Zigup
Website:
Zigup
Index:
FTSE 250
EPIC: ZIG
Supersector:
Industrial Goods and Services
Sector:
Industrial Engineering
Subsector:
Commercial Vehicle-Equipment Leasing
Market Cap:
£874.16M
Payout Frequency: Semi-Annual
Zigup Dividend Analysis and Summary
Dividend headline details
- Interim dividend per share: 8.8p (unchanged vs H1 2025)
- Ex-dividend date: 11/12/2025 (derived from record date)
- Record date: 12/12/2025
- Payment date: 09/01/2026
- Policy/practice: Interim set at 50% of the prior final dividend (consistent with prior years). FY25 final dividend was 17.6p, implying a steady payout framework.
Coverage and cash support
- EPS cover (H1): Underlying EPS 27.6p vs interim 8.8p ? c.3.1x cover (statutory EPS 22.0p ? c.2.5x cover).
- Cash generation: Steady-state cash generation £48.6m (H1), comfortably covering cash dividends paid in the period of £39.6m (relates to the FY25 final dividend).
- Balance sheet: Net debt £939m, leverage 1.9x (top end of 1–2x target), facility headroom £341m, largely fixed-rate debt (c.83%) with average borrowing cost ~3.2%.
- Trading/guidance: FY26 underlying PBT now expected to be at least at the top of £150–155m range; rental margins strong; Spain robust.
Structural and policy considerations
- Operating model simplification: UK&I reorganising into two focused businesses (Northgate Mobility and FMG). Management targets c.£20m incremental annualised savings by FY2028. Positive for medium-term dividend capacity.
- Share capital change: Cancellation of 10m treasury shares during the period reduces future dividend cash outflow and marginally supports per-share metrics.
- No M&A, demerger or share consolidation disclosed.
Focused dividend assessment
- Sustainability: Interim DPS is well covered by earnings and steady-state cash. Leverage is within the stated range and covenant headroom is strong, supporting ongoing distributions.
- Growth trajectory: Interim held flat year-on-year. With PBT guidance at the top of the range and cost-savings programmes underway, scope exists for at least a maintained final dividend; meaningful near-term growth may be tempered by elevated growth capex.
- Capital allocation fit: The group is prioritising fleet refresh/growth (H1 net capex £245.9m; growth capex £73.6m), while maintaining dividends and reducing share count. Management signals an “inflexion point” for steady-state cash flow, which, if delivered, should strengthen dividend resilience.
Risks and flags for dividend stability
- Free cash flow drag from growth capex: H1 free cash flow was an outflow (£26.1m) due to investment; persistence of elevated growth capex could constrain dividend growth.
- Residual value/disposal profit normalisation: Lower disposal profits and ongoing depreciation adjustments could pressure earnings if used-vehicle markets soften further.
- Leverage at upper end: At 1.9x, leverage leaves less room for shocks (though covenant headroom remains ample).
- Operational mix: UK&I claims volumes softer; NewLaw remains loss-making (albeit being managed down). Any recovery delays could weigh on segment margins.
- Macro/interest: UK macro less robust; higher average debt vs prior period lifted net finance costs. Most debt fixed, but refinancing cycles remain a medium-term watchpoint.
Read more
Zigup Annual Dividend Yield - 6.86%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/12/2024 |
10/01/2025 |
Interim |
8.80p |
GBX |
| 28/08/2025 |
30/09/2025 |
Final |
17.60p |
GBX |
Total (Annual Dividends Per Share):
26.40p
Dividend Yield =
Annual Dividends Per Share (26.40p)
÷ Share Price (385p)
= 6.86%
Zigup Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 11/12/2025 |
09/01/2026 |
Interim |
8.8000p |
GBX |
| 28/08/2025 |
30/09/2025 |
Final |
17.60p |
GBX |
| 12/12/2024 |
10/01/2025 |
Interim |
8.80p |
GBX |
| 29/08/2024 |
27/09/2024 |
Final |
17.50p |
GBX |
| 14/12/2023 |
12/01/2024 |
Interim |
8.30p |
GBX |
| 31/08/2023 |
29/09/2023 |
Final |
16.50p |
GBX |
| 15/12/2022 |
13/01/2023 |
Interim |
7.50p |
GBX |
| 01/09/2022 |
30/09/2022 |
Final |
15.00p |
GBX |
| 09/12/2021 |
14/01/2022 |
Interim |
6.00p |
GBX |
| 02/09/2021 |
24/09/2021 |
Final |
12.00p |
GBX |
| 17/12/2020 |
29/01/2021 |
Interim |
3.40p |
GBX |
Zigup Dividend Calculator
Zigup Dividend Growth
| Dividend Growth (1Y) |
0.38%
|
| Dividend CAGR (5Y) |
11.38%
|
| Years of Growth |
5
|
| Payout Ratio |
69%
|
| Buyback Yield |
-0.13%
|
| Shareholder Yield |
6.78%
|
| P/E Ratio (TTM) | 10.25 |
|---|
| Forward P/E | 7.41 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 10.03% |
|---|
| FCF Yield | -0.98% |
|---|
| ROE | 8.1% |
|---|
| ROCE | 8.1% |
|---|
| Profit Margin | 4.68% |
|---|
| Operating Margin | 8.94% |
|---|
| Gross Margin | 22.5% |
|---|