ZIGUP plc: Profit and cash inflecting

Research evidence excerpt

ZIGUP plc: Profit and cash inflecting

Equity Research

European Business Services

8 July 2026

ZIGUP plc

Profit and cash inflecting

Good FY results with c1% PBT beat and cash inflecting as

expecting. Higher growth capex reflects management's

confidence in current trading; FY27 is set-up to be a strong ZIG.L/ZIG LN OVERWEIGHT Unchanged

year. FY27e PBT unchanged. PT raised to 575p European Business Services POSITIVE

Unchanged

Key takeaways from FY26 results Price Target GBp 575

raised 15% from GBp 500

• FY revenue growth ex disposals grew +5.2%, in-line with our estimates and c6% in 2H.

Price (07-Jul-26) GBp 465 Operating profit was c1.5% ahead of our estimates with +9% growth in group profit ex

Potential Upside/Downside +23.8% disposals ( 1H/2H +11%/+8%). PBT was c1% ahead, EPS in-line.

Source: Bloomberg, Barclays Research

• Steady-state cash flow continued its inflection to £96m in FY26 (£17m FY25). Overall FCF ex

growth capex was in-line with our estimate with higher net capex offset by working capital Market Cap (GBP mn) 1062

inflows. Growth capex stepped up to £132m (£65m FY25) with 4% fleet growth in Northgate Shares Outstanding (mn) 228.84

and 8% y/ in Spain. This raised net debt to £999m (1.9x leverage). Free Float (%) 94.39

52 Wk Avg Daily Volume (mn) 0.5

• Spain had another very strong year, with the UK also gaining momentum. FMG has renewed Dividend Yield (%) 5.68

its National Highways contract for a further 10 years and management are confident in the Return on Equity TTM (%) 8.10

pipeline of business opportunities. Current BVPS (GBp) 481

Source: Bloomberg

• The cost saving plan is on track (£20m achieved by end FY28). Medium-term margin guidance

(re-presented for the new divisional structure) is as we expected.

Price Performance Exchange-LSE