ZIGUP (ZIG) H2 2024 earnings summary

Executive summary

• Record results: revenue £1,520.6m (+13.7%), EBIT £213.7m (+13.0%) and PBT £180.7m (+8.9%), with growth across business segments.

• Strong operational progress across rental, Claims & Services, and expansion into new locations and services.

• Dividend per share rose 7.5% to 25.8p; £81.1m returned through dividends and buybacks during the year.

• ESG initiatives reduced Scope 1 and 2 emissions by 15% and increased apprenticeships by 49%.

Financial highlights

• EBITDA reached £446.3m, up £34.1m; EPS rose 10.4% to 61.4p and ROCE improved 0.4ppt to 14.5%.

• Underlying revenues excluding vehicle sales rose 13.7% to £1.5bn; vehicle sales revenue increased by £159.6m to £312m, with 36,800 vehicles sold.

• Group rental revenue rose 6.4%; Claims & Services revenue increased 19.4% on new and existing contracts.

• Cash generation before dividends was £36.1m, down from £137.2m, reflecting higher capex.

• Fleet net book value increased by £137.1m; net debt rose £48m to £742.2m while leverage remained at 1.5x.

Outlook and guidance

• Robust demand and positive pipeline momentum support expectations of further progress in FY2025.

• Net capex planned to increase by over one-third in FY2025, then fall from FY2026; steady-state cash generation expected above £200m from FY2027.

• Average fleet age expected to fall to ~28 months in the UK, Ireland and Spain; cash flow expected to rebound after FY2025.

• Leverage expected to remain within the 1–2x target range, with a moderate increase in FY2025–26.

• LCV residual values expected to moderate but remain elevated; vehicle supply is improving and market conditions normalising.