Zigup to surpass 2025 expectations following strong year in spain

Vehicle rental and claims management firm Zigup has upgraded its 2025 expectations following a strong year driven by demand in Spain. The London Stock Exchange-listed firm, which has

headquarters in Darlington, said growth had come in the UK as well and it now expects to finish the year modestly ahead of and expected £1.88bn revenue and underlying Ebit of £199.8m.

Analysts also expected the company to reach underlying Ebit excluding disposals of £154.4m. Bosses said investment into the firm's fleet of commercial vehicles continued in the second

half of the financial year, with closing vehicles on hire up 6% on the year before. Following a normalisation of vehicle supply - which has dogged the firm in recent years - disposal profits

have followed in a trend expected to continue into the firm's 2026 financial year. Zigup's Claims and Services businesses delivered improved performance in the first half with the

length of hiring now "substantially moderated" from post-pandemic tailwinds. Investors were told of a number of a new contract extensions, including with Direct Line Group, and

new insurance and broker partners secured. Martin Ward, CEO of Zigup, said: "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." Late last year, Zigup reported that demand for its services in the UK was at its strongest since

pre-Covid. It also reported a significant rise in hire revenue in Spain, where it also offers vehicles and services such as repair and maintenance and telemetry solutions for fleet control

and management.