RentGuarantor, a provider of rent guarantee services to prospective tenants including students, benefit claimants, and retirees, issued a quarterly trading update for the 3 months to March 31, 2025 (Q1 2025).
RentGuarantor reported a 91.9% year-on-year increase in revenues compared to the equivalent quarter last year, with the average revenue per tenant rising by 2.5%. The revenue surge was fueled by 91 new partnership agreements, including 4 councils. RGG also attended 7 industry events during the period, bolstering visibility amongst UK landlords, investors, and potential partners.
During the quarter, RGG raised £455k via 10% coupon unsecured convertible loan notes, boosting working capital and capex to enable continued rapid growth. RGG also appointed Allenby Capital as its AQSE corporate adviser in Q1.
Paul Foy, CEO, commenting: "I'm delighted to have commenced 2025 in a similarly positive fashion to 2024. Our final results were released during the quarter, demonstrating growth across the business that has continued into the new year, with revenue up 91.9% year-on-year for Q1 2025. Our continued engagement with potential partners and onboarding of 91 new introducers, including four councils, during the quarter is indicative of the growing sentiment within the sector around the importance of having a professional guarantor in place, especially in anticipation of the forthcoming Renters' Rights Bill."
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RentGuarantor continues to deliver rapid growth, with the latest quarter nearly doubling revenues year-on-year. The strong performance was fueled by the addition of 91 new partners (including 4 councils), a successful fundraising round to support growing capex requirements, and increased brand visibility through attendance of 7 major industry events during the period.
During the quarter, RentGuarantor reported stellar full-year results, with another 72% increase in turnover to £1.27m in FY24, building on similar revenue performance in FY23 and FY22. The surge in sales was driven by a 50% increase in tenant contracts, coupled with a 14% rise in the average contract price. Strong demand for RGG's services was underpinned by 165 new partnership agreements with a range of customers from across the letting sector.
In FY24, RGG exceeded its previously set target for new users, letting agents, and landlord clients, growing to over 25,000 new signups per month. Simultaneously, RGG expanded its professional rent guarantor services to over 1,100 letting agents in the UK. The aforementioned £455k fundraise completed in January 2025, should fuel RGG's growth in FY25, enabling the group to expand its headcount and meet surging demand for professional rent guarantor services in the UK.
Furthermore, in July 2024 RGG introduced a three-year guarantee contract to address rising demand for longer-term tenancies in the UK private rental sector. The three-year contract should further boost recurring revenues and accelerate growth. To support this demand, RentGuarantor is developing its next-gen tech platform to improve user experience and expand capacity for growth in FY25.
Demand has been boosted by regulatory changes, with the upcoming Renters' Rights Bill set to introduce new legislative requirements for the rental market. The regulation is good news for RGG's professional services as it is likely to drive increased demand from both tenants and landlords seeking secure and compliant rental solutions.
Overall, RGG is well-positioned for strong growth in the short-to-medium term. Favourable regulation and a solid pipeline of partnerships and continued business development, alongside the £455k boost to the balance sheet, sets the stage for continued growth in user numbers. RGG continues to expand its footprint and brand awareness through partnerships and product development, with its latest platform able to handle 1,000 applications per minute, supporting further growth in the B2B market.
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