RentGuarantor investors will be delighted with today’s update, which has been headlined by a surge in revenue and a swing to profit, as new rental legislation drove a sharp rise in demand for its tenant guarantor services.
The company said revenue for the eight months to 31 August rose 472% to £8.45m, from £1.48m a year earlier, with August alone seeing revenue of £3.17m. This is more than 13 times the level of a year before.
The number of contracts completed more than quadrupled to 8,257, and the average value per contract rose 39% to £1,024.
The company, which provides guarantees to tenants and landlords in the private rental sector, attributed much of the growth to the Renters’ Rights Act, with more higher-value tenants opting for a professional guarantor rather than paying several months’ rent upfront. Its claims rate held steady at around 4% of revenue.
This is a classic case of a company being in the right place at the right time and benefiting from a change in legislation.
Paul Foy, CEO of RentGuarantor, said: “Building on the momentum generated over the first eight months of the year, we remain confident in the Group’s prospects for the remainder of 2026 and into 2027. We are seeing an increasing numbers of tenants, landlords and letting agents engage with RentGuarantor, whilst our growing partnership network continues to broaden our reach across the sector.
The scale of the growth, combined with a lean operating model, ensured RentGuarantor swung into profit: adjusted EBITDA reached £2.77m, against a small loss a year earlier, while adjusted net profit came in at £2.87m.
Its cash position strengthened to £7.5m, helped by the exercise of warrants, and the board said it was considering introducing a dividend.
RentGuarantor upgraded its targets, now aiming for revenue of more than £14m and net profit of more than £4m for 2026, materially ahead of market expectations.
It said its goal of reaching 100,000 contracts by 2029 was looking increasingly achievable.