Mobility solutions firm Zigup (LON:ZIG) has reported a ‘positive’ start to the year and raised FY27 profit guidance. The upgrade was driven by recent strong performances in Spain and from the Darlington-based company’s FMG claims and services business.
Perhaps best-known for its Northgate van rental business, FTSE 250-listed Zigup offers mobility solutions to businesses, fleet operators, insurers, OEMs and other customers across a range of areas.
These span vehicle rental and fleet management to accident management, vehicle repairs, service and maintenance.
Guidance upgraded
In an annual general meeting (AGM) update, Zigup said it now expects FY27 adjusted pre-tax profits to be at the top of the range of market expectations of £163.2 million to £170 million.
| Year to April | 2026A | 2027E | 2028E |
| Revenue (£m) | 1,859 | 1,919 | 2,011 |
| Earnings per share (p) | 46.9 | 54.2 | 58.2 |
| Dividend per share (p) | 27 | 27.3 | 28 |
Source: Stockopedia
‘As at the end of August, average vehicles on hire (VoH) is more than 5% ahead of the prior year and the Spanish fleet is now in excess of 80,000 vehicles,’ said the Martin Ward-steered group.
On the road to growth
‘FMG volumes are strong, including benefitting from the recent re-awarding and expansion of the Motability contract by one of our largest insurance partners,’ added Zigup.
The board also expressed confidence in the company’s long-term growth strategy and prospects.
We have a positive stance on Zigup, which looks well placed for growth in a rapidly-evolving mobility industry. Zigup’s markets continue to embrace the structural trends of outsourcing. And the company is tapping into customers’ increasing preference for using a limited number of larger suppliers.
Leverage is under control. And Zigup has a strong balance sheet supported by £1.8 billion of fleet assets, giving it the flexibility to take advantage of opportunities in a consolidating market place.
Even after a strong recent run, the shares remain inexpensive. According to Stockopedia, Zigup trades on a single digit price-to-earnings ratio for FY27 and offers an attractive dividend yield north of 6%.
