Final Results

RentGuarantor Holdings PLC

30 June 2023

 

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30 June 2023 

RentGuarantor Holdings PLC  

 (the "Company" or "RentGuarantor") 

Final Results

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 2022.

HIGHLIGHTS

·	RentGuarantor completes its first year on the AQUIS stock exchange in London
·	RentGuarantor nominated for an AQUIS Company of the Year at the "Small Cap Awards"
·	Commenced design and development of Fourth Generation RentGuarantor Platform
·	Increased customer services staff in response to demand
·	Revenue of £414k up year on year by 72%
·	Arrears claims running at 1.6% of total revenue.
·	Completed 714 (2021: 423) Rent Guarantee contracts up 69% year on year

CHAIRMAN'S STATEMENT

I am pleased to present my second Chairman's report and an update on our activities for the year ended 31 December 2022.

During 2022 we have continued to build the business following our admission to the AQSE Growth Market in late 2021 and these efforts are reflected in a continuation of our growth in revenues and an increased prominence in the market. Our focus has been on the rent guarantee services and raising the market's awareness of our services.

We have also strengthened our governance procedures and were delighted to have Peter Coleman join the board as a Non-Executive Director in February 2023. These changes are central to the growth of its business model as is our ongoing investment in our technology platform.

The year has not been without its challenges and interest rates have risen rapidly from record lows. Inflation continues to put pressure on household budgets and the marketplace generally. This has caused both landlords and tenants to re-assess their property aspirations but at the same time this has emphasised the need for the Company's services across the property rental sector. We have given considerable attention to the adjustments taking place in the market and have carefully manged the risks to our growth strategy. Our cautious but focused approach holds the business in a strong position to meet the economic and regulatory headwinds faced by tenants and landlords alike.

We have prudently managed our cost base and raised additional capital from our shareholders during the year to support our growth plans and manage working capital.

I am pleased that despite the uncertain economic conditions, the Group has continued to achieve growth in revenues and build its market presence. In March 2023, the Company joined the Apex segment of the Aquis Stock Exchange which we believe will further enhance our growth strategy. RentGuarantor has been nominated for an AQUIS Company of the Year award at the Small Cap Awards to be held in June. This is, I believe, recognition of the hard work of everyone connected with the Company.

The results we are reporting today show the significant progress that has been made in our first full year as a listed company and are a direct result of our focus on providing the very best products and customer service.

Financial Results

The Group delivered significant revenue growth in FY22 of 72% to £414,000 and a reduced level of losses. As a result of the capital raised in the year, the Group has remained in a positive cash position and our balance sheet provides a strong platform to achieve further growth in 2023.

People

Again, none of this success would be possible without the passion and commitment shown by our staff and directors. These results are a reflection of that endeavour and on behalf of the Board, I offer them my sincere thanks.

Board and Governance

We have continued to review our governance procedures and the recent addition of Peter Coleman as a Non-Executive Director has added additional strength and oversight to the Board. I am grateful for the contributions that the management team has provided throughout the year.

Summary and Outlook

I am pleased to say that the investment in marketing, technology and people in 2022 is continuing to be reflected in our growth in the first few months of 2023. We are however seeing only a small reduction in inflation and interest rates are unlikely to fall for some time. We operate in an environment where the market can change quickly. Our careful management of these changes and the inherent risks underpin our approach to growing the business. We will continue to review market developments and to invest in our team and core services to support our growth plans.

The economic and geo-political environments are evolving, and we continue to take a cautious but considered approach to the Group's long-term strategy.  We believe that the long-term opportunity remains significant.

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

Graham Duncan

Non-Executive Chairman

29 June 2023

The directors of RentGuarantor accept responsibility for this announcement. 

For further information please contact: 

RentGuarantor Holdings PLC 

Paul Foy, Chief Executive Officer                                                                                            

[phone]   

Alfred Henry Corporate Finance Limited (AQSE Corporate Adviser) 

Nick Michaels                                                                                                                              

[phone]  

Optiva Securities Limited (Broker)                                                                     

Vishal Balasingham                                                                                                                                    

[phone] 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2022

		Year ended		Year ended
		31-Dec		31-Dec
		2022		2021
		£		£
Continuing operations
Revenue		414,078		241,033
Direct costs		(100,549)		(71,568)
Gross profit		313,529		169,465
Administrative expenses		(1,180,375)		(1,675,673)
Operating loss		(866,846)		(1,506,208)
Finance costs		(43,932)		(35,705)
Loss on ordinary activities before taxation		(910,778)		(1,541,913)
Income tax expense		-		-
Loss for the year		(910,778)		(1,541,913)
Loss per share (expressed in pence per share)		(8.03)		(15.19)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

		2022		2021
		£		£
Assets
Non-current assets
Intangible assets		272,027		305,446
Right of use assets		11,446		34,339
Tangible assets		9,708		5,511
		293,181		345,296
Current assets
Trade and other receivables		28,648		34,248
Cash and cash equivalents		91,887		142,033
		120,535		176,281
Total assets		413,716		521,577
Equity and liabilities
Equity attributable to owners of the parent
Ordinary shares		11,581,175		11,268,680
Share premium		796,621		593,500
Reorganisation reserve		(8,050,001)		(8,050,001)
Accumulated losses		(4,717,332)		(3,806,554)
		(389,537)		5,625
Liabilities
Non-current liabilities
Loans		500,000		-
Lease liability		-		21,248
		500,000		21,248
Current liabilities
Trade and other payables		289,565		480,200
Lease liability		13,688		14,504
		303,253		494,704
Total liabilities		803,253		515,952
Total equity and liabilities		413,716		521,577

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

		2022		2021
		£		£
Cash outflows from operating activities
Cash consumed in operations		(910,155)		(812,411)
Net cash outflows from operating activities		(910,155)		(812,411)
Expenditure on non-current assets		(8,737)		(4,014)
Expenditure on intangible assets		(77,938)		(58,900)
Net cash outflows from investing activities		(86,675)		(62,914)
Cash flows from financing activities
Receipts from issue of convertible loans		1,000,000		497,149
Finance costs paid		(43,932)		(35,705)
Lease repayments		(25,000)		(25,000)
Proceeds from issue of shares		15,616		571,000
Net cash inflows from financing activities		946,684		1,007,444
Net increase / (decrease) in cash and cash equivalents		(50,146)		132,119
Cash and cash equivalents at the beginning of the year		142,033		9,914
Cash and cash equivalents at the end of the year		91,887		142,033

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2022

1.         The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006.   The financial information has been extracted from the statutory accounts of RentGuarantor Holdings PLC and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 29 June 2023.

The preliminary announcement of the results for the year ended 31 December 2022 was approved by the board of directors on 29 June 2023.

2.         Loss per share

        Basic earnings per share is calculated by dividing the earnings attributable shareholders by the weighted average number of ordinary shares outstanding during the year. Reconciliations are set out below:

	2022		2021
Losses attributable to ordinary shareholders	(910,778)		(1,541,913)
Weighted average number of shares	11,349,158		10,149,179
Basic and diluted loss per share (pence)	(8.03)		(15.19)

        As the Group is loss-making, any potentially dilutive instruments would be considered anti-dilutive, and are disregarded for the purposes of calculating diluted earnings per share.  

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