Zigup Soars: A Remarkable Boost in Revenue and Future Prospects

In an impressive display of growth and resilience, North East-based integrated mobility services group Zigup has reported a notable revenue increase of 2.9%, reaching a total of £929.6 million. This positive trend has not only pleased the market but also led to a remarkable 14% surge in the company's share price following their latest half-year update.

Strong Performance in Spain and Beyond

The results come as Zigup highlights robust performance in Spain, where vehicle hire revenues soared by 16.3% driven by strong demand, alongside steady trading conditions in the UK and Ireland. The company's rental arm, identified as the main growth engine, reinforced this upward trajectory with a 10.5% overall increase in vehicle hire revenue.

Strategic Developments and Future Growth

Amidst these figures, CEO Martin Ward expressed optimism regarding the company's restructuring for its UK and Ireland operations, aiming to streamline into two core businesses: Northgate Mobility and FMG. This initiative is expected to enhance efficiency and cash flow, paving the way for sustained improvements in the coming years.

The company has also secured significant contracts in both Spain and the UK, indicating a strong competitive position in the market. With a clear path towards operational enhancements and anticipated savings of approximately £20 million annually by FY2028, Zigup is poised for a transformative phase of growth.

As we move towards the second half of the fiscal year, Zigup remains optimistic, expecting that their underlying profit before tax will at least meet the upper limits of analyst expectations, underscoring the company's strong market positioning and proactive management strategies.