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2 August 2024
RentGuarantor Holdings
PLC
("RentGuarantor" the "Company" or the "Group")
Interim Results
RentGuarantor (AQSE: RGG), a provider of rent
guarantee services to prospective tenants across the socio-economic
spectrum wishing to rent property in the UK private rental sector,
is pleased to announce its interim results for the six months ended
30 June 2024 ("H1 2024" or the "Period").
HIGHLIGHTS
·
Revenue up 70% on the comparative six-month period last year
to £517,589 (H1 2023: £304,965).
·
Signed partnership agreements with a total of 55 letting
agent entities or letting agent groups.
·
Continued investment in technology, people and marketing to
prepare the Company for anticipated growth.
·
Launched an interactive Investor Hub to better inform and
engage with investors and stakeholders.
·
Attended 14 industry conferences in H1 2024, including
Propertymark ONE, Housing2024, Propertymark Wales & Scotland
National Conferences.
CHAIRMAN'S
STATEMENT
I am pleased to present the interim results of
the Group for the six months ended 30 June 2024, as well as an
update on our activities for the first half of the year.
During 2024, we have continued to build on the
growth achieved in 2023. We have developed further strategic
relationships and partnerships which have helped to drive our
growth in revenues and have generated an increased awareness of the
Group amongst customers and the industry. Our technology has been
further strengthened to support this forecasted growth, and our
focus has remained on providing rent guarantee services.
During the Period, the Group signed partnership
agreements with various industry bodies, including letting agents,
councils, and student accommodation providers.
In May, we launched our interactive Investor
Hub, which brings all RentGuarantor content into a single
integrated platform to better inform and engage with investors and
stakeholders.
The results show a 70% like for like growth in
revenues compared with the six-month period last year. This level
of revenue represents approximately 70% of our 2023 full year total
revenue. We have continued to invest diligently in our technology,
people and marketing to prepare the Group for the anticipated
growth. This investment has contributed to the circa 11% increase
in overall losses compared with the comparative period in
2023.
Key milestones
in the Period include:
Signing of
partnership agreements
In the first half of the year, the Company
signed partnership agreements with a total of 55 letting agent
entities or letting agent groups.
Attendance at
industry conferences
The RentGuarantor team attended 14 industry
conferences in the first half of 2024, including Propertymark ONE,
Housing2024, Propertymark Wales & Scotland National
Conferences.
Again, the commitment and energy of the entire
team has been critical in achieving this progress and I would like
to warmly thank them for their dedication.
Financial
Results
The Group delivered further significant growth
in H1 2024 with an increase in revenue of 70% on the comparative
six-month period last year to £517,589 (H1 2023: £304,965). Our
operating loss increased from £396,637 to £448,753 in the six-month
period. This marginal loss increase is due to the hiring of
additional key staff as we build our corporate team to deliver
future growth. We have carefully managed our cost base and working
capital to be able to drive the investment we believe is required
in the business in a prudent manner to achieve our growth plans.
The loss per share increased from 3.53 pence in the six-month
period last year to 3.85 pence in the six months to 30 June
2024.
Summary and
Outlook
Our investment in marketing, technology and
people is continuing to be reflected in our revenue growth in the
first half of 2024. Inflation has now fallen to around 2% although
rents have remained high relative to earnings. However, analysts
forecast that interest rates are unlikely to fall significantly for
some time. We will continue to review market developments and will
invest in our team and core services to support our growth
plans.
We believe that the long-term opportunity
remains significant and the developments in the first six months of
2024 are supportive of our strategy. The economic and geo-political
environments are particularly difficult to anticipate, and the
policies of the new Labour government are still to be fully
revealed. We continue to take a cautious but considered approach to
the Group's long-term strategy.
I look forward to reporting to you on our
progress over the coming months.
![](https://dw6uz0omxro53.cloudfront.net/3129919/89baba52-f9e1-4a7a-a005-e9dd71ac42c6.png)
Graham Duncan
Non-Executive Chairman
31 July 2024
**Ends**
Engage with RentGuarantor directly via the
investor hub. Sign up here.
Follow us on X: @RentGuarantor
Follow us on LinkedIn: @RentGuarantor
For further information please
contact:
RentGuarantor
Holdings PLC
Paul Foy, Chief Executive Officer
+44 207 193 4418
Alfred Henry
Corporate Finance Limited (AQSE Corporate
Adviser)
Nick Michaels
Maya Klein Wassink
+44 20 3772 0021
Zeus (Joint
Broker)
Simon Johnson (Corporate Broking)
James Hornigold (Investment Banking)
+44 203 829 5000
Oberon Capital
(Joint Broker)
Mike Seabrook
Nick Lovering
+44 (0) 203 179 5300
BlytheRay
(Financial PR)
Megan Ray
Will Jones
+44 207 138 3204
About RentGuarantor Holdings
Plc
RentGuarantor provides a rent guarantee service
to tenants wishing to rent property in the UK from the Private
Rental Sector ("PRS"). It is an online service where applications
are managed on a secure and bespoke digital platform designed and
built by the Company. The goal is to make the process as simple as
possible, with applications only taking a few minutes and
RentGuarantor completing the application on the same
day.
RentGuarantor supplies its service to the whole
of the market - students, both from the UK and overseas, employed
people and people on benefits including Universal Credit, ensuring
that everyone has the opportunity to live in their dream rental
home.
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For
the half year to 30 June 2024
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Six months
to
|
|
Six months
to
|
|
Year to
|
|
30 June
2024
|
|
30 June
2023
|
|
31 December
2023
|
|
£
|
|
£
|
|
£
|
Continuing operations
|
|
|
|
|
|
Revenue
|
517,589
|
|
304,965
|
|
741,028
|
Direct costs
|
(95,339)
|
|
(25,242)
|
|
(137,491)
|
|
|
|
|
|
|
Gross profit
|
422,250
|
|
279,723
|
|
603,537
|
|
|
|
|
|
|
Administrative expenses
|
(871,003)
|
|
(676,360)
|
|
(1,418,541)
|
|
|
|
|
|
|
Operating loss
|
(448,753)
|
|
(396,637)
|
|
(815,004)
|
|
|
|
|
|
|
Finance costs
|
(16,557)
|
|
(11,833)
|
|
(55,875)
|
Revaluation of convertible loan
note
|
12,950
|
|
-
|
|
(358,458)
|
|
|
|
|
|
|
Loss on ordinary activities before taxation
|
(452,360)
|
|
(408,470)
|
|
(1,229,337)
|
|
|
|
|
|
|
Income tax expense
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
Loss after taxation
|
(452,360)
|
|
(408,470)
|
|
(1,229,337)
|
|
|
|
|
|
|
Loss per share (expressed in pence
per share)
|
(3.85)
|
|
(3.53)
|
|
(10.61)
|
CONSOLIDATED BALANCE SHEET
As
at 30 June 2024
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Six months
to
|
|
Six months
to
|
|
Year to
|
|
30 June
2024
|
|
30 June
2023
|
|
31 December
2023
|
|
£
|
|
£
|
|
£
|
Assets
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Intangible assets
|
290,284
|
|
262,374
|
|
272,751
|
Tangible assets
|
8,300
|
|
12,015
|
|
9,192
|
|
298,584
|
|
274,389
|
|
281,943
|
Current assets
|
|
|
|
|
|
Trade and other
receivables
|
76,574
|
|
87,621
|
|
22,726
|
Cash and cash equivalents
|
22,048
|
|
56,568
|
|
35,372
|
|
98,622
|
|
144,189
|
|
58,098
|
Total assets
|
397,206
|
|
418,578
|
|
340,041
|
|
|
|
|
|
|
Equity and liabilities
|
|
|
|
|
|
Equity attributable to owners of the parent
|
|
|
|
|
|
Ordinary shares
|
11,879,174
|
|
11,581,175
|
|
11,581,175
|
Share premium
|
1,238,948
|
|
796,621
|
|
796,621
|
Reorganisation reserve
|
(8,050,001)
|
|
(8,050,001)
|
|
(8,050,001)
|
Accumulated losses
|
(6,399,029)
|
|
(5,125,802)
|
|
(5,946,669)
|
|
(1,330,908)
|
|
(798,007)
|
|
(1,618,874)
|
Liabilities
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Loans and convertible loan
notes
|
1,088,354
|
|
855,000
|
|
903,253
|
|
1,088,354
|
|
855,000
|
|
903,253
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
639,760
|
|
361,585
|
|
1,055,662
|
|
639,760
|
|
361,585
|
|
1,055,662
|
Total liabilities
|
1,728,114
|
|
1,216,585
|
|
1,958,915
|
|
|
|
|
|
|
Total equity and liabilities
|
397,206
|
|
418,578
|
|
340,041
|
CONSOLIDATED STATEMENT OF
CASH FLOWS
For
the half year to 30 June 2024
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Six months
to
|
|
Six months
to
|
|
Year to
|
|
30 June
2024
|
|
30 June
2023
|
|
31 December
2023
|
|
£
|
|
£
|
|
£
|
Cash outflows from operating activities
|
|
|
|
|
|
Cash consumed in
operations
|
(402,171)
|
|
(315,865)
|
|
(71,075)
|
Net
cash outflows from operating activities
|
(402,171)
|
|
(315,865)
|
|
(71,075)
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
Expenditure on non-current
assets
|
(1,942)
|
|
(5,007)
|
|
(5,322)
|
Expenditure on intangible
assets
|
(82,980)
|
|
(45,114)
|
|
(116,246)
|
Net
cash outflows from investing activities
|
(84,922)
|
|
(50,121)
|
|
(121,568)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds from issues of ordinary
shares
|
490,326
|
|
-
|
|
-
|
Proceeds from Directors and other
loans
|
-
|
|
355,000
|
|
200,000
|
Finance costs paid
|
(16,557)
|
|
(11,833)
|
|
(51,372)
|
Lease repayments
|
-
|
|
(12,500)
|
|
(12,500)
|
Net
cash inflows from financing activities
|
473,769
|
|
330,667
|
|
136,128
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
(13,324)
|
|
(35,319)
|
|
(56,515)
|
|
|
|
|
|
|
Cash and cash equivalents at the
beginning of the year
|
35,372
|
|
91,887
|
|
91,887
|
|
|
|
|
|
|
Cash and cash equivalents at the end
of the period
|
22,048
|
|
56,568
|
|
35,372
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For
the half year to 30 June 2024
|
Share
Capital
|
Share
|
Reorganisation
|
Accumulated
|
Total
|
|
|
Premium
|
Reserve
|
Losses
|
|
|
£
|
£
|
£
|
£
|
£
|
|
|
|
|
|
|
As
at 31 December 2022
|
11,581,175
|
796,621
|
(8,050,001)
|
(4,717,332)
|
(389,537)
|
|
|
|
|
|
|
Share capital issued
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Loss for the year
|
|
|
|
(1,229,337)
|
(1,229,337)
|
|
|
|
|
|
|
As
at 31 December 2023
|
11,581,175
|
796,621
|
(8,050,001)
|
(5,946,669)
|
(1,618,874)
|
|
|
|
|
|
|
Share capital issued
|
297,999
|
442,327
|
-
|
-
|
740,326
|
|
|
|
|
|
|
Loss for the period
|
-
|
-
|
-
|
(452,360)
|
(452,360)
|
|
|
|
|
|
|
As
at 30 June 2024
|
11,879,174
|
1,238,948
|
(8,050,001)
|
(6,399,029)
|
(1,330,908)
|
Share capital is the amount
subscribed for shares at nominal value.
Accumulated losses represent the cumulative loss of the Group
attributable to equity shareholders.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
1. Basis of
preparation
These unaudited financial statements have been
prepared on the basis of the accounting policies adopted in the
financial statements for the year ended 31 December
2023.
2. Earnings per
share
The calculation of basic earnings per share has
been based on the loss for the period and the weighted average
11,751,580 (year ended 31 December 2023: 11,581,175; period ended
30 June 2023: 11,581,175) Ordinary Shares in issue throughout the
period.
3. Related party
transactions
During the period ended 30 June 2024, the
Company received further loans totalling £40,000 from a director of
the Group bringing the total loan received to £390,000, the Group
subsequently repaid £125,000 of this loan during the period. These
loans are to cover the short-term working capital requirements of
the Group.
4. Cash consumed in
operations
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Six months
to
|
|
Six months
to
|
|
Year to
|
|
30 June
2024
|
|
30 June
2023
|
|
31 December
2023
|
|
£
|
|
£
|
|
£
|
Operating loss
|
(452,359)
|
|
(408,470)
|
|
(1,229,337)
|
Adjustments for:
|
|
|
|
|
|
- Amortisation and
depreciation
|
68,427
|
|
68,913
|
|
132,806
|
- Lease expense
|
0
|
|
12,500
|
|
12,500
|
- Finance costs
|
16,557
|
|
11,833
|
|
55,875
|
- Revaluation of loan
note
|
12,950
|
|
|
|
358,458
|
- Unpaid interest on loan
note
|
|
|
|
|
44,795
|
Changes in working
capital:
|
|
|
|
|
|
- (Increase) / decrease in
trade
|
|
|
|
|
|
and other
receivables
|
(53,848)
|
|
(58,973)
|
|
6,257
|
- Increase / (decrease) in
trade
|
|
|
|
|
|
and other
payables
|
6,102
|
|
58,332
|
|
547,571
|
|
|
|
|
|
|
|
(402,171)
|
|
(315,865)
|
|
(71,075)
|
5. Approval of
financial statements
The interim financial statements are unaudited
and were approved by the Board of Directors on 31 July
2024.
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