ZIGUP (ZIG) – Business Services
| Price: 382p +12.2% | P/E: 7.9x |
| Market Cap: £854m | Yield: 7.8% |
Integrated mobility solutions firm ZIGUP (formerly Redde Northgate) posted an upbeat first half trading update and forecast full-year profit would be ‘at least at the top of market expectations’.
For the six months to 31 October, group revenue was up 2.9% to £930 million while pre-tax profit was up 16% to £65 million.
Chief executive Martin Ward called out the Spanish business for delivering a ‘standout’ performance over the summer, while the UK and Ireland showed ‘good momentum’ with recent fleet wins and an expansion of the specialist fleet.
Our View
We don’t much care for the re-brand but we like the business and even with a 12% pop in the shares today the stock isn’t expensive.
As well as positive earnings momentum, the shares offer an attractive yield which marks them out among small-/mid-cap growth stocks.
Read the press release here: https://zigup.com/investors/
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