Half-year Results
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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.
Graham Duncan
Non-Executive Chairman
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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
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.
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.
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.
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) | |
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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