ZIGUP PLC (LSE) reports Half Year Results

2025-12-03 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On December 3, 2025, ZIGUP PLC announced its interim results for the half year ended October 31, 2025. The company reported a solid performance, with underlying revenue increasing by 4.5% to £809.9 million, compared to £775.0 million in the same period last year. Total revenue rose by 2.9% to £929.6 million from £903.6 million, attributed to growth in vehicle hire revenue, which surged by 10.5%.

ZIGUP’s EBIT excluding disposal profits reached £81.7 million, marking an 11.5% increase from £73.3 million in H1 2025. The overall EBIT was reported at £83.8 million, a 14.4% increase from £73.2 million in the prior year. Profit before tax also saw a significant rise, up 15.8% to £65.0 million from £56.2 million, although underlying profit before tax slightly decreased by 0.4% to £81.7 million from £82.0 million.

Earnings per share (EPS) increased by 13.4% to 22.0 pence, up from 19.4 pence in H1 2025. The company maintained its dividend per share at 8.8 pence, consistent with the previous year. The underlying EBITDA improved by 7.6% to £246.0 million from £228.6 million, while the return on capital employed (ROCE) decreased slightly to 11.9% from 12.8%.

ZIGUP’s balance sheet showed a net debt of £939 million, up from £837 million at the end of the fiscal year 2025, reflecting a £102 million increase. Fleet assets rose to £1.68 billion, compared to £1.51 billion previously, with leverage increasing to 1.9 times from 1.8 times.

CEO Martin Ward highlighted the strong performance of the rental business in Spain and good momentum in the UK & Ireland, driven by fleet wins and service expansions. The company is also progressing with its fleet replacement strategy, which is expected to enhance cash flow stability moving forward. ZIGUP is embarking on a strategic transformation to simplify its operating model into two distinct businesses: Northgate Mobility and FMG, aimed at achieving operational efficiencies and an estimated £20 million in annual savings by fiscal year 2028.

Looking ahead, ZIGUP expressed confidence in achieving underlying profit before tax at least at the top of the £150-155 million range of analysts’ expectations for the full year. The positive outlook is supported by strong performance in the Spanish rental market and robust demand in the UK & Ireland. The company anticipates that rental margins will remain within the target range of 15-16% for the full year, with expected growth in Claims & Services volumes as new contracts are implemented.

In conclusion, ZIGUP PLC’s interim results reflect a strong start to the fiscal year, with significant year-on-year improvements in revenue, profit, and EPS, alongside a strategic focus on operational efficiency and business model simplification.

Original Announcement

Title: Interim Results
Date: 2025-12-03
Source: London Stock Exchange