TIDMRGG
RNS Number : 7865H
RentGuarantor Holdings PLC
01 August 2023
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES,
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1 August 2023
RentGuarantor Holdings PLC
(the "Company" or "RentGuarantor")
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 2023 (the "period").
HIGHLIGHTS
-- Revenue up 79% (H12023: GBP304,695) on the comparative six-month period last year
-- Signed strategic contracts with Clever Student Lets, X1
Property Management Ltd, and Vorensys Limited to promote the
RentGuarantor service to tenant and landlord networks across the
UK
-- Entered into an agreement with InsureStreet Limited
("Canopy") for the use of the RentGuarantor service
-- Signed partnership agreements with a total of 35 letting
agent entities or letting agent groups
-- Joined the Apex segment of the Aquis Stock Exchange
CHAIRMAN'S STATEMENT
I am pleased to present our Interim Results of the Group for the
six months ended 30 June 2023 and an update on our activities for
the first half of the year.
During 2023 we have continued to build on the growth achieved in
2022. We have successfully developed further strategic
relationships and partnerships which have helped to drive our
continued growth in revenues and an increased awareness of the
Company amongst customers and the industry. Our technology has been
further strengthened and our focus has continued to be on the rent
guarantee services. These strategic initiatives should support our
planned growth in the B2B market.
In March 2023, the Company joined the Apex segment of the Aquis
Stock Exchange which we believe will further enhance our growth
strategy. RentGuarantor was nominated for an AQUIS Company of the
Year award at the Small Cap Awards held in June which is
recognition of the progress achieved through the hard work of
everyone connected with the Company.
The results we are reporting today show further year on year
growth in revenues. We have continued to invest in our technology,
people and marketing and this has contributed to an increase in
overall losses compared with the comparative period in 2022.
Key milestones in the period include:
Signing of strategic contracts
RentGuarantor signed strategic contracts with Clever Student
Lets, X1 Property Management Ltd, and Vorensys Limited. These
industry suppliers will promote RentGuarantor's services to their
respective tenant and landlord networks across the UK, assisting in
the expansion of the Company's customer base, and further
increasing interest in its services.
We also entered into an agreement with InsureStreet Limited
("Canopy") for the use of the RentGuarantor service. Canopy
provides access to tools, services, and products for renters,
letting agents, and landlords, ensuring that all parties across the
rental value chain can secure prosperous and robust tenancies.
Canopy is a market leading referencing provider, completing 120,000
references per year whereby 12% of these references require a
guarantor. Under this initial three-year partnership, RentGuarantor
will provide a company guarantor option to Canopy's tenants.
Signing of partnership agreements
In the first half of the year, the Company signed partnership
agreements with a total of 35 letting agent entities or letting
agent groups.
Attendance at industry conferences
The RentGuarantor team attended 18 industry conferences in the
first half of 2023, including the National Landlord Investment Show
in London and the Propertymark Scottish National Conference in
Edinburgh. RentGuarantor also held speaking engagements at two
National Residential Landlord Association ("NRLA") regional
meetings.
This has been achieved against the backdrop of increased
interest rates and heightened inflation which has continued to put
pressure on budgets and the marketplace generally. Landlords and
tenants have both been impacted by this environment and we have
been careful to manage the risks to our growth strategy. We have
also carefully managed our cost base and working capital.
Again, the commitment and energy of all our staff 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 the six months
to June 2023 with an increase in revenue of 79% on the comparative
six-month period last year to GBP304,695. Our operating loss
increased from GBP348,613 to GBP396,637 in the six-month period.
The loss per share increased from 3.13 pence last year to 3.53
pence in the six months to 30 June 2023.
Summary and Outlook
Our investment in marketing, technology and people over the past
year or so is continuing to be reflected in our growth in the first
half of 2023. Inflation is beginning to fall with expectations of
further falls in coming months. However, interest rates are
unlikely to fall for some time. We will continue to review market
developments and to 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 2023 are supportive
of our strategy.
I look forward to reporting to you on our progress over the
coming months.
Graham Duncan
Non-Executive Chairman
Investor Q&A
The Company will release an investor Q&A on Monday 14 August
2023 and invites all existing and potential shareholders to submit
questions in advance. Please send your questions to
rentguarantor@blytheray.com by 5:00pm BST on Monday 7 August
2023.
The directors of RentGuarantor accept responsibility for this
announcement.
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
+44 20 3772 0021
Optiva Securities Limited (Broker)
Vishal Balasingham
+44 203 411 1881
BlytheRay (Financial PR)
Tim Blythe, Megan Ray
+44 207 138 3204
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the half year to 30 June 2023
Unaudited Unaudited Audited
Six months Six months
to to Year to
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Continuing operations
Revenue 304,965 170,492 414,078
Direct costs (25,242) (43,785) (100,549)
Gross profit 279,723 126,707 313,529
Administrative expenses (676,360) (475,321) (1,180,375)
Operating loss (396,637) (348,613) (866,846)
Finance costs (11,833) (4,305) (43,932)
Loss on ordinary activities before
taxation (408,470) (352,919) (910,778)
Income tax expense - - -
Loss after taxation (408,470) (352,919) (910,778)
----------- ----------- ------------
Loss per share (expressed in pence
per share) (3.53) (3.13) (8.03)
----------- ----------- ------------
CONSOLIDATED BALANCE SHEET
As at 30 June 2023
Unaudited Unaudited Audited
Six months Six months
to to Year to
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Assets
Non-current assets
Intangible assets 262,374 294,179 272,027
Right of use assets - 22,893 11,446
Tangible assets 12,015 8,160 9,708
274,389 325,232 293,181
------------ ------------ ------------
Current assets
Trade and other receivables 87,621 60,619 28,648
Cash and cash equivalents 56,568 517,261 91,887
144,189 577,880 120,535
------------ ------------ ------------
Total assets 418,578 903,112 413,716
------------ ------------ ------------
Equity and liabilities
Equity attributable to owners of the
parent
Ordinary shares 11,581,175 11,268,680 11,581,175
Share premium 796,621 593,500 796,621
Reorganisation reserve (8,050,001) (8,050,001) (8,050,001)
Accumulated losses (5,125,802) (4,159,449) (4,717,332)
(798,007) (347,270) (389,537)
Liabilities
Non-current assets
Loans 855,000 1,025,000 500,000
Lease liability - 24,160 -
855,000 1,049,160 500,000
Current liabilities
Trade and other payables 361,585 201,222 289,565
Lease liability - - 13,688
361,585 201,222 303,253
Total liabilities 1,216,585 1,250,382 803,253
------------ ------------ ------------
Total equity and liabilities 418,578 903,112 413,716
------------ ------------ ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year to 30 June 2023
Unaudited Unaudited Audited
Six months Six months
to to Year to
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
Cash outflows from operating activities
Cash consumed in operations (315,865) (559,846) (910,155)
Net cash outflows from operating activities (315,865) (559,846) (910,155)
----------- ----------- ------------
Cash flows from investing activities
Expenditure on non-current assets (5,007) (4,603) (8,737)
Expenditure on intangible assets (45,114) (43,518) (77,938)
Net cash outflows from investing activities (50,121) (48,121) (86,675)
Cash flows from financing activities
Proceeds from issues of convertible
loans - 1,000,000 1,000,000
Proceeds from Directors and other loans 355,000 - -
Finance costs paid (11,833) (4,305) (43,932)
Lease repayments (12,500) (12,500) (25,000)
Proceeds from issue of shares - - 15,616
Net cash inflows from financing activities 330,667 983,195 946,684
Net increase/(decrease) in cash and
cash equivalents (35,319) 375,228 (50,146)
----------- ----------- ------------
Cash and cash equivalents at the beginning
of the year 91,887 9,914 142,033
Cash and cash equivalents at the end
of the period 56,568 385,142 91,887
----------- ----------- ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the half year to 30 June 2023
Share Share Reorganisation Accumulated
Capital Premium Reserve Losses Total
GBP GBP GBP GBP GBP
As at 31 December
2021 11,268,680 593,500 (8,050,001) (3,806,554) (5,625)
----------- ---------- --------------- ------------- ---------------
Share capital
issued 312,495 203,121 - 515,616
Impairment adjustment -
Loss for the year - - (910,778) (910,778)
As at 31 December
2022 11,581,175 796,621 (8,050,001) (4,717,332) (389,537)
----------- ---------- --------------- ------------- ---------------
Share capital
issued - - - -
Loss for the
period - - (408,470) (408,470)
As at 30 June
2022 11,581,175 796,621 (8,050,001) (5,125,802) (798,007)
----------- ---------- ------------ ------------ ----------
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 2022.
2. Earnings per share
The calculation of basic earnings per share has been based on
the loss for the period and the weighted average 11,581,175 (year
ended 31 December 2022: 11,349,158; period ended 30 June 2022:
11,268,680) Ordinary Shares in issue throughout the period.
3. Related party transactions
During the period ended 30 June 2023, the group received loans
totalling GBP355,000 from a director of the group at a value of
GBP205,000, and from a relative of a director at a value of
GBP150,000. These loans are to cover the short-term working capital
requirements of the group.
4. Cash consumed in operations
Unaudited Unaudited Audited
Six months Six months
to to Year to
31 December
30 June 2023 30 June 2022 2022
GBP GBP GBP
Loss before tax (408,470) (352,919) (910,778)
Adjustments for:
- Amortisation and depreciation 68,913 68,184 138,789
- Lease expense 12,500 12,500 25,000
- Finance costs 11,833 4,305 43,932
Changes in working capital:
- (Increase) / decrease
in trade
and other receivables (58,973) (26,371) 5,600
- Increase / (decrease)
in trade
and other payables 58,332 (265,545) (212,698)
Cash consumed in operations (315,865) (559,846) (910,155)
------------- ------------- ------------
5. Approval of financial statements
The interim financial statements are unaudited and were approved
by the Board of Directors on 28 July 2023.
ENDS
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