ZIGUP plc (LON:ZIG), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, has announced its results for the half year ended 31 October 2025.
| Half year results | Reported | Underlying1 | |||||
| H1 2026 | H1 2025 | Change | H1 2026 | H1 2025 | Change | ||
| £m | £m | % | £m | £m | % | ||
| Revenue | 929.6 | 903.6 | 2.9% | 809.9 | 775.0 | 4.5% | |
| EBIT ex-disposal profits | 81.7 | 73.3 | 11.5% | ||||
| EBIT | 83.8 | 73.2 | 14.4% | 100.4 | 99.1 | 1.4% | |
| Profit before tax | 65.0 | 56.2 | 15.8% | 81.7 | 82.0 | (0.4%) | |
| Earnings per share | 22.0p | 19.4p | 13.4% | 27.6p | 28.1p | (1.8%) | |
| Other measures | |||||||
| Underlying EBITDA | 246.0 | 228.6 | 7.6% | ||||
| ROCE | 11.9% | 12.8% | (0.9ppt) | ||||
| Dividend per share | 8.8p | 8.8p | – | ||||
| 1 excludes vehicle sales revenue, exceptional items, amortisation of acquired intangible assets and adjustments to underlying depreciation. See GAAP reconciliation on page 4. | |||||||
| Balance sheet | H1 2026 | FY 2025 | Change | ||||
| Net debt | £939m | £837m | £102m | ||||
| Fleet assets2 | £1.68bn | £1.51bn | £0.17bn | ||||
| Leverage | 1.9x | 1.8x | 0.1x | ||||
| 2 referring to the net book value of vehicles for hire. | |||||||
Martin Ward, CEO of ZIGUP, commented:
“It has been a great start to the year for our rental businesses with Spain delivering a standout performance and UK&I Rental showing good momentum with recent fleet wins and expansion of our specialist fleet. Claims & Services has continued to add new partners and extended services to existing contracts. With good progress made on fleet replacement I am pleased with our cash performance; we are reaching an inflexion point, paving the way for sustained improvements in steady-state cashflow in the years ahead.
We are also announcing the next phase in our strategic ambition, evolving our UK&I operating model, simplifying our business structure around two distinct operating businesses: Northgate Mobility and FMG. This will better position the business to leverage the full potential of our mobility platform, both internally and for our customers. The opportunity is substantial, with expected efficiencies translating into an initial estimate of c.£20m in incremental annualised savings by FY2028. We will outline our plans today but report more fully at the full year.
With our operational and strategic initiatives delivering positive results in the period and Spanish market strength, we now expect our full year underlying PBT to be at least at the top of the £150-155m range of analysts’ expectations. With market leading positions, an increasingly efficient operating model, and robust balance sheet, we are well-positioned to capitalise on emerging opportunities across the mobility services market.”
Key financial highlights
| · Underlying revenue up 4.5% underpinned by growth in vehicle hire revenue (+10.5%); Total revenue up 2.9% reflecting a normalisation of vehicle defleets |
· Vehicle hire revenue: Spain up 16.3% underpinned by strong VoH growth, UK&I up 6.5% through a combination of product and vehicle mix alongside pricing actions
· Robust rental margins in both Spain and UK&I reflect continued focus on operational efficiency and high utilisation. UK&I margin was elevated by revenue phasing for a single contract in H1, with full year margins expected in line with the 15-16% target range
· Claims & Services revenues and margins flat on lower claims volumes but stable internal repair volumes; ongoing New Law cost base being addressed, with H2 margin expected closer to 5%
· EBIT before disposal profits up 11.5% reflecting strength in operational businesses; Disposal profits normalising as expected, on reduced volumes of 15,800 (H1 2025: 17,200) and lower UK&I PPUs, but stable residual values
· Net capex outflow of £245.9m with replacement capex of £172.3m (H1 2025: £178.9m) and growth capex of £73.6m (2025: £53.5m); reaching inflexion point with steady state cash flow expected to increase over coming periods, as fleet replacement programme progressing well
Figures are underlying, unless specifically identified otherwise
H1 business highlights
· Fleet growth: Group fleet over 135,000 vehicles (132,500 at end-FY 2025); normalised supply supporting fleet growth in Spain and continued replacement in UK&I
· Rental progress: Major rail maintenance fleet win in Spain, and a large Fleet Management contract in UK&I; One Road programme success delivering incremental VoH demand, expanding specialist vehicle locations and vehicle range
· Insurance contract wins and renewals: New contract launched leading broker Howden Insurance, selected for strength of client service and cultural alignment; multi-year renewal with Tesco Insurance and additional services introduced including for DLG, plus new roadside recovery contracts launched
· Growing capacity: Two Spanish service points opened in H1, additional planned for H2; Cardiff bodyshop upgrade and nationwide mobile repair fleet expansion underway
· Technology and customer service: Advanced call-centre platform commenced roll-out with potential for AI-driven enhancements and in-call efficiencies; additional third-party API integrations are delivering improved functionality
Continued evolution of UK&I operating model
This autumn we commenced a new phase of simplification and transformation, with workstreams encompassing a further evolution of the UK&I operating model into two operating businesses focused on each of Rental and Repair. It is fully aligned with our strategic framework and will enhance the competitive advantages of our integrated platform.
The programme is envisaged to be completed within 18 months and benefits are expected to include full integration of our rental solutions across the branch network and greater supplier consolidation, together with delivering further operational efficiencies and customer insight through leveraging new technologies.
From our initial assessment, we believe this programme will deliver sustainable benefits progressively from the start of FY2027 and c.£20m of incremental annualised savings by FY2028; we will update on the progress of the workstreams at the full year results.
Outlook
The positive outlook for the remainder of the year gives us confidence that underlying PBT will be at least at the top of the range of analysts’ expectations. This view is underpinned by the strength of Spanish rental performance and continued investment in fleet growth. UK&I rental demand remains robust, and we expect rental margin to be within the 15-16% target range for the full year. Claims & Services volumes are expected to grow as new contracts and service extensions start to contribute during the busier second half, with EBIT margin moving closer to the 5% medium-term target.
(Analyst expectations: PBT range £150-155m)
Analyst Briefing and Investor Meet presentation
A hybrid presentation for sell-side analysts and institutional investors will be held at 9.30am today, 3 December 2025. If you are interested in attending, please email Buchanan on zigup@buchanancomms.co.uk to request the joining details. This presentation will also be made available via a link on the Company’s website www.zigup.com
