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Highlights
- Underlying revenue grew by 5.6%, driven by strong performances in Vehicle Hire (+4.7%) and Claims and Services (+6.3%), despite a slight dip in total revenue.
- Expanded fleet size to 132,500 vehicles, bolstered by improved supply chains and significant customer demand across the UK, Ireland, and Spain.
- Continued strategic growth with new facilities, digitalization initiatives, and strong customer satisfaction metrics.
ZIGUP (LSE:ZIG), a leading integrated mobility solutions provider, has announced its financial results for the half year ending 31 October 2024. Despite challenges such as lower vehicle sales and cyber-related disruptions, the company reported steady growth across core operations, strengthened customer relationships, and strategic fleet expansions.
Financial Performance
Underlying revenue increased by 5.6%, with robust growth in Vehicle Hire and Claims and Services segments, reflecting healthy demand across key markets. However, total revenue saw a slight 0.8% decline due to reduced vehicle sales.
Underlying profit before tax (PBT) stood at £82.0 million, down from £99.1 million in H1 2023, primarily due to reduced disposal profits and a £13.9 million non-cash depreciation adjustment. Reported PBT was £56.2 million. Shareholder returns included a 6% rise in the interim dividend to 8.8p and a £30 million share buyback program, of which £5.3 million was executed during the period.
The company incurred an exceptional cost of £2.8 million in response to a cyber incident in May 2024, primarily impacting its legal services subsidiary, NewLaw.
Operational Highlights
ZIGUP’s fleet grew to 132,500 vehicles, an increase from 128,200 at the end of FY 2024, supported by improved supply and strong demand. Average fleet ages reduced by over two months, enhancing service efficiency. New client wins in the UK and Spain, including public sector mandates and utility partnerships, further reinforced ZIGUP’s market position.
Cross-selling initiatives under the "One-road" sales channel have generated over 750 new UK&I rentals, contributing to a 13% growth in ancillary income. Rental utilization rates remained strong at 91%, while claims conversion and process efficiencies continued to improve.
ZIGUP also launched growth initiatives, including three new facilities in Dundee, Parets (North Barcelona), and Cadiz. New products, such as micro-mobility rentals and expanded long-term corporate car rental options, have gained traction.
Commitment to Customer Service and Digitalization
The “Customer First” program delivered record Trustpilot and Net Promoter Scores (NPS). Enhanced customer self-service capabilities through UK portals and the adoption of Robotic Process Automation (RPA) further streamlined operations. ZIGUP’s new RTA vehicle recovery product also experienced strong uptake.
Outlook
ZIGUP remains optimistic about its growth prospects. Recent vehicle supply contracts provide visibility for 2025 fleet expansion, while increased infrastructure spending is expected to boost UK rental demand. Spain continues to exhibit record demand, reinforcing ZIGUP's confidence in its medium-term outlook, which remains aligned with market expectations.
