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 ongoing investment in fleet and technology.

• Vehicle supply has normalized, enabling fleet growth and supporting a positive outlook for the full year and into 2025.

• Customer satisfaction remains high, with excellent Trustpilot scores and strong operational execution.

• Group rebranded to ZIGUP in May 2024, consolidating strategic focus.

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

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 13.8% to £99.1 million; statutory PBT fell 42.4% to £56.2 million, mainly due to normalization of disposal profits and a non-cash depreciation adjustment.

• EBITDA increased by £8.6 million to £228.6 million, driven by underlying business performance.

• Net debt rose to £782.5 million, with leverage stable at 1.6x.

• Interim dividend increased 6.0% to 8.8p per share; £39.3 million paid in dividends 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.

• Disposal profits expected to moderate as residual values normalize, but full-year expectations remain on track.