RentGuarantor raises £500k to drive FY25 growth amid record performance
() , a provider of rent guarantee services to private tenants including students, benefit claimants and retirees, issued a brief trading update and a proposed offering of convertible loan notes.
RentGuarantor said it continued to enjoy strong growth in 2024 after winning several major contracts that will keep the business on a growth trajectory through FY25. Additionally, proposed an offering of up to £500k in convertible loan notes.
The loan notes will carry a coupon of 10% per year with interest paid annually. will be able to convert the principal into ordinary shares at the lower of the share price on the day falling 10 business days after the service of a conversion notice and the average across 60 consecutive days prior to the conversion date. If not converted, the loan notes will be redeemable after 2 years.
Investors can register their interest by emailing investors@rentguarantor.com. Additionally, will be presenting at the Mello 10 Year Anniversary investor event at the Derby Conference Centre on November 19-20, 2024.
Paul Foy, CEO, commenting: "Our performance in 2024 has set a solid foundation for future growth. With the increasing demand for professional guarantor services in the UK, RentGuarantor is well-positioned to become a leading provider in the market in 2025."
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A positive trading update and fundraise announcement from RentGuarantor (£32m mktcap) as the company continues to grow its customer base. In 2024, exceeded its previously set target for new users, letting agents, and landlord clients, growing to over 25,000 new signups per month. Simultaneously, expanded its professional rent guarantor services in 2024 to over 1,100 letting agents in the UK.
The proposed £500k offering will fuel 's growth in 2025, enabling the group to expand its headcount and meet surging demand for professional rent guarantor services in the UK. Demand has been boosted by regulatory changes, with the upcoming Renters' Rights Bill set to introduce new legislative requirements for the rental market. The regulation is good news for 's professional services as it is likely to drive increased demand from both tenants and landlords seeking secure and compliant rental solutions.
Overall, is well-positioned for continued growth in FY25. Favourable regulation and a solid pipeline of partnerships and continued business development, alongside the £500k boost to the balance sheet, set the stage for continued growth in user numbers. continues to expand its footprint and brand awareness through partnerships and product development, with its latest platform able to hand 1,000 applications per minute, supporting further growth in the B2B market.
FY25 performance will be supported by strong momentum from FY22-FY24. In its most recent full-year results, reported significant YoY revenue growth, building on similarly impressive FY22 results. A 79% surge in revenues, with tenant contracts up 57%, reflected the aforementioned growth in demand. maintains a positive cash position and is advancing toward profitability, with losses further narrowing to £815k in FY23.
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