Zigup upgrades yearly profit guidance on strong Spain, FMG performance

Zigup PLC on Tuesday said it expects annual profit to be at the top of its current guided range, driven by "strong performances" in its Spain and FMG businesses.

Shares in the vehicle rental and management firm jumped 6.1% to 459.50 pence on Tuesday morning in London. Over the last year, Zigup shares have risen 42%.

In a statement ahead of its annual general meeting, Zigup said it had performed well during the first four months of financial 2027. It expects annual adjusted pretax profit to be at the top of the current market expectations range of £163.2 million to £170.0 million. In the twelve months to April 2026, pretax profit was £102.0 million.

The company said average vehicles on hire at the end of August were more than 5% ahead of a year earlier, with its Spanish fleet exceeding 80,000 vehicles.

Zigup's incident management support business, FMG, also recorded strong volumes, benefiting from the recent re-awarding and expansion of a Motability contract by one of its largest insurance partners.

The company said leverage was in line with its target range of 1 to 2 times.

The Darlington, England-based group said it remains confident in its long-term growth strategy and prospects, as it has increased its to its geographical scale and continues to progress its UK & Ireland simplification actions.

The proposed final dividend is 18.2 pence per share, payable on September 30. If approved on Tuesday, it will result in a total ordinary dividend for the year ended April 2026 of 27.0 pence per share.

Zigup said it will publish its interim results on December 2 for the six months ending October 31.

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