Zigup keeps outlook steady as reports positive start to financial year

(Alliance News) - Zigup PLC on Tuesday said trading in the first four months of its new financial year has been positive, keeping the Darlington, England-based vehicle rental and management firm on track to meet market expectations.

The firm said volumes of hires were ahead of the prior year, supported by good vehicle supply and fleet replacement. Activity levels in its Claims & Services unit were in line with expectations, while hire durations remained stable.

Zigup said it has extended contracts with several insurance customers, often with increased capacity or additional products, and is preparing for the launch of a major new broker customer. In Spain, it opened the first of two new service sites scheduled for the first half of the year.

The company highlighted progress on its technology roadmap, including the launch of a new operations control centre for roadside assistance, upgrades to its UK call centre, and new digital platforms for insurance partners in the UK and Spain.

Zigup reported leverage within its target range of 1 to 2 times and fleet assets of GBP1.6 billion at the end of August.

Shareholders at Tuesday's annual general meeting are being asked to approve a final dividend of 17.6 pence per share, taking the full-year payout for the year ended April 30 to 26.4, up from 25.8p in 2024.

The board said it remains confident of the group's long term growth strategy and prospects, with its outlook for the year remianing unchanged

The company will publish interim results for the six months to October 31 on December 3.

Shares in Zigup were 1.9% higher at 320.00 pence in London on Tuesday morning.

By Eva Castanedo, Alliance News reporter

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