Our KPIs
Our KPIs
We use our KPIs to assess and monitor the performance of the Group and to measure progress against how we execute our strategy.
Our core financial KPIs
Our core financial KPIs measure progress of our strategic priorities in delivering profitability, revenue and returns.
Growth
Revenue (excluding vehicle sales)
£1,636.3m
+5.2%
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
- 4The employee environment
- 6IT systems
- 7Recovery of contract assets
- 8Access to capital
How we calculate it
Underlying revenue includes hire of vehicles, and Claims & Services revenue, but does not include sale of vehicles at end of rental life.
Why it matters
Underlying revenue measures levels of the Group’s activity across internal organic growth and acquisitions, and excludes the distorting effect of revenues from vehicle disposals, which can vary depending on timing of fleet replacement.
How we performed
Underlying revenue growth was driven by the rental businesses, with increased VOH and hire rates in Spain, alongside hire rate increases in UK&I Rental. Claims & Services revenue increased, through claim volumes supported by new contract wins and strong rates, offsetting lower repair volumes.
Profit
Underlying profit before tax
£160.1m
-4.1%
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
- 7Recovery of contract assets
How we calculate it
Underlying PBT is stated excluding exceptional items and other recurring amounts including amortisation of acquired intangibles and certain adjustments to depreciation.
Why it matters
Underlying PBT is our key measure of profitability and performance and identifies the success in delivering business growth, efficiencies and operating margins.
How we performed
EBIT excluding disposal profits grew by 9.7%, driven by strong rental performances as well as an increase in Claims & Services profits. An expected reduction in disposal profits, due to lower volumes and lower PPUs in the UK&I, as well as an increase in finance costs due to a continued investment in fleet resulted in 4.1% reduction in PBT.
Returns
Underlying earnings per share
53.1p
-9.1%
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
- 7Recovery of contract assets
How we calculate it
Underlying EPS is calculated as underlying profit after tax, divided by the weighted average number of ordinary shares, excluding shares held in treasury and employee trusts.
Why it matters
Underlying EPS is a key measure of value creation and helps the Board consider how to allocate capital, including returns to shareholders.
How we performed
The reduction in the year is driven by lower profit before tax mainly attributable to disposal profits and a higher effective tax rate in the year, with the prior year tax charge benefitting from certain one-off tax reliefs.
Capital allocation
ROCE
11.2%
-1.4ppt
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
- 5Legal and compliance
How we calculate it
ROCE is calculated as underlying EBIT divided by average capital employed.
Why it matters
In a capital-intensive business ROCE measures how efficiently the Group allocates capital.
How we performed
The decrease in ROCE is mainly driven by reductions in disposal profits. Fleet growth also impacts ROCE due to the upfront capital investment. This was partially offset by growth in Claims & Services which is a less capital-intensive business. The Group remains focused on maintaining strong cost control and a disciplined capital allocation approach.
Remuneration
Our financial metrics form the majority of the elements within Executive Director and leadership team performance compensation: 75% of annual bonus is based on PBT targets and 25% from non-financial objectives, including both operational and environmental elements whose outcomes are seen within our non-financial KPIs; Long term incentives are focused equally on PBT and EPS targets.
Our KPIs
We use our KPIs to assess and monitor the performance of the Group and to measure progress against how we execute our strategy.
Core non-financial KPIs
Our non-financial KPIs have been enhanced this year and we have been developing a broader set which consider both operational performance and managing sustainable growth.
Operational
Fleet size ('000)
139.4
+5.9%
Utilisation
91%
0ppt
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
How we calculate it
The growth in our fleet across both rental and Claims & Services segments; while utilisation looks at the average percentage of the Group’s rental fleets on hire in the year.
Why it matters
Fleet growth is a key indicator of achieving growth, while rental utilisation reflects operational and asset efficiency.
How we performed
The fleet size increased in the year as investment was made to grow, particularly in Spain where demand was strong. The Group continually monitors its fleet composition dependant on the needs of the business and our customers. Utilisation is considered to be at an optimal level and has been maintained in the year.
Customer
Customer experience rating*
4.4
-0.2 points
NPS**
66
+2 points
Risks
- 2Market risk
- 3Vehicle supply
- 4The employee environment
- 6IT systems
How we calculate it
We review a range of customer feedback channels, including Trustpilot and other surveys, to provide an aggregated picture of how customers perceive our service provision.
Why it matters
High levels of customer service are crucial to ensuring customer and contract retention, and feedback helps us identify areas where we can improve.
How we performed
Our continued focus on improving customer service led to an industry leading NPS of 66, a two-point increase on last year. A consistently strong customer experience rating has dropped slightly from 4.6 last year but remains above our peers.
People
Colleague engagement
74%
-1ppt
Voluntary attrition
16%
-2ppt
Risks
- 4The employee environment
- 5Legal and compliance
How we calculate it
How our people perceive the support, recognition, and rewards they receive for their efforts, and in turn, the impact this has on their desire to remain with ZIGUP and build a rewarding career.
Why it matters
If we engage well with our people and they feel valued, they are more likely to remain with us, which has wide-ranging benefits for skills, retention and customer service.
How we performed
Our key people engagement metric remained relatively consistent with FY2025. A 2% decrease in attrition demonstrates the continued strength of our colleague offering.
Environment
Hire fleet emissions
163gCO2/km
Intensity ratio
11
-14%
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
How we calculate it
The emission intensity of our operations relative to revenue (excluding vehicle sales) and the average carbon emissions per km of our rental fleet.
Why it matters
Intensity ratios show greenhouse gas emissions relative to specific business metrics, and allow us to understand our carbon efficiency relative to business growth.
How we performed
The intensity ratio has decreased for the fourth year running, due to ongoing carbon footprint reductions whilst revenue increases. We have updated our methodology for hire fleet efficiency to use manufacturers’ emissions performance data rather than DESNZ emission factors. Going forward this will provide a better measure of the carbon efficiency of our fleet.
Strategy
Our strategic priorities are centred around operational efficiency, business growth and expansion into new areas and technologies; we have quantifiable metrics against these, both in terms of financial performance and returns, and non-financial KPIs which underpin different aspects of our strategic progress – these form part of regular Executive and Board review.
*The customer experience rating is a weighted average scoring of a number of different satisfaction scores such as Trustpilot and Google reviews and has a maximum scoring of 5.
**This is the first year that we have reported a consolidated NPS score and therefore no comparative is stated. The NPS score represents a weighted average across the Group.
Risk key
- Economic environment
- Market risk
- Vehicle supply
- The employee environment
- Legal and compliance
- IT systems
- Recovery of contract assets
- Access to capital