3 December 2025

ZIGUP PLC

("ZIGUP" or the "Group" or the "Company")

 

Strong first half, confidence in full year profit to be at least at top of current range of expectations

Steady state cash reaching inflexion point and next stage of business model simplification launched

 

ZIGUP (LSE:ZIG), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, is pleased to announce its results for the half year ended 31 October 2025 (the 'period').

Half year results	Reported			Underlying1
	H1 2026	H1 2025	Change	H1 2026	H1 2025	Change
	£m	£m	%	£m	£m	%
Revenue	929.6	903.6	2.9%	809.9	775.0	4.5%
EBIT ex-disposal profits				81.7	73.3	11.5%
EBIT	83.8	73.2	14.4%	100.4	99.1	1.4%
Profit before tax	65.0	56.2	15.8%	81.7	82.0	(0.4%)
Earnings per share	22.0p	19.4p	13.4%	27.6p	28.1p	(1.8%)
		Other measures
		Underlying EBITDA		246.0	228.6	7.6%
		ROCE		11.9%	12.8%	(0.9ppt)
		Dividend per share		8.8p	8.8p	-
1 excludes vehicle sales revenue, exceptional items, amortisation of acquired intangible assets and adjustments to underlying depreciation.  See GAAP reconciliation on page 4.
Balance sheet				H1 2026	FY 2025	Change
Net debt				£939m	£837m	£102m
Fleet assets2				£1.68bn	£1.51bn	£0.17bn
Leverage				1.9x	1.8x	0.1x
2 referring to the net book value of vehicles for hire.

Martin Ward, CEO of ZIGUP, commented:

"It has been a great start to the year for our rental businesses with Spain delivering a standout performance and UK&I Rental showing good momentum with recent fleet wins and expansion of our specialist fleet.  Claims & Services has continued to add new partners and extended services to existing contracts. With good progress made on fleet replacement I am pleased with our cash performance; we are reaching an inflexion point, paving the way for sustained improvements in steady-state cashflow in the years ahead.

We are also announcing the next phase in our strategic ambition, evolving our UK&I operating model, simplifying our business structure around two distinct operating businesses: Northgate Mobility and FMG. This will better position the business to leverage the full potential of our mobility platform, both internally and for our customers. The opportunity is substantial, with expected efficiencies translating into an initial estimate of c.£20m in incremental annualised savings by FY2028.  We will outline our plans today but report more fully at the full year.

With our operational and strategic initiatives delivering positive results in the period and Spanish market strength, we now expect our full year underlying PBT to be at least at the top of the £150-155m range of analysts' expectations. With market leading positions, an increasingly efficient operating model, and robust balance sheet, we are well-positioned to capitalise on emerging opportunities across the mobility services market."

Key financial highlights

·   Underlying revenue up 4.5% underpinned by growth in vehicle hire revenue (+10.5%); Total revenue up 2.9% reflecting a normalisation of vehicle defleets

·   Vehicle hire revenue: Spain up 16.3% underpinned by strong VoH growth, UK&I up 6.5% through a combination of product and vehicle mix alongside pricing actions

·   Robust rental margins in both Spain and UK&I reflect continued focus on operational efficiency and high utilisation. UK&I margin was elevated by revenue phasing for a single contract in H1, with full year margins expected in line with the 15-16% target range

·   Claims & Services revenues and margins flat on lower claims volumes but stable internal repair volumes; ongoing New Law cost base being addressed, with H2 margin expected closer to 5%

·   EBIT before disposal profits up 11.5% reflecting strength in operational businesses; Disposal profits normalising as expected, on reduced volumes of 15,800 (H1 2025: 17,200) and lower UK&I PPUs, but stable residual values

·   Net capex outflow of £245.9m with replacement capex of £172.3m (H1 2025: £178.9m) and growth capex of £73.6m (2025: £53.5m); reaching inflexion point with steady state cash flow expected to increase over coming periods, as fleet replacement programme progressing well

Figures are underlying, unless specifically identified otherwise

 

H1 business highlights

·    Fleet growth: Group fleet over 135,000 vehicles (132,500 at end-FY 2025); normalised supply supporting fleet growth in Spain and continued replacement in UK&I

·    Rental progress: Major rail maintenance fleet win in Spain, and a large Fleet Management contract in UK&I; One Road programme success delivering incremental VoH demand, expanding specialist vehicle locations and vehicle range

·    Insurance contract wins and renewals: New contract launched leading broker Howden Insurance, selected for strength of client service and cultural alignment; multi-year renewal with Tesco Insurance and additional services introduced including for DLG, plus new roadside recovery contracts launched

·    Growing capacity: Two Spanish service points opened in H1, additional planned for H2; Cardiff bodyshop upgrade and nationwide mobile repair fleet expansion underway

·    Technology and customer service:  Advanced call-centre platform commenced roll-out with potential for AI-driven enhancements and in-call efficiencies; additional third-party API integrations are delivering improved functionality

 

Continued evolution of UK&I operating model

This autumn we commenced a new phase of simplification and transformation, with workstreams encompassing a further evolution of the UK&I operating model into two operating businesses focused on each of Rental and Repair. It is fully aligned with our strategic framework and will enhance the competitive advantages of our integrated platform. 

The programme is envisaged to be completed within 18 months and benefits are expected to include full integration of our rental solutions across the branch network and greater supplier consolidation, together with delivering further operational efficiencies and customer insight through leveraging new technologies. 

From our initial assessment, we believe this programme will deliver sustainable benefits progressively from the start of FY2027 and c.£20m of incremental annualised savings by FY2028; we will update on the progress of the workstreams at the full year results.   

Outlook

The positive outlook for the remainder of the year gives us confidence that underlying PBT will be at least at the top of the range of analysts' expectations.  This view is underpinned by the strength of Spanish rental performance and continued investment in fleet growth.  UK&I rental demand remains robust, and we expect rental margin to be within the 15-16% target range for the full year.  Claims & Services volumes are expected to grow as new contracts and service extensions start to contribute during the busier second half, with EBIT margin moving closer to the 5% medium-term target.

 

(Analyst expectations: PBT range £150-155m)

 

Analyst Briefing and Investor Meet presentation

A hybrid presentation for sell-side analysts and institutional investors will be held at 9.30am today, 3 December 2025. If you are interested in attending, please email Buchanan on [email protected] to request the joining details. This presentation will also be made available via a link on the Company's website www.zigup.com

The Company will also provide a roadshow presentation via the Investor Meet Company platform on Friday 5 December 2025 at 10.00am for institutional and retail investors. Click here to register: https://www.investormeetcompany.com/zigup-plc/register-investor

This announcement contains inside information for the purposes of UK MAR. The person responsible for arranging the release of this announcement on behalf of ZIGUP plc is Matthew Barton, Company Secretary.

 

For further information contact: 

Ross Hawley, Head of Investor Relations                                                               +44 (0) 1325 467558

 

Burson Buchanan                                                                                            

Chris Lane/Jamie Hooper                                                                                         +44 (0) 207 466 5000

Notes to Editors:

ZIGUP is the leading integrated mobility solutions provider, with a platform providing services across the vehicle lifecycle to help people keep on the move, smarter. The Group offers mobility solutions to businesses, fleet operators, insurers, OEMs and other customers across a broad range of areas from vehicle rental and fleet management to accident management, vehicle repairs, service and maintenance. 

The mobility landscape is changing, becoming ever more connected and ZIGUP uses its knowledge and expertise to guide customers through the transformation, whether that is more digitally connected solutions or supporting the transition to lower carbon mobility through providing EVs, charging solutions and consultancy.

The Group's core purpose is to keep its customers mobile, smarter - through meeting their regular mobility needs or by servicing and supporting them when unforeseen events occur. With our considerable scale and reach, ZIGUP's mission is to offer an imaginative, market-leading customer proposition and drive enhanced returns for shareholders by creating value through sustainable compounding growth. The Group seeks to achieve this through the delivery of its strategic framework of Enable, Deliver and Grow.

ZIGUP supports its customers through a network and diversified fleet of over 135,000 owned and leased vehicles, supporting over 1 million managed vehicles, with over 180 branches across the UK, Ireland and Spain and a specialist team of over 7,500 employees. We are a trusted partner to many of the leading insurance and leasing companies, blue chip corporates and a broad range of businesses across a diverse range of sectors. Our strength comes not only from our breadth of our award-winning solutions, but from our extensive network reach, our wealth of experience and continual focus on delivering an exceptional customer experience. Further information regarding ZIGUP plc can be found on the Company's website: www.zigup.com

GAAP reconciliation tables

Consolidated income statement reconciliation

Six month period ending (Unaudited)	Foot note	31.10.2025 Statutory	31.10.2025 Adjustments	31.10.2025 Underlying	31.10.2024 Statutory	31.10.2024 Adjustments	31.10.2024 Underlying
	(below)	2025	2025	2025	2024	2024	2024
		£m	£m	£m	£m	£m	£m
Revenue	(a)	929.6	(119.7)	809.9	903.6	(128.7)	775.0
Cost of sales	(b + c)	(719.5)	127.6	(591.8)	(709.2)	142.6	(566.6)
Gross profit		210.2	7.9	218.1	194.5	13.9	208.4
Administrative expenses	(d)	(127.0)	8.7	(118.2)	(121.4)	11.9	(109.5)
Operating profit		83.2	16.6	99.9	73.1	25.9	98.9
Income from associates		0.6	-	0.6	0.2	-	0.2
EBIT		83.8	16.6	100.4	73.2	25.9	99.1
Finance income		0.6	-	0.6	0.9	-	0.9
Finance costs		(19.3)	-	(19.3)	(18.0)	-	(18.0)
Profit before taxation		65.0	16.6	81.7	56.2	25.9	82.0
Taxation	(e)	(15.5)	(4.1)	(19.6)	(12.7)	(6.5)	(19.2)
Profit for the period		49.6	12.5	62.1	43.4	19.4	62.8
Shares for EPS calculation (Note 4)		225.3m		225.3m	223.8m		223.8m
Basic EPS		22.0p		27.6p	19.4p		28.1p
Foot notes
Adjustments comprise:
Revenue: sale of vehicles	(a)		(119.7)			(128.7)
Cost of sales: revenue sale of vehicles net down	(b)		119.7			128.7
Adjustments to underlying depreciation (see Financial Review)	(c)		7.9			13.9
Gross profit			7.9			13.9
Exceptional items (Note 11)			-			2.8
Amortisation of acquired intangible assets (Note 6)			8.7			9.2
Administrative expenses	(d)		8.7			11.9
Adjustments to EBIT			16.6			25.9
Adjustments to PBT			16.6			25.9
Tax on exceptional items (Note 11)			-			(0.7)
Tax on brand royalty charges, adjustments to depreciation and amortisation of acquired intangible assets			(4.1)			(5.8)
Tax adjustments	(e)		(4.1)			(6.5)
Adjustments to profit			12.5			19.4
GAAP reconciliation for year ended 30 April 2025 can be found on page 48 of the annual report and accounts

 

 

Operating review

The Group has delivered a strong operational performance in the first half, reflecting a period of robust execution across the businesses. Spain delivered stand-out performance, capitalising on our strong market position and favourable macro-economic conditions to achieve another period of excellent VoH growth. UK&I Rental has also performed well with good momentum in new business wins and growth across specialist vehicles and additional services, while average VoH was down slightly as we restructured our broker channel approach. 

 

Our differentiated business model continues to attract insurance partners to our integrated mobility platform. Claims & Services secured significant contract extensions and new signings during the period, including global insurance broker Howden Insurance and a multi-year renewal with Tesco Insurance. Across all our business lines we have an industry-leading reputation for our focus on exceptional customer service and are increasingly delivering this through multiple channels to best suit our customers, partners and their policyholders.

 

At the full year we indicated that markets were normalising after a five-year period of significant volatility.  Over the first half of the year there has been stability across vehicle supply, residual values and vehicle hire durations, and improved repair cycle times. Against this backdrop we are advancing our strategic ambitions by simplifying the UK&I operating model to deliver better outcomes for customers and stakeholders.

 

Growth opportunities

Our confidence in our ability to achieve sustainable growth is underpinned by opportunities in our existing and adjacent markets and by our scale and nationwide presence. Spanish rental remains immature with LCV rental penetration at c.5%, well below that in the UK; and while the UK&I macro-economic environment is less robust, fleet demand remains strong alongside increasing interest in ancillary services. In both markets increasing stability in both vehicle supply and residual values allows for greater forward planning. 

 

The claims and repair market continues to embrace new technology where it supports improved customer engagement and operational efficiencies. The combination of a seamless policyholder experience and benefits of outsourcing more services is an increasingly compelling proposition and complements the structural trend for supplier consolidation we continue to benefit from.

 

Strategic progress

The strategy we have pursued since merger of leveraging our nationwide footprint and market-leading positions is delivering strong results, supported by the 2024 rebrand and UK&I reorganisation. There has been good progress through the first half on our strategic pillars, where examples include:

Enable: technology investments have included commencing the roll-out of a new call-centre communication platform which offers great potential for enhanced in-call support and process automation, and further API solutions and self-service portals for major insurance partners. We added a further 80 apprentices to our technical programme, embarking on careers supported by structured and award-winning training. Five new structural aluminium centres are under construction, bringing in-house work previously outsourced.

 

Deliver: we are trusted to provide customer service excellence across our broad range of mobility services, reflected in continued excellent TrustPilot scores.  The 50% growth in rental fleet under our management solution reflects this, together with the growth in insurance customers taking our out of hours recovery solution.  We are expanding our mobile repair fleet to better serve customers away from our bodyshops, providing greater flexibility and responsiveness for minor repairs and opening up further capacity within our existing bodyshop network.       

Grow:  we added four new or significantly upgraded locations in the period, expanding our service footprint in Spain and adding greater capacity in core UK locations. Additional branch investment is planned in H2 including further expansion in our Spanish footprint. The expansion of the specialist vehicle fleet range and branch locations has generated significant interest and further cross-sell to rental customers.

 

Northgate Mobility and FMG

The UK&I reorganisation into two distinct operating businesses will enable better customer engagement and operational streamlining. It aligns all vehicle provision and branch operations together under Northgate Mobility, and greater integration across our incident management and repair operations under FMG. 

 

This will also support a more focused supply chain engagement, property strategy and central services support.  The simplified structure will also enable us to better leverage future technology enhancements we have planned, unlocking incremental benefits for both customers and colleagues.

 

Sustainability

 

Having achieved our Scope 1&2 carbon emissions targets, we are developing new longer-term targets to be published in a climate transition plan in 2026.

 

We have also continued to work with the government and fellow BVRLA members to address key challenges within the e-LCV sector.  This has included championing practical steps in making the switch away from ICE vehicles, advocating for grants for used e-LCVs, easing funding limits and regulatory barriers that constrain adoption of larger 4.25t EVs as e-LCVs.  

 

Strong financial capacity underpins our business model

Our operational scale, financial capacity and breadth of fleet options together generate strong OEM relationships, which is a key strategic advantage.   We have taken the opportunity of good vehicle supply to support continued refreshment of the vehicle fleets, together with strong fleet growth in Spain.  Our owned fleet provides significant asset backing for our borrowings, with fleet assets rising by £172m to £1.68bn since year end FY 2025.

 

At the end of October our leverage was 1.9x (FY 2025 1.8x), the upper end of our 1-2x range as we had previously guided. We have significant facilities headroom of £341m and an average financing rate of 3.1%.  

 

The Board has declared an interim dividend of 8.8p per share (H1 2025: 8.8p) to be paid on 9 January 2026 to shareholders on the register as at close of business on 12 December 2025. The interim dividend represents 50% of the final dividend for the year ended 30 April 2025 in line with previous years.

 

FINANCIAL REVIEW

Group Revenue and EBIT

Half year ended 31 October	H1 2026	H1 2025	Change	Change
	£m	£m	£m	%
Revenue - vehicle hire	373.7	338.2	35.5	10.5%
Revenue - vehicle sales	119.7	128.7	(9.0)	(7.0%)
Revenue - claims and services	436.3	436.8	(0.5)	(0.1.%)
Total revenue	929.6	903.6	26.0	2.9%
Rental profit	68.1	59.1	9.0	15.2%
Disposal profit	18.8	25.8	(7.0)	(27.4%)
Claims and services profit	18.1	17.4	0.6	3.7%
Corporate costs	(5.0)	(3.4)	(1.6)	47.2%
Underlying operating profit	99.9	98.9	1.0	0.9%
Income from associates	0.6	0.2	0.4	249.4%
Underlying EBIT	100.4	99.1	1.3	1.4%
Underlying EBIT margin3	12.4%	12.8%	-	(0.4ppt)
Statutory EBIT	83.8	73.2	10.6	14.4%

 

Revenue

Total Group revenue, including vehicle sales, of £929.6m was 2.9% higher than prior period and revenue excluding vehicle sales of £809.9m (H1 2025: £775.0m), was 4.5% higher than the prior period.

Hire revenues increased 10.5% due to VoH growth in Spain and pricing actions in both UK&I and Spain rental businesses. Claims and services revenue stayed broadly flat on prior period, reflecting lower claims volumes but stable internal repair volumes.

Group vehicle sales revenue reduced by 7.0% with 1,400 fewer vehicles sold in the period partially offset by  higher disposal values per vehicle as vehicles were sold at a lower average age.

EBIT

Statutory EBIT increased 14.4%, while underlying EBIT of £100.4m marginally improved compared to the prior period; reflecting strong results in rental profits being partially offset by an expected decrease in disposal profits. The statutory EBIT includes a £7.9m cost for adjustments to depreciation rates (H1 2025: £13.9m) and £8.7m amortisation on acquired intangible assets (H1 2025: £9.2m). There were no exceptional administrative expenses recognised in the period (H1 2025: £2.8m).

Rental profit increased 15.2% to £68.1m (H1 2025: £59.1m) driven by growth in both the UK&I and Spain.

Total disposal profits for the period of £18.8m were 27.4% lower than the prior period with 15,800 vehicles sold (H1 2025: 17,200). This includes 1,600 sales of ex-leased vehicles, ex-Auxillis fleet cars and other non-fleet vehicles through the UK&I Rental sales channels (H1 2025: 2,800).

3 Calculated as underlying EBIT divided by total revenue (excluding vehicle sales)

UK&I Rental

Half year ended 31 October	H1 2026			H1 2025		Change
Underlying financial results	£m			£m		%
Revenue - vehicle hire4	208.3			195.6		6.5%
Revenue - vehicle sales	70.4			93.1		(24.3%)
Total revenue	278.7			288.6		(3.4%)
Rental profit	35.1			30.8		14.2%
Rental margin %	16.9%			15.7%		1.2ppt
Disposal profit	5.9			13.6		(57.1%)
Underlying EBIT	41.0			44.4		(7.7%)
EBIT margin %5	19.7%			22.7%		(3.0ppt)
ROCE %	11.1%			13.1%		(2.0ppt)
KPIs		('000)	('000)		%
Average VoH		42.6	43.8		(2.6%)
Closing VoH		43.4	44.6		(2.8%)
Average utilisation %		91%	91%		-ppt

Rental revenue increased by 6.5% compared to the prior period, with underlying demand strong and supporting increased average revenue per vehicle together with growth in ancillary income. A combination of vehicle mix, carefully managed pricing actions and a continued focus on utilisation, more than offset a modest reduction in average VoH in the period, due principally through continued refocus within the lower margin broker channel. 

Demand from larger fleets included incremental orders for 1,250 vehicles from eight fleet customers across the utility, infrastructure and public sectors. Many were also seeking additional services such as EV consulting, fleet management, fuel cards and telematics. New business account openings from the prior year also delivered strong VoH demand from this segment. Customer satisfaction remained high, with Trustpilot scores reaching 4.9/5 in October.

The programme of fleet recycling continued through the period and resulted in an average fleet age of 2.2 months lower than at the FY 2025 year end. As expected, disposal profits reduced through a combination of 2,400 lower vehicle disposals and lower PPUs, sold into a receptive market supported by stable residual values.

Rental profits rose 14.2%, and higher rental margins reflected strong performance, cost control across the underlying rental businesses and a continued focus on demand from higher margin channels. Our rental businesses were all at or above the medium-term target range; and the period also included a one-off revenue recognition relating to adjustments in a single customer contract. 

Our specialist vehicle capabilities in traffic management and refrigerated vehicles have been enhanced through the broadening of the vehicle range, together with an expanding national presence with locations being opened within five existing Northgate branches. Our 'One Road' programme has also driven mainstream LCV rental growth, and a significant increase in interest in our Fleet Management proposition, with an increase of over 50% in the period to over 7,500 vehicles under management.

Two new branch locations are nearing completion in the coming months, replacing older sites with modern efficient facilities and technologies.  This was supported by a close focus on technician training and retention in what is an industry-wide shortage, offering career progression through a new Master Technician Pathway, from apprentice to expert level.

4 Including intersegment revenue of £5.3m (H1 2025: £4.2m)

5 Calculated as underlying EBIT divided by total revenue (excluding vehicle sales)

Rental business

Vehicle hire revenue in UK&I Rental was £208.3m (H1 2025: £195.6m), an increase of 6.5%. A 9.4% increase in average revenue per vehicle reflected mix of vehicle, product and hire length as well as applied rate increases, partially offset by a 2.6% reduction in average VoH. Rental profits were £35.1m compared to £30.8m in the prior period.

Average VoH of 42,600 was 1,200 lower than the prior period (H1 2025: 43,800) with closing VoH of 43,400 decreasing by 1,200 since 31 October 2024 largely driven by a restructuring of our broker channel approach.

UK&I Rental's minimum term proposition accounted for 45% of average VoH (H1 2025: 41%). The average term of these contracts is approximately two years, providing both improved visibility of future rental revenue and earnings, as well as lower transactional costs.

Management of fleet and vehicle sales

The closing UK&I Rental fleet was 46,400 compared to 45,400 at 30 April 2025. During the period, 7,300 vehicles were purchased (H1 2025: 8,100) and 6,800 vehicles were de-fleeted (H1 2025: 7,200) and there were other movements of 500 vehicles (H1 2025: 400) including leased vehicles and transfers from the Claims & Services fleet.

The average age of the fleet at the end of the period was 2.2 months lower than at 30 April 2025 and 5.4 months lower than 31 October 2024 as the ease in vehicle supply constraints continued throughout FY 2025 and the oldest cohort of the fleet was refreshed. The fleet composition continues to be monitored in response to VoH demand.

A total of 8,400 vehicles were sold in UK&I Rental during the period, 21.8% lower than the prior period (H1 2025: 10,800 vehicles) including 1,300 fewer cars and other non-fleet vehicles sold via Van Monster which had been defleeted from the Claims & Services fleet. Disposal profits of £5.9m (H1 2025: £13.6m) were 57.1% lower than prior period due to a decrease in volumes coupled with a reduction in the underlying LCV PPU to £800 (H1 2025: £1,600) which reduced throughout FY 2025 but has been stable since year end.

 

Spain Rental

Half year ended 31 October	H1 2026		H1 2025	Change
Underlying financial results	£m		£m	%
Revenue - vehicle hire	170.7		146.8	16.3%
Revenue - vehicle sales	41.3		35.1	17.7%
Total revenue	212.0		181.9	16.5%
Rental profit	33.0		28.3	16.3%
Rental margin %	19.3%		19.3%	-ppt
Disposal profit	12.9		12.2	5.8%
Underlying EBIT	45.9		40.5	13.1%
EBIT margin %6	26.9%		27.6%	(0.7ppt)
ROCE %	11.8%		12.0%	(0.2ppt)
KPIs	('000)	('000)		%
Average VoH	66.1	59.6		11.0%
Closing VoH	67.0	61.0		9.8%
Average utilisation %	92%	91%		1ppt

 

The Spanish Rental business continued to deliver excellent growth, with rental revenue up 16.3% as rental solutions grew market share from ownership with strength both in flexible rental, and in minimum term in particular during the period. This was driven by its unique market offering, strong value proposition and favourable macro-economic conditions. Closing VoH rose 9.8% since 31 October 2024 as the fleet size increased to 74,900 at the end of the period (H1 2025: 69,600) reflecting 6% of total Spanish rental vehicles on the road.

Our premium service-focused minimum-term product proved attractive when compared to more traditional proposals. A notable contract win from the main provider of railway infrastructure maintenance will commence LCV deliveries in February 2026. 

Rental profit growth of 16.3% was helped by VoH growth combined with strong cost control both in repairs and overheads.  Rental margin at 19.3% was stable on the prior period, with higher depreciation costs offset by rate increases and efficiencies including our internal repair network delivering per-vehicle repair costs 3% lower than the prior year. Ancillary services grew by 16%, with nearly 15,900 vehicles in the fleet equipped with telematics.

Disposal profits rose 5.8% reflecting continued recycling of the fleet into a receptive market with a car parc significantly older than other more mature European markets. Trade buyers have embraced the new features within the new e-auction site. Since the end of FY 2025, average fleet age reduced 0.7 months to 26.7 months, principally reflecting growth of new vehicles and carefully managed defleets.

Facility investments focused on managing service capacity and meeting the demands of a rapidly growing fleet, ensuring a continued high level of customer service, with the new Madrid delivery hub specifically targeting reducing the wait time for new rentals. A second hub is planned for Barcelona reflecting the success of this initiative. Two new service centres were opened in the period, in Tarragona and Ciudad Real, enhancing customer service in these provinces, while also lowering operational costs.

6 Calculated as underlying EBIT divided by total revenue (excluding vehicle sales)

 

Rental business

Vehicle hire revenue in Spain Rental was £170.7m (H1 2025: £146.8m), an increase of 16.3% (13.4% in local currency). Average VoH increased 11.0% and closing VoH increased 9.8% to 67,000.

Spain Rental's minimum term proposition accounted for 38.5% (H1 2025: 37%) of average VoH. The average term of these contracts is approximately three years, providing visibility of future rental revenue and earnings.

Rental profit increased by 16.3% in the period (13.5% in constant currency) to £33.0m (H1 2025: £28.3m). This resulted in a rental margin of 19.3% in line with prior period, with strong revenue growth and favourable direct labour and repair costs supported by a younger fleet, offset by increased depreciation charges due to increased purchase price of vehicles post-pandemic.

Management of fleet and vehicle sales

The closing Spain Rental fleet amounted to 74,900 compared to 71,900 vehicles at 30 April 2025. During the period 10,000 vehicles were purchased (H1 2025: 10,700) and 7,000 vehicles were de-fleeted (H1 2025: 6,200 vehicles). The average age of the fleet at the end of the period was 2.1 months lower than at the same time last year and 0.7 months lower since 30 April 2025. We continue to replace our older cohort vehicles whilst balancing VoH demand and growing the fleet.

Disposal profits of £12.9m (H1 2025: £12.2m) increased 5.8% with total vehicle sales of 6,900, 7.9% higher than prior period and PPUs marginally lower as the Spanish used vehicle market remains strong as well as being supported by internal investment in our e-auction platform.

 

Claims & Services

Half year ended 31 October	H1 2026	H1 2025	Change
Underlying financial results	£m	£m	%
Revenue - claims and services7	441.8	442.1	(0.1%)
Revenue - vehicle sales8	20.8	27.1	(23.3%)
Total revenue	462.6	469.2	(1.4%)
Gross profit	80.5	79.7	0.9%
Gross margin%9	18.2%	18.0%	0.2ppt
Operating profit	18.1	17.4	3.7%
Income from associates	0.6	0.2	249.4%
Underlying EBIT	18.7	17.6	6.0%
EBIT margin %	4.2%	4.0%	0.2ppt
ROCE %	21.6%	17.3%	4.3ppt

 

Claims and services revenue was consistent with the prior period, with vehicle sales revenue lower due to reduced fleet disposal volumes but stable residual values. We saw stability in our key measures of vehicle hire length, repair conversions and improved repair cycle times. Volumes softened in the personal lines motor segment, particularly for lower-value incidents, while fleet sector activity held steady closer to historic norms. We believe this market disparity principally reflected retail consumer decisions regarding making smaller discretionary claims. 

A number of new contracts and extensions were secured during the period, including from major partners, which will support future growth. Howden Insurance went live in October with their Consumer & Local Commercial division, recognising our market-leading client service, strong culture and expertise. A contract renewal with longstanding partner Tesco Insurance highlights the strength of our integrated platform, and we expanded the range of services such as roadside recovery or third party intervention with other major partners including DLG. 

While there has been greater capacity within the overall repair market, we have successfully maintained our internal repair volumes, helped by our end-to-end management within the repair process, supporting bodyshop productivity. 

The business has had a strong focus on delivering operational efficiencies to match changing claims volumes which has helped to protect margin, with EBIT margin and ROCE improving from the prior period. We also took opportunities for capacity growth and higher productivity through targeted investments. 

This programme has included the upgrading of the Cardiff bodyshop and a new vehicle recovery operations centre. A programme to double our mobile repair fleet will provide greater capacity and flexibility at individual bodyshop level. We have also commenced the rollout of an advanced call-centre platform which over time will bring AI-enabled solutions and in-call efficiencies to our customer engagement.

Our legal services business, NewLaw, successfully disposed of a portion of its activities, but overall remained loss-making as it carefully manages its claims run-off programme. There remains a clear operational focus on tracking overheads to the reducing claims book.

7 Including intersegment revenue of £5.5m (H1 2025: £5.3m)

8 Including intersegment revenue of £12.9m (H1 2025: £26.6m)

9 Gross profit margin calculated as underlying gross profit divided by total revenue (excluding vehicle sales). EBIT margin calculated as underlying EBIT divided by total revenue (excluding vehicle sales)

Revenue and profit

Revenue for the period (excluding vehicle sales) was in line with the prior period at £441.8m (H1 2025: £442.1m) due to lower claims volumes but stable repair volumes.

Gross margin of 18.2% increased 0.2ppt (H1 2025: 18.0%) but has been impacted by losses in NewLaw in the period as it manages its claims run-off programme.

EBIT for the period increased 6.0% to £18.7m (H1 2025: £17.6m) with improvements in operating efficiencies across the segment, particularly within the bodyshop network, offsetting losses in NewLaw as the claims book is manged down. 

Management of fleet

The total fleet in Claims & Services closed the period at 13,900 vehicles, down from 14,300 at 30 April 2025 with the lower fleet reflecting reduced credit hire volumes. 

The average fleet age at the end of the period was 13.0 months compared to 14.7 months as at 30 April 2025 and 14.8 months at 31 October 2024, reflecting the shorter fleet holding period than in the UK&I and Spain rental businesses due to the different composition of the fleet and usage of those vehicles.

The Claims & Services fleet operates a hybrid financing approach including ownership, leasing and, during peak periods, cross-hiring when needed. 

Group PBT and EPS

Half year ended 31 October	H1 2026	H1 2025	Change	Change
	£m	£m	£m	%
Underlying EBIT	100.4	99.1	1.3	1.4%
Net finance costs	(18.7)	(17.1)	(1.6)	9.9%
Underlying profit before taxation	81.7	82.0	(0.3)	(0.4%)
Statutory profit before taxation	65.0	56.2	8.9	15.8%
Underlying effective tax rate	24.0%	23.4%	-	0.6ppt
Underlying EPS	27.6p	28.1p	(0.5p)	(1.8%)
Statutory EPS	22.0p	19.4p	2.6p	13.4%

 

Profit before taxation

Underlying profit before taxation was broadly in line with prior period with growth in underlying EBIT offset by higher net finance costs. Statutory PBT was 15.8% higher due to a reduction in adjustments to depreciation rates on certain fleet of £6.0m, a reduction in exceptional administrative expenses of £2.8m and a decrease of £0.5m in amortisation of acquired intangibles.

Exceptional items

There were no items recognised as exceptional in the period (H1 2025: £2.8m).

Amortisation of acquired intangibles and depreciation rate changes

Amortisation of acquired intangibles and adjustments to underlying depreciation charges are not exceptional items as they are recurring.  However, these items are excluded from underlying results in order to provide a better comparison of performance of the Group. The total amortisation of acquired intangibles charged in the period was £8.7m (H1 2025: £9.2m).

As previously reported, a decision was made to reduce depreciation rates from 1 May 2022 on certain vehicles remaining on the fleet which were purchased before FY 2021 and this impact has not been included underlying results. The total adjustment made to underlying depreciation in the period was a cost of £7.9m (H1 2025: £13.9m). The net adjustment is materially in line with expectations set out in the FY 2025 Annual Report.

Interest

Net finance charges increased to £18.7m (H1 2025: £17.1m) due to higher average debt compared to the prior period. Interest rates are significantly sheltered due to holding 83% of borrowing as fixed rate debt.

Taxation

The Group's underlying tax charge was £19.6m (H1 2025: £19.2m) and the underlying effective tax rate was 24.0% (H1 2025: 23.4%) with the prior period including certain one-off adjustments to the tax charge due to the timing and composition of fleet replacements. The statutory effective tax rate was 23.8% (H1 2025: 22.7%).

Earnings per share

Underlying EPS of 27.6p slightly decreased, being 0.5p lower than prior period, reflecting marginally lower earnings due to the impact of the effective tax rate increase. Statutory EPS of 22.0p was 2.6p higher, reflecting the movement on items that are excluded from underlying profit.

Dividend

The Board has declared an interim dividend of 8.8p per share (H1 2025: 8.8p) to be paid on 9 January 2026 to shareholders on the register as at close of business on 12 December 2025.

The interim dividend represents 50% of the final dividend for the year ended 30 April 2025 in line with previous guidance.

 

 

Group cash flow

Half year ended 31 October	H1 2026	H1 2025	Change
	£m	£m	£m
Underlying EBIT	100.4	99.1	1.3
Underlying depreciation and amortisation	145.6	129.5	16.1
Underlying EBITDA	246.0	228.6	17.4
Net replacement capex10	(172.3)	(178.9)	6.6
Lease principal payments11	(25.1)	(29.4)	4.3
Steady state cash generation	48.6	20.3	28.3
Working capital and non-cash items	26.0	38.5	(12.5)
Exceptional cash costs	-	(2.8)	2.8
Growth capex10	(73.6)	(53.5)	(20.1)
Taxation	(12.1)	(7.1)	(5.0)
Net operating cash	(11.1)	(4.6)	(6.5)
Distributions from associates	0.6	-	0.6
Interest and other financing	(15.6)	(15.9)	0.3
Free cash flow	(26.1)	(20.5)	(5.6)
Dividends paid	(39.6)	(39.3)	(0.3)
Payments to acquire treasury shares	-	(5.3)	5.3
Add back: lease principal payments12	25.1	29.4	(4.3)
Net cash consumed	(40.6)	(35.7)	(4.9)

 

Steady state cash generation

Steady state cash generation increased to £48.6m (H1 2025: £20.3m), with strong underlying EBITDA coupled with a £6.6m decrease in net replacement capex.

Working capital and non-cash items

Working capital and non-cash items reduced by £12.5m to a cash inflow of £26.0m (H1 2025: £38.5m) with working capital improvements in UK&I and Spain and C&S benefitting from bulk settlements of claims in the prior period.

¹⁰ Net replacement capex is total net capex less growth capex. Growth capex represents the cash consumed in order to grow the fleet or the cash generated if the fleet size is reduced in periods of contraction

¹¹ Lease principal payments are included so that steady state cash generation includes all maintenance capex irrespective of funding method

¹² Lease principal payments are added back to reflect the movement on net debt

Net capital expenditure

Net capital expenditure increased by £13.5m to £245.9m (H1 2025: £232.4m) due to a £20.1m increase in growth capex¹⁰ being partially offset by a £6.6m decrease in net replacement capex¹⁰.

Net replacement capex¹⁰ was £172.3m (H1 2025: £178.9m), £6.6m lower than the prior period comprising a £17.5m decrease in UK&I, a £3.1m decrease in Claims & Services, partially offset by a £14.0m increase in Spain.

Growth capex¹⁰ of £73.6m (H1 2025: £53.5m) comprised £49.6m in Spain, £10.7m in UK&I Rental and £13.3m in Claims & Services with fleet growth in each segment since 30 April 2025.

Lease principal payments of £25.1m (H1 2025: £29.4m) decreased by £4.3m as legacy hire purchase contracts from acquisitions were run off.  

Free cash flow

Free cash flow is stated after taking account of investments in the fleet that have been made in the period which will return future cash flow at a sustainable rate of return ahead of our cost of capital.

Free cash flow decreased by £5.6m to an outflow of £26.1m (H1 2025: £20.5m outflow) and reflects investment in net replacement capex of £172.3m, capex lease payments of £25.1m and growth capex of £73.6m. 

Net cash consumed

Net cash consumed of £40.6m (H1 2025: £35.7m), excluding principal lease payments of £25.1m (H1 2025: £29.4m), comprises free cash outflow of £26.1m (as above), £39.6m of dividends paid (H1 2025: £39.3m) with the prior period including £5.3m for purchase of treasury shares. Leverage has increased to 1.9x from 1.8x at 30 April 2025 in line with expectations.

Net debt

Net debt reconciles as follows:

	H1 2026	H1 2025
	£m	£m
Opening net debt at 1 May	836.7	742.2
Net cash consumed	40.6	35.7
Other non-cash items	38.6	15.4
Exchange differences	23.4	(10.8)
Closing net debt at 31 October	939.3	782.5

 

Closing net debt was £156.8m higher than net debt at 30 April 2025, driven by net cash consumption of £40.6m and other non-cash items of £38.6m including the recognition of new leases. The foreign exchange impact on net debt was a £23.4m increase.  The net book value of fleet on the balance sheet at 31 October 2025 was £1.68bn compared to £1.51bn at 30 April 2025.