RentGuarantor Hldgs - Half-year Report - Correction
RNS Number : 1525Y
RentGuarantor Holdings PLC
02 September 2022
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. 

 

2 September 2022 

 

This is a correction to the announcement published at 11:44 on 2 September 2022 (RNS number 1294Y) which incorrectly stated that 'RentGuarantor was pleased to announce its results for the period ended 31 December 2021. The correct date is 30 June 2022. The full corrected announcement is included below.

 

 

RentGuarantor Holdings PLC  

 

 (the "Company" or "RentGuarantor") 

 

Unaudited Interim Results for the 6 Months to 30 June 2022

 

RentGuarantor, a company which provides a rent guarantee service to tenants wishing to rent property in the UK from the Private Rental Sector, is pleased to announce its results for the period ended 30 June 2022.

CHAIRMAN'S STATEMENT

I am pleased to present our Interim Results for the six months ended 30 June 2022 and an update on our activities to date.

Since we were admitted to trading on the AQSE Growth Market in December 2021, the Company has continued to invest in its technology, products and people. We have signed strategic partnership agreements to progressively extend the brand and reach of RentGuarantor and to raise awareness and thus to grow and develop the provision of tenant rent guarantees.

Key milestones in the period include:

-       In April, the Company signed an agreement with the National Residential Landlord Association ("NRLA") for an initial term of 12 months. Under the Agreement, RentGuarantor has a non-exclusive licence to use the NRLA trademarks in the United Kingdom and Northern Ireland. The NRLA has over 95,000 registered landlords and is recognised as a place of primary importance for information and training for landlords nationally. Being approved as part of their Recognised Supplier Scheme gives RentGuarantor access to NRLA's registered landlord base in the UK which controls approximately 500,000 properties.

 

-       This was followed in May by an agreement with Propertymark Ltd for a non-exclusive licence to use the Propertymark trademark in the United Kingdom. Propertymark is a leading membership body for the property letting and sales sector with close to 18,000 members. Under the Agreement, Propertymark agrees to promote RentGuarantor's rent guarantees for tenants through marketing activities including, articles in digital newsletter, advertisements in property magazines and exhibition stands at conferences.

In June, we raised £1,000,000 of additional capital, in the form of convertible loan notes, and these funds provide a strong base to support our plans for growth and provides valuable working capital.

All of this has been achieved against an uncertain economic outlook, complicated by political changes in the UK and the war in Ukraine. Notwithstanding these uncertainties, we are continuing to invest for the future whilst taking prudent steps not to overreach ourselves. We have made a number of key staff hires to support the strategic initiatives and are optimistic about the long-term potential for the business. We have continued to take a cautious but considered approach to the Group's long-term strategy.

Once again, the enthusiasm and hard work from all of our people has been vital in achieving this progress and I would like to warmly thank them for the continued commitment to the Company.

The results show further progress in building a sustainable business model albeit that we are only in the early phases of developing our customer offerings.

Financial Results

The Group delivered further significant growth in the six months to 30 June 2022 with an increase in revenue of 86% on the comparative six-month period last year to £170,000. Our operating profit has more than doubled from £61,000 to £126,000 in the six-month period. Losses have however risen from £257,000 to £353,000, reflecting further investment in people and marketing activities. The loss per share increased from 2.64 pence last year to 3.13 pence in the six months to 30 June 2022.

As a result of the capital raised in June, the Group has remained in a healthy cash position, and this provides a strong balance sheet to support our growth plans and to deliver long-term value for shareholders.

Summary and Outlook

We have made solid progress in the first half of the year with key appointments to the team and strategic agreements signed.

The months of July and August have seen further increases in revenues as we continue to build our team and our capabilities.

Whilst the economy and property sector are likely to be impacted by the current uncertainties, we have built the foundations for the long-term and are well placed to capitalise on the opportunities this environment brings.

I look forward to reporting to you on our progress over the coming months.

Graham Duncan

Non-Executive Chairman

1 September 2022

 

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, Madeleine Gordon-Foxwell 

+44 207 138 3204 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR TO 30 JUNE 2022

 


Unaudited

 

Unaudited

 

Audited

 

half year to

 

half year to

 

Year to

 

30 June 2022

 

30 June 2021

 

31 December 2021

 

£


£


£

 

 




 

Revenue






Continuing operations

170,492


91,246


241,033

Cost of sales






Continuing operations

(43,785)


(29,629)


(71,568)







Operating profit

126,707


61,617


169,465







Administrative expenses

(475,321)


(316,312)


(1,675,673)







Finance costs

(4,305)


(3,627)


(35,705)







Loss on ordinary activities before taxation

(352,919)


(258,322)


(1,541,913)







Taxation on profit of ordinary activities

-


-


-







Loss after tax and comprehensive income for the period

(352,919)


(258,322)


(1,541,913)







Loss per share (expressed in pence per share)

3.13


2.64


15.19

 

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2022

 


Unaudited

 

Unaudited

 

Audited

 

half year to

 

half year to

 

Year to

 

30 June 2022

 

30 June 2021

 

31 December 2021

 

£


£


£

Assets

 




 

Non-current assets

 




 

Intangible assets

294,179


331,042


305,446

Right of use assets

22,893


45,786


34,339

Tangible assets

8,160


3,964


5,511


325,232


380,792


345,296

Current assets






Trade and other receivables

60,619


23,762


34,248

Cash and cash equivalents

517,261


17,485


142,033


577,880


41,247


176,281

Total assets

903,112


422,039


521,577

 






Equity and liabilities






Equity attributable to owners of the parent






Ordinary shares

11,268,680


9,827,332


11,268,680

Share premium

593,500


107,144


593,500

Reorganisation reserve

(8,050,001)


(8,053,001)


(8,050,001)

Accumulated losses

(4,159,473)


(2,522,948)


(3,806,554)


(347,294)


(641,473)


5,625

Liabilities






Non-current assets






Loans

1,025,000


779,378


-

Lease liability

24,160


47,030


21,248


1,049,160


826,408


21,248







Current liabilities






Trade and other payables

201,246


237,104


480,200

Lease liability

-


-


14,504


201,246


237,104


494,704

Total liabilities

1,226,246


1,016,483


515,952







Total equity and liabilities

903,112


422,039


521,577

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR TO 30 JUNE 2022

 


Unaudited

 

Unaudited

 

Audited

 

half year to

 

half year to

 

Year to

 

30 June 2022

 

30 June 2021

 

31 December 2021

 

£


£


£

Cash outflows from operating activities

 





Cash consumed in operations

(559,846)


(708,447)


(812,411)

Net cash outflows from operating activities

(559,846)


(708,447)


(812,411)

 






Cash flows from investing activities






Expenditure on non-current assets

(4,603)


(1,114)


(4,014)

Expenditure on intangible assets

(43,518)


(30,011)


(58,900)

Net cash outflows from investing activities

(48,121)


(31,125)


(62,914)

 






Cash flows from financing activities












Proceeds from loans

1,000,000


466,293


497,149

Finance costs paid

(4,305)


(3,627)


(35,705)

Lease repayments

(12,500)


(12,500)


(25,000)

Proceeds from issue of shares

                        -


296,977


571,000

Net cash inflows from financing activities

983,195


747,143


1,007,444

 






Net increase in cash and cash equivalents

375,228


7,572


132,119







Analysis of cash and cash equivalents during the period:






Cash and cash equivalents at the beginning of the period

142,033


9,914


9,914

Increase in cash and cash equivalents

375,228


7,572


132,119

Cash and cash equivalents at the end of the period

517,261


17,486


142,033

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR TO 30 JUNE 2022

 


Share Capital

 

 

Share

Premium

Reorganisation Reserve

Accumulated Losses

Total

 

     £

£

        £

      £

      £







As at 31 December 2020

9,607,351

 

65,125

(8,053,501)  

  (2,278,159)

        (659,184)

 






Share capital issued

1,661,329

 

528,375

 

-

-

2,189,704

Impairment adjustment

-

-

3,500

-

3,500







Loss for the year

-

-

(1,528,395)

(1,528,395)







As at 31 December 2021

11,268,680

 

593,500

(8,050,001)

(3,806,554)

5,625

 

Share capital issued

-

 

-

-

-

-







Loss for the period

-

-

(352,919)

(352,919)







As at 30 June 2022

11,268,680

 

593,500

(8,050,001)

(4,159,473)

(347,294)

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

1.   These unaudited financial statements have been prepared on the basis of the accounting policies adopted in the accounts to 31 December 2021.

 

2.  The calculation of basic earnings per share has been based on the loss for the period and the weighted average 11,268,680 (period ended 30 June 2021: 9,761,821) Ordinary Shares in issue throughout the period.

 

3.    The interim report to 30 June 2022 was approved by the Directors on 1st September 2022.

 

 

 

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