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)
£1,336.9m
+22.2%
- 2023 1,336.9m
- 2022 1,093.6m
- 2021 879.6m
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.
Risks
- 1
- 2
- 3
- 4
- 6
- 7
- 8
Profit
Underlying profit before tax
£165.9m
+9.7%
- 2023 £165.9m
- 2022 £151.3m
- 2021 £93.2m
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.
Risks
- 1
- 2
- 3
- 7
Returns
Underlying earnings per share
55.6p
+9.5%
- 2023 55.6p
- 2022 50.8p
- 2021 31.0p
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.
Risks
- 1
- 2
- 3
- 7
Capital allocation
ROCE
14.1%
+0.2ppt
- 2023 14.1%
- 2022 13.9%
- 2021 9.5%
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.
Risks
- 1
- 2
- 3
- 7
Risk key
- Economic environment
- Market risk
- Vehicle supply
- The employee environment
- Legal and compliance
- IT systems
- Recovery of contract assets
- Access to capital
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)
130.7
+3%
Utilisation
92%
–%
What we are measuring
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
Fleet growth of 4% reflects challenges of LCV supply, particularly in the UK; with growth in Spain and ZIGUP fleets. Maintaining rental utilisation above 90% is a key operational target, with 92% close to optimal level.
Risks
- 1
- 2
- 3
Customer
Trustpilot*
4.4
Recommend our service*
86%
What we are measuring
We look at a range of customer feedback channels including Trustpilot and other surveys to provide an aggregated picture of how customers find our service provision.
Why it matters
High levels of customer service are key to ensuring customer and contract retention, and feedback helps us to identify areas where we can do better.
How we performed
Feedback remains strong despite the challenges of limited vehicle supply. We have identified areas for improvement which we are addressing through our HIRE programme.
Risks
- 2
- 3
- 4
- 6
People
Employee engagement
74%
-ppt
Attrition
25%
-5ppt
What we are measuring
How our people perceive the support, recognition and reward they receive for their efforts and in turn, the impact this has on their desire to remain with ZIGUP to remain with us 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
Overall employee satisfaction was consistent with the previous year and we saw an increase in positive scores for culture, teamwork and customer service. The impact of this was reflected in a significant reduction in our rolling annual voluntary attrition rate.
Risks
- 4
- 5
Environment
Fleet emissions*
134g/CO2
Intensity ratio
20mt CO2e/£m revenue
-8%
What we are measuring
The emission intensity of our operations relative to turnover and the average fuel economy of our total 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
This is the first year of measuring fleet emission averages, therefore no trend is presented. Our revenue, excluding vehicle sales grew by 22% whilst our Scope 1 and Scope 2 emissions grew by 12%. The resulting impact to emission intensity is a decrease of 8%.
Risks
- 1
- 2
- 3
Risk key
- Economic environment
- Market risk
- Vehicle supply
- The employee environment
- Legal and compliance
- IT systems
- Recovery of contract assets
- Access to capital
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 Group has implemented a range of non-financial KPIs that were not previously being measured. As such no movement from the prior year is presented.
