RGG RentGuarantor Holdings PLC

2 August 2024

RentGuarantor Holdings PLC

 ("RentGuarantor" the "Company" or the "Group")

Interim Results

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

31 July 2024

**Ends**

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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

Maya Klein Wassink

+44 20 3772 0021

Zeus (Joint Broker)

Simon Johnson (Corporate Broking)

James Hornigold (Investment Banking)

+44 203 829 5000

Oberon Capital (Joint Broker)

Mike Seabrook

Nick Lovering

+44 (0) 203 179 5300

BlytheRay (Financial PR)

Megan Ray

Will Jones

+44 207 138 3204

About RentGuarantor Holdings Plc

RentGuarantor provides a rent guarantee service to tenants wishing to rent property in the UK from the Private Rental Sector ("PRS"). It is an online service where applications are managed on a secure and bespoke digital platform designed and built by the Company. The goal is to make the process as simple as possible, with applications only taking a few minutes and RentGuarantor completing the application on the same day.

RentGuarantor supplies its service to the whole of the market - students, both from the UK and overseas, employed people and people on benefits including Universal Credit, ensuring that everyone has the opportunity to live in their dream rental home.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the half year to 30 June 2024

CONSOLIDATED BALANCE SHEET

As at 30 June 2024

CONSOLIDATED STATEMENT OF CASH FLOWS

For the half year to 30 June 2024

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the half year to 30 June 2024

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

1.    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.

2.    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.

3.    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.

4.    Cash consumed in operations

5.    Approval of financial statements

The interim financial statements are unaudited and were approved by the Board of Directors on 31 July 2024.