Zigup's Remarkable Growth: A Transformative Journey Ahead

In a promising update on December 3, 2025, North East-based mobility services group Zigup reported a revenue increase of 2.9%, driving its share price up by over 14%. The company's robust performance, particularly in Spain, suggests a bright future ahead.

Strong Financial Performance

Zigup's recent half-year financial results exceeded market expectations, with reported revenue climbing to £929.6 million. The operational profit showcased an even stronger performance, with underlying EBIT rising by 1.4% to £100.4 million and reported EBIT significantly increasing by 14.4% to reach £83.8 million. Furthermore, there was a 15.8% surge in reported profit before tax, now standing at £65 million.

Driving Factors Behind Success

The company’s vehicle hire revenue was a standout performer, particularly in Spain where demand drove an impressive 16.3% increase. UK and Ireland hire revenue also saw a healthy growth rate of 6.5%, aided by pricing strategies and an enhanced vehicle mix. Zigup's strategic initiatives, including a notable rail maintenance fleet win, have laid a solid foundation for sustained future growth.

A Vision for the Future

Zigup's transformation plan aims to simplify its operations into two primary businesses: Northgate Mobility (rental) and FMG (repair and services). CEO Martin Ward emphasized the company's strategic direction, stating, “It has been a great start to the year for our rental businesses, with Spain delivering a standout performance.”

The ongoing restructuring is expected to yield substantial benefits over the next 18 months, with projected annual savings of around £20 million by FY2028. The firm is optimistic about trading trends continuing into the second half, predicting that its full-year underlying profit before tax could reach the upper end of analyst estimates.

With a clear path outlined towards enhancing operational efficiencies and revenue growth, Zigup appears well-positioned for a strong future. The company's commitment to innovation and adaptability in a changing market is commendable, suggesting a transformative era ahead.