Pre-close Trading Update
FY2025 performance ahead of market expectations
The FY2025 financial year ended well, capitalising on strong demand for our rental products in both geographies, particularly in Spain. As a result, we expect to finish the year modestly ahead of market expectations when our full year results are announced, scheduled for 9th July 2025.
Our investment in fleet has continued in H2, as we continue to replace older vehicles and grow the Group’s rental fleets, with closing Vehicles on Hire up 6% on the prior year. As vehicle supply has normalised so have disposal profits and we expect this to continue into FY2026.
Our Claims & Services businesses delivered an improved performance on the first half; hire lengths have now substantially moderated from post pandemic tailwinds. The business continues to offer differentiated solutions to customers, signing a number of contract extensions including with DLG and adding new insurance and broker partners in the period.
We expect our prudent leverage to be in line with guidance at just below 1.8x.
Martin Ward, CEO commented:
‘The strength of ZIGUP’s business model continues to be reflected in the performance delivered across FY2025, with a strong Group result from our diversified businesses at different stages in their cycles. It is also seen in the high levels of support and demand from our lenders, allowing us to refinance with extended maturities out to beyond 2030 on improved commercial terms.
With strong structural growth drivers including the shift to outsourcing and demand for our technology-enabled services, we start the new financial year with confidence for underlying growth opportunities.
Outstanding customer engagement scores reflect our focus on simplifying and enhancing customer service, and the recent King’s Award for Enterprise is testament to the efforts we make to support our colleagues and nurture the next generation of automotive technicians, as we seek to deliver sustainable growth for all stakeholders.’
For further information contact:
Ross Hawley, Head of Investor Relations +44 (0) 1325 528769
Burson Buchanan
Chris Lane/Jamie Hooper/Verity Parker +44 (0) 207 466 5000