TIMIA Capital Corporation's (CVE:TCA) (OTCMKTS:TIMCF) boss has said the company wants to build on the success of a 'transformative' 2019 and believes its outlook and financial position is positive despite the current global challenges.
In a letter to shareholders, TIMIA chief executive Mike Walkinshaw said: "We are growing, investing and vigilantly watching the performance of our portfolio of exciting SaaS companies."
READ: TIMIA Capital swings to net income in first quarter, upbeat on future of platform despite coronavirus pandemic
The company boss noted though that TIMIA has decided to increase the size of its capital reserves and reduce allocation to new deals.
"Management believes that recurring revenue software companies offer security and stability. The company utilizes a proprietary credit scoring process that focuses on high customer retention rates as well as a well-diversified customer base," he told investors.
"Many of our portfolio companies have been agile in this environment, including in many instances transitioning employees to work remotely. At this time, none of the company's investments are in arrears. However, it may be several months before the full effect of the economic slowdown is felt in the portfolio.
"Management is in the process of reviewing revised and updated forecasts for each of the portfolio companies and are working with them to determine the best way to support them through the crisis," Walkinshaw added.
The fintech company provides growth capital to technology firms in exchange for payments based on monthly revenue.
Recently, the company posted record results for its first quarter to February 29, 2020, which saw revenue increase 80% compared to the same period last year, while total assets increased 105% versus 1Q, 2019.
As of February 29, TIMIA's cash stood at around C$6.8 million and working capital was around C$3.9 million, compared to around C$4.7 million and C$4.6 million, respectively, as at November 30 last year.
Walkinshaw also highlighted the role of Rob Foxall, the group's VP of Origination, who has been promoted into co-founder Greg Smith's role after the latter was sadly diagnosed with Amyotrophic lateral sclerosis (ALS).
"Greg's primary role at TIMIA has been to build the 'fintech machine' that delivers the loans that TIMIA funds. We are thankful that this machine is up and running and continuous improvement is ongoing. Greg is an exceptional person and we are fully supportive of his desire to spend more time with his family," the CEO said.
Contact the author at [email protected]