. This has contributed to net tangible assets rising to £28.5m on 31 Mar 21 (31 May 20: £26.5m; 30 Nov 20: £27.8m) and cash and equivalents rising to £6m (31 May 20: £1.5m; 30 Nov 20: £3m). The numbers are clearly moving in the right direction.