REG - RentGuarantor Hldgs - Interim Results
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RNS Number : 8617Y RentGuarantor Holdings PLC 11 September 2025
11 September 2025
RentGuarantor Holdings PLC
(the "Company" or "RentGuarantor")
Unaudited Condensed Interim Consolidated Financial Statements for the six
months to 30 June 2025
RentGuarantor (AIM: RGG), a provider of rent guarantee services to prospective
tenants across the socio-economic spectrum wishing to rent property in the
UK(1) private rental sector, is pleased to announce its unaudited interim
results for the six months ended 30 June 2025 ("H1 2025").
Half Year Summary
· Revenue up 87% on the comparative six-month period last year
to £970k (H1 2024: £518k)
· H1 2025 revenue represents approximately 76% of RentGuarantor's 2024
full year total revenue
· Operating losses (including costs associated with the Admission to
AIM) were reduced to £443k (H1 2024: £449k). Excluding one-off AIM Admission
costs of £227k in H1 2025, operating loss reduced to £216k
· Successfully raised £455k via the issue of convertible loan notes in
January 2025, and a further £1,017k raised in June 2025 via a share
subscription, which underlines the continued support from our shareholder base
· Average fee per applicant was £731 (H1 2024: £726) having completed
1,326 (H1 2024: 713) contracts in the six-month period to 30 June 2025
· Signed a total of 169 (H1 2024: 122) partnership agreements with
letting agent entities or letting agent groups
(1) Currently excluding Northern Ireland.
Chairman's Statement
I am pleased to present the interim results of the Group for the six months
ended 30 June 2025, as well as an update on our activities for the first half
of the year.
Once again, I am delighted to report that we have achieved another period of
strong growth in revenues, with an overall increase in income of 87% over the
same period in 2024 to approximately £970,000 (H1 2024: £518,000). This
growth reflects our ongoing investment in technology and people, a strong
focus on marketing and a consequent expansion of our partner relationships
across the industry. This level of revenue represents approximately 76% of our
2024 full year total revenue.
In light of this growth and the increasing opportunities available, in April
2025 we announced our intention to move the public quotation for trading in
our ordinary shares to the AIM market of the London Stock Exchange (AIM). As
a result, the Company, supported by its advisors, has worked on the admission
to AIM for much of the period under review, which was subsequently completed
after the period end.
We have been fortunate to have received strong support from both our
shareholders and management to fund this expansion. In particular, in January
2025 we closed a convertible loan note offering which raised approximately
£455,000, and in June 2025 we raised approximately £1,017,000 of new equity
by way of an ordinary share subscription. These funds are being utilised to
fund the expansion of the Company's business over the rest of the forthcoming
year, principally in terms of the hiring of additional staff and marketing
activities, as well as the provision of general working capital and for the
costs associated with the Company's move to AIM. We received conversion
requests relating to approximately £450,000 of the Company's outstanding
convertible loan notes and these were converted to new ordinary shares in June
2025.
In advance of the Company's move to AIM, we received approval from
shareholders to sub-divide the number of existing ordinary shares in issue, on
the basis of each existing ordinary share of £1 each being sub-divided into
ten new ordinary shares of 10 pence each. This was undertaken to assist in
enabling a more consistent valuation of the Company, making the Company's
shares more attractive to institutional shareholders, and we hope, improve
liquidity in our shares.
The continued growth in revenues, alongside the support from our shareholders
has meant that we have been able to strengthen our balance sheet and plan
strategically with increased confidence.
Financial Results
The Group delivered further significant growth in H1 2025 with an increase in
revenue of 87% on the comparative six-month period last year to approximately
£970,000 (H1 2024: £518,000). Our operating losses (including costs
associated with the Admission to AIM) were reduced to approximately £443,000
(H1 2024: £449,000) in the six-month period.
The move to AIM has meant a one-off increase in costs which in the period
amounted to approximately £227,000. Excluding such costs, the operating loss
for the period was reduced to approximately £216,000. The loss for the period
was approximately £592,000 (H1 2024: £452,000), which included a charge for
revaluation of the convertible loan notes.
We have continued to strengthen our team through the hiring of additional key
staff in sales, marketing and compliance to deliver future growth. Our prudent
management of costs and working capital has meant that our non-recurring
expenditure has grown much more slowly than revenues.
At the end of the period, our cash balances stood at approximately £729,000.
The loss per share increased from 0.38 pence in the six-month period last year
(as adjusted for the share sub-division noted above) to 0.48 pence in the six
months to 30 June 2025.
Summary and Outlook
The first half of the year has been an extremely busy one and seen the
Company's activities continue to grow and develop strongly. This would not
have been possible without the commitment, hard work and enthusiasm of the
entire team and I would like to thank them for their continued dedication. I
would also like to thank our advisers, whose support and guidance has been
instrumental in helping us implement our strategic plans.
The second half of the year has started positively but we will continue to
manage the business in a prudent manner. Economic and political uncertainty
continue to be significant challenges for many. Although interest rates have
slightly decreased, inflation remains persistently above target levels and may
be on the rise. The Renters' Rights Bill has completed its Committee Stage in
the House of Lords and Royal Assent is currently expected this autumn. This
Bill is expected to be the most significant regulatory change in the rental
industry in nearly 50 years. We believe this reform of the private rental
sector will be positive for RentGuarantor and our achievements in the first
part of 2025 mean that we are very well positioned to benefit from the changes
that will impact both tenants and landlords.
On 15 August we were delighted to commence trading of the Company's ordinary
shares on AIM. Many of our shareholders and staff were able to attend the
opening ceremony at the London Stock Exchange and mark the beginning of a new
chapter for the Company. The long-standing support from shareholders has been
hugely important in helping us make this strategic move. We were also able
to make a charitable donation on the day to a cause that is extremely
important to everyone at RentGuarantor - Furnishing Futures, a charity that
fully furnishes homes for families moving into empty housing after fleeing
domestic abuse.
AQSE has been an excellent market on which to develop our operations in the
public eye. It has supported the governance structures to grow the business in
a disciplined and structured way but with the flexibility to proactively
anticipate changes in our markets. Our move to AIM, a globally renowned growth
market, comes at an exciting time for RentGuarantor and reflects our ambitions
to develop the scale of our operations in the years to come.
In August 2025 we were pleased to announce a partnership with barrister,
broadcaster and author Rob Rinder MBE, who has taken the role of brand
ambassador to support the Company's mission to drive consumer and landlord
education surrounding the important role of guarantors. The partnership will
form a significant part of the Company's mission to further inform tenants
about professional guarantors as a potential solution to help them secure a
rental home, while also shining a spotlight on the benefits for landlords in a
changing lettings landscape.
In August 2023, the Company entered into a three-year partnership agreement
with The Lettings Hub for the use of the RentGuarantor service to its tenants.
In February 2025, Canopy (Insurestreet Limited) acquired The Lettings Hub,
aiming to leverage their combined technology and expertise to deliver
cutting-edge solutions, products, and services to the UK lettings industry.
RentGuarantor has since entered into a partnership agreement with Let
Insurance Services Limited T/A The Lettings Hub part of the Canopy Group of
Companies which supersedes the original agreement with The Lettings Hub. The
Lettings Hub operates through 821 Letting Agency branches and in 2024
completed approximately 143,000 references, 13% of which required a guarantor.
We believe this new agreement should further enhance our growth opportunities.
We have continued to invest across the team and are highly focused on
delivering our growth plans. Non-Executive Director, Professor of Computer
Science Dave Cliff, from University of Bristol, has increased his level of
involvement and time that will be worked in respect of RentGuarantor's
Research and Innovation initiatives, to assist in the technology strategy for
RentGuarantor. Dave's expertise is in the area of AI, machine learning and
advanced technologies. The impending changes in legislation will impact
everyone in the industry and we are optimistic about our ability to seize the
opportunities with Dave's expertise and experience.
I look forward to reporting to you on our progress over the coming months.
Graham Duncan
Non-Executive Chairman
To engage with this announcement on our Investor Hub, please use the following
link: https://investorhub.rentguarantor.com/link/PnYqlr
(https://investorhub.rentguarantor.com/link/PnYqlr)
For more information, please contact:
RentGuarantor Holdings PLC
Paul Foy, Chief Executive Officer
+44 207 193 4418
Allenby Capital Limited (AIM Nominated Adviser and Broker)
Alex Brearley / Nick Harriss / Ashur Joseph (Corporate Finance)
Amrit Nahal / Kelly Gardiner (Sales and Corporate Broking)
+44 20 3328 5656
BlytheRay (Financial PR)
Megan Ray
Will Jones
+44 207 138 3204
rentguarantor@blytheray.com
About RentGuarantor
RentGuarantor provides a rent guarantee service to tenants wishing to rent
property in the UK (currently excluding Northern Ireland) 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 seeking to complete the application on
the same day.
Statement of Directors' Responsibilities in respect of the Condensed Interim
Report and Condensed Financial Statements
The directors confirm that the condensed consolidated interim financial
information has been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', and that the Interim Report
includes a fair review of the information below:
an indication of important events that have occurred during the first six
months and their impact on the condensed consolidated interim financial
information; and
material related-party transactions in the first six months and any material
changes in the related-party transactions described in the last Annual Report.
A list of current directors is maintained on the Company's web site:
https://investorhub.rentguarantor.com/board
(https://investorhub.rentguarantor.com/board)
The Interim Financial Statements were approved by the Board of Directors and
the above responsibility statement was signed on its behalf by:
Paul Foy
Chief Executive Officer, RentGuarantor Holdings plc
10 September 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the half year to 30 June 2025
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2025 30 June 2024 31 December 2024
£ £ £
Continuing operations
Revenue 969,811 517,589 1,273,744
Direct costs (174,946) (95,339) (263,963)
Gross profit 794,865 422,250 1,009,781
Administrative expenses (1,237,592) (871,003) (1,825,833)
Operating loss (442,727) (448,753) (816,052)
Finance costs (39,287) (16,557) (36,709)
Revaluation of convertible loan notes (109,562) 12,950 159,399
Loss on ordinary activities before taxation (591,576) (452,360) (693,362)
Income tax expense - - -
Loss after taxation (591,576) (452,360) (693,362)
Loss per share (expressed in pence per share) (0.48) (0.38) (1.06)
CONSOLIDATED BALANCE SHEET
As at 30 June 2025
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2025 30 June 2024 31 December 2024
£ £ £
Assets
Non-current assets
Intangible assets 295,437 290,284 319,331
Tangible assets 11,846 8,300 5,870
307,283 298,584 325,201
Current assets
Trade and other receivables 83,888 76,574 30,649
Cash and cash equivalents 728,701 22,048 272,038
812,589 98,622 302,687
Total assets 1,119,872 397,206 627,888
Equity and liabilities
Equity attributable to owners of the parent
Ordinary shares 12,472,371 11,879,174 11,879,174
Share premium 2,194,332 1,238,948 1,320,276
Reorganisation reserve (8,050,001) (8,050,001) (8,050,001)
Accumulated losses (7,231,763) (6,399,029) (6,640,187)
(615,061) (1,330,908) (1,490,738)
Liabilities
Non-current assets
Loans and convertible loan notes 655,387 1,088,354 -
655,387 1,088,354 -
Current liabilities
Trade and other payables 1,079,546 639,760 2,118,626
1,079,546 639,760 2,118,626
Total liabilities 1,734,933 1,728,114 2,118,626
Total equity and liabilities 1,119,872 397,206 627,888
CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year to 30 June 2025
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2025 30 June 2024 31 December 2024
£ £ £
Cash outflows from operating activities
Cash consumed in operations (620,348) (402,171) 229,979
Net cash outflows from operating activities (620,348) (402,171) 229,979
Cash flows from investing activities
Expenditure on non-current assets (7,259) (1,942) (2,526)
Expenditure on intangible assets (48,421) (82,980) (194,404)
Conversion of convertible loan note in the period (300,275) - (250,000)
Net cash outflows from investing activities (355,955) (84,922) (446,930)
Cash flows from financing activities
Proceeds from issues of ordinary shares 1,016,978 490,326 490,326
Proceeds from issue of convertible loans 455,275 - -
Finance costs paid (39,287) (16,557) (36,709)
Net cash inflows from financing activities 1,432,966 473,769 453,617
Increase / (decrease) in cash and cash equivalents 456,663 (13,324) 236,666
Cash and cash equivalents at the beginning of the period 272,038 35,372 35,372
Cash and cash equivalents at the end of the period 728,701 22,048 272,038
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the half year to 30 June 2025
Share Share Reorganisation Accumulated Total
Capital Premium Reserve Losses
£ £ £ £ £
As at 31 December 2023 11,581,175 796,621 (8,050,001) (5,946,825) (1,619,030)
Share capital issued 297,999 523,655 - - 821,654
Loss for the year - - - (693,362) (693,362)
As at 31 December 2024 11,879,174 1,320,276 (8,050,001) (6,640,187) (1,490,738)
Share capital issued 593,197 874,056 - - 1,467,253
Loss for the period - - - (591,576) (591,576)
As at 30 June 2025 12,472,371 2,194,332 (8,050,001) (7,231,763) (615,061)
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. General information
RentGuarantor Holdings PLC ("the Company") and its subsidiaries (together, the
"Group") is a provider of rent guarantee services to prospective tenants
across the socio-economic spectrum wishing to rent property in the UK private
rental sector (currently excluding Northern Ireland). The Company was
incorporated in England and is limited by shares. The Company's issued share
capital was admitted to trading on the AQSE Growth Market on 8 December 2021.
On 1 March 2023 the Company joined the Apex segment of the Aquis Stock
Exchange Growth Market. The Company was incorporated on 5 December 2016. On 15
August 2025 (post the period end), the Company's ordinary shares were
withdrawn from trading on the Apex Segment of the Aquis Stock Exchange Growth
Market and admitted to trading on the AIM, a market operated by the London
Stock Exchange ("AIM").
2. Basis of preparation
The interim condensed unaudited consolidated financial statements for the
period ended 30 June 2025 have been prepared in accordance with IAS 34 Interim
Financial Reporting. The comparative figures for 31 December 2024 are
extracted from the Group's audited accounts to that date. The comparative
figures for the period ended 30 June 2024 are unaudited.
The interim financial statements do not include all of the notes of the type
normally included in an annual financial report. Accordingly, this report is
to be read in conjunction with the annual report for the year ended 31
December 2024, which has been prepared in accordance with UK-adopted
international accounting standards and the requirements of the Companies Act
2006, and any public announcements made by the Company during the interim
reporting period.
The condensed unaudited consolidated interim financial statements of the Group
have been prepared on the basis of the accounting policies, presentation,
methods of computation and estimation techniques used in the preparation of
the audited accounts for the year ended 31 December 2024 and expected to be
adopted in the financial information by the Group in preparing its annual
report for the year ending 31 December 2025.
The financial information in this statement relating to the six months ended
30 June 2025 and the six months ended 30 June 2024 has neither been audited
nor reviewed by the auditors pursuant to guidance issued by the Auditing
Practices Board. The financial information presented for the year ended 31
December 2024 does not constitute the full statutory accounts for that period.
The financial information of the Group is presented in Pounds Sterling ("£").
3. New Standards, Interpretations and Amendments adopted from 1 January
2025
No standards or Interpretations that came into effect for the first time for
the financial year beginning 1 January 2025 have had an impact on the Group.
4. Exceptional items
In the six months to 30 June 2025 administrative expenses includes exceptional
costs of £226,500 relating to the admission of the Company's shares to AIM on
15 August 2025.
5. Earnings per share
The calculation of basic earnings per share has been based on the loss for the
period and the weighted average 124,409,061 (year ended 31 December 2024:
118,791,740; period ended 30 June 2024: 117,515,800) Ordinary Shares in issue
throughout the period. All amounts have been adjusted to reflect the
sub-division of shares during the period.
6. Convertible loan notes, share capital and share premium
Number of shares Ordinary share capital Share premium
Allotted, called up and fully paid £ £
Balance as at 1 January 2025 11,879,174 11,879,174 1,320,276
Sub-division of shares 106,912,566 - -
Shares issued on subscription 4,067,910 406,791 610,187
Shares issued on conversion of CLNs 1,864,056 186,406 263,869
Balance as at 30 June 2025 124,723,706 12,472,371 2,194,332
Sub-division of shares and revised total voting rights (Pre share
subscription)
At a general meeting held on 6 June 2025 a resolution was passed for the
sub-division of the Company's shares, each existing ordinary share of £1 each
was sub-divided into 10 new ordinary shares of 10 pence each.
On completion of the Share Sub-Division on 6 June 2025, the issued share
capital of the Company comprised 118,791,740 new Ordinary Shares with one
voting right per share. The Company does not hold any New Ordinary Shares in
treasury. The total number of New Ordinary Shares and voting rights in the
Company was therefore 118,791,740.
Share subscription and revised total voting rights (Post share subscription)
On 11 June 2025 the Company announced that it had received subscriptions for a
total of 4,067,910 new Ordinary shares of 10p each at an issue price of 25p
per Ordinary Share raising £1,016,978 before costs.
The 11 June 2025 subscription shares were admitted to trading on the AQSE
Growth Market on 16 June 2025. On admission, the issued share capital of the
Company comprised 122,859,650 Ordinary Shares with one voting right per
share. Therefore, the total number of Ordinary Shares and voting rights in
the Company became 122,859,650 on Admission.
Conversion of loan notes and revised total voting rights (Post loan note
conversion)
On 25 June 2025 the Company announced that it had received conversion requests
relating to £450,247.83 of the Company's outstanding convertible loan notes.
As a result, the Company issued a total of 1,864,056 new Ordinary shares of
10p each at an issue price of 24.15p per Ordinary Share.
On 30 June 2025 the Conversion Shares were admitted to trading on the AQSE
Growth Market. On admission, the issued share capital of the Company became
124,723,706 Ordinary Shares with one voting right per share. Therefore, the
total number of Ordinary Shares and voting rights in the Company became
124,723,706.
7. Related party transactions
During the period ended 30 June 2025, the Company received further loans
totalling £21,000 from Paul Foy, who is a director of the Company, bringing
the total loans received to £496,000. The Group subsequently repaid £75,000
of this loan during the period leaving a balance of £421,000 as at 30 June
2025. These loans are to cover the short-term working capital requirements of
the Group.
8. Cash consumed in operations
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2025 30 June 2024 31 December 2023
£ £ £
Operating loss (591,576) (452,359) (693,362)
Adjustments for:
- Amortisation and depreciation 94,388 68,427 153,671
- Finance costs 39,287 16,557 36,709
- Revaluation of loan notes 109,562 12,950 (159,399)
- Unpaid interest on loan note - - 32,878
Changes in working capital:
- Increase in trade
and other receivables (53,239) (53,848) (7,923)
- Increase / (decrease) in trade
and other payables (218,770) 6,102 867,405
(620,348) (402,171) 229,979
9. Subsequent events
As noted above, on 15 August 2025, the Company's ordinary shares were
withdrawn from trading on the Apex Segment of the Aquis Stock Exchange Growth
Market and admitted to trading on AIM.
10. Approval of financial statements
The interim financial statements are unaudited and were approved by the Board
of Directors on 10 September 2025.
11. Seasonality of the Group's business
There are no seasonal factors which materially affect the operations of the
Group's business.
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