Zigup (LON:ZIG) reported what management described as a year of “strong operational and financial progress” in its 2026 full-year results, with growth across revenue, fleet on rent and underlying earnings, while the company continued to invest in Spain and advance a simplification program in the U.K. and Ireland.
In the results presentation, management said revenue and closing fleet on rent both grew by more than 5%, while EBIT before disposal profits rose by just under 10%. Rachel Coulson, chief financial officer of ZIGUP, said group revenue increased to GBP 1.86 billion, while underlying revenue excluding vehicle sales rose 5.2%.
The company proposed a full-year dividend of GBP 0.27 per share, up 2.3% year over year. Management described the increase as consistent with its progressive approach to shareholder returns.
Spain Leads Growth as Rental Demand Expands
Spain was described as the standout performer, with rental revenue up more than 16%. Management cited a differentiated service-led offering, a growing rental market and a strong economy as factors supporting the division’s performance. Coulson said Spain’s margin remained strong at 19.3%.
The company said it continued to invest in Spain to support demand, including new purpose-designed central delivery hubs that helped manage the delivery of more than 19,000 new vehicles to customers during the year. It also highlighted a contract for more than 800 vehicles with Adif, Spain’s national rail maintenance operator, supported through 25 Northgate depots across the country.
In response to an analyst question on improved margin guidance for Spain, Coulson said the upgrade reflected the Spanish team’s efforts to balance investment with operational efficiency and cost control. She said further growth could create opportunities for operating leverage, while noting the company would continue investing to support customer service.
U.K. and Ireland Show Momentum, Claims Adds Contracts
In the U.K. and Ireland, management said both rental and claims and services built momentum with new and existing customers. UK&I rental revenue rose 5.2%, driven by pricing, mix and a focus on higher-margin channels. The rental business expanded its product range and specialist vehicle network, with second-half growth of more than 600 vehicles.
Claims and services grew modestly, as expected, supported by new contract wins, renewals and organic growth. The company said it won new clients including Howden Insurance and expanded or extended relationships with QBE, Admiral and Direct Line. It also secured an extension to its National Highways contract for up to a further 10 years. Management said the business has supported statutory recovery on the strategic road network since 2008 and manages responses to more than 22,000 recoveries annually.
Coulson said rental profit increased by GBP 14 million, with the UK&I margin improving to 16%. Claims and services margin was 4.6%, with improvement accelerating in the second half as expected.
Cash Generation Improves; Fleet Investment Continues
Coulson said steady-state cash increased by GBP 79 million to GBP 96 million, supported by earnings growth and the continued normalization of fleet replacement. EBITDA rose to GBP 503 million, and lower net replacement capital expenditure contributed to the improvement in steady-state cash. Growth capital expenditure increased to GBP 132 million, particularly supporting expansion in Spain.
Fleet assets increased to GBP 1.76 billion, up more than GBP 250 million. Net debt was just under GBP 1 billion, reflecting investment in the fleet. Coulson said leverage was 1.9 times, within the company’s previously outlined range. She also said borrowing costs were stable at 3.3%, supported by a high proportion of fixed-rate debt, and that the company’s facilities have an average maturity in the 2030s with no principal facilities due in the next financial year.
Coulson said the company had “passed the inflection point” in steady-state cash and remained confident in reaching GBP 200 million in FY 2028.
Simplification Program Targets GBP 20 Million in Savings
Management said the U.K. and Ireland simplification program announced at the interim results remains on track, with benefits already coming through. The program is intended to simplify customer access to products and services, consolidate the supply chain and form strategic partnerships that improve value and service.
The company said it has already locked in one-third of its targeted savings from the supply chain alone. It remains on track to deliver a GBP 20 million run-rate savings target by FY 2028, with GBP 10 million of savings expected in the current year.
ZIGUP also said it exited two non-core markets where it did not see sustainable or profitable growth: NewLaw and ChargedEV. Coulson said statutory profit before tax reflected GBP 26 million of impairments related to those businesses, along with GBP 1 million of restructuring costs below the line. She estimated the exits would provide about GBP 7 million per year in profit improvement from FY 2028, already reflected in guidance for UK&I margins.
In the Q&A session, management said NewLaw’s accelerated closure would de-risk residual collections and bring closure to the process. On ChargedEV, management said shifting regulation and uneven demand for charging infrastructure meant the company did not see sustainable profitable returns in the medium term. The company said it can still support customers transitioning to electric vehicles through partnerships rather than owning the installation business.
Guidance Points to Profit Growth and Higher Cash
For FY 2027 and beyond, Coulson said the company expects mid-single-digit underlying sales growth, focused margin improvement and increasing steady-state cash. Guidance for Spanish rental margin was raised to 18.5% to 20.5%. The company expects Northgate Mobility to grow EBIT margin to 11% to 13%, while FMG businesses are expected to grow EBIT margin to more than 5%.
Coulson said FY 2027 disposal profits are expected to continue moderating, but should be more than offset by underlying trading and cost control. She said the company’s outlook is positive and consistent with market expectations for profit growth for the year.
Management also highlighted technology investment, including upgraded contact center capability, digital integration with customer systems and a collaboration with Microsoft on artificial intelligence applications. The company said these efforts are intended to improve customer service, automate routine interactions and increase efficiency across contact center and support operations.
Closing the presentation, management said the company is confident in its strategy, business model and market positioning, citing momentum in rental, a pipeline in repair and recovery, and growth opportunities with insurance partners.
About Zigup (LON:ZIG)
ZIGUP (formerly Redde Northgate plc) 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 Company 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 Company’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.
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