RNS Number : 1294Y 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 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 Revenue Continuing operations Cost of sales Continuing operations Unaudited half year to 30 June 2022 £ Unaudited half year to 30 June 2021 £ Audited Year to 31 December 2021 £ 170,492 91,246 241,033 (43,785) (29,629) (71,568) Operating profit 126,707 61,617 169,465 Administrative expenses (475,321) (316,312) (1,675,673) (4,305) (3,627) (35,705) (352,919) (258,322) (1,541,913) - - - 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 Finance costs Loss on ordinary activities before taxation Taxation on profit of ordinary activities CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2022 Assets Non-current assets Intangible assets Right of use assets Tangible assets Current assets Trade and other receivables Cash and cash equivalents Total assets Equity and liabilities Equity attributable to owners of the parent Ordinary shares Share premium Reorganisation reserve Accumulated losses Liabilities Non-current assets Loans Lease liability Current liabilities Trade and other payables Lease liability Total liabilities Total equity and liabilities Unaudited half year to 30 June 2022 £ Unaudited half year to 30 June 2021 £ Audited Year to 31 December 2021 £ 294,179 22,893 8,160 325,232 331,042 45,786 3,964 380,792 305,446 34,339 5,511 345,296 60,619 517,261 577,880 903,112 23,762 17,485 41,247 422,039 34,248 142,033 176,281 521,577 11,268,680 593,500 (8,050,001) (4,159,473) (347,294) 9,827,332 107,144 (8,053,001) (2,522,948) (641,473) 11,268,680 593,500 (8,050,001) (3,806,554) 5,625 1,025,000 24,160 1,049,160 779,378 47,030 826,408 21,248 21,248 201,246 201,246 1,226,246 237,104 237,104 1,016,483 480,200 14,504 494,704 515,952 903,112 422,039 521,577 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR TO 30 JUNE 2022 Unaudited half year to 30 June 2022 £ Unaudited half year to 30 June 2021 £ Audited Year to 31 December 2021 £ Cash outflows from operating activities Cash consumed in operations Net cash outflows from operating activities (559,846) (559,846) (708,447) (708,447) (812,411) (812,411) Cash flows from investing activities Expenditure on non-current assets Expenditure on intangible assets Net cash outflows from investing activities (4,603) (43,518) (48,121) (1,114) (30,011) (31,125) (4,014) (58,900) (62,914) Proceeds from loans Finance costs paid Lease repayments Proceeds from issue of shares Net cash inflows from financing activities 1,000,000 (4,305) (12,500) 983,195 466,293 (3,627) (12,500) 296,977 747,143 497,149 (35,705) (25,000) 571,000 1,007,444 Net increase in cash and cash equivalents 375,228 7,572 132,119 142,033 375,228 9,914 7,572 9,914 132,119 517,261 17,486 142,033 Cash flows from financing activities Analysis of cash and cash equivalents during the period: Cash and cash equivalents at the beginning of the period Increase in cash and cash equivalents Cash and cash equivalents at the end of the period CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR TO 30 JUNE 2022 Share Capital £ Share Premium £ Reorganisation Reserve Accumulated Losses Total £ £ £ (8,053,501) (2,278,159) (659,184) As at 31 December 2020 9,607,351 65,125 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) (8,050,001) (3,806,554) 5,625 As at 31 11,268,680 December 2021 593,500 Share capital issued - Loss for the period - As at 30 June 2022 11,268,680 - - - - (352,919) (352,919) (8,050,001) (4,159,473) (347,294) - 593,500 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. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. 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