ZIGUP (ZIG) H1 2025 earnings summary

Executive summary

• Interim results show profit performance and revenue growth in line with market expectations, supported by strong cash generation, operational momentum, and continued investment in fleet and technology.

• Vehicle supply has normalized, enabling upward fleet growth and supporting future cash flows and sustainable dividends.

• Customer satisfaction remains high, with excellent Trustpilot scores and operational improvements driving efficiencies.

• Positive momentum expected to continue into H2, with strategic focus on customer experience and operational efficiency.

• Underlying revenue grew 5.6% year-over-year, driven by both Vehicle Hire and Claims & Services, while total revenue declined 0.8% due to lower vehicle sales revenue.

Financial highlights

• Underlying revenues (excluding vehicle sales) rose 5.6% year-over-year to £775 million; total revenue was £903.6 million.

• EBIT decreased by £15.9 million (13.8%) to £99.1 million, mainly due to normalization of disposal profits and lower claims/services profits; PBT down 17.2% to £82.0 million.

• EBITDA increased by £8.6 million to £228.6 million, reflecting underlying business strength.

• Net debt rose by £27.5 million to £782.5 million, with leverage flat at 1.6x.

• Interim dividend increased 6.0% to 8.8p per share; £39.3 million in dividends paid and £5.3 million spent on share buybacks.

Outlook and guidance

• Full-year outlook remains unchanged and in line with market expectations, supported by a strong order pipeline, normalized market conditions, and recent vehicle supply contracts providing good visibility for 2025 fleet growth.

• Steady-state cash flows expected to exceed £200 million by FY27, with further growth anticipated.

• CapEx will increase more than 30% this year due to strong demand and supply, but leverage will remain within the 1–2x target range.