TIMIA Capital Corporation (CVE:TCA) (OTCMKTS:TIMCF), the specialty finance group, unveiled Monday first-quarter results that showed record revenue and a 55% increase in assets under management (AUM).
The Vancouver-based company provides financing for recurring-revenue software companies.
During the three months ended February 28, the company grew its revenue financing (RF) business by completing US$3 million and C$2 million of new loan facilities, it said in a statement.
The firm makes its money mainly from interest income generated under its RF model; namely, as Timia's underlying portfolio grows, the investees make larger interest and principal payments to the company.
For the quarter, revenue was a record $570,563, and up 58% compared with the $360,179 in the same period last year.
Meanwhile, the assets under management grew 26% to around $14.61 million compared with the same period last year.
"We've recently increased our assets under management by 55% through a non-dilutive limited partnership structure that allows us to scale up and increase revenue by putting more capital to work," said Mike Walkinshaw, CEO of TIMIA. "We have cash on our balance sheet and expect to put it to work in the near term for SaaS companies currently in our backlog of funding opportunities."
Interest income rises
Interest income in the quarter was a record $510,330 compared with $339,154 in the same period last year, an increase of 50%.
"Our investments in infrastructure and deal generation continue to pay off with record revenue and 218% increase in loan book," said Walkinshaw. "We're seeing an increase in private credit opportunities in the software space as the fintech marketplace evolves and drives more capital towards exciting SaaS companies."
During the quarter, Timia posted a net loss of $255,480 compared with net income of $83,106 in the same period of 2018, when the company realised a gain on investments of $308,903 after the successful exit of iCompass Technologies Inc. As of February 28, Timia had cash of around $670,105 and working capital of about $668,871.
TIMIA's singular focus is the fast growing, global, business-to-business Software-as-a-Service (SaaS) segment.
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