RentGuarantor (RGG) , a provider of rent guarantee services to prospective tenants including students, benefit claimants, and retirees, issued a trading update for the three-month period to December 31, 2024 (Q4 2024).
RentGuarantor reported an 88% increase in revenues in Q4 compared to the same period last year. Similarly, tenant contracts grew by 73%, highlighting steadily rising demand. Average revenue per tenant also rose by 9% year-on-year, reaching £807.82.
RGG signed 49 new partnership agreements during the quarter, spanning letting agents, councils, student accommodation providers, landlords, and charities - a 390% year-on-year increase.
To fund this growth, RGG proposed a 10% coupon CLN offering in November 2024, which was confirmed post-period to have raised £455k for working capital and capital expenditure requirements.
Paul Foy, CEO, commenting: "I am pleased to provide an update to shareholders following a strong end to 2024. First, I'm delighted with the results of our fundraise via the convertible loan notes, and I'm grateful that our investors share my optimism and vision for 2025, and joined me in further investing in RentGuarantor. I look forward to providing positive newsflow that reflects their confidence in the Company."
View from Vox
RentGuarantor (£29m mktcap) delivers excellent financial results for Q4 2024, with turnover surging 88% year-on-year, driven by a 73% increase in tenant contracts and a 9% rise in average revenue per tenant. Sales momentum is strong into Q1 2025, supported by a recently confirmed £455k fundraise to bolster RGG's balance sheet. RentGuarantor CEO Paul Foy participated with a subscription worth £80k.
Strong demand for RGG's services in Q4 was underpinned by 49 new partnership agreements with a range of customers from across the letting sector. The strong Q4 capped off a successful year as RGG exceeded its set target for new users, letting agents, and landlord clients, growing to over 25,000 new signups per month. Simultaneously, RGG signed 208 new business partnerships in Q1-Q3, expanding its professional rent guarantor services to over 1,100 letting agents 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 provides recurring revenue for the company, expected to accelerate future growth. To further 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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