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Zigup PLC on Wednesday reported a ‘great start’ to the financial year, including a ‘standout’ performance from its Spanish rental business and good momentum in the UK & Ireland. The Darlington, England-based vehicle rental and management firm said pretax profit rose 16% to £65.0 million in the half year ended October from £56.2 million the year prior, but declined 0.4% to £81.7 million from £82.0 million on an underlying basis. Revenue rose 2.9% to £929.6 million from £903.6 million, or by 4.5% on an underlying basis to £809.9 million from £775.0 million. Underlying sales growth was underpinned by increased vehicle hire revenue of 11%, including a 16% rise in Spain. Earnings per share increased 13% to 22.0 pence from 19.4p, but fell 1.8% to 27.6p from 28.1p on an underlying basis. The dividend was boosted 2.3% to 26.4p per share from 25.8p. ‘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,’ said Chief Executive Martin Ward. For the full-year, Zigup now expects full year underlying pretax profit to be ‘at least at the top’ of the £150 million to £155 million range of analysts’ expectations, compared to £166.9 million in the financial year to April 30. ‘We see good opportunities’ in financial 2026, Zigup said, with ‘robust demand for our mobility solutions across our markets.’ This should enable the business to drive ‘sustainable growth in underlying revenues, profitability and cashflow and deliver attractive shareholder returns.’ ‘We would expect this to include achieving mid/upper single digit underlying [earnings before interest and tax] growth for our operating divisions, before taking into account disposal profits,’ the firm added. Shares in Zigup leapt 11% to 379.50 pence each in London on Wednesday. In addition, Zigup announced plans to simplify its UK & Ireland business around two 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 company said. Zigup sees ‘substantial’ opportunities with expected efficiencies translating into around £20 million in incremental annualised savings by financial 2028. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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