Zigup shares jump after solid first half
By Josh White
Date: Wednesday 03 Dec 2025
(Sharecast News) - Zigup reported a solid first half on Wednesday, and said it expected full-year underlying profit before tax to be at least at the top end of market expectations, citing strong rental performance in Spain and continued momentum in the UK and Ireland.
The FTSE 250 mobility services group posted a 2.9% rise in reported revenue to £929.6m for the six months ended 31 October, while reported profit before tax increased 15.8% to £65m.
Earnings per share rose 13.4% to 22p.
Underlying revenue grew 4.5% to £809.9m, with vehicle hire revenue up 10.5%, while underlying profit before tax was broadly flat at £81.7m, while underlying earnings per share dipped 1.8% to 27.6p.
Group EBIT before disposal profits rose 11.5% to £81.7m, driven by rental operations, though disposal profits normalised as expected, reflecting lower defleet volumes of 15,800 vehicles compared with 17,200 a year earlier.
Underlying EBITDA increased 7.6% to £246m.
Return on capital employed eased by 0.9 percentage points to 11.9%, and the interim dividend was maintained at 8.8p per share.
Net debt climbed to £939m from £837m at year end, with fleet assets increasing to £1.68bn and leverage steady at 1.9 times.
Chief executive Martin Ward said rental activity drove a positive start to the year, highlighting strong demand in Spain and ongoing fleet expansion.
"It has been a great start to the year for our rental businesses with Spain delivering a standout performance and UK and Ireland rental showing good momentum with recent fleet wins and expansion of our specialist fleet," he said.
Ward added that fleet renewal and disciplined investment had begun to improve cash generation.
"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."
Ward also announced a shift in the UK and Ireland operating model into two units focused on rental and repair, a move he said would simplify the business and deliver efficiencies.
"This will better position the business to leverage the full potential of our mobility platform, both internally and for our customers," he said, adding that anticipated benefits should yield about £20m in annualised savings by the 2028 financial year.
The company said underlying profit expectations for the year were now at least at the top of analysts' £150m to £155m range, supported by Spanish rental strength and ongoing fleet investment.
"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," Ward said.
Zigup said it expected UK and Ireland rental margins to finish the year within its 15% to 16% target and forecasts improving contributions from claims and services in the second half as new and expanded contracts take effect, with EBIT margin moving closer to its 5% medium-term objective.
At 0935 GMT, shares in Zigup were up 11.75% at 380.5p.
Reporting by Josh White for Sharecast.com.
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