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Timia Capital ticks higher on record revenue growth and expansion of portfolio

Interest income from investments over 12 months increased by 58% to $1.52 million compared with the previous year
Tech, software graphic
Timia provides financing for recurring revenue software companies

Timia Capital Corp (CVE:TCA) ticked higher Friday as the specialty finance group posted record revenue growth for the second year running and said it continues to build the size and value of its portfolio.

The Vancouver-based company provides financing for recurring-revenue software companies.

Shares in Toronto ticked up 2.5% to $0.20.

WATCH: TIMIA Capital Corp is going where banks fear to tread ... and finding success

Its revenue is mainly interest income generated under its revenue-financing (RF) model. For the year to November 30 last year, revenue came in at $1.74 million, which was 67% more than in the 2017 financial year.

Interest income from investments over the 12 months increased by 58% to $1.52 million compared with the previous year.

The increase came from Timia making more investments and therefore receiving more monthly payments. As the revenue of Timia's underlying portfolio grows, the investees make larger blended interest and principal payments to the firm.

"For the second year in a row, we achieved record growth in revenue and assets under management and have reshaped our business for 2019," said Mike Walkinshaw, CEO of Timia.

"Our pipeline of software as a service or SaaS companies increased significantly as the number of new transactions more than doubled in 2018 in comparison to 2017. We enjoyed working with some great entrepreneurs in 2018 and look forward to helping support the growth of more SaaS companies in 2019."

The significant increase in net income at the firm resulted in a figure of $18,838 versus a net loss of $197,620 in the prior year.

Earnings boost

Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased by $1.08 million to $1.33 million for the year ended November 30, 2018, compared with adjusted EBITDA of $247,713 for the prior year, mainly owing again to that significant increase in interest income.

Timia's loans receivable increased 37% to $9.68 million, compared with $7.075 million in the prior year. 

As of November 30, the firm had cash of $3.75 million and working capital of $3.6 million, compared with $713,792 and $1.16 million as of November 30, 2017. But post-year-end, it lifted its cash resources by more than $8.7 million by establishing and funding a limited partnership.

Contact Giles at [email protected]

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TIMIA Capital Corp. Timeline

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