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)
£1,555.0m
+2.3%
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 and services revenue but does not include sale of vehicles at end of rental life.
Why it matters
Underlying revenue measures levels of Group 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 supported by significant growth in ZIGUP from existing and new multi-year insurance contracts, plus managed increases in hire rates across the rental businesses.
Profit
Underlying profit before tax
£166.9m
-7.6%
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
- 7Recovery of contract assets
How we calculate it
Underlying PBT is stated excluding exceptional costs and other recurring amounts including amortisation on 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
Underlying PBT grew due to strong operational performance and volume growth, together with maintenance of rental margins, partially offset by higher interest costs.
Returns
Underlying earnings per share
58.4p
-4.9%
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
Growth in underlying EPS came through growth in net profit together with the positive impact of the share buyback programme completed in the year.
Capital allocation
ROCE
12.6%
-13.1%
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
- 5Legal and compliance
How we calculate it
ROCE is calculated as underlying operating profit divided by average capital employed.
Why it matters
In a capital intensive business ROCE measures how efficiently the Group allocates capital; it also provides a comparable metric across the Group’s divisions.
How we performed
The improvement in ROCE reflected our focus 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)
131.6
+2.7%
Utilisation
91%
0ppt
Risks
- 1Economic environment
- 2Market risk
- 3Vehicle supply
How we calculate it
The growth in our fleet across both rental and accident management segments, while rental 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 Group fleet size has grown in the year due to strong VOH demand in Spain being partially offset by a reduction in UK&I as VOH reduced in H2. The Claims & Services fleet size was managed down in line with claims volumes. Maintaining utilisation above 90% is a key operational target, with 91% close to the optimal level.
Customer
Customer experience rating*
4.6
+10%
NPS**
64
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 aim to enhance the customer experience in the year has led to a 10% increase in Trustpilot scores, moving from 4.2 to 4.6. In the year, NPS has previously been used in individual business areas and now has sufficient coverage to be able to report a consolidated outcome. 64 is considered excellent for our industry.
People
Colleague engagement
75%
0ppt
Voluntary attrition
18%
-6ppt
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 consistent with FY2024. A 6% decrease in attrition demonstrates the strength of our colleague offering.
Environment
Hire fleet emissions
257gCO2/km
-1.9%
Intensity ratio
13
-7%
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
Year on year increases in the provision of more fuel-efficient and low-emission vehicles will enhance the environmental sustainability of our operations and reduce our carbon footprint.
How we performed
Usage of more fuel-efficient vehicles and an increasing proportion of non-ICE vehicles has reduced our hire fleet emission intensity for the third year running. The intensity ratio has also decreased for the third year running.
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