Time Finance: when preparation meets opportunity

Here’s another brief stock pitch for you! Time Finance is another stock that could have made it onto my annual watchlist this year, and is a company that has made a consistently positive impression on me, so I’m happy to lay out the case for you here!
Disclosure: At the time of publication, I do not have a position in Time Finance.


Source: timefinance.com/clients
The Pitch
Time Finance, known as 1pm plc until 2020, is a Bath-based independent finance provider with two main categories of business: invoice finance and asset finance.
They previously offered loans that were less well secured, such as ordinary business loans and consumer loans, before making a strategic shift into lower-risk categories. The hard assets against which they lend include construction equipment, printing equipment, manufacturing amp; engineering machinery, tractors, cars and vans.
After suffering some weakness during Covid, they have enjoyed considerable growth from a low revenue point of £22.5m (FY May 2022) to an expected £38.5m in FY May 2026 (source: Cavendish). This represents a compound annual growth rate or CAGR for revenues over this four-year period of 14%.
What makes this all the more meaningful is that it...