Vehicle hire and mobility company Zigup has released results ahead of expectations despite a fall in revenues and profits.
The Darlington-based firm, formerly known as Redde Northgate, has released preliminary results for the year to the end of April in which overall revenues fell 1% to £1.81bn. Profit before tax fell 37% to £101.5m.
But Zigup said that underlying revenues - excluding vehicle sales revenue, exceptional items and amortisation of assets - had risen 2.3% to £1.55bn while the fall in underlying profits was less marked (down 7.6% to £166.9.)
The company’s vehicle hire revenues rose by 5.2% with greater growth in its Spanish market than in the Ƶ and Ireland. It grew its fleet to 131,000 vehicles thanks to improved supply.
Zigup also highlighted that it had won a King’s Award for Enterprise 2025 that recognised its work in social mobility, and that it had grown its apprenticeships programme, which had helped it reduce the average age of its technicians.
The company said there would be “good opportunities” in the year ahead. It is expecting mid-to-upper single digit earnings growth.
CEO Martin Ward said: “The group has delivered a strong operational performance, reflecting a year of significant progress across the business, growing market share and benefitting from material improvements in customer service scores. We have an excellent market position as at least a top three player in each of our markets which are highly receptive environments for our differentiated mobility solutions.
“We are continually improving these with a technology-enabled and value-added offering which is attractive to a growing and increasingly diverse customer base. I am delighted with the progress made across the business and it sets us up very well for the coming year.
“Spain has grown VOH (vehicles on hire) well in excess of its market, and Ƶ&I is positioning itself well for growth with a simpler customer journey and a healthy new business pipeline. With six new partners joining the mobility platform and many of our major insurance partner contracts having successfully renewed in the year, Claims & Services has good visibility after what has been a challenging industry dynamic this year.
“Vehicle supply has normalised and the market headwinds of vehicle residual values and replacement hire lengths have been stable since the autumn. The refinancing undertaken in the year further enhances our financial capacity and allows us to be responsive to opportunities to generate attractive and sustainable shareholder value; we start the new financial year with confidence for underlying growth opportunities.”
