Zigup FY revenues grow as vehicle supply improves

10th Jul 2024 09:34

(Sharecast News) - Automotive rental provider Zigup said on Wednesday that both revenues and earnings had grown in the year ended 30 April amid improving vehicle supply and a growing footprint.

Zigup said revenues had increased 13.7% to £1.83m, while underlying earnings improved 13.0% to £195.1m and pre-tax profits rose 8.9% to £162.1m. Earnings per share were 10.4% higher at 55.2p.

Net debt rose 6.9% to £742.2m but fleet assets increased 11.8% to £1.3bn, keeping the group's leverage flat year-on-year at 1.5x.

Chief executive Martin Ward said: "The business has continued to deliver on the strategy we set out back in 2020 and I am delighted to be reporting another year of record performance, with strong underlying growth. We have stepped up investment in our people and locations over the past year, which will increase our capacity and we have seen continued strong demand for our integrated mobility solutions from existing and new partners, which provides future quality revenues.

"Vehicle supply is normalising, as expected, and we are well placed to fulfil demand into selected growth sectors. We expect to invest further in renewing our fleet over the next 24 months which supports our balance sheet value and produces strong levels of future cash generation."

As of 0930 BST, Zigup shares were 0.82% higher at 430.0p.

Reporting by Iain Gilbert at Sharecast.com