Interim Results
Summary by AI BETAClose X
3 December 2025
ZIGUP PLC
("ZIGUP" or the "Group" or the "Company")
Strong first half, confidence in full year profit to be at least at top of current range of expectations
Steady state cash reaching inflexion point and next stage of business model simplification launched
ZIGUP (LSE:ZIG), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, is pleased to announce its results for the half year ended 31 October 2025 (the 'period').
|
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
The Company will also provide a roadshow presentation via the Investor Meet Company platform on Friday 5 December 2025 at 10.00am for institutional and retail investors. Click here to register: https://www.investormeetcompany.com/zigup-plc/register-investor
This announcement contains inside information for the purposes of UK MAR. The person responsible for arranging the release of this announcement on behalf of ZIGUP plc is Matthew Barton, Company Secretary.
For further information contact:
Ross Hawley, Head of Investor Relations +44 (0) 1325 467558
Burson Buchanan
Chris Lane/Jamie Hooper +44 (0) 207 466 5000
Notes to Editors:
ZIGUP is the leading integrated mobility solutions provider, with a platform providing services across the vehicle lifecycle to help people keep on the move, smarter. The Group offers mobility solutions to businesses, fleet operators, insurers, OEMs and other customers across a broad range of areas from vehicle rental and fleet management to accident management, vehicle repairs, service and maintenance.
The mobility landscape is changing, becoming ever more connected and ZIGUP uses its knowledge and expertise to guide customers through the transformation, whether that is more digitally connected solutions or supporting the transition to lower carbon mobility through providing EVs, charging solutions and consultancy.
The Group's core purpose is to keep its customers mobile, smarter - through meeting their regular mobility needs or by servicing and supporting them when unforeseen events occur. With our considerable scale and reach, ZIGUP's mission is to offer an imaginative, market-leading customer proposition and drive enhanced returns for shareholders by creating value through sustainable compounding growth. The Group seeks to achieve this through the delivery of its strategic framework of Enable, Deliver and Grow.
ZIGUP supports its customers through a network and diversified fleet of over 135,000 owned and leased vehicles, supporting over 1 million managed vehicles, with over 180 branches across the UK, Ireland and Spain and a specialist team of over 7,500 employees. We are a trusted partner to many of the leading insurance and leasing companies, blue chip corporates and a broad range of businesses across a diverse range of sectors. Our strength comes not only from our breadth of our award-winning solutions, but from our extensive network reach, our wealth of experience and continual focus on delivering an exceptional customer experience. Further information regarding ZIGUP plc can be found on the Company's website: www.zigup.com
GAAP reconciliation tables
Consolidated income statement reconciliation
|
Six month period ending (Unaudited) |
Foot note |
31.10.2025 Statutory |
31.10.2025 Adjustments |
31.10.2025 Underlying |
31.10.2024 Statutory |
31.10.2024 Adjustments |
31.10.2024 Underlying |
|
|
(below) |
2025 |
2025 |
2025 |
2024 |
2024 |
2024 |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
Revenue |
(a) |
929.6 |
(119.7) |
809.9 |
903.6 |
(128.7) |
775.0 |
|
Cost of sales |
(b + c) |
(719.5) |
127.6 |
(591.8) |
(709.2) |
142.6 |
(566.6) |
|
Gross profit |
|
210.2 |
7.9 |
218.1 |
194.5 |
13.9 |
208.4 |
|
Administrative expenses |
(d) |
(127.0) |
8.7 |
(118.2) |
(121.4) |
11.9 |
(109.5) |
|
Operating profit |
|
83.2 |
16.6 |
99.9 |
73.1 |
25.9 |
98.9 |
|
Income from associates |
|
0.6 |
- |
0.6 |
0.2 |
- |
0.2 |
|
EBIT |
|
83.8 |
16.6 |
100.4 |
73.2 |
25.9 |
99.1 |
|
Finance income |
|
0.6 |
- |
0.6 |
0.9 |
- |
0.9 |
|
Finance costs |
|
(19.3) |
- |
(19.3) |
(18.0) |
- |
(18.0) |
|
Profit before taxation |
|
65.0 |
16.6 |
81.7 |
56.2 |
25.9 |
82.0 |
|
Taxation |
(e) |
(15.5) |
(4.1) |
(19.6) |
(12.7) |
(6.5) |
(19.2) |
|
Profit for the period |
|
49.6 |
12.5 |
62.1 |
43.4 |
19.4 |
62.8 |
|
|
|
|
|
|
|
|
|
|
Shares for EPS calculation (Note 4) |
|
225.3m |
|
225.3m |
223.8m |
|
223.8m |
|
Basic EPS |
|
22.0p |
|
27.6p |
19.4p |
|
28.1p |
|
Foot notes |
|
|
|
|
|
|
|
|
Adjustments comprise: |
|
|
|
|
|
|
|
|
Revenue: sale of vehicles |
(a) |
|
(119.7) |
|
|
(128.7) |
|
|
Cost of sales: revenue sale of vehicles net down |
(b) |
|
119.7 |
|
|
128.7 |
|
|
Adjustments to underlying depreciation (see Financial Review) |
(c) |
|
7.9 |
|
|
13.9 |
|
|
Gross profit |
|
|
7.9 |
|
|
13.9 |
|
|
Exceptional items (Note 11) |
|
|
- |
|
|
2.8 |
|
|
Amortisation of acquired intangible assets (Note 6) |
|
|
8.7 |
|
|
9.2 |
|
|
Administrative expenses |
(d) |
|
8.7 |
|
|
11.9 |
|
|
Adjustments to EBIT |
|
|
16.6 |
|
|
25.9 |
|
|
Adjustments to PBT |
|
|
16.6 |
|
|
25.9 |
|
|
Tax on exceptional items (Note 11) |
|
|
- |
|
|
(0.7) |
|
|
Tax on brand royalty charges, adjustments to depreciation and amortisation of acquired intangible assets |
|
|
(4.1) |
|
|
(5.8) |
|
|
Tax adjustments |
(e) |
|
(4.1) |
|
|
(6.5) |
|
|
Adjustments to profit |
|
|
12.5 |
|
|
19.4 |
|
|
|
|
|
|
|
|
|
|
|
GAAP reconciliation for year ended 30 April 2025 can be found on page 48 of the annual report and accounts |
|
||||||
Operating review
The Group has delivered a strong operational performance in the first half, reflecting a period of robust execution across the businesses. Spain delivered stand-out performance, capitalising on our strong market position and favourable macro-economic conditions to achieve another period of excellent VoH growth. UK&I Rental has also performed well with good momentum in new business wins and growth across specialist vehicles and additional services, while average VoH was down slightly as we restructured our broker channel approach.
Our differentiated business model continues to attract insurance partners to our integrated mobility platform. Claims & Services secured significant contract extensions and new signings during the period, including global insurance broker Howden Insurance and a multi-year renewal with Tesco Insurance. Across all our business lines we have an industry-leading reputation for our focus on exceptional customer service and are increasingly delivering this through multiple channels to best suit our customers, partners and their policyholders.
At the full year we indicated that markets were normalising after a five-year period of significant volatility. Over the first half of the year there has been stability across vehicle supply, residual values and vehicle hire durations, and improved repair cycle times. Against this backdrop we are advancing our strategic ambitions by simplifying the UK&I operating model to deliver better outcomes for customers and stakeholders.
Growth opportunities
Our confidence in our ability to achieve sustainable growth is underpinned by opportunities in our existing and adjacent markets and by our scale and nationwide presence. Spanish rental remains immature with LCV rental penetration at c.5%, well below that in the UK; and while the UK&I macro-economic environment is less robust, fleet demand remains strong alongside increasing interest in ancillary services. In both markets increasing stability in both vehicle supply and residual values allows for greater forward planning.
The claims and repair market continues to embrace new technology where it supports improved customer engagement and operational efficiencies. The combination of a seamless policyholder experience and benefits of outsourcing more services is an increasingly compelling proposition and complements the structural trend for supplier consolidation we continue to benefit from.
Strategic progress
The strategy we have pursued since merger of leveraging our nationwide footprint and market-leading positions is delivering strong results, supported by the 2024 rebrand and UK&I reorganisation. There has been good progress through the first half on our strategic pillars, where examples include:
Enable: technology investments have included commencing the roll-out of a new call-centre communication platform which offers great potential for enhanced in-call support and process automation, and further API solutions and self-service portals for major insurance partners. We added a further 80 apprentices to our technical programme, embarking on careers supported by structured and award-winning training. Five new structural aluminium centres are under construction, bringing in-house work previously outsourced.
Deliver: we are trusted to provide customer service excellence across our broad range of mobility services, reflected in continued excellent TrustPilot scores. The 50% growth in rental fleet under our management solution reflects this, together with the growth in insurance customers taking our out of hours recovery solution. We are expanding our mobile repair fleet to better serve customers away from our bodyshops, providing greater flexibility and responsiveness for minor repairs and opening up further capacity within our existing bodyshop network.
Grow: we added four new or significantly upgraded locations in the period, expanding our service footprint in Spain and adding greater capacity in core UK locations. Additional branch investment is planned in H2 including further expansion in our Spanish footprint. The expansion of the specialist vehicle fleet range and branch locations has generated significant interest and further cross-sell to rental customers.
Northgate Mobility and FMG
The UK&I reorganisation into two distinct operating businesses will enable better customer engagement and operational streamlining. It aligns all vehicle provision and branch operations together under Northgate Mobility, and greater integration across our incident management and repair operations under FMG.
This will also support a more focused supply chain engagement, property strategy and central services support. The simplified structure will also enable us to better leverage future technology enhancements we have planned, unlocking incremental benefits for both customers and colleagues.
Sustainability
Having achieved our Scope 1&2 carbon emissions targets, we are developing new longer-term targets to be published in a climate transition plan in 2026.
We have also continued to work with the government and fellow BVRLA members to address key challenges within the e-LCV sector. This has included championing practical steps in making the switch away from ICE vehicles, advocating for grants for used e-LCVs, easing funding limits and regulatory barriers that constrain adoption of larger 4.25t EVs as e-LCVs.
Strong financial capacity underpins our business model
Our operational scale, financial capacity and breadth of fleet options together generate strong OEM relationships, which is a key strategic advantage. We have taken the opportunity of good vehicle supply to support continued refreshment of the vehicle fleets, together with strong fleet growth in Spain. Our owned fleet provides significant asset backing for our borrowings, with fleet assets rising by £172m to £1.68bn since year end FY 2025.
At the end of October our leverage was 1.9x (FY 2025 1.8x), the upper end of our 1-2x range as we had previously guided. We have significant facilities headroom of £341m and an average financing rate of 3.1%.
The Board has declared an interim dividend of 8.8p per share (H1 2025: 8.8p) to be paid on 9 January 2026 to shareholders on the register as at close of business on 12 December 2025. The interim dividend represents 50% of the final dividend for the year ended 30 April 2025 in line with previous years.
FINANCIAL REVIEW
Group Revenue and EBIT
|
Half year ended 31 October |
H1 2026 |
H1 2025 |
Change |
Change |
|
|
£m |
£m |
£m |
% |
|
Revenue - vehicle hire |
373.7 |
338.2 |
35.5 |
10.5% |
|
Revenue - vehicle sales |
119.7 |
128.7 |
(9.0) |
(7.0%) |
|
Revenue - claims and services |
436.3 |
436.8 |
(0.5) |
(0.1.%) |
|
Total revenue |
929.6 |
903.6 |
26.0 |
2.9% |
|
Rental profit |
68.1 |
59.1 |
9.0 |
15.2% |
|
Disposal profit |
18.8 |
25.8 |
(7.0) |
(27.4%) |
|
Claims and services profit |
18.1 |
17.4 |
0.6 |
3.7% |
|
Corporate costs |
(5.0) |
(3.4) |
(1.6) |
47.2% |
|
Underlying operating profit |
99.9 |
98.9 |
1.0 |
0.9% |
|
Income from associates |
0.6 |
0.2 |
0.4 |
249.4% |
|
Underlying EBIT |
100.4 |
99.1 |
1.3 |
1.4% |
|
Underlying EBIT margin3 |
12.4% |
12.8% |
- |
(0.4ppt) |
|
Statutory EBIT |
83.8 |
73.2 |
10.6 |
14.4% |
Revenue
Total Group revenue, including vehicle sales, of £929.6m was 2.9% higher than prior period and revenue excluding vehicle sales of £809.9m (H1 2025: £775.0m), was 4.5% higher than the prior period.
Hire revenues increased 10.5% due to VoH growth in Spain and pricing actions in both UK&I and Spain rental businesses. Claims and services revenue stayed broadly flat on prior period, reflecting lower claims volumes but stable internal repair volumes.
Group vehicle sales revenue reduced by 7.0% with 1,400 fewer vehicles sold in the period partially offset by higher disposal values per vehicle as vehicles were sold at a lower average age.
EBIT
Statutory EBIT increased 14.4%, while underlying EBIT of £100.4m marginally improved compared to the prior period; reflecting strong results in rental profits being partially offset by an expected decrease in disposal profits. The statutory EBIT includes a £7.9m cost for adjustments to depreciation rates (H1 2025: £13.9m) and £8.7m amortisation on acquired intangible assets (H1 2025: £9.2m). There were no exceptional administrative expenses recognised in the period (H1 2025: £2.8m).
Rental profit increased 15.2% to £68.1m (H1 2025: £59.1m) driven by growth in both the UK&I and Spain.
Total disposal profits for the period of £18.8m were 27.4% lower than the prior period with 15,800 vehicles sold (H1 2025: 17,200). This includes 1,600 sales of ex-leased vehicles, ex-Auxillis fleet cars and other non-fleet vehicles through the UK&I Rental sales channels (H1 2025: 2,800).
3 Calculated as underlying EBIT divided by total revenue (excluding vehicle sales)
UK&I Rental
|
Half year ended 31 October |
H1 2026 |
H1 2025 |
Change |
||||
|
Underlying financial results |
£m |
£m |
% |
||||
|
Revenue - vehicle hire4 |
208.3 |
195.6 |
6.5% |
||||
|
Revenue - vehicle sales |
70.4 |
93.1 |
(24.3%) |
||||
|
Total revenue |
278.7 |
288.6 |
(3.4%) |
||||
|
Rental profit |
35.1 |
30.8 |
14.2% |
||||
|
Rental margin % |
16.9% |
15.7% |
1.2ppt |
||||
|
Disposal profit |
5.9 |
13.6 |
(57.1%) |
||||
|
Underlying EBIT |
41.0 |
44.4 |
(7.7%) |
||||
|
EBIT margin %5 |
19.7% |
22.7% |
(3.0ppt) |
||||
|
ROCE % |
11.1% |
13.1% |
(2.0ppt) |
||||
|
KPIs |
('000) |
('000) |
% |
|
|||
|
Average VoH |
42.6 |
43.8 |
(2.6%) |
|
|||
|
Closing VoH |
43.4 |
44.6 |
(2.8%) |
|
|||
|
Average utilisation % |
91% |
91% |
-ppt |
|
|||
Rental revenue increased by 6.5% compared to the prior period, with underlying demand strong and supporting increased average revenue per vehicle together with growth in ancillary income. A combination of vehicle mix, carefully managed pricing actions and a continued focus on utilisation, more than offset a modest reduction in average VoH in the period, due principally through continued refocus within the lower margin broker channel.
Demand from larger fleets included incremental orders for 1,250 vehicles from eight fleet customers across the utility, infrastructure and public sectors. Many were also seeking additional services such as EV consulting, fleet management, fuel cards and telematics. New business account openings from the prior year also delivered strong VoH demand from this segment. Customer satisfaction remained high, with Trustpilot scores reaching 4.9/5 in October.
The programme of fleet recycling continued through the period and resulted in an average fleet age of 2.2 months lower than at the FY 2025 year end. As expected, disposal profits reduced through a combination of 2,400 lower vehicle disposals and lower PPUs, sold into a receptive market supported by stable residual values.
Rental profits rose 14.2%, and higher rental margins reflected strong performance, cost control across the underlying rental businesses and a continued focus on demand from higher margin channels. Our rental businesses were all at or above the medium-term target range; and the period also included a one-off revenue recognition relating to adjustments in a single customer contract.
Our specialist vehicle capabilities in traffic management and refrigerated vehicles have been enhanced through the broadening of the vehicle range, together with an expanding national presence with locations being opened within five existing Northgate branches. Our 'One Road' programme has also driven mainstream LCV rental growth, and a significant increase in interest in our Fleet Management proposition, with an increase of over 50% in the period to over 7,500 vehicles under management.
Two new branch locations are nearing completion in the coming months, replacing older sites with modern efficient facilities and technologies. This was supported by a close focus on technician training and retention in what is an industry-wide shortage, offering career progression through a new Master Technician Pathway, from apprentice to expert level.
4 Including intersegment revenue of £5.3m (H1 2025: £4.2m)
5 Calculated as underlying EBIT divided by total revenue (excluding vehicle sales)
Rental business
Vehicle hire revenue in UK&I Rental was £208.3m (H1 2025: £195.6m), an increase of 6.5%. A 9.4% increase in average revenue per vehicle reflected mix of vehicle, product and hire length as well as applied rate increases, partially offset by a 2.6% reduction in average VoH. Rental profits were £35.1m compared to £30.8m in the prior period.
Average VoH of 42,600 was 1,200 lower than the prior period (H1 2025: 43,800) with closing VoH of 43,400 decreasing by 1,200 since 31 October 2024 largely driven by a restructuring of our broker channel approach.
UK&I Rental's minimum term proposition accounted for 45% of average VoH (H1 2025: 41%). The average term of these contracts is approximately two years, providing both improved visibility of future rental revenue and earnings, as well as lower transactional costs.
Management of fleet and vehicle sales
The closing UK&I Rental fleet was 46,400 compared to 45,400 at 30 April 2025. During the period, 7,300 vehicles were purchased (H1 2025: 8,100) and 6,800 vehicles were de-fleeted (H1 2025: 7,200) and there were other movements of 500 vehicles (H1 2025: 400) including leased vehicles and transfers from the Claims & Services fleet.
The average age of the fleet at the end of the period was 2.2 months lower than at 30 April 2025 and 5.4 months lower than 31 October 2024 as the ease in vehicle supply constraints continued throughout FY 2025 and the oldest cohort of the fleet was refreshed. The fleet composition continues to be monitored in response to VoH demand.
A total of 8,400 vehicles were sold in UK&I Rental during the period, 21.8% lower than the prior period (H1 2025: 10,800 vehicles) including 1,300 fewer cars and other non-fleet vehicles sold via Van Monster which had been defleeted from the Claims & Services fleet. Disposal profits of £5.9m (H1 2025: £13.6m) were 57.1% lower than prior period due to a decrease in volumes coupled with a reduction in the underlying LCV PPU to £800 (H1 2025: £1,600) which reduced throughout FY 2025 but has been stable since year end.
Spain Rental
|
Half year ended 31 October |
H1 2026 |
H1 2025 |
Change |
||
|
Underlying financial results |
£m |
£m |
% |
||
|
Revenue - vehicle hire |
170.7 |
146.8 |
16.3% |
||
|
Revenue - vehicle sales |
41.3 |
35.1 |
17.7% |
||
|
Total revenue |
212.0 |
181.9 |
16.5% |
||
|
Rental profit |
33.0 |
28.3 |
16.3% |
||
|
Rental margin % |
19.3% |
19.3% |
-ppt |
||
|
Disposal profit |
12.9 |
12.2 |
5.8% |
||
|
Underlying EBIT |
45.9 |
40.5 |
13.1% |
||
|
EBIT margin %6 |
26.9% |
27.6% |
(0.7ppt) |
||
|
ROCE % |
11.8% |
12.0% |
(0.2ppt) |
||
|
KPIs |
('000) |
('000) |
% |
|
|
|
Average VoH |
66.1 |
59.6 |
11.0% |
|
|
|
Closing VoH |
67.0 |
61.0 |
9.8% |
|
|
|
Average utilisation % |
92% |
91% |
1ppt |
|
|
The Spanish Rental business continued to deliver excellent growth, with rental revenue up 16.3% as rental solutions grew market share from ownership with strength both in flexible rental, and in minimum term in particular during the period. This was driven by its unique market offering, strong value proposition and favourable macro-economic conditions. Closing VoH rose 9.8% since 31 October 2024 as the fleet size increased to 74,900 at the end of the period (H1 2025: 69,600) reflecting 6% of total Spanish rental vehicles on the road.
Our premium service-focused minimum-term product proved attractive when compared to more traditional proposals. A notable contract win from the main provider of railway infrastructure maintenance will commence LCV deliveries in February 2026.
Rental profit growth of 16.3% was helped by VoH growth combined with strong cost control both in repairs and overheads. Rental margin at 19.3% was stable on the prior period, with higher depreciation costs offset by rate increases and efficiencies including our internal repair network delivering per-vehicle repair costs 3% lower than the prior year. Ancillary services grew by 16%, with nearly 15,900 vehicles in the fleet equipped with telematics.
Disposal profits rose 5.8% reflecting continued recycling of the fleet into a receptive market with a car parc significantly older than other more mature European markets. Trade buyers have embraced the new features within the new e-auction site. Since the end of FY 2025, average fleet age reduced 0.7 months to 26.7 months, principally reflecting growth of new vehicles and carefully managed defleets.
Facility investments focused on managing service capacity and meeting the demands of a rapidly growing fleet, ensuring a continued high level of customer service, with the new Madrid delivery hub specifically targeting reducing the wait time for new rentals. A second hub is planned for Barcelona reflecting the success of this initiative. Two new service centres were opened in the period, in Tarragona and Ciudad Real, enhancing customer service in these provinces, while also lowering operational costs.
6 Calculated as underlying EBIT divided by total revenue (excluding vehicle sales)
Rental business
Vehicle hire revenue in Spain Rental was £170.7m (H1 2025: £146.8m), an increase of 16.3% (13.4% in local currency). Average VoH increased 11.0% and closing VoH increased 9.8% to 67,000.
Spain Rental's minimum term proposition accounted for 38.5% (H1 2025: 37%) of average VoH. The average term of these contracts is approximately three years, providing visibility of future rental revenue and earnings.
Rental profit increased by 16.3% in the period (13.5% in constant currency) to £33.0m (H1 2025: £28.3m). This resulted in a rental margin of 19.3% in line with prior period, with strong revenue growth and favourable direct labour and repair costs supported by a younger fleet, offset by increased depreciation charges due to increased purchase price of vehicles post-pandemic.
Management of fleet and vehicle sales
The closing Spain Rental fleet amounted to 74,900 compared to 71,900 vehicles at 30 April 2025. During the period 10,000 vehicles were purchased (H1 2025: 10,700) and 7,000 vehicles were de-fleeted (H1 2025: 6,200 vehicles). The average age of the fleet at the end of the period was 2.1 months lower than at the same time last year and 0.7 months lower since 30 April 2025. We continue to replace our older cohort vehicles whilst balancing VoH demand and growing the fleet.
Disposal profits of £12.9m (H1 2025: £12.2m) increased 5.8% with total vehicle sales of 6,900, 7.9% higher than prior period and PPUs marginally lower as the Spanish used vehicle market remains strong as well as being supported by internal investment in our e-auction platform.
Claims & Services
|
Half year ended 31 October |
H1 2026 |
H1 2025 |
Change |
|
Underlying financial results |
£m |
£m |
% |
|
Revenue - claims and services7 |
441.8 |
442.1 |
(0.1%) |
|
Revenue - vehicle sales8 |
20.8 |
27.1 |
(23.3%) |
|
Total revenue |
462.6 |
469.2 |
(1.4%) |
|
Gross profit |
80.5 |
79.7 |
0.9% |
|
Gross margin%9 |
18.2% |
18.0% |
0.2ppt |
|
Operating profit |
18.1 |
17.4 |
3.7% |
|
Income from associates |
0.6 |
0.2 |
249.4% |
|
Underlying EBIT |
18.7 |
17.6 |
6.0% |
|
EBIT margin % |
4.2% |
4.0% |
0.2ppt |
|
ROCE % |
21.6% |
17.3% |
4.3ppt |
Claims and services revenue was consistent with the prior period, with vehicle sales revenue lower due to reduced fleet disposal volumes but stable residual values. We saw stability in our key measures of vehicle hire length, repair conversions and improved repair cycle times. Volumes softened in the personal lines motor segment, particularly for lower-value incidents, while fleet sector activity held steady closer to historic norms. We believe this market disparity principally reflected retail consumer decisions regarding making smaller discretionary claims.
A number of new contracts and extensions were secured during the period, including from major partners, which will support future growth. Howden Insurance went live in October with their Consumer & Local Commercial division, recognising our market-leading client service, strong culture and expertise. A contract renewal with longstanding partner Tesco Insurance highlights the strength of our integrated platform, and we expanded the range of services such as roadside recovery or third party intervention with other major partners including DLG.
While there has been greater capacity within the overall repair market, we have successfully maintained our internal repair volumes, helped by our end-to-end management within the repair process, supporting bodyshop productivity.
The business has had a strong focus on delivering operational efficiencies to match changing claims volumes which has helped to protect margin, with EBIT margin and ROCE improving from the prior period. We also took opportunities for capacity growth and higher productivity through targeted investments.
This programme has included the upgrading of the Cardiff bodyshop and a new vehicle recovery operations centre. A programme to double our mobile repair fleet will provide greater capacity and flexibility at individual bodyshop level. We have also commenced the rollout of an advanced call-centre platform which over time will bring AI-enabled solutions and in-call efficiencies to our customer engagement.
Our legal services business, NewLaw, successfully disposed of a portion of its activities, but overall remained loss-making as it carefully manages its claims run-off programme. There remains a clear operational focus on tracking overheads to the reducing claims book.
7 Including intersegment revenue of £5.5m (H1 2025: £5.3m)
8 Including intersegment revenue of £12.9m (H1 2025: £26.6m)
9 Gross profit margin calculated as underlying gross profit divided by total revenue (excluding vehicle sales). EBIT margin calculated as underlying EBIT divided by total revenue (excluding vehicle sales)
Revenue and profit
Revenue for the period (excluding vehicle sales) was in line with the prior period at £441.8m (H1 2025: £442.1m) due to lower claims volumes but stable repair volumes.
Gross margin of 18.2% increased 0.2ppt (H1 2025: 18.0%) but has been impacted by losses in NewLaw in the period as it manages its claims run-off programme.
EBIT for the period increased 6.0% to £18.7m (H1 2025: £17.6m) with improvements in operating efficiencies across the segment, particularly within the bodyshop network, offsetting losses in NewLaw as the claims book is manged down.
Management of fleet
The total fleet in Claims & Services closed the period at 13,900 vehicles, down from 14,300 at 30 April 2025 with the lower fleet reflecting reduced credit hire volumes.
The average fleet age at the end of the period was 13.0 months compared to 14.7 months as at 30 April 2025 and 14.8 months at 31 October 2024, reflecting the shorter fleet holding period than in the UK&I and Spain rental businesses due to the different composition of the fleet and usage of those vehicles.
The Claims & Services fleet operates a hybrid financing approach including ownership, leasing and, during peak periods, cross-hiring when needed.
Group PBT and EPS
|
Half year ended 31 October |
H1 2026 |
H1 2025 |
Change |
Change |
|
|
£m |
£m |
£m |
% |
|
Underlying EBIT |
100.4 |
99.1 |
1.3 |
1.4% |
|
Net finance costs |
(18.7) |
(17.1) |
(1.6) |
9.9% |
|
Underlying profit before taxation |
81.7 |
82.0 |
(0.3) |
(0.4%) |
|
Statutory profit before taxation |
65.0 |
56.2 |
8.9 |
15.8% |
|
Underlying effective tax rate |
24.0% |
23.4% |
- |
0.6ppt |
|
Underlying EPS |
27.6p |
28.1p |
(0.5p) |
(1.8%) |
|
Statutory EPS |
22.0p |
19.4p |
2.6p |
13.4% |
Profit before taxation
Underlying profit before taxation was broadly in line with prior period with growth in underlying EBIT offset by higher net finance costs. Statutory PBT was 15.8% higher due to a reduction in adjustments to depreciation rates on certain fleet of £6.0m, a reduction in exceptional administrative expenses of £2.8m and a decrease of £0.5m in amortisation of acquired intangibles.
Exceptional items
There were no items recognised as exceptional in the period (H1 2025: £2.8m).
Amortisation of acquired intangibles and depreciation rate changes
Amortisation of acquired intangibles and adjustments to underlying depreciation charges are not exceptional items as they are recurring. However, these items are excluded from underlying results in order to provide a better comparison of performance of the Group. The total amortisation of acquired intangibles charged in the period was £8.7m (H1 2025: £9.2m).
As previously reported, a decision was made to reduce depreciation rates from 1 May 2022 on certain vehicles remaining on the fleet which were purchased before FY 2021 and this impact has not been included underlying results. The total adjustment made to underlying depreciation in the period was a cost of £7.9m (H1 2025: £13.9m). The net adjustment is materially in line with expectations set out in the FY 2025 Annual Report.
Interest
Net finance charges increased to £18.7m (H1 2025: £17.1m) due to higher average debt compared to the prior period. Interest rates are significantly sheltered due to holding 83% of borrowing as fixed rate debt.
Taxation
The Group's underlying tax charge was £19.6m (H1 2025: £19.2m) and the underlying effective tax rate was 24.0% (H1 2025: 23.4%) with the prior period including certain one-off adjustments to the tax charge due to the timing and composition of fleet replacements. The statutory effective tax rate was 23.8% (H1 2025: 22.7%).
Earnings per share
Underlying EPS of 27.6p slightly decreased, being 0.5p lower than prior period, reflecting marginally lower earnings due to the impact of the effective tax rate increase. Statutory EPS of 22.0p was 2.6p higher, reflecting the movement on items that are excluded from underlying profit.
Dividend
The Board has declared an interim dividend of 8.8p per share (H1 2025: 8.8p) to be paid on 9 January 2026 to shareholders on the register as at close of business on 12 December 2025.
The interim dividend represents 50% of the final dividend for the year ended 30 April 2025 in line with previous guidance.
Group cash flow
|
Half year ended 31 October |
H1 2026 |
H1 2025 |
Change |
|
|
£m |
£m |
£m |
|
Underlying EBIT |
100.4 |
99.1 |
1.3 |
|
Underlying depreciation and amortisation |
145.6 |
129.5 |
16.1 |
|
Underlying EBITDA |
246.0 |
228.6 |
17.4 |
|
Net replacement capex10 |
(172.3) |
(178.9) |
6.6 |
|
Lease principal payments11 |
(25.1) |
(29.4) |
4.3 |
|
Steady state cash generation |
48.6 |
20.3 |
28.3 |
|
Working capital and non-cash items |
26.0 |
38.5 |
(12.5) |
|
Exceptional cash costs |
- |
(2.8) |
2.8 |
|
Growth capex10 |
(73.6) |
(53.5) |
(20.1) |
|
Taxation |
(12.1) |
(7.1) |
(5.0) |
|
Net operating cash |
(11.1) |
(4.6) |
(6.5) |
|
Distributions from associates |
0.6 |
- |
0.6 |
|
Interest and other financing |
(15.6) |
(15.9) |
0.3 |
|
Free cash flow |
(26.1) |
(20.5) |
(5.6) |
|
Dividends paid |
(39.6) |
(39.3) |
(0.3) |
|
Payments to acquire treasury shares |
- |
(5.3) |
5.3 |
|
Add back: lease principal payments12 |
25.1 |
29.4 |
(4.3) |
|
Net cash consumed |
(40.6) |
(35.7) |
(4.9) |
Steady state cash generation
Steady state cash generation increased to £48.6m (H1 2025: £20.3m), with strong underlying EBITDA coupled with a £6.6m decrease in net replacement capex.
Working capital and non-cash items
Working capital and non-cash items reduced by £12.5m to a cash inflow of £26.0m (H1 2025: £38.5m) with working capital improvements in UK&I and Spain and C&S benefitting from bulk settlements of claims in the prior period.
10 Net replacement capex is total net capex less growth capex. Growth capex represents the cash consumed in order to grow the fleet or the cash generated if the fleet size is reduced in periods of contraction
11 Lease principal payments are included so that steady state cash generation includes all maintenance capex irrespective of funding method
12 Lease principal payments are added back to reflect the movement on net debt
Net capital expenditure
Net capital expenditure increased by £13.5m to £245.9m (H1 2025: £232.4m) due to a £20.1m increase in growth capex10 being partially offset by a £6.6m decrease in net replacement capex10.
Net replacement capex10 was £172.3m (H1 2025: £178.9m), £6.6m lower than the prior period comprising a £17.5m decrease in UK&I, a £3.1m decrease in Claims & Services, partially offset by a £14.0m increase in Spain.
Growth capex10 of £73.6m (H1 2025: £53.5m) comprised £49.6m in Spain, £10.7m in UK&I Rental and £13.3m in Claims & Services with fleet growth in each segment since 30 April 2025.
Lease principal payments of £25.1m (H1 2025: £29.4m) decreased by £4.3m as legacy hire purchase contracts from acquisitions were run off.
Free cash flow
Free cash flow is stated after taking account of investments in the fleet that have been made in the period which will return future cash flow at a sustainable rate of return ahead of our cost of capital.
Free cash flow decreased by £5.6m to an outflow of £26.1m (H1 2025: £20.5m outflow) and reflects investment in net replacement capex of £172.3m, capex lease payments of £25.1m and growth capex of £73.6m.
Net cash consumed
Net cash consumed of £40.6m (H1 2025: £35.7m), excluding principal lease payments of £25.1m (H1 2025: £29.4m), comprises free cash outflow of £26.1m (as above), £39.6m of dividends paid (H1 2025: £39.3m) with the prior period including £5.3m for purchase of treasury shares. Leverage has increased to 1.9x from 1.8x at 30 April 2025 in line with expectations.
Net debt
Net debt reconciles as follows:
|
|
H1 2026 |
H1 2025 |
|
|
£m |
£m |
|
Opening net debt at 1 May |
836.7 |
742.2 |
|
Net cash consumed |
40.6 |
35.7 |
|
Other non-cash items |
38.6 |
15.4 |
|
Exchange differences |
23.4 |
(10.8) |
|
Closing net debt at 31 October |
939.3 |
782.5 |
Closing net debt was £156.8m higher than net debt at 30 April 2025, driven by net cash consumption of £40.6m and other non-cash items of £38.6m including the recognition of new leases. The foreign exchange impact on net debt was a £23.4m increase. The net book value of fleet on the balance sheet at 31 October 2025 was £1.68bn compared to £1.51bn at 30 April 2025.
Borrowing facilities
As at 31 October 2025 the Group had headroom on facilities of £341m, with £794m drawn (net of available cash balances) against total facilities of £1,135m as detailed below:
|
|
Facility £m |
Drawn £m |
Headroom £m |
Maturity
|
Borrowing Cost |
|
UK bank facilities |
523 |
211 |
312 |
Apr-30 |
4.3% |
|
Loan notes |
498 |
498 |
- |
Nov 27 - Oct 34 |
2.4% |
|
Asset financing facility |
100 |
75 |
25 |
Oct 26 |
5.4% |
|
Other loans |
14 |
10 |
4 |
Nov 26 |
2.9% |
|
|
1,135 |
794 |
341 |
|
3.2% |
The above drawn amounts reconcile to net debt as follows:
|
|
|
Drawn £m |
|
Borrowing facilities |
|
794 |
|
Unamortised finance fees |
|
(7) |
|
Leases |
|
152 |
|
Net debt |
|
939 |
There are three financial covenants under the Group's facilities as follows:
|
|
Threshold |
Oct-25 |
Headroom |
Oct-24 |
|
Interest cover |
3x |
6.8x |
£109m (EBIT) |
7.4x |
|
Loan to value |
70% |
44% |
£464m (net debt) |
41% |
|
Debt leverage |
3x |
1.9x |
£161m (EBITDA) |
1.6x |
The covenant calculations have been prepared in accordance with the requirements of the facilities to which they relate.
Balance sheet
Net assets at 31 October 2025 were £1,083.9m (FY 2025: £1,063.2m), equivalent to net assets per share of 480p (FY 2025: 473p). Net tangible assets at 31 October 2025 were £886.6m (FY 2025: £856.9m), equivalent to a net tangible asset value of 393p per share (FY 2025: 381p per share).
Gearing at 31 October 2025 was 105.9% (FY 2025: 97.6%) and ROCE was 11.9% (FY 2025: 12.6%).
Going concern
Having considered the Group's current trading, cash flow generation and debt maturity, the Directors have concluded that it is appropriate to prepare the Group financial statements on a going concern basis.
Risks and uncertainties
The Board and the Group's management have clearly defined responsibility for identifying the major business risks facing the Group and for developing systems to mitigate and manage those risks.
The principal risks and uncertainties facing the Group at 30 April 2025 were set out in detail on pages 58 to 63 of the FY 2025 Annual Report, a copy of which is available at www.zigup.com, and were identified as:
· The world we live in
· Our markets and customers
· Fleet availability
· Our people
· Regulatory environment
· Technology and digitalisation
· Recovery of contract assets
· Access to capital
These principal risks have not changed since the last Annual Report and continue to be those that could impact the Group during the second half of the current financial year.
Alternative performance measures and glossary of terms
A reconciliation of statutory to underlying Group performance is outlined at the front of this document. A reconciliation of underlying cash flow measures and additional alternative performance measures used to assess performance of the Group is shown below.
|
|
|
Six months to 31.10.25 |
Six months to 31.10.24 |
|
|
|
£m |
£m |
|
Underlying EBIT |
|
100.4 |
99.1 |
|
Add back: |
|
|
|
|
Depreciation of property, plant and equipment |
|
153.0 |
142.7 |
|
Depreciation rate change adjustments not in underlying operating profit |
|
(7.9) |
(13.9) |
|
Intangible amortisation included in underlying operating profit (Note 6) |
|
0.8 |
0.7 |
|
Gain on disposal of other property, plant and equipment |
|
(0.3) |
- |
|
Underlying EBITDA |
|
246.0 |
228.6 |
|
Net replacement capex1 |
|
(172.3) |
(178.9) |
|
Lease principal payments |
|
(25.1) |
(29.4) |
|
Steady state cash generation |
|
48.6 |
20.3 |
|
Working capital and non-cash items |
|
26.0 |
38.5 |
|
Exceptional cash costs |
|
- |
(2.8) |
|
Growth capex2 |
|
(73.6) |
(53.5) |
|
Taxation |
|
(12.1) |
(7.1) |
|
Net operating cash |
|
(11.1) |
(4.6) |
|
Distributions from associates |
|
0.6 |
- |
|
Interest and other financing costs |
|
(15.6) |
(15.9) |
|
Free cash flow |
|
(26.1) |
(20.5) |
|
Payments to acquire treasury shares |
|
- |
(5.3) |
|
Dividends paid |
|
(39.6) |
(39.3) |
|
Add back: lease principal payments3 |
|
25.1 |
29.4 |
|
Net cash consumed |
|
(40.6) |
(35.7) |
|
|
|
|
|
|
Reconciliation to cash flow statement: |
|
|
|
|
Net increase in cash and cash equivalents |
|
8.4 |
6.2 |
|
Add back: |
|
|
|
|
Receipt of bank loans and other borrowings |
|
(81.0) |
(159.1) |
|
Repayments of bank loans and other borrowings |
|
6.9 |
87.8 |
|
Principal element of lease payments |
|
25.1 |
29.4 |
|
Net cash consumed |
|
(40.6) |
(35.7) |
|
|
|
|
|
|
Reconciliation of capital expenditure |
|
|
|
|
Purchases of vehicles for hire |
|
347.9 |
340.7 |
|
Proceeds from disposals of vehicles for hire |
|
(106.5) |
(115.8) |
|
Proceeds of disposal of other property, plant and equipment |
|
(0.9) |
(0.5) |
|
Purchases of other property plant and equipment |
|
5.1 |
6.5 |
|
Purchases of intangible assets |
|
0.3 |
1.5 |
|
Net capital expenditure |
|
245.9 |
232.4 |
|
Net replacement capex1 |
|
172.3 |
178.9 |
|
Growth capex2 |
|
73.6 |
53.5 |
|
Net capital expenditure |
|
245.9 |
232.4 |
|
|
|
|
|
|
1 Net capital expenditure other than that defined as growth capex 2 Growth capex represents the cash consumed in order to grow the total owned fleet or the cash generated if the owned fleet size is reduced in periods of contraction 3Lease principal payments are added back to reflect the movement on net debt
|
|||
|
|
UK&I Rental 6 months to 31.10.25 £000 |
Spain Rental 6 months to 31.10.25 £000 |
Group Sub-total 6 months to 31.10.25 £000 |
|
|
|
|
|
|
Underlying operating profit1 |
40,974 |
45,853 |
86,827 |
|
Exclude: |
|
|
|
|
Adjustments to underlying depreciation charge in relation to vehicles sold in the period and profit on sale of directly acquired vehicles |
(5,860) |
(12,899) |
(18,759) |
|
Rental profit |
35,114 |
32,954 |
68,068 |
|
Divided by: Revenue: hire of vehicles2 |
208,250 |
170,687 |
378,937 |
|
Rental margin |
16.9% |
19.3% |
18.0% |
|
|
|
|
|
|
|
|
|
|
|
|
UK&I Rental 6 months to 31.10.24 £000 |
Spain Rental 6 months to 31.10.24 £000 |
Group Sub-total 6 months to 31.10.24 £000 |
|
|
|
|
|
|
Underlying operating profit1 |
44,401 |
40,525 |
84,926 |
|
Exclude: |
|
|
|
|
Adjustments to underlying depreciation charge in relation to vehicles sold in the period and profit on sale of directly acquired vehicles |
(13,644) |
(12,189) |
(25,833) |
|
Rental profit |
30,757 |
28,336 |
59,093 |
|
Divided by: Revenue: hire of vehicles2 |
195,559 |
146,812 |
342,371 |
|
Rental margin |
15.7% |
19.3% |
17.3% |
1 See Note 2 to the financial statements for reconciliation of segment underlying operating profit to Group underlying operating profit.
2 Revenue: hire of vehicles including intersegment revenue (see Note 2 to the financial statements).
|
Number of vehicles |
UK&I Rental 6 months to 31.10.2025 |
Spain Rental 6 months to 31.10.2025 |
C&S 6 months to 31.10.2025 |
Group sub-total 6 months to 31.10.2025 |
|
|
|
|
|
|
|
Opening fleet as at 30 April 2025* |
47,200 |
73,200 |
14,300 |
134,700 |
|
Purchases |
7,300 |
10,000 |
2,000 |
19,300 |
|
Disposals |
(6,800) |
(6,900) |
(1,200) |
(14,900) |
|
Transfers |
400 |
- |
(400) |
- |
|
Movements on direct vehicles |
(300) |
- |
- |
(300) |
|
Movement on leased vehicles |
- |
- |
(800) |
(800) |
|
Closing fleet as at 31 October 2025* |
47,800 |
76,300 |
13,900 |
138,000 |
|
|
|
|
|
|
|
Closing owned fleet |
43,100 |
74,900 |
5,100 |
123,100 |
|
Closing leased fleet |
3,300 |
- |
8,800 |
12,100 |
|
Closing total fleet (ex-sales stock) |
46,400 |
74,900 |
13,900 |
135,200 |
|
Closing sales stock |
1,300 |
1,500 |
- |
2,800 |
|
|
|
|
|
|
|
Purchases for growth |
500 |
3,100 |
800 |
4,400 |
|
Sales in contraction |
- |
- |
- |
- |
|
Growth in owned fleet for growth capex** |
500 |
3,100 |
800 |
4,400 |
|
|
|
|
|
|
|
Purchases for replacement |
6,800 |
6,900 |
1,200 |
14,900 |
|
Sales for replacement |
(6,800) |
(6,900) |
(1,200) |
(14,900) |
|
Net replacements |
- |
- |
- |
- |
|
|
|
|
|
|
|
Disposals |
6,800 |
6,900 |
1,200 |
14,900 |
|
Exclude: intercompany sales |
- |
- |
(700) |
(700) |
|
Sale of ex-C&S fleet, ex-leased stock and directly acquired vehicles |
1,600 |
- |
- |
1,600 |
|
Total external vehicle sales |
8,400 |
6,900 |
500 |
15,800 |
* Including sales stock
** Growth in owned fleet includes movement on sales stock and excludes vehicles held under leasing
|
Number of vehicles |
UK&I Rental 6 months to 31.10.2025 |
Spain Rental 6 months to 31.10.2025 |
C&S 6 months to 31.10.2025 |
Group sub-total 6 months to 31.10.2025 |
|
|
|
|
|
|
|
Purchases |
7,300 |
10,000 |
2,000 |
19,300 |
|
Disposals |
(6,800) |
(6,900) |
(1,200) |
(14,900) |
|
|
|
|
|
|
|
Purchases for growth |
500 |
3,100 |
800 |
4,400 |
|
Sales in contraction |
- |
- |
- |
- |
|
Growth in owned fleet for growth capex |
500 |
3,100 |
800 |
4,400 |
|
|
|
|
|
|
|
Volume of replacements |
6,800 |
6,900 |
1,200 |
14,900 |
|
|
|
|
|
|
|
Extracts from cashflow: outflow (inflow) |
£m |
£m |
£m |
£m |
|
Underlying EBITDA*** |
100.5 |
107.8 |
42.7 |
251.0 |
|
|
|
|
|
|
|
Growth capex |
10.7 |
49.7 |
13.2 |
73.6 |
|
Net replacement capex |
100.6 |
71.6 |
0.1 |
172.3 |
|
Net capex |
111.3 |
121.3 |
13.3 |
245.9 |
|
|
|
|
|
|
|
Proceeds of disposals of vehicles for hire |
(47.6) |
(37.9) |
(21.0) |
(106.5) |
|
Purchases of vehicles for hire |
157.6 |
157.4 |
32.9 |
347.9 |
|
Other net capex |
1.3 |
1.8 |
1.4 |
4.5 |
|
Net capex |
111.3 |
121.3 |
13.3 |
245.9 |
***Excludes corporate costs of (£5.0)m
Glossary of terms
The following defined terms have been used throughout this document:
|
Term |
Definition |
|
Auxillis |
A trading name used by the Claims & Services segment. A business which generates revenue from insurance claims and services |
|
API solutions |
A set of protocols and tools that allow different software applications to communicate with each other |
|
BVRLA |
A UK trade association representing companies engaged in vehicle rental, leasing and fleet management |
|
Capex |
Capital expenditure |
|
Capital employed |
Net assets excluding net debt, goodwill and acquired intangible assets, and the adjustment to net book values for changes to depreciation rates which have not been reflected in the underlying results. |
|
Claims & Services |
The Claims & Services operating segment representing the insurance claims and services part of the Group providing a range of mobility solutions |
|
Company |
ZIGUP plc |
|
Disposal profit(s) |
This is a non-GAAP measure used to describe the adjustment in the depreciation charge made in the period for vehicles sold at an amount different to their net book value at the date of sale (net of attributable selling costs) |
|
EBIT |
Earnings before interest and taxation. Underlying unless otherwise stated |
|
EBIT margin |
Calculated as EBIT divided by revenue (excluding vehicle sales) |
|
EBITDA |
Earnings before interest, taxation, depreciation and amortisation |
|
e-LCV(s) |
Electrically powered LCV(s) |
|
EPS |
Earnings per share. Underlying unless otherwise stated |
|
EV(s) |
Electric vehicle(s) |
|
Facility headroom |
Calculated as borrowing facilities of £1,135m less net borrowings of £794m. Net borrowings represent net debt of £939m excluding lease liabilities of £152m and unamortised arrangement fees of £7m. |
|
FMG RS |
A business within the Claims & Services operating segment, providing vehicle repair services |
|
Free cash flow |
Net cash generated after principal lease payments and before share buybacks and the payment of dividends |
|
FY 2025 |
The year ending 30 April 2025 |
|
GAAP |
Generally Accepted Accounting Principles: meaning compliance with IFRS |
|
Gearing |
Calculated as net debt divided by net tangible assets |
|
Group |
The Company and its subsidiaries |
|
Growth capex |
Growth capex represents the cash consumed in order to grow the total owned rental fleet or the cash generated if the fleet size is reduced in periods of contraction |
|
H1 2025 |
The six month period ended 31 October 2024 |
|
H1 2026 |
The six month period ended 31 October 2025 |
|
H2 2025 |
The six month period ended 30 April 2025 |
|
H1/H2 |
Half year period: H1 being the first half and H2 being the second half of the financial year |
|
ICE vehicles |
Vehicles powered by an internal combustion engine |
|
IFRS |
International Financial Reporting Standards |
|
Income from associates |
The Group's share of net profits of associates accounted for using the equity method |
|
LCV(s) |
Light commercial vehicle(s): the official term used within the UK and European Union for a commercial carrier vehicle with a gross vehicle weight of not more than 3.5 tonnes |
|
Leverage |
Net debt divided by rolling 12 month EBITDA, calculated in accordance with the Group's debt facility arrangements on a pre IFRS 16 basis |
|
Net replacement capex |
Net capital expenditure other than that defined as growth capex and lease principal payments |
|
Net tangible assets |
Net assets less goodwill and other intangible assets |
|
NewLaw |
A business within the Claims & Services operating segment providing legal services |
|
OEM(s) |
Original equipment manufacturer(s): a reference to the Group's vehicle suppliers |
|
PBT |
Profit before taxation. Underlying unless otherwise stated |
|
PPU |
Profit per unit/loss per unit - this is a non-GAAP measure used to describe disposal profit (as defined), divided by the number of vehicles sold |
|
Rental margin |
Calculated as rental profit divided by revenue (excluding vehicle sales) within the UK&I Rental and Spain Rental parts of the Group |
|
Rental profit(s) |
EBIT excluding disposal profits within the UK&I Rental and Spain Rental parts of the Group |
|
ROCE |
Underlying return on capital employed: calculated as underlying EBIT (see non-GAAP reconciliation) divided by average capital employed |
|
Spain Rental |
The Spain Rental operating segment located in Spain and providing commercial vehicle hire and ancillary services |
|
Spain/Spanish |
Referring to the Spain Rental operating segment |
|
Steady state cash generation |
Underlying EBITDA less net replacement capex and lease principal payments |
|
Trustpilot |
An independent digital platform for consumers to share experiences of interactions with businesses |
|
UK&I |
Referring to the UK&I Rental operating segment |
|
UK&I Rental |
The UK&I Rental operating segment located in the United Kingdom and the Republic of Oreland providing commercial vehicle hire and ancillary services |
|
Utilisation |
Calculated as the average number of vehicles on hire divided by average rentable fleet in any period |
|
Van Monster |
A trading name within the UK&I segment. The part of the UK&I segment that manages external vehicle sales |
|
VoH |
Vehicles on hire. Average unless otherwise stated |
|
ZIGUP |
The Group |
|
Condensed consolidated income statement |
||||
|
for the six months ended 31 October 2025
|
||||
|
|
|
Six months |
Six months |
Year to |
|
|
|
to 31.10.25 |
to 31.10.24 |
30.04.25 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Notes |
£000 |
£000 |
£000 |
|
Revenue: hire of vehicles |
2 |
373,656 |
338,208 |
682,888 |
|
Revenue: sale of vehicles |
2 |
119,712 |
128,663 |
257,600 |
|
Revenue: claims and services |
2 |
436,281 |
436,768 |
872,156 |
|
Total revenue |
2 |
929,649 |
903,639 |
1,812,644 |
|
Cost of sales |
|
(719,459) |
(709,160) |
(1,414,745) |
|
Gross profit |
|
210,190 |
194,479 |
397,899 |
|
Administrative expenses (excluding exceptional items) |
|
(123,189) |
(114,710) |
(232,497) |
|
Net impairment of trade receivables (excluding exceptional items) |
|
(3,783) |
(3,937) |
(8,417) |
|
Exceptional administrative expenses: impairment of trade receivables |
|
- |
- |
(3,006) |
|
Exceptional administrative expenses: other operating costs |
11 |
- |
(2,758) |
(17,617) |
|
Total administrative expenses |
|
(126,972) |
(121,405) |
(261,537) |
|
Operating profit |
|
83,218 |
73,074 |
136,362 |
|
Share of net profit of associates accounted for using the equity method |
2,8 |
580 |
166 |
170 |
|
EBIT |
2 |
83,798 |
73,240 |
136,532 |
|
Finance income |
|
573 |
935 |
1,495 |
|
Finance costs |
|
(19,342) |
(18,014) |
(36,559) |
|
Profit before taxation |
|
65,029 |
56,161 |
101,468 |
|
Taxation |
3 |
(15,451) |
(12,744) |
(21,623) |
|
Profit for the period |
|
49,578 |
43,417 |
79,845 |
Profit for the period is wholly attributable to owners of the Company. All results arise from continuing operations.
|
Earnings per share |
|
|
|
|
|
Basic |
4 |
22.0p |
19.4p |
35.6p |
|
Diluted |
4 |
21.2p |
18.9p |
34.9p |
|
Condensed consolidated statement of comprehensive income |
|
||
|
for the six months ended 31 October 2025 |
|
|
|
|
|
Six months |
Six months |
Year to |
|
|
to 31.10.25 |
to 31.10.24 |
30.04.25 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
£000 |
£000 |
£000 |
|
Amounts attributable to owners of the Company |
|
|
|
|
Profit attributable to owners |
49,578 |
43,417 |
79,845 |
|
Other comprehensive income (expense) Foreign exchange differences on retranslation of net assets of subsidiary undertakings |
25,525 |
(10,810) |
1,413 |
|
Foreign exchange differences on long term borrowings held as hedges |
(19,788) |
7,774 |
(1,859) |
|
Foreign exchange difference on revaluation reserve |
39 |
(20) |
(2) |
|
Net fair value gain (loss) on cash flow hedges |
4 |
(120) |
(104) |
|
Deferred tax (charge) credit recognised directly in equity relating to cash flow hedges |
(1) |
30 |
26 |
|
Total other comprehensive income (expense) for the period |
5,779 |
(3,146) |
(526) |
|
Total comprehensive income for the period |
55,357 |
40,271 |
79,319 |
All items will subsequently be reclassified to the consolidated income statement.
|
Condensed consolidated balance sheet |
|||||
|
As at 31 October 2025 |
|||||
|
|
|
|
31.10.25 |
31.10.24 |
30.04.25 |
|
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
Note |
£000 |
£000 |
£000 |
|
Non-current assets |
|
|
|
|
|
|
Goodwill |
|
6 |
111,906 |
115,918 |
111,906 |
|
Other intangible assets |
|
6 |
85,240 |
102,617 |
94,336 |
|
Property, plant and equipment |
|
7 |
1,856,842 |
1,606,091 |
1,683,456 |
|
Deferred tax assets |
|
|
1,769 |
1,750 |
1,095 |
|
Interest in associates |
|
8 |
- |
4,651 |
- |
|
Total non-current assets |
|
|
2,055,757 |
1,831,027 |
1,890,793 |
|
Current assets |
|
|
|
|
|
|
Inventories |
|
|
26,306 |
25,541 |
28,509 |
|
Receivables and contract assets |
|
|
372,520 |
408,634 |
378,147 |
|
Derivative financial instrument assets |
|
|
65 |
- |
- |
|
Income tax assets |
|
|
5,939 |
2,077 |
4,202 |
|
Cash and bank balances |
|
9 |
39,575 |
15,116 |
33,738 |
|
Total current assets |
|
|
444,405 |
451,368 |
444,596 |
|
Total assets |
|
|
2,500,162 |
2,282,395 |
2,335,389 |
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
|
|
369,794 |
380,727 |
340,450 |
|
Provisions |
|
|
5,048 |
6,495 |
4,738 |
|
Derivative financial instrument liabilities |
|
|
61 |
16 |
- |
|
Income tax liabilities |
|
|
8,198 |
1,023 |
238 |
|
Lease liabilities |
|
|
43,435 |
45,950 |
39,507 |
|
Borrowings |
|
|
43,280 |
22,159 |
54,367 |
|
Total current liabilities |
|
|
469,816 |
456,370 |
439,300 |
|
Net current (liabilities) assets |
|
|
(25,411) |
(5,002) |
5,296 |
|
Non-current liabilities |
|
|
|
|
|
|
Income tax liabilities |
|
|
- |
- |
2,549 |
|
Provisions |
|
|
10,652 |
8,852 |
10,323 |
|
Lease liabilities |
|
|
108,387 |
103,000 |
98,473 |
|
Borrowings |
|
|
783,725 |
626,486 |
678,086 |
|
Deferred tax liabilities |
|
|
43,718 |
46,978 |
43,501 |
|
Total non-current liabilities |
|
|
946,482 |
785,316 |
832,932 |
|
Total liabilities |
|
|
1,416,298 |
1,241,686 |
1,272,232 |
|
NET ASSETS |
|
|
1,083,864 |
1,040,709 |
1,063,157 |
|
Equity |
|
|
|
|
|
|
Share capital |
|
12 |
118,046 |
123,046 |
123,046 |
|
Share premium account |
|
|
113,510 |
113,510 |
113,510 |
|
Treasury shares reserve |
|
12 |
(26,483) |
(72,821) |
(72,820) |
|
Own shares reserve |
|
|
(9,858) |
(4,461) |
(3,740) |
|
Translation reserve |
|
|
(1,468) |
(9,795) |
(7,205) |
|
Other reserves |
|
|
335,496 |
330,424 |
330,454 |
|
Retained earnings |
|
|
554,621 |
560,806 |
579,912 |
|
TOTAL EQUITY |
|
|
1,083,864 |
1,040,709 |
1,063,157 |
Total equity is wholly attributable to owners of the Company.
|
Condensed consolidated cash flow statement
|
||||
|
for the six months ended 31 October 2025 |
|
|
|
|
|
|
|
Six months |
Six months |
Year to |
|
|
|
to 31.10.25 |
to 31.10.24 |
30.04.25 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Note |
£000 |
£000 |
£000 |
|
Cash generated from operations |
10 |
272,103 |
264,287 |
509,730 |
|
Income taxes paid, net |
|
(12,131) |
(7,108) |
(18,255) |
|
Interest paid |
|
(18,392) |
(17,079) |
(34,855) |
|
Net cash generated from operations before purchases of and proceeds from disposals of vehicles for hire |
|
241,580 |
240,100 |
456,620 |
|
Purchases of vehicles for hire |
|
(347,939) |
(340,656) |
(672,744) |
|
Proceeds from disposals of vehicles for hire |
|
106,522 |
115,810 |
232,576 |
|
Net cash generated from operations |
|
163 |
15,254 |
16,452 |
|
Investing activities |
|
|
|
|
|
Interest received |
|
573 |
935 |
1,495 |
|
Distributions from associates |
8 |
580 |
17 |
476 |
|
Proceeds from disposal of other property, plant and equipment |
886 |
429 |
965 |
|
|
Purchases of other property, plant and equipment |
(5,145) |
(6,520) |
(11,106) |
|
|
Purchases of other intangible assets |
|
(281) |
(1,496) |
(3,098) |
|
Net cash used in investing activities |
|
(3,387) |
(6,635) |
(11,268) |
|
Financing activities |
|
|
|
|
|
Dividends paid |
(39,579) |
(39,273) |
(59,042) |
|
|
Receipt of bank loans and other borrowings |
81,018 |
159,131 |
212,685 |
|
|
Repayments of bank loans and other borrowings |
(6,914) |
(87,807) |
(87,680) |
|
|
Debt issue costs paid |
- |
- |
(4,022) |
|
|
Principal element of lease payments |
(25,123) |
(29,384) |
(59,501) |
|
|
Payments to acquire treasury shares |
- |
(5,333) |
(5,332) |
|
|
Proceeds from sale of own shares |
2,208 |
208 |
263 |
|
|
Net cash generated from (used in) financing activities |
|
11,610 |
(2,458) |
(2,629) |
|
Net increase decrease in cash and cash equivalents |
|
8,386 |
6,161 |
2,555 |
|
Cash and cash equivalents at the beginning of the period |
|
(3,870) |
(6,818) |
(6,818) |
|
Effect of foreign exchange movements |
|
741 |
(594) |
393 |
|
Cash and cash equivalents at the end of the period |
|
5,257 |
(1,251) |
(3,870) |
|
Cash and cash equivalents consist of: |
|
|
|
|
|
Cash and bank balances |
9 |
39,575 |
15,116 |
33,738 |
|
Bank overdrafts |
9 |
(34,318) |
(16,367) |
(37,608) |
|
|
|
5,257 |
(1,251) |
(3,870) |
The presentation of line items above net cash generated from operations is consistent with the year ended 30 April 2025 and the comparatives for the six months to 31 October 2024 have been restated to be presented in the Consolidated cash flow statement instead of the Notes to the consolidated cash flow statement in line with the requirements of IAS 7.
|
|
Condensed consolidated statement of changes in equity for the six months ended 31 October 2025 |
|||||||
|
|
Share capital and share premium |
Treasury shares |
Own shares |
Translation reserve |
Other reserves |
Retained earnings |
Total |
|
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Total equity at 30 April 2024 and 1 May 2024 |
236,556 |
(67,488) |
(9,694) |
(6,759) |
330,534 |
560,248 |
1,043,397 |
|
|
Share options fair value charge |
- |
- |
- |
- |
- |
1,439 |
1,439 |
|
|
Share options exercised |
- |
- |
- |
- |
- |
(5,025) |
(5,025) |
|
|
Dividends paid |
- |
- |
- |
- |
- |
(39,273) |
(39,273) |
|
|
Purchase of shares net of proceeds received on exercise of share options |
- |
(5,333) |
208 |
- |
- |
- |
(5,125) |
|
|
Transfer of shares on vesting of share options |
- |
- |
5,025 |
- |
- |
- |
5,025 |
|
|
Total comprehensive (expense) income |
- |
- |
- |
(3,036) |
(110) |
43,417 |
40,271 |
|
|
Total equity at 31 October 2024 and 1 November 2024 |
236,556 |
(72,821) |
(4,461) |
(9,795) |
330,424 |
560,806 |
1,040,709 |
|
|
Share options fair value charge |
- |
- |
- |
- |
- |
2,252 |
2,252 |
|
|
Share options exercised |
- |
- |
- |
- |
- |
(667) |
(667) |
|
|
Dividends paid |
- |
- |
- |
- |
- |
(19,769) |
(19,769) |
|
|
Proceeds received on exercise of share options |
- |
1 |
54 |
- |
- |
- |
55 |
|
|
Transfer of treasury shares to own shares reserve |
- |
- |
- |
- |
- |
- |
- |
|
|
Transfer of shares on vesting of share options |
- |
- |
667 |
- |
- |
- |
667 |
|
|
Deferred tax on share based payments recognised in equity |
- |
- |
- |
- |
- |
862 |
862 |
|
|
Total comprehensive (expense) income |
- |
- |
- |
2,590 |
30 |
36,428 |
39,048 |
|
|
Total equity at 30 April 2025 and 1 May 2025 |
236,556 |
(72,820) |
(3,740) |
(7,205) |
330,454 |
579,912 |
1,063,157 |
|
|
Share options fair value charge |
- |
- |
- |
- |
- |
2,721 |
2,721 |
|
|
Share options exercised |
|
- |
- |
- |
- |
(2,367) |
(2,367) |
|
|
Share cancellation |
(5,000) |
35,644 |
- |
- |
5,000 |
(35,644) |
- |
|
|
Dividends paid |
- |
- |
- |
- |
- |
(39,579) |
(39,579) |
|
|
Proceeds received on exercise of share options |
- |
- |
2,208 |
- |
- |
- |
2,208 |
|
|
Transfer of treasury shares to own shares reserve |
- |
10,693 |
(10,693) |
- |
- |
- |
- |
|
|
Transfer of shares on vesting of share options |
- |
- |
2,367 |
- |
- |
- |
2,367 |
|
|
Total comprehensive income |
- |
- |
- |
5,737 |
42 |
49,578 |
55,357 |
|
|
Total equity at 31 October 2025 |
231,556 |
(26,483) |
(9,858) |
(1,468) |
335,496 |
554,621 |
1,083,864 |
|
|
|
Other reserves comprise the capital redemption reserve, revaluation reserve, merger reserve, other reserve and hedging reserve. |
|||||||
|
Explanatory notes to the interim financial statements |
|
|
|
|
|
|
|
|
|
|
|
1. Basis of preparation and accounting policies |
|
|
|
|
|
|
|
|
|
|
|
ZIGUP plc is a company incorporated in England and Wales under the Companies Act 2006. This condensed consolidated interim financial report for the half year reporting period ended 31 October 2025 has been prepared in accordance with the UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. The interim report does not include all of the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 April 2025, which has been prepared in accordance with UK-adopted International Accounting Standards and the requirements of the Companies Act 2006, and any public announcements made by the Group during the interim reporting period. The accounting policies adopted are consistent with those of the previous financial year. The condensed financial statements are unaudited and were approved by the Board of Directors on 3 December 2025. The condensed financial statements have been reviewed by the auditors and the independent review report is set out in this document. The interim financial information for the six months ended 31 October 2025, including comparative financial information, has been prepared on the basis of the accounting policies set out in the last annual report and accounts. There are no new accounting standards that have been adopted in the period. In preparing the interim financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same, in all material respects, as those applied to the consolidated financial statements for the year ended 30 April 2025. Depreciation charges reflect adjustments made as a result of differences between expected and actual residual values of used vehicles, taking into account the further directly attributable costs to sell the vehicles. The Directors apply judgement in determining the appropriate method of depreciation (straight line) and are required to estimate the future residual value of vehicles with due consideration of variables including age, mileage and condition. Residual values have increased in recent years due to the well-publicised new vehicle supply constraints increasing demand for our vehicle assets with values now beginning to normalise. This has increased the level of judgement as it is more difficult to estimate the future residual value of vehicles at the point they are expected to be sold. Depreciation rates were adjusted in 1 May 2022 with the adjustment presented outside of underlying results. Depreciation rates will remain under review as the longer term impact on residual values becomes clearer. By their very nature, claims against motor insurance companies or self-insuring organisations can be subject to dispute, and are therefore considered to be variable consideration. On initial recognition, this consideration is adjusted to exclude any revenue at significant risk of reversal. The Group records revenue net of potential reversal on the settlement of claims, which reflects the Group's estimate of the expected recoverable amounts from insurers. The Group reassesses the amounts of variable consideration at the balance sheet date reflecting the latest information available on the settlement of claims in the period. The Group's estimation of the amounts of revenue arising on settlement of claims is calculated with reference to a number of factors, including the Group's historical experience of collection levels, its anticipated collection profiles and analysis of the current profile of the claims against insurance companies. Although in principle this is determined by reference to individual cases, in practice the homogeneous nature of most claims means that the level of adjustment is calculated by reference to specific categories of claim. Going concern assumption The Directors have taken into account the following matters in concluding whether or not it is appropriate to prepare the interim financial statements on a going concern basis: Assessment of prospects The Group's prospects are assessed through its strategic planning process. This process includes an annual review of the ongoing strategic plan, led by the CEO, together with the involvement of business functions in all territories. The Board engages closely with executive management throughout this process and challenges delivery of the strategic plan during regular Board meetings. Part of the Board's role is to challenge the plan to ensure it is robust and makes due consideration of the appropriate external environment. Assessment of going concern The strategy and associated principal risks underpin the Group's three year strategic plan ("the Plan"), which is updated annually. This process considers the current and prospective macro-economic conditions in the countries in which we operate and the competitive tension that exists within the markets that we trade in. The Plan also encompasses the projected cash flows, dividend cover assuming operation of stated policy and headroom against borrowing facilities and financial covenants under the Group's facilities throughout the planned period. The Plan makes certain assumptions about the level of capital recycling likely to occur and therefore considers whether additional financing will be required. Headroom against the Group's debt facilities at 31 October 2025 was £341m. This compares to headroom of £412m at 30 April 2025. At the date of signing these unaudited financial statements, all of the Group's principal borrowing facilities have maturity dates outside of the period under review, therefore the Group's facilities provide sufficient headroom to fund the capital expenditure and working capital requirements for at least 12 months following the date of this report. Information extracted from 2025 annual report The financial figures for the year ended 30 April 2025, as set out in this report, do not constitute statutory accounts but are derived from the statutory accounts for that financial year. The statutory accounts for the year ended 30 April 2025 were prepared with UK-adopted International Accounting Standards and the Companies Act 2006 applicable to companies reporting under IFRS and were delivered to the Registrar of Companies on 22 October 2025 and were approved by the Board of Directors on 9 July 2025. The audit report was unqualified, did not draw attention to any matters by way of emphasis and did not include a statement under Section 498(2) or 498(3) of the Companies Act 2006. |
|
|||||||||
2. Segmental analysis
Management has determined the operating segments based upon the information provided to the Board of Directors, which is considered to be the chief operating decision maker. The Group identifies three reportable segments, namely UK&I Rental, Spain Rental and Claims & Services. The principal activities of these divisions are set out in the Operating review.
|
|
UK&I Rental Six months to 31.10.25 (Unaudited) £000 |
Spain Rental Six months to 31.10.25 (Unaudited) £000 |
Claims & Services Six months to 31.10.25 (Unaudited) £000 |
Corporate Six months to 31.10.25 (Unaudited) £000 |
Eliminations Six months to 31.10.25 (Unaudited) £000 |
Total Six months to 31.10.25 (Unaudited) £000 |
|
Revenue: hire of vehicles |
202,969 |
170,687 |
- |
- |
- |
373,656 |
|
Revenue: sale of vehicles |
70,443 |
41,345 |
7,924 |
- |
- |
119,712 |
|
Revenue: claims and services |
- |
- |
436,281 |
- |
- |
436,281 |
|
External revenue |
273,412 |
212,032 |
444,205 |
- |
- |
929,649 |
|
Intersegment revenue |
5,281 |
- |
18,424 |
- |
(23,705) |
- |
|
Total revenue |
278,693 |
212,032 |
462,629 |
- |
(23,705) |
929,649 |
|
Underlying cost of sales1 |
(204,717) |
(148,397) |
(382,133) |
- |
23,705 |
(711,542) |
|
Underlying administrative expenses (see page 4) |
(33,002) |
(17,782) |
(62,426) |
(5,032) |
- |
(118,242) |
|
Underlying operating profit (loss) |
40,974 |
45,853 |
18,070 |
(5,032) |
- |
99,865 |
|
Share of net profit of associates accounted for using the equity method |
- |
- |
580 |
- |
- |
580 |
|
Underlying EBIT* |
40,974 |
45,853 |
18,650 |
(5,032) |
- |
100,445 |
|
Amortisation on acquired intangible assets (Note 6) |
|
|
|
|
|
(8,730) |
|
Adjustments to underlying depreciation charge |
|
|
|
|
|
(7,917) |
|
EBIT |
|
|
|
|
|
83,798 |
|
Finance income |
|
|
|
|
|
573 |
|
Finance costs |
|
|
|
|
|
(19,342) |
|
Profit before taxation |
|
|
|
|
|
65,029 |
1 Underlying cost of sales is gross of cost of vehicle sales of £119.7m (see page 4).
* Underlying EBIT stated before amortisation on acquired intangible assets, adjustments to underlying depreciation charge and exceptional items is the measure used by the Board of Directors to assess segment performance. Net impairment of trade receivables is included in underlying EBIT.
2. Segmental analysis (continued)
|
|
UK&I Rental Six months to 31.10.24 (Unaudited) £000 |
Spain Rental Six months to 31.10.24 (Unaudited) £000 |
Claims & Services Six months to 31.10.24 (Unaudited) £000 |
Corporate Six months to 31.10.24 (Unaudited) £000 |
Eliminations Six months to 31.10.24 (Unaudited) £000 |
Total Six months to 31.10.24 (Unaudited) £000 |
|
Revenue: hire of vehicles |
191,396 |
146,812 |
- |
- |
- |
338,208 |
|
Revenue: sale of vehicles |
93,078 |
35,116 |
469 |
- |
- |
128,663 |
|
Revenue: claims and services |
- |
- |
436,768 |
- |
- |
436,768 |
|
External revenue |
284,474 |
181,928 |
437,237 |
- |
- |
903,639 |
|
Intersegment revenue |
4,163 |
- |
31,930 |
- |
(36,093) |
- |
|
Total revenue |
288,637 |
181,928 |
469,167 |
- |
(36,093) |
903,639 |
|
Underlying cost of sales1 |
(214,815) |
(127,085) |
(389,421) |
- |
36,093 |
(695,228) |
|
Underlying administrative expenses (see page 4) |
(29,421) |
(14,318) |
(62,321) |
(3,417) |
- |
(109,477) |
|
Underlying operating profit (loss) |
44,401 |
40,525 |
17,425 |
(3,417) |
- |
98,934 |
|
Share of net profit of associates accounted for using the equity method |
- |
- |
166 |
- |
- |
166 |
|
Underlying EBIT* |
44,401 |
40,525 |
17,591 |
(3,417) |
- |
99,100 |
|
Exceptional items (Note 11) |
|
|
|
|
|
(2,758) |
|
Amortisation of acquired intangible assets (Note 6) |
|
|
|
|
|
(9,170) |
|
Depreciation adjustment |
|
|
|
|
|
(13,932) |
|
EBIT |
|
|
|
|
|
73,240 |
|
Finance income |
|
|
|
|
|
935 |
|
Finance costs |
|
|
|
|
|
(18,014) |
|
Profit before taxation |
|
|
|
|
|
56,161 |
1 Underlying cost of sales is gross of cost of vehicle sales of £128.7m (see page 4).
Comparatives for the six months to 31 October 2024 have been restated to include the segmental underlying cost of sales and segmental underlying administrative expenses.
2. Segmental analysis (continued)
|
|
UK&I Rental year to 30.04.2025 (Audited) £000 |
Spain Rental Year to 30.04.25 (Audited) £000 |
Claims & Services Year to 30.04.2025 (Audited) £000 |
Corporate Year to 30.04.25 (Audited) £000 |
Eliminations Year to 30.04.25 (Audited) £000 |
Total Year to 30.04.25 (Audited) £000 |
|
Revenue: hire of vehicles |
382,790 |
300,098 |
- |
- |
- |
682,888 |
|
Revenue: sale of vehicles |
180,473 |
75,621 |
1,506 |
- |
- |
257,600 |
|
Revenue: claims and services |
- |
- |
872,156 |
- |
- |
872,156 |
|
External revenue |
563,263 |
375,719 |
873,662 |
- |
- |
1,812,644 |
|
Intersegment revenue |
9,293 |
- |
59,351 |
- |
(68,644) |
- |
|
Total revenue |
572,556 |
375,719 |
933,013 |
- |
(68,644) |
1,812,644 |
|
Underlying cost of sales1 |
(420,595) |
(263,543) |
(772,770) |
- |
68,644 |
(1,388,264) |
|
Underlying administrative expenses (see page 4) |
(61,578) |
(30,396) |
(122,105) |
(8,516) |
- |
(222,595) |
|
Underlying operating profit (loss) |
90,383 |
81,780 |
38,138 |
(8,516) |
- |
201,785 |
|
Share of net profit of associates accounted for using the equity method |
- |
- |
170 |
- |
- |
170 |
|
Underlying EBIT* |
90,383 |
81,780 |
38,308 |
(8,516) |
- |
201,955 |
|
Exceptional items (Note 11) |
|
|
|
|
|
(20,623) |
|
Amortisation of acquired intangible assets (Note 6) |
|
|
|
|
|
(18,319) |
|
Depreciation adjustment |
|
|
|
|
|
(26,481) |
|
EBIT |
|
|
|
|
|
136,532 |
|
Finance income |
|
|
|
|
|
1,495 |
|
Finance costs |
|
|
|
|
|
(36,559) |
|
Profit before taxation |
|
|
|
|
|
101,468 |
1 Underlying cost of sales is gross of cost of vehicle sales of £257.7m.
3. Taxation
The charge for taxation for the six months to 31 October 2025 of £15,451,000 (31 October 2024: £12,744,000 and 30 April 2025: £21,623,000) is based on the estimated effective rate for the year ending 30 April 2026 of 23.8% (31 October 2024: 22.7% and 30 April 2025: 21.3%).
|
4. Earnings per share
|
|
|
|
|
|
Six months |
Six months |
Year to |
|
|
to 31.10.25 |
to 31.10.24 |
30.04.25 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Statutory |
Statutory |
Statutory |
|
Basic and diluted earnings per share |
£000 |
£000 |
£000 |
|
The calculation of basic and diluted earnings per share is based on the following data: |
|
|
|
|
Earnings |
|
|
|
|
Earnings for the purposes of basic and diluted earnings per share, being profit attributable to owners of the Company |
49,578 |
43,417 |
79,845 |
|
Number of shares |
|
|
|
|
Weighted average number of Ordinary shares for the purpose of basic earnings per share |
225,299,349 |
223,832,445 |
224,263,336 |
|
Effect of dilutive potential Ordinary shares - share options |
8,043,018 |
6,240,418 |
4,294,495 |
|
Weighted average number of Ordinary shares for the purpose of diluted earnings per share |
233,342,367 |
230,072,863 |
228,557,831 |
|
Basic earnings per share |
22.0p |
19.4p |
35.6p |
|
Diluted earnings per share |
21.2p |
18.9p |
34.9p |
The calculated weighted average number of Ordinary shares for the purpose of basic earnings per share includes a reduction of 7,877,974 shares (31 October 2024: 20,108,081 and 30 April 2025: 20,179,932) relating to treasury shares and includes a reduction of 2,968,448 shares (31 October 2024: 2,150,897 and 30 April 2025: 1,648,155) for shares held in employee trusts.
5. Dividends
In the six months to 31 October 2025, a dividend of £39,579,000 was paid (31 October 2024: £39,273,000) for the year ended 30 April 2025. The Directors have declared an interim dividend of £8.8p per share for the six months ended 31 October 2025 (31 October 2024: 8.8p).
The final dividend of 17.6p in relation to the year ended 30 April 2025 was paid in September 2025.
6. Intangible assets
|
Net book value |
Goodwill |
|
Other intangible assets |
Grand total |
|
|||
|
|
|
|
Customer
|
Brand |
Other software |
Total |
|
|
|
|
£000 |
|
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
At 1 May 2024 |
115,918 |
|
96,343 |
9,165 |
5,546 |
111,054 |
226,972 |
|
|
Additions |
- |
|
- |
- |
1,496 |
1,496 |
1,496 |
|
|
Amortisation |
- |
|
(8,095) |
(503) |
(1,277) |
(9,875) |
(9,875) |
|
|
Exchange differences |
- |
|
- |
- |
(58) |
(58) |
(58) |
|
|
At 31 October 2024 and 1 November 2024 |
115,918 |
|
88,248 |
8,662 |
5,707 |
102,617 |
218,535 |
|
|
Additions |
- |
|
- |
- |
1,602 |
1,602 |
1,602 |
|
|
Amortisation |
- |
|
(8,092) |
(497) |
(1,348) |
(9,937) |
(9,937) |
|
|
Impairment of goodwill |
(4,012) |
|
- |
- |
- |
- |
(4,012) |
|
|
Exchange differences |
- |
|
- |
- |
54 |
54 |
54 |
|
|
At 30 April 2025 and 1 May 2025 |
111,906 |
|
80,156 |
8,165 |
6,015 |
94,336 |
206,242 |
|
|
Additions |
- |
|
- |
- |
281 |
281 |
281 |
|
|
Amortisation |
- |
|
(8,092) |
(497) |
(896) |
(9,485) |
(9,485) |
|
|
Exchange differences |
- |
|
- |
- |
108 |
108 |
108 |
|
|
At 31 October 2025 |
111,906 |
|
72,064 |
7,668 |
5,508 |
85,240 |
197,146 |
|
|
At 31 October 2025 |
|
|
|
|
|
|
Cost or fair value |
|
|
|
|
334,140 |
|
Accumulated amortisation and impairment |
|
|
|
|
(136,994) |
|
Net book value |
|
|
|
|
197,146 |
Amortisation was included within the income statement as follows:
|
|
Six months |
Six months |
Year to |
|
|
to 31.10.25 |
to 31.10.24 |
30.04.25 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
£000 |
£000 |
£000 |
|
Included within underlying operating profit as administrative expenses |
755 |
705 |
1,493 |
|
Excluded from underlying operating profit* |
8,730 |
9,170 |
18,319 |
|
|
9,485 |
9,875 |
19,812 |
* Amortisation of intangible assets excluded from underlying operating profit relates to intangible assets recognised on business combinations.
7. Property, plant and equipment
|
Net book value |
|
Vehicles for hire |
Other property, plant & equipment
|
Total
|
|
|
|
£'000 |
£000 |
£000 |
|
At 1 May 2024 |
|
1,300,680 |
182,664 |
1,483,344 |
|
Additions |
|
374,623 |
11,026 |
385,649 |
|
Disposals |
|
- |
(413) |
(413) |
|
Transfer to inventories |
|
(105,180) |
- |
(105,180) |
|
Depreciation |
|
(128,529) |
(14,202) |
(142,731) |
|
Exchange differences |
|
(13,439) |
(1,139) |
(14,578) |
|
At 31 October 2024 and 1 November 2024 |
|
1,428,155 |
177,936 |
1,606,091 |
|
Additions |
|
322,972 |
11,071 |
334,043 |
|
Disposals |
|
- |
(2,056) |
(2,056) |
|
Impairment charge |
|
- |
(1,043) |
(1,043) |
|
Transfer to inventories |
|
(122,965) |
- |
(122,965) |
|
Depreciation |
|
(130,158) |
(14,668) |
(144,826) |
|
Exchange differences |
|
13,274 |
938 |
14,212 |
|
At 30 April 2025 and 1 May 2025 |
|
1,511,278 |
172,178 |
1,683,456 |
|
Additions |
|
383,778 |
17,697 |
401,475 |
|
Disposals |
|
- |
(3,456) |
(3,456) |
|
Transfer to inventories |
|
(102,024) |
- |
(102,024) |
|
Depreciation |
|
(138,155) |
(14,864) |
(153,019) |
|
Exchange differences |
|
28,487 |
1,923 |
30,410 |
|
At 31 October 2025 |
|
1,683,364 |
173,478 |
1,856,842 |
|
At 31 October 2025 |
|
|
|
|
|
Cost or fair value |
|
|
|
2,618,852 |
|
Accumulated depreciation |
|
|
|
(762,010) |
|
Net book value |
|
|
|
1,856,842 |
Included within property, plant and equipment above are right of use assets under leases with a net book value of £140,418,000 (30 April 2025: £134,091,000).
8. Interest in associates
|
|
|
|
At 1 May 2024 |
4,502 |
|
Group's share of: |
|
|
Profit from continuing operations |
166 |
|
Distributions from associates |
(17) |
|
At 31 October 2024 and 1 November 2024 |
4,651 |
|
Group's share of: |
|
|
Profit from continuing operations |
4 |
|
Distributions from associates |
(459) |
|
Impairment charge |
(4,196) |
|
At 30 April 2025 and 1 May 2025 |
- |
|
Group's share of: |
|
|
Profit from continuing operations |
580 |
|
Distributions from associates |
(580) |
|
At 31 October 2025 |
- |
9. Analysis of consolidated net debt
|
|
At 31.10.25 |
At 31.10.24 |
At 30.04.25 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
£000 |
£000 |
£000 |
|
Cash and bank balances |
(39,575) |
(15,116) |
(33,738) |
|
Bank overdrafts |
34,318 |
16,367 |
37,608 |
|
Bank loans |
218,894 |
158,281 |
162,814 |
|
Loan notes |
497,858 |
473,204 |
480,875 |
|
Asset financing facility |
75,280 |
- |
49,987 |
|
Lease Liabilities |
151,822 |
148,950 |
137,980 |
|
Cumulative preference shares |
500 |
500 |
500 |
|
Confirming facilities |
155 |
293 |
669 |
|
Consolidated net debt |
939,252 |
782,479 |
836,695 |
10. Notes to the cash flow statement
|
|
Six months |
Six months |
Year to |
|
|
to 31.10.25 |
to 31.10.24 |
30.04.25 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
Net cash generated from operations |
£000 |
£000 |
£000 |
|
Operating profit |
83,218 |
73,074 |
136,362 |
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment |
153,019 |
142,731 |
287,557 |
|
Impairment of goodwill |
- |
- |
4,012 |
|
Impairment of property, plant and equipment |
- |
- |
1,043 |
|
Impairment of interest in associates |
- |
- |
4,196 |
|
Amortisation of intangible assets |
9,485 |
9,875 |
19,812 |
|
Gain on disposal of other property, plant and equipment |
(259) |
(7) |
(31) |
|
Share options fair value charge |
2,721 |
1,439 |
3,691 |
|
Operating cash flows before movements in working capital |
248,184 |
227,112 |
456,642 |
|
(Increase) decrease in non-vehicle inventories |
(1,521) |
815 |
1,451 |
|
Decrease in receivables |
6,191 |
13,774 |
44,888 |
|
Increase in payables |
18,654 |
21,833 |
6,326 |
|
Increase in provisions |
595 |
753 |
423 |
|
Cash generated from operations |
272,103 |
264,287 |
509,730 |
11. Exceptional items
|
During the period the Group recognised exceptional items in the income statement as follows: |
|||
|
|
Six months to 31.10.25 |
Six months to 31.10.24 |
Year to 30.04.25 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
£000 |
£000 |
£000 |
|
Exceptional administrative expenses: impairment of trade receivables |
- |
- |
3,006 |
|
Exceptional administrative expenses: other operating costs |
- |
2,758 |
17,617 |
|
Total pre-tax exceptional items |
- |
2,758 |
20,623 |
|
Tax charge on exceptional items |
- |
(689) |
(3,104) |
|
Cash expenses |
- |
2,758 |
3,791 |
|
Non-cash expenses |
- |
- |
16,832 |
|
Total pre-tax exceptional items |
- |
2,758 |
20,623 |
Other than stated above, net impairment of trade receivables is included in underlying EBIT.
There were no exceptional items in the period. Explanations for the exceptional items recognised in the year ended 30 April 2025 can be found within the annual financial statements.
12. Cancellation of treasury shares
During the period, the Group has cancelled 10,000,000 ordinary shares of 50p each which were held in treasury. Share capital has been reduced by the nominal amount of these shares of £5,000,000 and a corresponding amount has been credited to the capital redemption reserve. At the same time, £35,644,000 was transferred from treasury shares to retained earnings relating to the cancelled shares.
13. Related party transactions
Related party transactions of the Group are consistent with those disclosed in Note 31 of the Group's annual financial statements for the year ended 30 April 2025. No new related party transactions have been entered into during the period.
Interim announcement - Statement of the Directors
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in accordance with the UK-adopted International Accounting Standard 34;
· the interim management report includes a fair review of the information required by DTR 4.2.7 (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
· the interim management report includes a true and fair review of the information required by DTR 4.2.8 (disclosure of related party transactions and changes therein).
By order of the Board
Rachel Coulson
Chief Financial Officer
3 December 2025
Independent review report to ZIGUP plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed ZIGUP plc's condensed consolidated interim financial statements (the "interim financial statements") in the interim results of ZIGUP plc for the 6 month period ended 31 October 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
· the Condensed consolidated balance sheet as at 31 October 2025;
· the Condensed consolidated income statement and Condensed consolidated statement of comprehensive income for the period then ended;
· the Condensed consolidated cash flow statement for the period then ended;
· the Condensed consolidated statement of changes in equity for the period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the interim results of ZIGUP plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial statements in the interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Newcastle upon Tyne
3 December 2025
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