The company offers a sophisticated, three-sided platform facilitating automated tenant referencing in the UK, designed for tenants, landlords/agents, and administrators. It employs tools like identity verification, open banking, credit data, and AI document forensics to produce comprehensive reports, surpassing standard checks. Already operational, the service is used by landlords and agents managing over 1,500 properties, including a notable property brand. It holds a substantial market reputation, being a recommended partner of a major insurance group and rated excellent on a popular review platform.
Primarily funded by its founder, the company maintains an average gross margin of 80%, low operating costs, and a promising growth trajectory without external investment or debt. It generates revenue per tenant check, costing agencies approximately £26+VAT, with private landlords paying around £49.95+VAT. Recurring revenues are bolstered by monthly subscriptions and repeat business from 18 small-to-medium agencies. The evolving regulatory landscape, making tenant referencing increasingly crucial, provides a favorable backdrop for the business.
Financially, the company reports an annual recurring revenue (ARR) of £23k, with customer prepayments fostering a positive working-capital cycle. Despite recent operational expenses, including significant development costs, founders have invested £100k into the business's technology and brand, preparing it for scaling. Having established customer traction and platform maturity, the founders are seeking new ownership for the business as one relocates from the UK to Canada, ensuring a structured transition.