Redde Northgate (ZIG) AI Stock Analysis

• Market Cap: £757.88M
• Dividend Yield: 7.74%
• Average Volume (3M): 418.75K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.09
• Revenue Growth: 7.08%
• EPS Growth: -28.02%
• Country: UK
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 90
• Industry: Rental & Leasing Services
• EPS (TTM): 0.28
• Shares Outstanding: 225,838,460
• 10 Day Avg. Volume: 473,270
• 30 Day Avg. Volume: 418,753
• PEG Ratio: -1.60
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £410.00
• Price Target Upside: 17.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: 398.00p ▲( 13.71% Upside)

The overall score is driven by a strong valuation and positive corporate events that enhance financial flexibility and market confidence. Despite financial performance challenges with increasing debt and negative free cash flow, the stock's bullish technical indicators and attractive dividend yield make it appealing to investors.

Positive Factors

Demand and Market Expectations

Strong demand for rental products was seen in both Spain and UK & Ireland, leading to management expecting to finish ahead of market expectations.

Financial Performance

ZigUp's trading update continues the group's track record of gently beating consensus expectations.

Growth in Regions

Spain continues to be the stand-out region with good growth in total vehicles supporting growth in rental profits.

Negative Factors

Cyber-Security Incident

The Claims & Services division experienced a cyber-security incident impacting EBITA by £4.2m and faced a weaker market in the higher margin Auxillis business.

Debt and Financial Risk

Net Debt expansion has been limited to £40m as the group takes advantage of the improved vehicle supply.

Market Challenges

Improvement in Claims & Services is encouraging after a challenging period impacted by a cyber-security incident.

Redde Northgate Business Overview & Revenue Model

Company Description

Zigup Plc provides mobility solutions and automotive services in the United Kingdom, Spain, and Ireland. The company offers contact center support, sales, claim processing, customer service, and general insurance products; provides fleet management, rapid response, and recovery management services; and supplies and installs electric vehicle charging equipment. In addition, it provides personal injury law and legal advice services; light commercial vehicle hire services; used vans and cars for business, and private individuals; and automotive crash repair and accident administration services. Further, the company operates a fleet of approximately 130,000 owned and leased vehicles, and approximately 700,000 managed vehicles. The company was formerly known as Redde Northgate plc and changed its name to Zigup Plc in May 2024. Zigup Plc was incorporated in 1897 and is headquartered in Darlington, the United Kingdom.

How the Company Makes Money

Redde Northgate generates revenue through a diversified business model primarily centered around vehicle rental and fleet management services. Key revenue streams include short-term vehicle hire, long-term fleet leasing, and accident management services such as repair and claims handling. The company capitalizes on its large fleet of vehicles to provide flexible rental solutions to businesses and individuals. Additionally, partnerships with insurance companies and corporate clients enhance its accident management division, driving further earnings through service fees and commissions. The integration of vehicle rental and management services allows Redde Northgate to optimize operational efficiency and maximize utilization rates, contributing to its overall profitability.

Redde Northgate Financial Statement Overview

Summary

Redde Northgate demonstrates solid revenue growth and operational efficiency with stable margins. However, the increasing debt and negative free cash flow due to capital expenditures warrant cautious monitoring.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from the previous year. Gross profit margins are stable, indicating effective cost management. However, the net profit margin has slightly decreased, which might be attributed to increased operational expenses. EBIT and EBITDA margins remain healthy, showcasing robust operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. Return on equity is decent, although there's room for improvement. The equity ratio is relatively stable, reflecting a solid financial foundation. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Operating cash flow shows a positive trend, indicating strong cash generation capabilities. However, the free cash flow has been negative, impacted by high capital expenditures. The operating cash flow to net income ratio is strong, yet the negative free cash flow suggests potential liquidity challenges if such trends continue.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.83B	1.49B	1.24B	1.11B	779.35M
	Gross Profit
414.33M	415.37M	326.43M	233.03M	154.72M
	EBIT
193.92M	213.01M	144.23M	68.75M	70.69M
	EBITDA
445.06M	396.09M	363.42M	291.38M	240.53M
	Net Income Common Stockholders
125.02M	139.24M	101.55M	65.57M	7.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.80M	14.12M	24.56M	11.17M	67.84M
	Total Assets
2.23B	2.11B	1.85B	1.72B	1.79B
	Total Debt
782.03M	708.56M	607.11M	541.51M	643.71M
	Net Debt
742.23M	694.43M	582.55M	530.34M	575.87M
	Total Liabilities
1.18B	1.11B	900.15M	807.06M	920.52M
	Stockholders Equity
1.04B	994.60M	946.76M	908.13M	871.57M
Cash Flow		Free Cash Flow
-192.90M	-49.97M	-50.77M	-59.84M	-134.23M
	Operating Cash Flow
378.41M	357.34M	295.91M	252.99M	239.54M
	Investing Cash Flow
-285.95M	-288.23M	-215.70M	-94.82M	-205.03M
	Financing Cash Flow
-110.20M	-72.99M	-71.41M	-167.85M	-17.77M

Redde Northgate Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 350.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZIG, the sentiment is Positive. The current price of 350 is above the 20-day moving average (MA) of 326.02, above the 50-day MA of 308.66, and above the 200-day MA of 334.28, indicating a bullish trend. The MACD of 12.04 indicates Negative momentum. The RSI at 75.21 is Negative, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZIG.

Redde Northgate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHT	78 Outperform	£18.86B	16.07	20.60%	2.25%	-0.25%	-8.04%
ZIG	75 Outperform	£757.88M	8.12	9.09%	7.74%	7.08%	-28.02%
Sector *	64 Neutral	$4.46B	11.94	5.17%	249.36%	4.00%	-12.35%
HSS		£51.18M	―	-1.50%	7.78%	―	―
SDY	64 Neutral	£112.29M	―	-1.79%	10.65%	-4.08%	29.90%
VP	56 Neutral	£235.19M	―	-3.24%	6.67%	-1.52%	-122.68%

Redde Northgate Corporate Events

ZIGUP PLC Surpasses FY2025 Expectations with Strong Rental Demand

ZIGUP PLC announced that its FY2025 performance exceeded market expectations, driven by strong demand for rental products, particularly in Spain. The company has expanded its rental fleet and improved its Claims & Services businesses, signing new contracts and partnerships. ZIGUP is confident about future growth opportunities, supported by strong structural growth drivers and a recent refinancing deal with extended maturities. The company also received the King’s Award for Enterprise, highlighting its commitment to customer service and social mobility.

The most recent analyst rating on (GB:ZIG) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Redde Northgate stock, see the GB:ZIG Stock Forecast page.

ZIGUP plc Receives Prestigious King’s Award for Enterprise

ZIGUP plc has been awarded the King’s Award for Enterprise in the category of Promoting Opportunity, recognizing its efforts in supporting disadvantaged individuals through successful programs in work experience, training, apprenticeships, mentoring, and careers advice. This accolade highlights ZIGUP’s commitment to breaking socio-economic barriers and addressing the skills gap in the automotive sector, further enhancing its reputation as a responsible employer. With over 400 apprentices, the company continues to broaden its diversity and inclusion efforts, supporting its mission to keep customers mobile and drive sustainable growth.

ZIGUP plc Director Transfers Shares Without Changing Holdings

ZIGUP plc, a company involved in the financial markets, announced a transfer of shares by Mark Butcher, a Non-Executive Director. On May 2, 2025, Butcher transferred 6,000 ordinary shares between his accounts, maintaining his total shareholding at 34,676 shares. This transaction involved selling shares from one account and purchasing the same amount into an ISA account, with no change in his overall shareholding.

ZIGUP plc Announces Change in Voting Rights Structure

ZIGUP plc, based in Darlington, United Kingdom, has announced a change in its voting rights structure due to the cancellation of treasury shares that do not carry voting rights. This adjustment has resulted in a decrease in the percentage of voting rights held, from 5.05872% to 4.5399%, affecting a total of 10,252,974 voting rights. The notification of this change was completed on May 1, 2025, and reflects a significant shift in the company’s shareholding structure, which may have implications for its governance and stakeholder engagement.

ZIGUP PLC Cancels Treasury Shares, Adjusts Voting Rights

ZIGUP PLC announced the cancellation of 10,000,000 ordinary shares held in treasury, adjusting its total voting rights to 225,838,449. This move is part of the company’s ongoing efforts to manage its share capital effectively and maintain transparency in accordance with regulatory requirements. The cancellation of treasury shares is expected to impact shareholder calculations regarding their interests in the company, aligning with ZIGUP’s strategic framework to enhance shareholder value.

Redde Northgate Announces Change in Major Holdings for Zigup Plc

Redde Northgate has announced a change in major holdings concerning Zigup Plc, with Richard Griffiths and his controlled holdings crossing a significant threshold. The notification highlights an acquisition or disposal of voting rights, resulting in a total of 4.92% of voting rights held by Griffiths, indicating a strategic shift in shareholder influence.

ZIGUP PLC Completes Strategic Debt Refinancing Programme

ZIGUP PLC has successfully completed its debt refinancing programme, extending its debt maturity beyond 2030 and increasing liquidity by £285 million. The programme, which attracted strong demand from a diverse range of lenders, included a £500 million Revolving Credit Facility, a €190 million US Private Placement, and a £100 million Vehicle Funding Facility. This refinancing effort, achieved on investment grade terms, enhances ZIGUP’s financial flexibility and positions the company for sustainable growth.

Zigup Plc Announces Change in Major Holdings

Zigup Plc has announced a change in its major holdings, with Richard Griffiths and controlled holdings now owning a total of 5.13% of the voting rights. This change, resulting from an acquisition of voting rights, highlights an increase from the previous 4.74%, potentially impacting the company’s governance and shareholder dynamics.