Zigup flags full-year profit at top end of expectations

(Sharecast News) - Zigup said in an update on Thursday that it expected full-year profit to be at the top of market expectations after a strong end to the 2026 financial year, supported by growth in vehicles on hire in Spain and the UK and Ireland.

The FTSE 250 vehicle rental and mobility services group said average vehicles on hire rose 4.9% over the year, helped by contract wins and renewals, while its Claims and Services division also made good progress.

It said it now expected its financial outturn for the year to be at the top of the market consensus range for adjusted pre-tax profit, which stands between £154.5m and £159.3m.

The company said it was in the later stages of its fleet replacement programme, with investment returning to more normalised levels.

As a result, steady-state cash generation had passed an inflection point in 2026 and was expected to follow an upward trajectory over the coming years.

Leverage was steady at 1.9 times, unchanged from the first half and in line with guidance.

Zigup also said it had made good progress with its UK and Ireland simplification programme, including early successes in supply chain improvements and the launch of its new Northgate Mobility brand.

It added that it had increased capacity across the group in fleet, infrastructure and technical capabilities.

Chief executive Martin Ward said customers were seeing significant value in the group's service-led offering.

"Average VoH is up 4.9% for the year and we have secured a number of valued contract wins and renewals, underpinning this good momentum; Steady State Cash generation has stepped up materially and supports our ambition for further growth," he said.

Zigup said it would publish its full-year results on 8 July.

At 1007 BST, shares in Zigup were up 2.36% at 434p.

Reporting by Josh White for Sharecast.com.

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