RentGuarantor Holdings (AIM:RGG), the AIM-listed provider of rent guarantee services to tenants and landlords in the UK private rental sector, said revenue for the eight months to 31 August reached approximately £8.45 million, up 472% from £1.48 million a year earlier.
The board now expects full-year revenue to be materially above market expectations, which it said stood in a range of £9.1 million to £10 million before this announcement, and targets revenues in excess of £14 million for 2026.
Applications rose 174% to approximately 16,889 and completed contracts increased 311% to 8,257, with average revenue per contract up 39% to £1,024, driven partly by higher-value tenants opting for a professional guarantor under the Renters' Rights Act.
Earnings (adjusted EBITDA) for the period rose to approximately £2.77 million, against a loss of £122,000 a year earlier, while adjusted net profit reached £2.87 million, compared with a £392,000 loss previously; the board targets net profit above £4 million for the year. Cash strengthened to approximately £7.5 million at 31 August, up from £2.4 million at 30 June, aided by warrant exercises and operating cash generation.
"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," said chief executive Paul Foy, pointing to August revenue growth of 1,273% year-on-year to £3.17 million.
The group is reviewing its capital management framework, including a possible dividend policy, as part of its full-year assessment.
News Intelligence what this means for the company
RentGuarantor reported eight-month revenue of £8.45m (up 472% year-on-year) and now guides full-year 2026 revenue above £14m, well ahead of prior market expectations of £9.1m–£10m. Profitability has swung sharply: adjusted EBITDA reached £2.77m and adjusted net profit £2.87m versus losses a year earlier, with cash rising to £7.5m. The surge reflects 311% growth in completed contracts and a 39% rise in average revenue per contract, partly driven by higher-value tenants seeking professional guarantors under the Renters' Rights Act.
The company has moved from loss-making to material profitability while scaling revenue at triple-digit rates, and cash generation now supports a review of capital management including a possible dividend policy. The risk is whether this growth trajectory—anchored to regulatory tailwinds and a single market (UK private rental)—can sustain once the initial Renters' Rights Act adoption wave moderates.
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