Rentguarantor continues rapid growth as losses widen
Rentguarantor, an Aquis-listed provider of tenancy guarantees, saw its losses widen in 2023 despite a major uptick in revenue, average contract price and tenant contracts in the full year to 31 December.
The firm, which was nominated as the Aquis Company of the Year at last year’s “Small Cap Awards”, posted 2023 revenues of £741k, up 79 per cent on the £414k of 2022.
Meanwhile its number of tenant contracts increased by 57 per cent to 1,124 year on year, while its contract price jumped by 14 per cent from £578.
Despite its continued rapid growth in what is a fledgling market, the firm’s losses widened from £910k to over £1.2m. This took it to a loss per share of 10.6p in 2023, compared to 8.03p the previous year, which it attributed to investment in technology and increased staff costs.
Paul Foy, CEO of RentGuarantor, said: “We are pleased to report solid result showing further significant growth in revenue. Our increasing number of strategic partnerships and expanding marketing initiatives have contributed to a substantial rise in the number of rent guarantees. Together with recent investment into our technology, RentGuarantor is well positioned for the future.”
Rentguarantor floated on the Aquis Market in 2021 and, for a fee, provides tenants with a guarantor, a common condition of a tenancy agreement if they cannot source one themselves.
This is a common problem for international students and people who come to the UK for work, due to the fact most landlords and lettings agents require the guarantor to be based in the UK.
The firm, which charges tenants a percentage of their rent, is well positioned to capitalise on a strained lettings market, which is set to rise further due to tight supply.