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, has reported revenue up 70% on the comparative six-month period last year to £517,589 (H1 2023: £304,965).
The company has also signed partnership agreements with a total of 55 letting agent entities or letting agent groups, it said today.
RentGuarantor has a mission to become a household name in the UK property industry, giving landlords comfort that in a rent default scenario, they will not be out of pocket. It works with tenants who are unable to provide a guarantor for landlords. This can include, for example, people on benefits or overseas students.
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The company has a market cap of approximately GBP 33m on the AQSE.
During 2024, RentGuarantor continued to build on the growth it achieved in 2023, including deploying further strategic relationships and partnerships which have helped to drive the growth in revenues and have generated an increased awareness of the company’s activities amongst customers and the wider lettings industry.
Technology has been further strengthened to support this forecasted growth, and the focus has remained on providing rent guarantee services.
Partnership agreements have covered various industry bodies, including letting agents, councils, and student accommodation providers. In May, RentGuarantor launched an interactive Investor Hub, which brings all RentGuarantor content into a single integrated platform to better inform and engage with investors and stakeholders.
Strong growth in RentGuarantor’s revenues
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 the 2023 full year total revenue. RentGuarator said it has continued to invest diligently in technology, people and marketing to prepare for the anticipated growth. This investment has contributed to the circa 11% increase in overall losses compared with the comparative period in 2023.
RentGuarantor 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).
The operating loss increased from £396,637 to £448,753 in the six-month period. This marginal loss increase is being attributed to the hiring of additional key staff as the company builds its corporate team to deliver future growth.
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.
“Our investment in marketing, technology and people is continuing to be reflected in our revenue growth in the first half of 2024,” said Graham Duncan, non-exec chair at RentGuarantor. “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.”
Duncan said that the long-term opportunity remains significant and the developments in the first six months of 2024 are supportive of the company’s 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,” Duncan observed. “We continue to take a cautious but considered approach to the Group’s long-term strategy.”
