Demand 'drives forward' Zigup's growth plans

A national vehicle rental firm is “well-positioned to continue its growth trajectory” after demand returned to pre-pandemic levels, bosses have said.

Zigup officials have hailed “strong prospects” for expansion following success across UK and Spanish markets.

And the Darlington-headquartered operator says its momentum is set to continue in 2025, with “significant additional orders from existing large customers” matched by public sector work and expansion of an electric vehicle charging venture.

It revealed its upbeat outlook in a trading update for the six months to October 31, which showed a 1.7 per cent rise in vehicle hire revenue across the UK and Ireland, helped by “careful pricing”, and an eight per cent-plus increase across Spain.

According to the announcement, the firm, which includes the Northgate and Northgate Spain brands, enjoyed its “strongest UK new business wins since pre-COVID-19”, thanks to “extremely robust” rental demand, with minimum term and flex offers attracting Spanish audiences’ attention.

And officials say it stands to further benefit from UK Government emissions changes, through cleaner fleet demands and its ChargedEV business, which supplies and installs charging equipment to homes and workplaces, and has deals with British Gas and Scottish Power, and with leaders in Durham City to replace public charging points.

Martin Ward, chief executive, said: “Our prospects are strong and our expectations for the full year are on track.

“We are well-positioned to continue our growth trajectory and to capitalise on opportunities within the mobility services market.”

He added underlying revenue was 5.6 per cent better off at £775 million in Zigup's six-month reporting period.

However, reported revenue fell from £911.3 million to £903.6 million amid lower vehicle sales income.

Zigup’s roots trace back to Hurworth, near Darlington, in 1981, when Alan Noble founded Noble Self Drive, which latterly became Northgate Vehicle Hire.

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