RentGuarantor Hldgs - Half-year Report

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2 September 2022 

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 31 December 2021.

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 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, Alice McLaren, Madeleine Gordon-Foxwell 

+44 207 138 3204 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR TO 30 JUNE 2022

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2022

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR TO 30 JUNE 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR TO 30 JUNE 2022

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 1^st September 2022.