ZIGUP plc (LSE:ZIG) delivered a solid performance for the year ended 30 April 2026, with underlying revenue increasing 5.2% as strong vehicle hire activity in Spain and the UK & Ireland supported growth. Underlying EBITDA rose 8.2%, while the group’s fleet expanded by 5.9% to more than 139,000 vehicles. Rental margins remained resilient, and steady-state cash generation climbed to £95.7m, reflecting stronger cash generation despite an increase in net debt linked to investment in the vehicle fleet.
The company continued to execute its UK and Ireland simplification programme, including the launch of the Northgate Mobility brand as part of a broader operational transformation. Management is targeting annualised cost savings of £20m by the 2028 financial year while maintaining leverage within a range of one to two times. ZIGUP also highlighted healthy demand across its rental operations, a strong pipeline within its claims and services businesses and expects full-year profit growth to remain in line with market expectations. The company believes continued efficiency improvements and cost savings will support a target of generating more than £200m in steady-state cash flow by FY2028.
Although recent operational progress and positive market momentum provide reasons for optimism, investors continue to balance these strengths against weaker underlying financial metrics, including pressure on revenue trends and cash flow. Nevertheless, the shares continue to benefit from an attractive valuation, supported by a relatively low price-to-earnings ratio and a strong dividend yield.
More about ZIGUP plc
ZIGUP plc is a London-listed provider of integrated mobility solutions, delivering services across the entire vehicle lifecycle. The company supports businesses, fleet operators, insurers, vehicle manufacturers and other customers through vehicle rental, fleet management, accident management, repairs, servicing and maintenance. It also helps organisations transition to lower-carbon transport through electric vehicle solutions and consultancy services.
Operating primarily in the UK, Ireland and Spain, ZIGUP combines a large vehicle fleet with digital technology and specialist repair capabilities to provide integrated mobility services. The company focuses on long-term relationships with blue-chip customers and was recognised with the King’s Award for Enterprise 2025 for its contribution to opportunity and social mobility. Its long-term strategy centres on sustainable growth, operational efficiency and disciplined capital allocation across its diversified mobility platform.
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