Revenue Surge and Expansion: Zigup's Impressive Half-Year Update

Zigup, the North East-based integrated mobility services group, has reported a remarkable revenue increase of 2.9%, reaching a considerable £929.6 million. This surge has led to a notable rise in the company's share price by over 14%, reflecting a strong market confidence in its future prospects.

Positive Outlook and Strategic Growth

Following the release of its half-year update, Zigup has shown extraordinary performance particularly in Spain, where vehicle hire revenue jumped by 16.3%. The steady growth in the UK and Ireland markets, supported by strategic pricing actions and an improved vehicle mix, contributed significantly to this financial boost.

Operational Success Amid Restructuring

Operationally, the company’s underlying EBIT rose by 1.4% to £100.4 million, and reported EBIT surged by 14.4% to £83.8 million. Zigup's CEO, Martin Ward, highlighted the positive momentum within its rental businesses and the successful integration of services, indicating a path toward improved cash flow in the coming years. The transformation program aimed at simplifying operations into two core businesses—Northgate Mobility and FMG—has received commendations for its potential to streamline services and boost efficiency.

A Promising Future Ahead

Zigup is set to continue this upward trajectory with expectations for full-year underlying profit before tax to exceed analyst projections between £150 million and £155 million. With a clear strategy and strong operational performance, the company appears well-positioned for sustainable growth, fostering good news for investors and stakeholders alike.