REG - ZIGUP PLC - Interim Results
03/12/2025 07:00
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RNS Number : 9642J ZIGUP PLC 03 December 2025
3
December 2025
ZIGUP PLC
("ZIGUP" or the "Group" or the "Company")
Strong first half, confidence in full year profit to be at least at top of
current range of expectations
Steady state cash reaching inflexion point and next stage of business model
simplification launched
ZIGUP (LSE:ZIG), the leading integrated mobility solutions platform providing
services across the vehicle lifecycle, is pleased to announce its results for
the half year ended 31 October 2025 (the 'period').
Half year results Reported Underlying(1)
H1 2026 H1 2025 Change H1 2026 H1 2025 Change
£m £m % £m £m %
Revenue 929.6 903.6 2.9% 809.9 775.0 4.5%
EBIT ex-disposal profits 81.7 73.3 11.5%
EBIT 83.8 73.2 14.4% 100.4 99.1 1.4%
Profit before tax 65.0 56.2 15.8% 81.7 82.0 (0.4%)
Earnings per share 22.0p 19.4p 13.4% 27.6p 28.1p (1.8%)
Other measures
Underlying EBITDA 246.0 228.6 7.6%
ROCE 11.9% 12.8% (0.9ppt)
Dividend per share 8.8p 8.8p -
(1) excludes vehicle sales revenue, exceptional items, amortisation of
acquired intangible assets and adjustments to underlying depreciation. See
GAAP reconciliation on page 4.
Balance sheet H1 2026 FY 2025 Change
Net debt £939m £837m £102m
£1.68bn £1.51bn £0.17bn
Fleet assets(2)
1.9x 1.8x 0.1x
Leverage
(2) referring to the net book value of vehicles for hire.
Martin Ward, CEO of ZIGUP, commented:
"It has been a great start to the year for our rental businesses with Spain
delivering a standout performance and UK&I Rental showing good momentum
with recent fleet wins and expansion of our specialist fleet. Claims &
Services has continued to add new partners and extended services to existing
contracts. With good progress made on fleet replacement I am pleased with our
cash performance; we are reaching an inflexion point, paving the way for
sustained improvements in steady-state cashflow in the years ahead.
We are also announcing the next phase in our strategic ambition, evolving our
UK&I operating model, simplifying our business structure around two
distinct operating businesses: Northgate Mobility and FMG. This will better
position the business to leverage the full potential of our mobility platform,
both internally and for our customers. The opportunity is substantial, with
expected efficiencies translating into an initial estimate of c.£20m in
incremental annualised savings by FY2028. We will outline our plans today
but report more fully at the full year.
With our operational and strategic initiatives delivering positive results in
the period and Spanish market strength, we now expect our full year underlying
PBT to be at least at the top of the £150-155m range of analysts'
expectations. With market leading positions, an increasingly efficient
operating model, and robust balance sheet, we are well-positioned to
capitalise on emerging opportunities across the mobility services market."
Key financial highlights
· Underlying revenue up 4.5% underpinned by growth in vehicle hire
revenue (+10.5%); Total revenue up 2.9% reflecting a normalisation of vehicle
defleets
· Vehicle hire revenue: Spain up 16.3% underpinned by strong VoH growth,
UK&I up 6.5% through a combination of product and vehicle mix alongside
pricing actions
· Robust rental margins in both Spain and UK&I reflect continued
focus on operational efficiency and high utilisation. UK&I margin was
elevated by revenue phasing for a single contract in H1, with full year
margins expected in line with the 15-16% target range
· Claims & Services revenues and margins flat on lower claims volumes
but stable internal repair volumes; ongoing New Law cost base being addressed,
with H2 margin expected closer to 5%
· EBIT before disposal profits up 11.5% reflecting strength in
operational businesses; Disposal profits normalising as expected, on reduced
volumes of 15,800 (H1 2025: 17,200) and lower UK&I PPUs, but stable
residual values
· Net capex outflow of £245.9m with replacement capex of £172.3m (H1
2025: £178.9m) and growth capex of £73.6m (2025: £53.5m); reaching
inflexion point with steady state cash flow expected to increase over coming
periods, as fleet replacement programme progressing well
Figures are underlying, unless specifically identified otherwise
H1 business highlights
· Fleet growth: Group fleet over 135,000 vehicles (132,500 at end-FY
2025); normalised supply supporting fleet growth in Spain and continued
replacement in UK&I
· Rental progress: Major rail maintenance fleet win in Spain, and a
large Fleet Management contract in UK&I; One Road programme success
delivering incremental VoH demand, expanding specialist vehicle locations and
vehicle range
· Insurance contract wins and renewals: New contract launched leading
broker Howden Insurance, selected for strength of client service and cultural
alignment; multi-year renewal with Tesco Insurance and additional services
introduced including for DLG, plus new roadside recovery contracts launched
· Growing capacity: Two Spanish service points opened in H1, additional
planned for H2; Cardiff bodyshop upgrade and nationwide mobile repair fleet
expansion underway
· Technology and customer service: Advanced call-centre platform
commenced roll-out with potential for AI-driven enhancements and in-call
efficiencies; additional third-party API integrations are delivering improved
functionality
Continued evolution of UK&I operating model
This autumn we commenced a new phase of simplification and transformation,
with workstreams encompassing a further evolution of the UK&I operating
model into two operating businesses focused on each of Rental and Repair. It
is fully aligned with our strategic framework and will enhance the competitive
advantages of our integrated platform.
The programme is envisaged to be completed within 18 months and benefits are
expected to include full integration of our rental solutions across the branch
network and greater supplier consolidation, together with delivering further
operational efficiencies and customer insight through leveraging new
technologies.
From our initial assessment, we believe this programme will deliver
sustainable benefits progressively from the start of FY2027 and c.£20m of
incremental annualised savings by FY2028; we will update on the progress of
the workstreams at the full year results.
Outlook
The positive outlook for the remainder of the year gives us confidence that
underlying PBT will be at least at the top of the range of analysts'
expectations. This view is underpinned by the strength of Spanish rental
performance and continued investment in fleet growth. UK&I rental demand
remains robust, and we expect rental margin to be within the 15-16% target
range for the full year. Claims & Services volumes are expected to grow
as new contracts and service extensions start to contribute during the busier
second half, with EBIT margin moving closer to the 5% medium-term target.
(Analyst expectations: PBT range £150-155m)
Analyst Briefing and Investor Meet presentation
A hybrid presentation for sell-side analysts and institutional investors will
be held at 9.30am today, 3 December 2025. If you are interested in attending,
please email Buchanan on zigup@buchanancomms.co.uk to request the joining
details. This presentation will also be made available via a link on the
Company's website www.zigup.com (http://www.zigup.com)
The Company will also provide a roadshow presentation via the Investor Meet
Company platform on Friday 5 December 2025 at 10.00am for institutional and
retail investors. Click here to register:
https://www.investormeetcompany.com/zigup-plc/register-investor
(https://www.investormeetcompany.com/zigup-plc/register-investor)
This announcement contains inside information for the purposes of UK MAR. The
person responsible for arranging the release of this announcement on behalf of
ZIGUP plc is Matthew Barton, Company Secretary.
For further information contact:
Ross Hawley, Head of Investor
Relations
+44 (0) 1325 467558
Burson
Buchanan
Chris Lane/Jamie Hooper
+44 (0) 207 466 5000
Notes to Editors:
ZIGUP is the leading integrated mobility solutions provider, with a platform
providing services across the vehicle lifecycle to help people keep on the
move, smarter. The Group offers mobility solutions to businesses, fleet
operators, insurers, OEMs and other customers across a broad range of areas
from vehicle rental and fleet management to accident management, vehicle
repairs, service and maintenance.
The mobility landscape is changing, becoming ever more connected and ZIGUP
uses its knowledge and expertise to guide customers through the
transformation, whether that is more digitally connected solutions or
supporting the transition to lower carbon mobility through providing EVs,
charging solutions and consultancy.
The Group's core purpose is to keep its customers mobile, smarter - through
meeting their regular mobility needs or by servicing and supporting them when
unforeseen events occur. With our considerable scale and reach, ZIGUP's
mission is to offer an imaginative, market-leading customer proposition and
drive enhanced returns for shareholders by creating value through sustainable
compounding growth. The Group seeks to achieve this through the delivery of
its strategic framework of Enable, Deliver and Grow.
ZIGUP supports its customers through a network and diversified fleet of over
135,000 owned and leased vehicles, supporting over 1 million managed vehicles,
with over 180 branches across the UK, Ireland and Spain and a specialist team
of over 7,500 employees. We are a trusted partner to many of the leading
insurance and leasing companies, blue chip corporates and a broad range of
businesses across a diverse range of sectors. Our strength comes not only from
our breadth of our award-winning solutions, but from our extensive network
reach, our wealth of experience and continual focus on delivering an
exceptional customer experience. Further information regarding ZIGUP plc can
be found on the Company's website: www.zigup.com (http://www.zigup.com)
GAAP reconciliation tables
Consolidated income statement reconciliation
Six month period ending Foot 31.10.2025 31.10.2025 31.10.2025 31.10.2024 31.10.2024 31.10.2024
(Unaudited) note Statutory Adjustments Underlying Statutory Adjustments Underlying
(below) 2025 2025 2025 2024 2024 2024
£m £m £m £m £m £m
Revenue (a) 929.6 (119.7) 809.9 903.6 (128.7) 775.0
Cost of sales (b + c) (719.5) 127.6 (591.8) (709.2) 142.6 (566.6)
Gross profit 210.2 7.9 218.1 194.5 13.9 208.4
Administrative expenses (d) (127.0) 8.7 (118.2) (121.4) 11.9 (109.5)
Operating profit 83.2 16.6 99.9 73.1 25.9 98.9
Income from associates 0.6 - 0.6 0.2 - 0.2
EBIT 83.8 16.6 100.4 73.2 25.9 99.1
Finance income 0.6 - 0.6 0.9 - 0.9
Finance costs (19.3) - (19.3) (18.0) - (18.0)
Profit before taxation 65.0 16.6 81.7 56.2 25.9 82.0
Taxation (e) (15.5) (4.1) (19.6) (12.7) (6.5) (19.2)
Profit for the period 49.6 12.5 62.1 43.4 19.4 62.8
Shares for EPS calculation (Note 4) 225.3m 225.3m 223.8m 223.8m
Basic EPS 22.0p 27.6p 19.4p 28.1p
Foot notes
Adjustments comprise:
Revenue: sale of vehicles (a) (119.7) (128.7)
Cost of sales: revenue sale of vehicles net down (b) 119.7 128.7
Adjustments to underlying depreciation (see Financial Review) (c) 7.9 13.9
Gross profit 7.9 13.9
Exceptional items (Note 11) - 2.8
Amortisation of acquired intangible assets (Note 6) 8.7 9.2
Administrative expenses (d) 8.7 11.9
Adjustments to EBIT 16.6 25.9
Adjustments to PBT 16.6 25.9
Tax on exceptional items (Note 11) - (0.7)
Tax on brand royalty charges, adjustments to depreciation and amortisation of (4.1) (5.8)
acquired intangible assets
Tax adjustments (e) (4.1) (6.5)
Adjustments to profit 12.5 19.4
GAAP reconciliation for year ended 30 April 2025 can be found on page 48 of
the annual report and accounts
Operating review
The Group has delivered a strong operational performance in the first half,
reflecting a period of robust execution across the businesses. Spain delivered
stand-out performance, capitalising on our strong market position and
favourable macro-economic conditions to achieve another period of excellent
VoH growth. UK&I Rental has also performed well with good momentum in new
business wins and growth across specialist vehicles and additional services,
while average VoH was down slightly as we restructured our broker channel
approach.
Our differentiated business model continues to attract insurance partners to
our integrated mobility platform. Claims & Services secured significant
contract extensions and new signings during the period, including global
insurance broker Howden Insurance and a multi-year renewal with Tesco
Insurance. Across all our business lines we have an industry-leading
reputation for our focus on exceptional customer service and are increasingly
delivering this through multiple channels to best suit our customers, partners
and their policyholders.
At the full year we indicated that markets were normalising after a five-year
period of significant volatility. Over the first half of the year there has
been stability across vehicle supply, residual values and vehicle hire
durations, and improved repair cycle times. Against this backdrop we are
advancing our strategic ambitions by simplifying the UK&I operating model
to deliver better outcomes for customers and stakeholders.
Growth opportunities
Our confidence in our ability to achieve sustainable growth is underpinned by
opportunities in our existing and adjacent markets and by our scale and
nationwide presence. Spanish rental remains immature with LCV rental
penetration at c.5%, well below that in the UK; and while the UK&I
macro-economic environment is less robust, fleet demand remains strong
alongside increasing interest in ancillary services. In both markets
increasing stability in both vehicle supply and residual values allows for
greater forward planning.
The claims and repair market continues to embrace new technology where it
supports improved customer engagement and operational efficiencies. The
combination of a seamless policyholder experience and benefits of outsourcing
more services is an increasingly compelling proposition and complements the
structural trend for supplier consolidation we continue to benefit from.
Strategic progress
The strategy we have pursued since merger of leveraging our nationwide
footprint and market-leading positions is delivering strong results, supported
by the 2024 rebrand and UK&I reorganisation. There has been good progress
through the first half on our strategic pillars, where examples include:
Enable: technology investments have included commencing the roll-out of a new
call-centre communication platform which offers great potential for enhanced
in-call support and process automation, and further API solutions and
self-service portals for major insurance partners. We added a further 80
apprentices to our technical programme, embarking on careers supported by
structured and award-winning training. Five new structural aluminium centres
are under construction, bringing in-house work previously outsourced.
Deliver: we are trusted to provide customer service excellence across our
broad range of mobility services, reflected in continued excellent TrustPilot
scores. The 50% growth in rental fleet under our management solution
reflects this, together with the growth in insurance customers taking our out
of hours recovery solution. We are expanding our mobile repair fleet to
better serve customers away from our bodyshops, providing greater flexibility
and responsiveness for minor repairs and opening up further capacity within
our existing bodyshop network.
Grow: we added four new or significantly upgraded locations in the period,
expanding our service footprint in Spain and adding greater capacity in core
UK locations. Additional branch investment is planned in H2 including further
expansion in our Spanish footprint. The expansion of the specialist vehicle
fleet range and branch locations has generated significant interest and
further cross-sell to rental customers.
Northgate Mobility and FMG
The UK&I reorganisation into two distinct operating businesses will enable
better customer engagement and operational streamlining. It aligns all vehicle
provision and branch operations together under Northgate Mobility, and greater
integration across our incident management and repair operations under FMG.
This will also support a more focused supply chain engagement, property
strategy and central services support. The simplified structure will also
enable us to better leverage future technology enhancements we have planned,
unlocking incremental benefits for both customers and colleagues.
Sustainability
Having achieved our Scope 1&2 carbon emissions targets, we are developing
new longer-term targets to be published in a climate transition plan in 2026.
We have also continued to work with the government and fellow BVRLA members to
address key challenges within the e-LCV sector. This has included
championing practical steps in making the switch away from ICE vehicles,
advocating for grants for used e-LCVs, easing funding limits and regulatory
barriers that constrain adoption of larger 4.25t EVs as e-LCVs.
Strong financial capacity underpins our business model
Our operational scale, financial capacity and breadth of fleet options
together generate strong OEM relationships, which is a key strategic
advantage. We have taken the opportunity of good vehicle supply to support
continued refreshment of the vehicle fleets, together with strong fleet growth
in Spain. Our owned fleet provides significant asset backing for our
borrowings, with fleet assets rising by £172m to £1.68bn since year end FY
2025.
At the end of October our leverage was 1.9x (FY 2025 1.8x), the upper end of
our 1-2x range as we had previously guided. We have significant facilities
headroom of £341m and an average financing rate of 3.1%.
The Board has declared an interim dividend of 8.8p per share (H1 2025: 8.8p)
to be paid on 9 January 2026 to shareholders on the register as at close of
business on 12 December 2025. The interim dividend represents 50% of the final
dividend for the year ended 30 April 2025 in line with previous years.
FINANCIAL REVIEW
Group Revenue and EBIT
Half year ended 31 October H1 2026 H1 2025 Change Change
£m £m £m %
Revenue - vehicle hire 373.7 338.2 35.5 10.5%
Revenue - vehicle sales 119.7 128.7 (9.0) (7.0%)
Revenue - claims and services 436.3 436.8 (0.5) (0.1.%)
Total revenue 929.6 903.6 26.0 2.9%
Rental profit 68.1 59.1 9.0 15.2%
Disposal profit 18.8 25.8 (7.0) (27.4%)
Claims and services profit 18.1 17.4 0.6 3.7%
Corporate costs (5.0) (3.4) (1.6) 47.2%
Underlying operating profit 99.9 98.9 1.0 0.9%
Income from associates 0.6 0.2 0.4 249.4%
Underlying EBIT 100.4 99.1 1.3 1.4%
Underlying EBIT margin(3) 12.4% 12.8% - (0.4ppt)
Statutory EBIT 83.8 73.2 10.6 14.4%
Revenue
Total Group revenue, including vehicle sales, of £929.6m was 2.9% higher than
prior period and revenue excluding vehicle sales of £809.9m (H1 2025:
£775.0m), was 4.5% higher than the prior period.
Hire revenues increased 10.5% due to VoH growth in Spain and pricing actions
in both UK&I and Spain rental businesses. Claims and services revenue
stayed broadly flat on prior period, reflecting lower claims volumes but
stable internal repair volumes.
Group vehicle sales revenue reduced by 7.0% with 1,400 fewer vehicles sold in
the period partially offset by higher disposal values per vehicle as
vehicles were sold at a lower average age.
EBIT
Statutory EBIT increased 14.4%, while underlying EBIT of £100.4m marginally
improved compared to the prior period; reflecting strong results in rental
profits being partially offset by an expected decrease in disposal profits.
The statutory EBIT includes a £7.9m cost for adjustments to depreciation
rates (H1 2025: £13.9m) and £8.7m amortisation on acquired intangible assets
(H1 2025: £9.2m). There were no exceptional administrative expenses
recognised in the period (H1 2025: £2.8m).
Rental profit increased 15.2% to £68.1m (H1 2025: £59.1m) driven by growth
in both the UK&I and Spain.
Total disposal profits for the period of £18.8m were 27.4% lower than the
prior period with 15,800 vehicles sold (H1 2025: 17,200). This includes 1,600
sales of ex-leased vehicles, ex-Auxillis fleet cars and other non-fleet
vehicles through the UK&I Rental sales channels (H1 2025: 2,800).
3 Calculated as underlying EBIT divided by total revenue (excluding vehicle
sales)
UK&I Rental
Half year ended 31 October H1 2026 H1 2025 Change
Underlying financial results £m £m %
Revenue - vehicle hire(4) 208.3 195.6 6.5%
Revenue - vehicle sales 70.4 93.1 (24.3%)
Total revenue 278.7 288.6 (3.4%)
Rental profit 35.1 30.8 14.2%
Rental margin % 16.9% 15.7% 1.2ppt
Disposal profit 5.9 13.6 (57.1%)
Underlying EBIT 41.0 44.4 (7.7%)
EBIT margin %(5) 19.7% 22.7% (3.0ppt)
ROCE % 11.1% 13.1% (2.0ppt)
KPIs ('000) ('000) %
Average VoH 42.6 43.8 (2.6%)
Closing VoH 43.4 44.6 (2.8%)
Average utilisation % 91% 91% -ppt
Rental revenue increased by 6.5% compared to the prior period, with underlying
demand strong and supporting increased average revenue per vehicle together
with growth in ancillary income. A combination of vehicle mix, carefully
managed pricing actions and a continued focus on utilisation, more than offset
a modest reduction in average VoH in the period, due principally through
continued refocus within the lower margin broker channel.
Demand from larger fleets included incremental orders for 1,250 vehicles from
eight fleet customers across the utility, infrastructure and public sectors.
Many were also seeking additional services such as EV consulting, fleet
management, fuel cards and telematics. New business account openings from the
prior year also delivered strong VoH demand from this segment. Customer
satisfaction remained high, with Trustpilot scores reaching 4.9/5 in October.
The programme of fleet recycling continued through the period and resulted in
an average fleet age of 2.2 months lower than at the FY 2025 year end. As
expected, disposal profits reduced through a combination of 2,400 lower
vehicle disposals and lower PPUs, sold into a receptive market supported by
stable residual values.
Rental profits rose 14.2%, and higher rental margins reflected strong
performance, cost control across the underlying rental businesses and a
continued focus on demand from higher margin channels. Our rental businesses
were all at or above the medium-term target range; and the period also
included a one-off revenue recognition relating to adjustments in a single
customer contract.
Our specialist vehicle capabilities in traffic management and refrigerated
vehicles have been enhanced through the broadening of the vehicle range,
together with an expanding national presence with locations being opened
within five existing Northgate branches. Our 'One Road' programme has also
driven mainstream LCV rental growth, and a significant increase in interest in
our Fleet Management proposition, with an increase of over 50% in the period
to over 7,500 vehicles under management.
Two new branch locations are nearing completion in the coming months,
replacing older sites with modern efficient facilities and technologies.
This was supported by a close focus on technician training and retention in
what is an industry-wide shortage, offering career progression through a new
Master Technician Pathway, from apprentice to expert level.
4 Including intersegment revenue of £5.3m (H1 2025: £4.2m)
5 Calculated as underlying EBIT divided by total revenue (excluding vehicle
sales)
Rental business
Vehicle hire revenue in UK&I Rental was £208.3m (H1 2025: £195.6m), an
increase of 6.5%. A 9.4% increase in average revenue per vehicle reflected mix
of vehicle, product and hire length as well as applied rate increases,
partially offset by a 2.6% reduction in average VoH. Rental profits were
£35.1m compared to £30.8m in the prior period.
Average VoH of 42,600 was 1,200 lower than the prior period (H1 2025: 43,800)
with closing VoH of 43,400 decreasing by 1,200 since 31 October 2024 largely
driven by a restructuring of our broker channel approach.
UK&I Rental's minimum term proposition accounted for 45% of average VoH
(H1 2025: 41%). The average term of these contracts is approximately two
years, providing both improved visibility of future rental revenue and
earnings, as well as lower transactional costs.
Management of fleet and vehicle sales
The closing UK&I Rental fleet was 46,400 compared to 45,400 at 30 April
2025. During the period, 7,300 vehicles were purchased (H1 2025: 8,100) and
6,800 vehicles were de-fleeted (H1 2025: 7,200) and there were other movements
of 500 vehicles (H1 2025: 400) including leased vehicles and transfers from
the Claims & Services fleet.
The average age of the fleet at the end of the period was 2.2 months lower
than at 30 April 2025 and 5.4 months lower than 31 October 2024 as the ease in
vehicle supply constraints continued throughout FY 2025 and the oldest cohort
of the fleet was refreshed. The fleet composition continues to be monitored in
response to VoH demand.
A total of 8,400 vehicles were sold in UK&I Rental during the period,
21.8% lower than the prior period (H1 2025: 10,800 vehicles) including 1,300
fewer cars and other non-fleet vehicles sold via Van Monster which had been
defleeted from the Claims & Services fleet. Disposal profits of £5.9m (H1
2025: £13.6m) were 57.1% lower than prior period due to a decrease in volumes
coupled with a reduction in the underlying LCV PPU to £800 (H1 2025: £1,600)
which reduced throughout FY 2025 but has been stable since year end.
Spain Rental
Half year ended 31 October H1 2026 H1 2025 Change
Underlying financial results £m £m %
Revenue - vehicle hire 170.7 146.8 16.3%
Revenue - vehicle sales 41.3 35.1 17.7%
Total revenue 212.0 181.9 16.5%
Rental profit 33.0 28.3 16.3%
Rental margin % 19.3% 19.3% -ppt
Disposal profit 12.9 12.2 5.8%
Underlying EBIT 45.9 40.5 13.1%
EBIT margin %(6) 26.9% 27.6% (0.7ppt)
ROCE % 11.8% 12.0% (0.2ppt)
KPIs ('000) ('000) %
Average VoH 66.1 59.6 11.0%
Closing VoH 67.0 61.0 9.8%
Average utilisation % 92% 91% 1ppt
The Spanish Rental business continued to deliver excellent growth, with rental
revenue up 16.3% as rental solutions grew market share from ownership with
strength both in flexible rental, and in minimum term in particular during the
period. This was driven by its unique market offering, strong value
proposition and favourable macro-economic conditions. Closing VoH rose 9.8%
since 31 October 2024 as the fleet size increased to 74,900 at the end of the
period (H1 2025: 69,600) reflecting 6% of total Spanish rental vehicles on the
road.
Our premium service-focused minimum-term product proved attractive when
compared to more traditional proposals. A notable contract win from the main
provider of railway infrastructure maintenance will commence LCV deliveries in
February 2026.
Rental profit growth of 16.3% was helped by VoH growth combined with strong
cost control both in repairs and overheads. Rental margin at 19.3% was
stable on the prior period, with higher depreciation costs offset by rate
increases and efficiencies including our internal repair network delivering
per-vehicle repair costs 3% lower than the prior year. Ancillary services grew
by 16%, with nearly 15,900 vehicles in the fleet equipped with telematics.
Disposal profits rose 5.8% reflecting continued recycling of the fleet into a
receptive market with a car parc significantly older than other more mature
European markets. Trade buyers have embraced the new features within the new
e-auction site. Since the end of FY 2025, average fleet age reduced 0.7 months
to 26.7 months, principally reflecting growth of new vehicles and carefully
managed defleets.
Facility investments focused on managing service capacity and meeting the
demands of a rapidly growing fleet, ensuring a continued high level of
customer service, with the new Madrid delivery hub specifically targeting
reducing the wait time for new rentals. A second hub is planned for Barcelona
reflecting the success of this initiative. Two new service centres were opened
in the period, in Tarragona and Ciudad Real, enhancing customer service in
these provinces, while also lowering operational costs.
6 Calculated as underlying EBIT divided by total revenue (excluding vehicle
sales)
Rental business
Vehicle hire revenue in Spain Rental was £170.7m (H1 2025: £146.8m), an
increase of 16.3% (13.4% in local currency). Average VoH increased 11.0% and
closing VoH increased 9.8% to 67,000.
Spain Rental's minimum term proposition accounted for 38.5% (H1 2025: 37%) of
average VoH. The average term of these contracts is approximately three years,
providing visibility of future rental revenue and earnings.
Rental profit increased by 16.3% in the period (13.5% in constant currency) to
£33.0m (H1 2025: £28.3m). This resulted in a rental margin of 19.3% in line
with prior period, with strong revenue growth and favourable direct labour and
repair costs supported by a younger fleet, offset by increased depreciation
charges due to increased purchase price of vehicles post-pandemic.
Management of fleet and vehicle sales
The closing Spain Rental fleet amounted to 74,900 compared to 71,900 vehicles
at 30 April 2025. During the period 10,000 vehicles were purchased (H1 2025:
10,700) and 7,000 vehicles were de-fleeted (H1 2025: 6,200 vehicles). The
average age of the fleet at the end of the period was 2.1 months lower than at
the same time last year and 0.7 months lower since 30 April 2025. We continue
to replace our older cohort vehicles whilst balancing VoH demand and growing
the fleet.
Disposal profits of £12.9m (H1 2025: £12.2m) increased 5.8% with total
vehicle sales of 6,900, 7.9% higher than prior period and PPUs marginally
lower as the Spanish used vehicle market remains strong as well as being
supported by internal investment in our e-auction platform.
Claims & Services
Half year ended 31 October H1 2026 H1 2025 Change
Underlying financial results £m £m %
Revenue - claims and services(7) 441.8 442.1 (0.1%)
Revenue - vehicle sales(8) 20.8 27.1 (23.3%)
Total revenue 462.6 469.2 (1.4%)
Gross profit 80.5 79.7 0.9%
Gross margin%(9) 18.2% 18.0% 0.2ppt
Operating profit 18.1 17.4 3.7%
Income from associates 0.6 0.2 249.4%
Underlying EBIT 18.7 17.6 6.0%
EBIT margin % 4.2% 4.0% 0.2ppt
ROCE % 21.6% 17.3% 4.3ppt
Claims and services revenue was consistent with the prior period, with vehicle
sales revenue lower due to reduced fleet disposal volumes but stable residual
values. We saw stability in our key measures of vehicle hire length, repair
conversions and improved repair cycle times. Volumes softened in the personal
lines motor segment, particularly for lower-value incidents, while fleet
sector activity held steady closer to historic norms. We believe this market
disparity principally reflected retail consumer decisions regarding making
smaller discretionary claims.
A number of new contracts and extensions were secured during the period,
including from major partners, which will support future growth. Howden
Insurance went live in October with their Consumer & Local Commercial
division, recognising our market-leading client service, strong culture and
expertise. A contract renewal with longstanding partner Tesco Insurance
highlights the strength of our integrated platform, and we expanded the range
of services such as roadside recovery or third party intervention with other
major partners including DLG.
While there has been greater capacity within the overall repair market, we
have successfully maintained our internal repair volumes, helped by our
end-to-end management within the repair process, supporting bodyshop
productivity.
The business has had a strong focus on delivering operational efficiencies to
match changing claims volumes which has helped to protect margin, with EBIT
margin and ROCE improving from the prior period. We also took opportunities
for capacity growth and higher productivity through targeted investments.
This programme has included the upgrading of the Cardiff bodyshop and a new
vehicle recovery operations centre. A programme to double our mobile repair
fleet will provide greater capacity and flexibility at individual bodyshop
level. We have also commenced the rollout of an advanced call-centre platform
which over time will bring AI-enabled solutions and in-call efficiencies to
our customer engagement.
Our legal services business, NewLaw, successfully disposed of a portion of its
activities, but overall remained loss-making as it carefully manages its
claims run-off programme. There remains a clear operational focus on tracking
overheads to the reducing claims book.
7 Including intersegment revenue of £5.5m (H1 2025: £5.3m)
8 Including intersegment revenue of £12.9m (H1 2025: £26.6m)
9 Gross profit margin calculated as underlying gross profit divided by total
revenue (excluding vehicle sales). EBIT margin calculated as underlying EBIT
divided by total revenue (excluding vehicle sales)
Revenue and profit
Revenue for the period (excluding vehicle sales) was in line with the prior
period at £441.8m (H1 2025: £442.1m) due to lower claims volumes but stable
repair volumes.
Gross margin of 18.2% increased 0.2ppt (H1 2025: 18.0%) but has been impacted
by losses in NewLaw in the period as it manages its claims run-off programme.
EBIT for the period increased 6.0% to £18.7m (H1 2025: £17.6m) with
improvements in operating efficiencies across the segment, particularly within
the bodyshop network, offsetting losses in NewLaw as the claims book is manged
down.
Management of fleet
The total fleet in Claims & Services closed the period at 13,900 vehicles,
down from 14,300 at 30 April 2025 with the lower fleet reflecting reduced
credit hire volumes.
The average fleet age at the end of the period was 13.0 months compared to
14.7 months as at 30 April 2025 and 14.8 months at 31 October 2024, reflecting
the shorter fleet holding period than in the UK&I and Spain rental
businesses due to the different composition of the fleet and usage of those
vehicles.
The Claims & Services fleet operates a hybrid financing approach including
ownership, leasing and, during peak periods, cross-hiring when needed.
Group PBT and EPS
Half year ended 31 October H1 2026 H1 2025 Change Change
£m £m £m %
Underlying EBIT 100.4 99.1 1.3 1.4%
Net finance costs (18.7) (17.1) (1.6) 9.9%
Underlying profit before taxation 81.7 82.0 (0.3) (0.4%)
Statutory profit before taxation 65.0 56.2 8.9 15.8%
Underlying effective tax rate 24.0% 23.4% - 0.6ppt
Underlying EPS 27.6p 28.1p (0.5p) (1.8%)
Statutory EPS 22.0p 19.4p 2.6p 13.4%
Profit before taxation
Underlying profit before taxation was broadly in line with prior period with
growth in underlying EBIT offset by higher net finance costs. Statutory PBT
was 15.8% higher due to a reduction in adjustments to depreciation rates on
certain fleet of £6.0m, a reduction in exceptional administrative expenses of
£2.8m and a decrease of £0.5m in amortisation of acquired intangibles.
Exceptional items
There were no items recognised as exceptional in the period (H1 2025: £2.8m).
Amortisation of acquired intangibles and depreciation rate changes
Amortisation of acquired intangibles and adjustments to underlying
depreciation charges are not exceptional items as they are recurring.
However, these items are excluded from underlying results in order to provide
a better comparison of performance of the Group. The total amortisation of
acquired intangibles charged in the period was £8.7m (H1 2025: £9.2m).
As previously reported, a decision was made to reduce depreciation rates from
1 May 2022 on certain vehicles remaining on the fleet which were purchased
before FY 2021 and this impact has not been included underlying results. The
total adjustment made to underlying depreciation in the period was a cost of
£7.9m (H1 2025: £13.9m). The net adjustment is materially in line with
expectations set out in the FY 2025 Annual Report.
Interest
Net finance charges increased to £18.7m (H1 2025: £17.1m) due to higher
average debt compared to the prior period. Interest rates are significantly
sheltered due to holding 83% of borrowing as fixed rate debt.
Taxation
The Group's underlying tax charge was £19.6m (H1 2025: £19.2m) and the
underlying effective tax rate was 24.0% (H1 2025: 23.4%) with the prior period
including certain one-off adjustments to the tax charge due to the timing and
composition of fleet replacements. The statutory effective tax rate was 23.8%
(H1 2025: 22.7%).
Earnings per share
Underlying EPS of 27.6p slightly decreased, being 0.5p lower than prior
period, reflecting marginally lower earnings due to the impact of the
effective tax rate increase. Statutory EPS of 22.0p was 2.6p higher,
reflecting the movement on items that are excluded from underlying profit.
Dividend
The Board has declared an interim dividend of 8.8p per share (H1 2025: 8.8p)
to be paid on 9 January 2026 to shareholders on the register as at close of
business on 12 December 2025.
The interim dividend represents 50% of the final dividend for the year ended
30 April 2025 in line with previous guidance.
Group cash flow
Half year ended 31 October H1 2026 H1 2025 Change
£m £m £m
Underlying EBIT 100.4 99.1 1.3
Underlying depreciation and amortisation 145.6 129.5 16.1
Underlying EBITDA 246.0 228.6 17.4
Net replacement capex(10) (172.3) (178.9) 6.6
Lease principal payments(11) (25.1) (29.4) 4.3
Steady state cash generation 48.6 20.3 28.3
Working capital and non-cash items 26.0 38.5 (12.5)
Exceptional cash costs - (2.8) 2.8
Growth capex(10) (73.6) (53.5) (20.1)
Taxation (12.1) (7.1) (5.0)
Net operating cash (11.1) (4.6) (6.5)
Distributions from associates 0.6 - 0.6
Interest and other financing (15.6) (15.9) 0.3
Free cash flow (26.1) (20.5) (5.6)
Dividends paid (39.6) (39.3) (0.3)
Payments to acquire treasury shares - (5.3) 5.3
Add back: lease principal payments(12) 25.1 29.4 (4.3)
Net cash consumed (40.6) (35.7) (4.9)
Steady state cash generation
Steady state cash generation increased to £48.6m (H1 2025: £20.3m), with
strong underlying EBITDA coupled with a £6.6m decrease in net replacement
capex.
Working capital and non-cash items
Working capital and non-cash items reduced by £12.5m to a cash inflow of
£26.0m (H1 2025: £38.5m) with working capital improvements in UK&I and
Spain and C&S benefitting from bulk settlements of claims in the prior
period.
(10) Net replacement capex is total net capex less growth capex. Growth capex
represents the cash consumed in order to grow the fleet or the cash generated
if the fleet size is reduced in periods of contraction
(11) Lease principal payments are included so that steady state cash
generation includes all maintenance capex irrespective of funding method
(12) Lease principal payments are added back to reflect the movement on net
debt
Net capital expenditure
Net capital expenditure increased by £13.5m to £245.9m (H1 2025: £232.4m)
due to a £20.1m increase in growth capex(10) being partially offset by a
£6.6m decrease in net replacement capex(10).
Net replacement capex(10) was £172.3m (H1 2025: £178.9m), £6.6m lower than
the prior period comprising a £17.5m decrease in UK&I, a £3.1m decrease
in Claims & Services, partially offset by a £14.0m increase in Spain.
Growth capex(10) of £73.6m (H1 2025: £53.5m) comprised £49.6m in Spain,
£10.7m in UK&I Rental and £13.3m in Claims & Services with fleet
growth in each segment since 30 April 2025.
Lease principal payments of £25.1m (H1 2025: £29.4m) decreased by £4.3m as
legacy hire purchase contracts from acquisitions were run off.
Free cash flow
Free cash flow is stated after taking account of investments in the fleet that
have been made in the period which will return future cash flow at a
sustainable rate of return ahead of our cost of capital.
Free cash flow decreased by £5.6m to an outflow of £26.1m (H1 2025: £20.5m
outflow) and reflects investment in net replacement capex of £172.3m, capex
lease payments of £25.1m and growth capex of £73.6m.
Net cash consumed
Net cash consumed of £40.6m (H1 2025: £35.7m), excluding principal lease
payments of £25.1m (H1 2025: £29.4m), comprises free cash outflow of £26.1m
(as above), £39.6m of dividends paid (H1 2025: £39.3m) with the prior period
including £5.3m for purchase of treasury shares. Leverage has increased to
1.9x from 1.8x at 30 April 2025 in line with expectations.
Net debt
Net debt reconciles as follows:
H1 2026 H1 2025
£m £m
Opening net debt at 1 May 836.7 742.2
Net cash consumed 40.6 35.7
Other non-cash items 38.6 15.4
Exchange differences 23.4 (10.8)
Closing net debt at 31 October 939.3 782.5
Closing net debt was £156.8m higher than net debt at 30 April 2025, driven by
net cash consumption of £40.6m and other non-cash items of £38.6m including
the recognition of new leases. The foreign exchange impact on net debt was a
£23.4m increase. The net book value of fleet on the balance sheet at 31
October 2025 was £1.68bn compared to £1.51bn at 30 April 2025.
Borrowing facilities
As at 31 October 2025 the Group had headroom on facilities of £341m, with
£794m drawn (net of available cash balances) against total facilities of
£1,135m as detailed below:
Facility Drawn Headroom Maturity Borrowing
£m £m £m Cost
UK bank facilities 523 211 312 Apr-30 4.3%
Loan notes 498 498 - Nov 27 - Oct 34 2.4%
Asset financing facility 100 75 25 Oct 26 5.4%
Other loans 14 10 4 Nov 26 2.9%
1,135 794 341 3.2%
The above drawn amounts reconcile to net debt as follows:
Drawn
£m
Borrowing facilities 794
Unamortised finance fees (7)
Leases 152
Net debt 939
There are three financial covenants under the Group's facilities as follows:
Threshold Oct-25 Headroom Oct-24
Interest cover 3x 6.8x £109m (EBIT) 7.4x
Loan to value 70% 44% £464m (net debt) 41%
Debt leverage 3x 1.9x £161m (EBITDA) 1.6x
The covenant calculations have been prepared in accordance with the
requirements of the facilities to which they relate.
Balance sheet
Net assets at 31 October 2025 were £1,083.9m (FY 2025: £1,063.2m),
equivalent to net assets per share of 480p (FY 2025: 473p). Net tangible
assets at 31 October 2025 were £886.6m (FY 2025: £856.9m), equivalent to a
net tangible asset value of 393p per share (FY 2025: 381p per share).
Gearing at 31 October 2025 was 105.9% (FY 2025: 97.6%) and ROCE was 11.9% (FY
2025: 12.6%).
Going concern
Having considered the Group's current trading, cash flow generation and debt
maturity, the Directors have concluded that it is appropriate to prepare the
Group financial statements on a going concern basis.
Risks and uncertainties
The Board and the Group's management have clearly defined responsibility for
identifying the major business risks facing the Group and for developing
systems to mitigate and manage those risks.
The principal risks and uncertainties facing the Group at 30 April 2025 were
set out in detail on pages 58 to 63 of the FY 2025 Annual Report, a copy of
which is available at www.zigup.com (http://www.zigup.com) , and were
identified as:
· The world we live in
· Our markets and customers
· Fleet availability
· Our people
· Regulatory environment
· Technology and digitalisation
· Recovery of contract assets
· Access to capital
These principal risks have not changed since the last Annual Report and
continue to be those that could impact the Group during the second half of the
current financial year.
Alternative performance measures and glossary of terms
A reconciliation of statutory to underlying Group performance is outlined at
the front of this document. A reconciliation of underlying cash flow measures
and additional alternative performance measures used to assess performance of
the Group is shown below.
Six months Six months
to 31.10.25 to 31.10.24
£m £m
Underlying EBIT 100.4 99.1
Add back:
Depreciation of property, plant and equipment 153.0 142.7
Depreciation rate change adjustments not in underlying operating profit (7.9) (13.9)
Intangible amortisation included in underlying operating profit (Note 6) 0.8 0.7
Gain on disposal of other property, plant and equipment (0.3) -
Underlying EBITDA 246.0 228.6
Net replacement capex(1) (172.3) (178.9)
Lease principal payments (25.1) (29.4)
Steady state cash generation 48.6 20.3
Working capital and non-cash items 26.0 38.5
Exceptional cash costs - (2.8)
Growth capex(2) (73.6) (53.5)
Taxation (12.1) (7.1)
Net operating cash (11.1) (4.6)
Distributions from associates 0.6 -
Interest and other financing costs (15.6) (15.9)
Free cash flow (26.1) (20.5)
Payments to acquire treasury shares - (5.3)
Dividends paid (39.6) (39.3)
Add back: lease principal payments(3) 25.1 29.4
Net cash consumed (40.6) (35.7)
Reconciliation to cash flow statement:
Net increase in cash and cash equivalents 8.4 6.2
Add back:
Receipt of bank loans and other borrowings (81.0) (159.1)
Repayments of bank loans and other borrowings 6.9 87.8
Principal element of lease payments 25.1 29.4
Net cash consumed (40.6) (35.7)
Reconciliation of capital expenditure
Purchases of vehicles for hire 347.9 340.7
Proceeds from disposals of vehicles for hire (106.5) (115.8)
Proceeds of disposal of other property, plant and equipment (0.9) (0.5)
Purchases of other property plant and equipment 5.1 6.5
Purchases of intangible assets 0.3 1.5
Net capital expenditure 245.9 232.4
Net replacement capex(1) 172.3 178.9
Growth capex(2) 73.6 53.5
Net capital expenditure 245.9 232.4
(1) Net capital expenditure other than that defined as growth capex
(2) Growth capex represents the cash consumed in order to grow the total owned
fleet or the cash generated if the owned fleet size is reduced in periods of
contraction
(3)Lease principal payments are added back to reflect the movement on net debt
UK&I Rental Spain Rental Group
6 months to 31.10.25 6 months to 31.10.25 Sub-total
£000 £000 6 months to 31.10.25
£000
Underlying operating profit(1) 40,974 45,853 86,827
Exclude:
Adjustments to underlying depreciation charge in relation to vehicles sold in (5,860) (12,899) (18,759)
the period and profit on sale of directly acquired vehicles
Rental profit 35,114 32,954 68,068
Divided by: Revenue: hire of vehicles(2) 208,250 170,687 378,937
Rental margin 16.9% 19.3% 18.0%
UK&I Rental Spain Rental Group
6 months to 31.10.24 6 months to 31.10.24 Sub-total
£000 £000 6 months to 31.10.24
£000
Underlying operating profit(1) 44,401 40,525 84,926
Exclude:
Adjustments to underlying depreciation charge in relation to vehicles sold in (13,644) (12,189) (25,833)
the period and profit on sale of directly acquired vehicles
Rental profit 30,757 28,336 59,093
Divided by: Revenue: hire of vehicles(2) 195,559 146,812 342,371
Rental margin 15.7% 19.3% 17.3%
(1) See Note 2 to the financial statements for reconciliation of segment
underlying operating profit to Group underlying operating profit.
(2) Revenue: hire of vehicles including intersegment revenue (see Note 2 to
the financial statements).
Number of vehicles UK&I Rental Spain Rental C&S Group sub-total
6 months to 31.10.2025 6 months to 31.10.2025 6 months to 31.10.2025 6 months to 31.10.2025
Opening fleet as at 30 April 2025* 47,200 73,200 14,300 134,700
Purchases 7,300 10,000 2,000 19,300
Disposals (6,800) (6,900) (1,200) (14,900)
Transfers 400 - (400) -
Movements on direct vehicles (300) - - (300)
Movement on leased vehicles - - (800) (800)
Closing fleet as at 31 October 2025* 47,800 76,300 13,900 138,000
Closing owned fleet 43,100 74,900 5,100 123,100
Closing leased fleet 3,300 - 8,800 12,100
Closing total fleet (ex-sales stock) 46,400 74,900 13,900 135,200
Closing sales stock 1,300 1,500 - 2,800
Purchases for growth 500 3,100 800 4,400
Sales in contraction - - - -
Growth in owned fleet for growth capex** 500 3,100 800 4,400
Purchases for replacement 6,800 6,900 1,200 14,900
Sales for replacement (6,800) (6,900) (1,200) (14,900)
Net replacements - - - -
Disposals 6,800 6,900 1,200 14,900
Exclude: intercompany sales - - (700) (700)
Sale of ex-C&S fleet, ex-leased stock and directly acquired vehicles 1,600 - - 1,600
Total external vehicle sales 8,400 6,900 500 15,800
* Including sales stock
** Growth in owned fleet includes movement on sales stock and excludes
vehicles held under leasing
Number of vehicles UK&I Rental Spain Rental C&S Group sub-total
6 months to 31.10.2025 6 months to 31.10.2025 6 months to 31.10.2025 6 months to 31.10.2025
Purchases 7,300 10,000 2,000 19,300
Disposals (6,800) (6,900) (1,200) (14,900)
Purchases for growth 500 3,100 800 4,400
Sales in contraction - - - -
Growth in owned fleet for growth capex 500 3,100 800 4,400
Volume of replacements 6,800 6,900 1,200 14,900
Extracts from cashflow: outflow (inflow) £m £m £m £m
Underlying EBITDA*** 100.5 107.8 42.7 251.0
Growth capex 10.7 49.7 13.2 73.6
Net replacement capex 100.6 71.6 0.1 172.3
Net capex 111.3 121.3 13.3 245.9
Proceeds of disposals of vehicles for hire (47.6) (37.9) (21.0) (106.5)
Purchases of vehicles for hire 157.6 157.4 32.9 347.9
Other net capex 1.3 1.8 1.4 4.5
Net capex 111.3 121.3 13.3 245.9
***Excludes corporate costs of (£5.0)m
Glossary of terms
The following defined terms have been used throughout this document:
Term Definition
Auxillis A trading name used by the Claims & Services segment. A business which
generates revenue from insurance claims and services
API solutions A set of protocols and tools that allow different software applications to
communicate with each other
BVRLA A UK trade association representing companies engaged in vehicle rental,
leasing and fleet management
Capex Capital expenditure
Capital employed Net assets excluding net debt, goodwill and acquired intangible assets, and
the adjustment to net book values for changes to depreciation rates which have
not been reflected in the underlying results.
Claims & Services The Claims & Services operating segment representing the insurance claims
and services part of the Group providing a range of mobility solutions
Company ZIGUP plc
Disposal profit(s) This is a non-GAAP measure used to describe the adjustment in the depreciation
charge made in the period for vehicles sold at an amount different to their
net book value at the date of sale (net of attributable selling costs)
EBIT Earnings before interest and taxation. Underlying unless otherwise stated
EBIT margin Calculated as EBIT divided by revenue (excluding vehicle sales)
EBITDA Earnings before interest, taxation, depreciation and amortisation
e-LCV(s) Electrically powered LCV(s)
EPS Earnings per share. Underlying unless otherwise stated
EV(s) Electric vehicle(s)
Facility headroom Calculated as borrowing facilities of £1,135m less net borrowings of £794m.
Net borrowings represent net debt of £939m excluding lease liabilities of
£152m and unamortised arrangement fees of £7m.
FMG RS A business within the Claims & Services operating segment, providing
vehicle repair services
Free cash flow Net cash generated after principal lease payments and before share buybacks
and the payment of dividends
FY 2025 The year ending 30 April 2025
GAAP Generally Accepted Accounting Principles: meaning compliance with IFRS
Gearing Calculated as net debt divided by net tangible assets
Group The Company and its subsidiaries
Growth capex Growth capex represents the cash consumed in order to grow the total owned
rental fleet or the cash generated if the fleet size is reduced in periods of
contraction
H1 2025 The six month period ended 31 October 2024
H1 2026 The six month period ended 31 October 2025
H2 2025 The six month period ended 30 April 2025
H1/H2 Half year period: H1 being the first half and H2 being the second half of the
financial year
ICE vehicles Vehicles powered by an internal combustion engine
IFRS International Financial Reporting Standards
Income from associates The Group's share of net profits of associates accounted for using the equity
method
LCV(s) Light commercial vehicle(s): the official term used within the UK and European
Union for a commercial carrier vehicle with a gross vehicle weight of not more
than 3.5 tonnes
Leverage Net debt divided by rolling 12 month EBITDA, calculated in accordance with the
Group's debt facility arrangements on a pre IFRS 16 basis
Net replacement capex Net capital expenditure other than that defined as growth capex and lease
principal payments
Net tangible assets Net assets less goodwill and other intangible assets
NewLaw A business within the Claims & Services operating segment providing legal
services
OEM(s) Original equipment manufacturer(s): a reference to the Group's vehicle
suppliers
PBT Profit before taxation. Underlying unless otherwise stated
PPU Profit per unit/loss per unit - this is a non-GAAP measure used to describe
disposal profit (as defined), divided by the number of vehicles sold
Rental margin Calculated as rental profit divided by revenue (excluding vehicle sales)
within the UK&I Rental and Spain Rental parts of the Group
Rental profit(s) EBIT excluding disposal profits within the UK&I Rental and Spain Rental
parts of the Group
ROCE Underlying return on capital employed: calculated as underlying EBIT (see
non-GAAP reconciliation) divided by average capital employed
Spain Rental The Spain Rental operating segment located in Spain and providing commercial
vehicle hire and ancillary services
Spain/Spanish Referring to the Spain Rental operating segment
Steady state cash generation Underlying EBITDA less net replacement capex and lease principal payments
Trustpilot An independent digital platform for consumers to share experiences of
interactions with businesses
UK&I Referring to the UK&I Rental operating segment
UK&I Rental The UK&I Rental operating segment located in the United Kingdom and the
Republic of Oreland providing commercial vehicle hire and ancillary services
Utilisation Calculated as the average number of vehicles on hire divided by average
rentable fleet in any period
Van Monster A trading name within the UK&I segment. The part of the UK&I segment
that manages external vehicle sales
VoH Vehicles on hire. Average unless otherwise stated
ZIGUP The Group
Condensed consolidated income statement
for the six months ended 31 October 2025
Six months Six months Year to
to 31.10.25 to 31.10.24 30.04.25
(Unaudited) (Unaudited) (Audited)
Notes £000 £000 £000
Revenue: hire of vehicles 2 373,656 338,208 682,888
Revenue: sale of vehicles 2 119,712 128,663 257,600
Revenue: claims and services 2 436,281 436,768 872,156
Total revenue 2 929,649 903,639 1,812,644
Cost of sales (719,459) (709,160) (1,414,745)
Gross profit 210,190 194,479 397,899
Administrative expenses (excluding exceptional items) (123,189) (114,710) (232,497)
Net impairment of trade receivables (excluding exceptional items) (3,783) (3,937) (8,417)
Exceptional administrative expenses: impairment of trade receivables - - (3,006)
Exceptional administrative expenses: other operating costs 11 - (2,758) (17,617)
Total administrative expenses (126,972) (121,405) (261,537)
Operating profit 83,218 73,074 136,362
Share of net profit of associates accounted for using the equity method 2,8 580 166 170
EBIT 2 83,798 73,240 136,532
Finance income 573 935 1,495
Finance costs (19,342) (18,014) (36,559)
Profit before taxation 65,029 56,161 101,468
Taxation 3 (15,451) (12,744) (21,623)
Profit for the period 49,578 43,417 79,845
Profit for the period is wholly attributable to owners of the Company. All
results arise from continuing operations.
Earnings per share
Basic 4 22.0p 19.4p 35.6p
Diluted 4 21.2p 18.9p 34.9p
Condensed consolidated statement of comprehensive income
for the six months ended 31 October 2025
Six months Six months Year to
to 31.10.25 to 31.10.24 30.04.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Amounts attributable to owners of the Company
Profit attributable to owners 49,578 43,417 79,845
25,525 (10,810) 1,413
Other comprehensive income (expense)
Foreign exchange differences on retranslation of net assets of subsidiary
undertakings
Foreign exchange differences on long term borrowings held as hedges (19,788) 7,774 (1,859)
Foreign exchange difference on revaluation reserve 39 (20) (2)
Net fair value gain (loss) on cash flow hedges 4 (120) (104)
Deferred tax (charge) credit recognised directly in equity relating to cash (1) 30 26
flow hedges
Total other comprehensive income (expense) for the period 5,779 (3,146) (526)
Total comprehensive income for the period 55,357 40,271 79,319
All items will subsequently be reclassified to the consolidated income
statement.
Condensed consolidated balance sheet
As at 31 October 2025
31.10.25 31.10.24 30.04.25
(Unaudited) (Unaudited) (Audited)
Note £000 £000 £000
Non-current assets
Goodwill 6 111,906 115,918 111,906
Other intangible assets 6 85,240 102,617 94,336
Property, plant and equipment 7 1,856,842 1,606,091 1,683,456
Deferred tax assets 1,769 1,750 1,095
Interest in associates 8 - 4,651 -
Total non-current assets 2,055,757 1,831,027 1,890,793
Current assets
Inventories 26,306 25,541 28,509
Receivables and contract assets 372,520 408,634 378,147
Derivative financial instrument assets 65 - -
Income tax assets 5,939 2,077 4,202
Cash and bank balances 9 39,575 15,116 33,738
Total current assets 444,405 451,368 444,596
Total assets 2,500,162 2,282,395 2,335,389
Current liabilities
Trade and other payables 369,794 380,727 340,450
Provisions 5,048 6,495 4,738
Derivative financial instrument liabilities 61 16 -
Income tax liabilities 8,198 1,023 238
Lease liabilities 43,435 45,950 39,507
Borrowings 43,280 22,159 54,367
Total current liabilities 469,816 456,370 439,300
Net current (liabilities) assets (25,411) (5,002) 5,296
Non-current liabilities
Income tax liabilities - - 2,549
Provisions 10,652 8,852 10,323
Lease liabilities 108,387 103,000 98,473
Borrowings 783,725 626,486 678,086
Deferred tax liabilities 43,718 46,978 43,501
Total non-current liabilities 946,482 785,316 832,932
Total liabilities 1,416,298 1,241,686 1,272,232
NET ASSETS 1,083,864 1,040,709 1,063,157
Equity
Share capital 12 118,046 123,046 123,046
Share premium account 113,510 113,510 113,510
Treasury shares reserve 12 (26,483) (72,821) (72,820)
Own shares reserve (9,858) (4,461) (3,740)
Translation reserve (1,468) (9,795) (7,205)
Other reserves 335,496 330,424 330,454
Retained earnings 554,621 560,806 579,912
TOTAL EQUITY 1,083,864 1,040,709 1,063,157
Total equity is wholly attributable to owners of the
Company.
Condensed consolidated cash flow statement
for the six months ended 31 October 2025
Six months Six months Year to
to 31.10.25 to 31.10.24 30.04.25
(Unaudited) (Unaudited) (Audited)
Note £000 £000 £000
Cash generated from operations 10 272,103 264,287 509,730
Income taxes paid, net (12,131) (7,108) (18,255)
Interest paid (18,392) (17,079) (34,855)
Net cash generated from operations before purchases of and proceeds from 241,580 240,100 456,620
disposals of vehicles for hire
Purchases of vehicles for hire (347,939) (340,656) (672,744)
Proceeds from disposals of vehicles for hire 106,522 115,810 232,576
Net cash generated from operations 163 15,254 16,452
Investing activities
Interest received 573 935 1,495
Distributions from associates 8 580 17 476
Proceeds from disposal of other property, plant and equipment 886 429 965
Purchases of other property, plant and equipment (5,145) (6,520) (11,106)
Purchases of other intangible assets (281) (1,496) (3,098)
Net cash used in investing activities (3,387) (6,635) (11,268)
Financing activities
Dividends paid (39,579) (39,273) (59,042)
Receipt of bank loans and other borrowings 81,018 159,131 212,685
Repayments of bank loans and other borrowings (6,914) (87,807) (87,680)
Debt issue costs paid - - (4,022)
Principal element of lease payments (25,123) (29,384) (59,501)
Payments to acquire treasury shares - (5,333) (5,332)
Proceeds from sale of own shares 2,208 208 263
Net cash generated from (used in) financing activities 11,610 (2,458) (2,629)
Net increase decrease in cash and cash equivalents 8,386 6,161 2,555
Cash and cash equivalents at the beginning of the period (3,870) (6,818) (6,818)
Effect of foreign exchange movements 741 (594) 393
Cash and cash equivalents at the end of the period 5,257 (1,251) (3,870)
Cash and cash equivalents consist of:
Cash and bank balances 9 39,575 15,116 33,738
Bank overdrafts 9 (34,318) (16,367) (37,608)
5,257 (1,251) (3,870)
The presentation of line items above net cash generated from operations is
consistent with the year ended 30 April 2025 and the comparatives for the six
months to 31 October 2024 have been restated to be presented in the
Consolidated cash flow statement instead of the Notes to the consolidated cash
flow statement in line with the requirements of IAS 7.
Condensed consolidated statement of changes in equity
for the six months ended 31 October 2025
Share capital and share premium Translation reserve Other reserves Retained earnings Total
Treasury shares Own shares
£000 £000 £000 £000 £000 £000 £000
Total equity at 30 April 2024 and 1 May 2024 236,556 (67,488) (9,694) (6,759) 330,534 560,248 1,043,397
Share options fair value charge - - - - - 1,439 1,439
Share options exercised - - - - - (5,025) (5,025)
Dividends paid - - - - - (39,273) (39,273)
Purchase of shares net of proceeds received on exercise of share options - (5,333) 208 - - - (5,125)
Transfer of shares on vesting of share options - - 5,025 - - - 5,025
Total comprehensive (expense) income - - - (3,036) (110) 43,417 40,271
Total equity at 31 October 2024 and 1 November 2024 236,556 (72,821) (4,461) (9,795) 330,424 560,806 1,040,709
Share options fair value charge - - - - - 2,252 2,252
Share options exercised - - - - - (667) (667)
Dividends paid - - - - - (19,769) (19,769)
Proceeds received on exercise of share options - 1 54 - - - 55
Transfer of treasury shares to own shares reserve - - - - - - -
Transfer of shares on vesting of share options - - 667 - - - 667
Deferred tax on share based payments recognised in equity - - - - - 862 862
Total comprehensive (expense) income - - - 2,590 30 36,428 39,048
Total equity at 30 April 2025 and 1 May 2025 236,556 (72,820) (3,740) (7,205) 330,454 579,912 1,063,157
Share options fair value charge - - - - - 2,721 2,721
Share options exercised - - - - (2,367) (2,367)
Share cancellation (5,000) 35,644 - - 5,000 (35,644) -
Dividends paid - - - - - (39,579) (39,579)
Proceeds received on exercise of share options - - 2,208 - - - 2,208
Transfer of treasury shares to own shares reserve - 10,693 (10,693) - - - -
Transfer of shares on vesting of share options - - 2,367 - - - 2,367
Total comprehensive income - - - 5,737 42 49,578 55,357
Total equity at 31 October 2025 231,556 (26,483) (9,858) (1,468) 335,496 554,621 1,083,864
Other reserves comprise the capital redemption reserve, revaluation reserve,
merger reserve, other reserve and hedging reserve.
Explanatory notes to the interim financial statements
1. Basis of preparation and accounting policies
ZIGUP plc is a company incorporated in England and Wales under the Companies
Act 2006.
This condensed consolidated interim financial report for the half year
reporting period ended 31 October 2025 has been prepared in accordance with
the UK-adopted International Accounting Standard 34, 'Interim Financial
Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority. The interim report does not
include all of the notes of the type normally included in an annual financial
report. Accordingly, this report is to be read in conjunction with the annual
report for the year ended 30 April 2025, which has been prepared in accordance
with UK-adopted International Accounting Standards and the requirements of the
Companies Act 2006, and any public announcements made by the Group during the
interim reporting period.
The accounting policies adopted are consistent with those of the previous
financial year.
The condensed financial statements are unaudited and were approved by the
Board of Directors on 3 December 2025. The condensed financial statements have
been reviewed by the auditors and the independent review report is set out in
this document.
The interim financial information for the six months ended 31 October 2025,
including comparative financial information, has been prepared on the basis of
the accounting policies set out in the last annual report and accounts. There
are no new accounting standards that have been adopted in the period.
In preparing the interim financial statements, the significant judgements made
by management in applying the Group's accounting policies and key sources of
estimation uncertainty were the same, in all material respects, as those
applied to the consolidated financial statements for the year ended 30 April
2025. Depreciation charges reflect adjustments made as a result of differences
between expected and actual residual values of used vehicles, taking into
account the further directly attributable costs to sell the vehicles.
The Directors apply judgement in determining the appropriate method of
depreciation (straight line) and are required to estimate the future residual
value of vehicles with due consideration of variables including age, mileage
and condition.
Residual values have increased in recent years due to the well-publicised new
vehicle supply constraints increasing demand for our vehicle assets with
values now beginning to normalise. This has increased the level of judgement
as it is more difficult to estimate the future residual value of vehicles at
the point they are expected to be sold. Depreciation rates were adjusted in 1
May 2022 with the adjustment presented outside of underlying results.
Depreciation rates will remain under review as the longer term impact on
residual values becomes clearer.
By their very nature, claims against motor insurance companies or
self-insuring organisations can be subject to dispute, and are therefore
considered to be variable consideration. On initial recognition, this
consideration is adjusted to exclude any revenue at significant risk of
reversal. The Group records revenue net of potential reversal on the
settlement of claims, which reflects the Group's estimate of the expected
recoverable amounts from insurers. The Group reassesses the amounts of
variable consideration at the balance sheet date reflecting the latest
information available on the settlement of claims in the period.
The Group's estimation of the amounts of revenue arising on settlement of
claims is calculated with reference to a number of factors, including the
Group's historical experience of collection levels, its anticipated collection
profiles and analysis of the current profile of the claims against insurance
companies. Although in principle this is determined by reference to individual
cases, in practice the homogeneous nature of most claims means that the level
of adjustment is calculated by reference to specific categories of claim.
Going concern assumption
The Directors have taken into account the following matters in concluding
whether or not it is appropriate to prepare the interim financial statements
on a going concern basis:
Assessment of prospects
The Group's prospects are assessed through its strategic planning process.
This process includes an annual review of the ongoing strategic plan, led by
the CEO, together with the involvement of business functions in all
territories. The Board engages closely with executive management throughout
this process and challenges delivery of the strategic plan during regular
Board meetings. Part of the Board's role is to challenge the plan to ensure it
is robust and makes due consideration of the appropriate external environment.
Assessment of going concern
The strategy and associated principal risks underpin the Group's three year
strategic plan ("the Plan"), which is updated annually. This process considers
the current and prospective macro-economic conditions in the countries in
which we operate and the competitive tension that exists within the markets
that we trade in.
The Plan also encompasses the projected cash flows, dividend cover assuming
operation of stated policy and headroom against borrowing facilities and
financial covenants under the Group's facilities throughout the planned
period. The Plan makes certain assumptions about the level of capital
recycling likely to occur and therefore considers whether additional financing
will be required. Headroom against the Group's debt facilities at 31 October
2025 was £341m. This compares to headroom of £412m at 30 April 2025. At the
date of signing these unaudited financial statements, all of the Group's
principal borrowing facilities have maturity dates outside of the period under
review, therefore the Group's facilities provide sufficient headroom to fund
the capital expenditure and working capital requirements for at least 12
months following the date of this report.
Information extracted from 2025 annual report
The financial figures for the year ended 30 April 2025, as set out in this
report, do not constitute statutory accounts but are derived from the
statutory accounts for that financial year.
The statutory accounts for the year ended 30 April 2025 were prepared with
UK-adopted International Accounting Standards and the Companies Act 2006
applicable to companies reporting under IFRS and were delivered to the
Registrar of Companies on 22 October 2025 and were approved by the Board of
Directors on 9 July 2025. The audit report was unqualified, did not draw
attention to any matters by way of emphasis and did not include a statement
under Section 498(2) or 498(3) of the Companies Act 2006.
2. Segmental analysis
Management has determined the operating segments based upon the information
provided to the Board of Directors, which is considered to be the chief
operating decision maker. The Group identifies three reportable segments,
namely UK&I Rental, Spain Rental and Claims & Services. The principal
activities of these divisions are set out in the Operating review.
UK&I Rental Spain Rental Claims & Services Corporate Total
Six months to 31.10.25 (Unaudited) Six months to 31.10.25 (Unaudited) Six months to 31.10.25 (Unaudited) Six months to 31.10.25 (Unaudited) Eliminations Six months to 31.10.25 (Unaudited)
£000 £000 £000 £000 Six months to 31.10.25 (Unaudited) £000
£000
Revenue: hire of vehicles 202,969 170,687 - - - 373,656
Revenue: sale of vehicles 70,443 41,345 7,924 - - 119,712
Revenue: claims and services - - 436,281 - - 436,281
External revenue 273,412 212,032 444,205 - - 929,649
Intersegment revenue 5,281 - 18,424 - (23,705) -
Total revenue 278,693 212,032 462,629 - (23,705) 929,649
Underlying cost of sales(1) (204,717) (148,397) (382,133) - 23,705 (711,542)
Underlying administrative expenses (see page 4) (33,002) (17,782) (62,426) (5,032) - (118,242)
Underlying operating profit (loss) 40,974 45,853 18,070 (5,032) - 99,865
Share of net profit of associates accounted for using the equity method - - 580 - - 580
Underlying EBIT* 40,974 45,853 18,650 (5,032) - 100,445
Amortisation on acquired intangible assets (Note 6) (8,730)
Adjustments to underlying depreciation charge (7,917)
EBIT 83,798
Finance income 573
Finance costs (19,342)
Profit before taxation 65,029
(1) Underlying cost of sales is gross of cost of vehicle sales of £119.7m
(see page 4).
* Underlying EBIT stated before amortisation on acquired intangible assets,
adjustments to underlying depreciation charge and exceptional items is the
measure used by the Board of Directors to assess segment performance. Net
impairment of trade receivables is included in underlying EBIT.
2. Segmental analysis (continued)
UK&I Rental Spain Rental Claims & Services Corporate Total
Six months to 31.10.24 (Unaudited) Six months to 31.10.24 (Unaudited) Six months to 31.10.24 (Unaudited) Six months to 31.10.24 (Unaudited) Eliminations Six months to 31.10.24 (Unaudited)
£000 £000 £000 £000 Six months to 31.10.24 (Unaudited) £000
£000
Revenue: hire of vehicles 191,396 146,812 - - - 338,208
Revenue: sale of vehicles 93,078 35,116 469 - - 128,663
Revenue: claims and services - - 436,768 - - 436,768
External revenue 284,474 181,928 437,237 - - 903,639
Intersegment revenue 4,163 - 31,930 - (36,093) -
Total revenue 288,637 181,928 469,167 - (36,093) 903,639
Underlying cost of sales(1) (214,815) (127,085) (389,421) - 36,093 (695,228)
Underlying administrative expenses (see page 4) (29,421) (14,318) (62,321) (3,417) - (109,477)
Underlying operating profit (loss) 44,401 40,525 17,425 (3,417) - 98,934
Share of net profit of associates accounted for using the equity method - - 166 - - 166
Underlying EBIT* 44,401 40,525 17,591 (3,417) - 99,100
Exceptional items (Note 11) (2,758)
Amortisation of acquired intangible assets (Note 6) (9,170)
Depreciation adjustment (13,932)
EBIT 73,240
Finance income 935
Finance costs (18,014)
Profit before taxation 56,161
(1) Underlying cost of sales is gross of cost of vehicle sales of £128.7m
(see page 4).
Comparatives for the six months to 31 October 2024 have been restated to
include the segmental underlying cost of sales and segmental underlying
administrative expenses.
2. Segmental analysis (continued)
UK&I Rental Spain Rental Claims & Services Corporate Total
year to 30.04.2025 (Audited) Year to 30.04.25 (Audited) Year to 30.04.2025 (Audited) Year to 30.04.25 (Audited) Eliminations Year to 30.04.25 (Audited)
£000 £000 £000 £000 Year to 30.04.25 (Audited) £000
£000
Revenue: hire of vehicles 382,790 300,098 - - - 682,888
Revenue: sale of vehicles 180,473 75,621 1,506 - - 257,600
Revenue: claims and services - - 872,156 - - 872,156
External revenue 563,263 375,719 873,662 - - 1,812,644
Intersegment revenue 9,293 - 59,351 - (68,644) -
Total revenue 572,556 375,719 933,013 - (68,644) 1,812,644
Underlying cost of sales(1) (420,595) (263,543) (772,770) - 68,644 (1,388,264)
Underlying administrative expenses (see page 4) (61,578) (30,396) (122,105) (8,516) - (222,595)
Underlying operating profit (loss) 90,383 81,780 38,138 (8,516) - 201,785
Share of net profit of associates accounted for using the equity method - - 170 - - 170
Underlying EBIT* 90,383 81,780 38,308 (8,516) - 201,955
Exceptional items (Note 11) (20,623)
Amortisation of acquired intangible assets (Note 6) (18,319)
Depreciation adjustment (26,481)
EBIT 136,532
Finance income 1,495
Finance costs (36,559)
Profit before taxation 101,468
(1) Underlying cost of sales is gross of cost of vehicle sales of £257.7m.
3. Taxation
The charge for taxation for the six months to 31 October 2025 of £15,451,000
(31 October 2024: £12,744,000 and 30 April 2025: £21,623,000) is based on
the estimated effective rate for the year ending 30 April 2026 of 23.8% (31
October 2024: 22.7% and 30 April 2025: 21.3%).
4. Earnings per share
Six months Six months Year to
to 31.10.25 to 31.10.24 30.04.25
(Unaudited) (Unaudited) (Audited)
Statutory Statutory Statutory
Basic and diluted earnings per share £000 £000 £000
The calculation of basic and diluted earnings per share is based on the
following data:
Earnings
Earnings for the purposes of basic and diluted earnings per share, being 49,578 43,417 79,845
profit attributable to owners of the Company
Number of shares
Weighted average number of Ordinary shares for the purpose of basic earnings 225,299,349 223,832,445 224,263,336
per share
Effect of dilutive potential Ordinary shares - share options 8,043,018 6,240,418 4,294,495
Weighted average number of Ordinary shares for the purpose of diluted earnings 233,342,367 230,072,863 228,557,831
per share
Basic earnings per share 22.0p 19.4p 35.6p
Diluted earnings per share 21.2p 18.9p 34.9p
The calculated weighted average number of Ordinary shares for the purpose of
basic earnings per share includes a reduction of 7,877,974 shares (31 October
2024: 20,108,081 and 30 April 2025: 20,179,932) relating to treasury shares
and includes a reduction of 2,968,448 shares (31 October 2024: 2,150,897 and
30 April 2025: 1,648,155) for shares held in employee trusts.
5. Dividends
In the six months to 31 October 2025, a dividend of £39,579,000 was paid (31
October 2024: £39,273,000) for the year ended 30 April 2025. The Directors
have declared an interim dividend of £8.8p per share for the six months ended
31 October 2025 (31 October 2024: 8.8p).
The final dividend of 17.6p in relation to the year ended 30 April 2025 was
paid in September 2025.
6. Intangible assets
Net book value Goodwill Other intangible assets Grand total
Customer Brand Other Total
relationships
names
software
£000 £000 £000 £000 £000 £000
At 1 May 2024 115,918 96,343 9,165 5,546 111,054 226,972
Additions - - - 1,496 1,496 1,496
Amortisation - (8,095) (503) (1,277) (9,875) (9,875)
Exchange differences - - - (58) (58) (58)
At 31 October 2024 and 1 November 2024 115,918 88,248 8,662 5,707 102,617 218,535
Additions - - - 1,602 1,602 1,602
Amortisation - (8,092) (497) (1,348) (9,937) (9,937)
Impairment of goodwill (4,012) - - - - (4,012)
Exchange differences - - - 54 54 54
At 30 April 2025 and 1 May 2025 111,906 80,156 8,165 6,015 94,336 206,242
Additions - - - 281 281 281
Amortisation - (8,092) (497) (896) (9,485) (9,485)
Exchange differences - - - 108 108 108
At 31 October 2025 111,906 72,064 7,668 5,508 85,240 197,146
At 31 October 2025
Cost or fair value 334,140
Accumulated amortisation and impairment (136,994)
Net book value 197,146
Amortisation was included within the income statement as follows:
Six months Six months Year to
to 31.10.25 to 31.10.24 30.04.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Included within underlying operating profit as administrative expenses 755 705 1,493
Excluded from underlying operating profit* 8,730 9,170 18,319
9,485 9,875 19,812
* Amortisation of intangible assets excluded from underlying operating profit
relates to intangible assets recognised on business combinations.
7. Property, plant and equipment
Net book value Vehicles for hire Other property, plant & equipment Total
£'000 £000 £000
At 1 May 2024 1,300,680 182,664 1,483,344
Additions 374,623 11,026 385,649
Disposals - (413) (413)
Transfer to inventories (105,180) - (105,180)
Depreciation (128,529) (14,202) (142,731)
Exchange differences (13,439) (1,139) (14,578)
At 31 October 2024 and 1 November 2024 1,428,155 177,936 1,606,091
Additions 322,972 11,071 334,043
Disposals - (2,056) (2,056)
Impairment charge - (1,043) (1,043)
Transfer to inventories (122,965) - (122,965)
Depreciation (130,158) (14,668) (144,826)
Exchange differences 13,274 938 14,212
At 30 April 2025 and 1 May 2025 1,511,278 172,178 1,683,456
Additions 383,778 17,697 401,475
Disposals - (3,456) (3,456)
Transfer to inventories (102,024) - (102,024)
Depreciation (138,155) (14,864) (153,019)
Exchange differences 28,487 1,923 30,410
At 31 October 2025 1,683,364 173,478 1,856,842
At 31 October 2025
Cost or fair value 2,618,852
Accumulated depreciation (762,010)
Net book value 1,856,842
Included within property, plant and equipment above are right of use assets
under leases with a net book value of £140,418,000 (30 April 2025:
£134,091,000).
8. Interest in associates
£000
At 1 May 2024 4,502
Group's share of:
Profit from continuing operations 166
Distributions from associates (17)
At 31 October 2024 and 1 November 2024 4,651
Group's share of:
Profit from continuing operations 4
Distributions from associates (459)
Impairment charge (4,196)
At 30 April 2025 and 1 May 2025 -
Group's share of:
Profit from continuing operations 580
Distributions from associates (580)
At 31 October 2025 -
9. Analysis of consolidated net debt
At 31.10.25 At 31.10.24 At 30.04.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Cash and bank balances (39,575) (15,116) (33,738)
Bank overdrafts 34,318 16,367 37,608
Bank loans 218,894 158,281 162,814
Loan notes 497,858 473,204 480,875
Asset financing facility 75,280 - 49,987
Lease Liabilities 151,822 148,950 137,980
Cumulative preference shares 500 500 500
Confirming facilities 155 293 669
Consolidated net debt 939,252 782,479 836,695
10. Notes to the cash flow statement
Six months Six months Year to
to 31.10.25 to 31.10.24 30.04.25
(Unaudited) (Unaudited) (Audited)
Net cash generated from operations £000 £000 £000
Operating profit 83,218 73,074 136,362
Adjustments for:
Depreciation of property, plant and equipment 153,019 142,731 287,557
Impairment of goodwill - - 4,012
Impairment of property, plant and equipment - - 1,043
Impairment of interest in associates - - 4,196
Amortisation of intangible assets 9,485 9,875 19,812
Gain on disposal of other property, plant and equipment (259) (7) (31)
Share options fair value charge 2,721 1,439 3,691
Operating cash flows before movements in working capital 248,184 227,112 456,642
(Increase) decrease in non-vehicle inventories (1,521) 815 1,451
Decrease in receivables 6,191 13,774 44,888
Increase in payables 18,654 21,833 6,326
Increase in provisions 595 753 423
Cash generated from operations 272,103 264,287 509,730
11. Exceptional items
During the period the Group recognised exceptional items in the income
statement as follows:
Six months to 31.10.25 Six months to 31.10.24 Year to
30.04.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Exceptional administrative expenses: impairment of trade receivables - - 3,006
Exceptional administrative expenses: other operating costs - 2,758 17,617
Total pre-tax exceptional items - 2,758 20,623
Tax charge on exceptional items - (689) (3,104)
Cash expenses - 2,758 3,791
Non-cash expenses - - 16,832
Total pre-tax exceptional items - 2,758 20,623
Other than stated above, net impairment of trade receivables is included in
underlying EBIT.
There were no exceptional items in the period. Explanations for the
exceptional items recognised in the year ended 30 April 2025 can be found
within the annual financial statements.
12. Cancellation of treasury shares
During the period, the Group has cancelled 10,000,000 ordinary shares of 50p
each which were held in treasury. Share capital has been reduced by the
nominal amount of these shares of £5,000,000 and a corresponding amount has
been credited to the capital redemption reserve. At the same time,
£35,644,000 was transferred from treasury shares to retained earnings
relating to the cancelled shares.
13. Related party transactions
Related party transactions of the Group are consistent with those disclosed in
Note 31 of the Group's annual financial statements for the year ended 30 April
2025. No new related party transactions have been entered into during the
period.
Interim announcement - Statement of the Directors
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared
in accordance with the UK-adopted International Accounting Standard 34;
· the interim management report includes a fair review of the
information required by DTR 4.2.7 (indication of important events during the
first six months and description of principal risks and uncertainties for the
remaining six months of the year); and
· the interim management report includes a true and fair review
of the information required by DTR 4.2.8 (disclosure of related party
transactions and changes therein).
By order of the Board
Rachel Coulson
Chief Financial Officer
3 December 2025
Independent review report to ZIGUP plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed ZIGUP plc's condensed consolidated interim financial
statements (the "interim financial statements") in the interim results of
ZIGUP plc for the 6 month period ended 31 October 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed consolidated balance sheet as at 31 October 2025;
· the Condensed consolidated income statement and Condensed
consolidated statement of comprehensive income for the period then ended;
· the Condensed consolidated cash flow statement for the period then
ended;
· the Condensed consolidated statement of changes in equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the interim results of ZIGUP plc
have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the interim results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The interim results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the interim results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the interim results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Newcastle upon Tyne
3 December 2025
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