The rent guarantee specialist raised its full-year targets for the second time in a month after a blistering nine months of growth.
RentGuarantor (AIM: RGG) shares surged 17% on Thursday after the rent guarantee provider upgraded its full-year guidance for the second time in a month, revealing nine-month revenue of £13m, up 656% on the £1.72m posted a year earlier.
The stock jumped as investors digested the scale of the acceleration: September revenue alone hit £4.5m, more than 18 times the figure from the same month last year, as the peak student letting season drove a near-fivefold rise in completed contracts to 11,608 and a 53% increase in average contract value to £1,119.
The surge in volumes flowed straight through to the bottom line, with adjusted EBITDA reaching £5.85m against a small loss a year earlier, and net profit coming in at £5.93m for the nine-month period. Management said its claims ratio, the key gauge of risk exposure for a guarantor business, had held steady in line with expectations despite the pace of growth.
Buoyed by the trajectory, RentGuarantor lifted its full-year guidance to revenue above £19m and net profit above £9m, a marked step up from the £14m revenue and £4m profit guidance it had issued as recently as early September.
Chief executive Paul Foy said the business had continued to deliver exceptional growth through 2026, with rising applications and contracts translating into substantial revenue and solid profitability as the company scales. The group also flagged encouragement over the outlook for next year, though investors will want to see whether the claims ratio holds as growth continues and whether the student-letting peak proves repeatable in future periods.
This report is based on RentGuarantor’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: MChe Lee on Unsplash.
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