ZIGUP plc (LSE:ZIG) said it delivered a strong finish to its 2026 financial year, with growth in hire volumes across both Spain and the UK & Ireland helping performance reach the upper end of market expectations. The company also reported continued progress within its Claims & Services division, contributing to improved operational momentum across the group.
Management noted that Steady State Cash generation has now moved beyond a key inflection point as fleet replacement spending begins to normalise, supporting expectations for stronger cash flow generation going forward. Net leverage remained stable at 1.9 times during the period.
The group continued to advance its UK & Ireland simplification programme, achieving early benefits through supply chain efficiencies while also launching the new Northgate Mobility brand. ZIGUP said it has expanded fleet capacity, infrastructure and technical capabilities across the business as it positions itself for future growth.
Average vehicles on hire increased by 4.9%, while a number of recent contract wins and renewals are expected to support continued momentum. Management said these developments strengthen the company’s operational platform and improve its long-term cash generation profile, reinforcing its position within the mobility services market.
The company’s broader outlook is supported by positive technical indicators and favourable recent corporate developments, although underlying financial pressures, including weaker revenue trends and historically soft cash flow performance, continue to weigh on sentiment. Valuation metrics remain supportive, with the shares trading on a relatively low price-to-earnings ratio alongside a strong dividend yield.
More about ZIGUP plc
ZIGUP plc is an integrated mobility services group providing solutions across the vehicle lifecycle for businesses, insurers, fleet operators and automotive manufacturers. Its operations include vehicle rental, fleet management, accident management, servicing, repairs and maintenance, with an increasing focus on digitally connected mobility solutions, electric vehicles and lower-carbon transport consultancy.
The company manages a fleet of more than 135,000 owned and leased vehicles and supports over 1 million managed vehicles through a network of more than 180 branches across the UK, Ireland and Spain. ZIGUP employs more than 7,500 people and works with insurers, leasing companies and major corporate customers to deliver mobility and fleet management services.
Leave a Reply