TIMIA Capital Corporation (CVE:TCA) (OTCMKTS:TIMCF) said it swung to a net income in its first quarter compared to a loss in the same period last year as the firm continues to grow its revenue-financing business.
The company, which provides growth capital to technology firms in exchange for payments based on monthly revenue, posted figures for the three months to February 29, 2020, and also updated on its activity in light of the current coronavirus pandemic.
Net income in the three month period came in at C$444,144 compared with a net loss of $255,480 in the first quarter last year, mainly due to continued portfolio growth and C$516,009 recognized as gains on investments two successful exits of TIMIA's loan portfolio.
The group saw a record quarter for revenue at C$1,024,188, up 80% compared to the same period last year. Interest income came in at C$939,701 compared to $510,330 in the same period last year, an increase of 84%, while total assets increased by 105% to C$30 million. TIMIA's loans receivable book increased by 71% to around C$21.6 million versus the same period last year.
The group's financial position has "never been stronger", TIMIA CEO Mike Walkinshaw said in the results statement
"During this period of uncertainty, we are confident in our abilities and our fintech platform to navigate ahead successfully. We have the right capital structure in place and will continue to be vigilant with new and previous investments in select SaaS companies."
During the quarter, the firm completed three investments, distributing capital of US$1.5 million to an American company and $900,000 follow-on investments to two Canadian companies.
On coronavirus, the group pointed out that none of its investments were in arrears, but it conceded that it may be several months before the full effect of the economic slowdown is felt in its portfolio.
"Management has decided to increase the size of our capital reserves thereby reducing our allocation to new deals," the group added. "Fortunately, TIMIA employees are able to work from home and maintain close contact and relationships with current portfolio companies and new and exciting SaaS investment opportunities."
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