RentGuarantor Holdings (AIM:RGG), a provider of rent guarantee services in the UK private rental sector, said in an unaudited trading update that the board now expects FY 2026 revenue to be materially above market expectations after robust trading in the first five months of the year.
Unaudited revenue from 1 January to 31 May rose c.£2m, up 155% versus c.£0.78m in the same period in 2025, May 2026 revenue was c.£700k versus an average monthly run-rate of c.£325k in January-April.
It added that contracts executed rose 127% year on year and average contract value increased approximately 12%, and the Group recorded its first positive monthly EBITDA in May since admission to AIM.
Management said the uplift was driven by a structural demand shift following the Renters' Rights Act 2025 coming into force on 1 May, stronger demand from existing partners and new partnership wins and a circa three-fold increase in daily applications in May 2026 versus May 2025.
It is now accelerating investment in automation and AI to increase throughput and protect margins, plans targeted hiring in data science and engineering and IT upgrades, and says the H2 2026 and FY 2027 expenditure can be funded from existing resources and expected working capital.
"Our performance in May marks a clear shift in demand for our professional guarantor service and we are moving quickly to scale capacity through planned investment in AI so we can sustain growth without compromising service and risk management," Paul Foy, Chief Executive Officer, said.
A further trading update will be provided as part of the Company's half-year results for the six months ending 30 June.
