ZIGUP (ZIG) H2 2025 earnings summary

Executive summary

• Achieved results above market expectations, with strong operational performance, new facilities, technology upgrades, and successful integration of a new organizational structure and brand.

• High customer retention, new business wins, and contract extensions driven by differentiated mobility solutions and technology investments.

• Significant investments in people, facilities, and technology, including AI-enabled contact centers and in-house repair capabilities, supporting future growth.

• Strategic exit from non-core personal injury legal market to improve margins in Claims and Services.

• Awarded King's Award for Enterprise for social mobility and achieved high customer satisfaction scores.

Financial highlights

• Revenue increased 2.3% year-over-year to £1,555.0m (EUR equivalent), with EBITDA up £18.2m to £464.5m; EBIT fell 5.5% to £202.0m and PBT down 7.6% to £166.9m.

• Net debt increased to £836.7m, leverage at 1.8x, within 1-2x guidance range.

• Underlying revenue (excluding vehicle sales) up 2.3% year-over-year; total revenue grew 9.5% (12.3% constant currency).

• Dividend per share up 2.3% to 26.4p (EUR 0.264).

• Exceptional costs of £12.8m (EUR 20.6m), mainly non-cash, related to strategic withdrawal from personal injury market and restructuring.

Outlook and guidance

• Confident in achieving mid to high single-digit growth in both rental and Claims and Services for FY 2026.

• Expect steady state cash flow to rise from EUR 16.7 million in FY 2025 to over EUR 200 million by FY 2027/28 as replacement CapEx normalizes.

• Rental margins guided at 15%-16% for U.K.&I and 17.5%-19.5% for Spain; Claims and Services margin expected above 5%.

• Disposal profits expected to stabilize at EUR 10-15 million per rental segment.

• Expecting normalised market conditions and continued operational efficiencies.