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(Sharecast News) - Mobility solutions business Zigup said on Tuesday that it had made a positive start to the year, prompting the group to raise its adjusted pretax profit guidance to the top end of current market expectations, now seen at £163.2m to £170m.
Ahead of its annual general meeting, Zigup said trading over the first four months had been strong, driven in particular by its Spanish operations and FMG. Average vehiclesonhire were more than 5% ahead of last year at the end of August, with the Spanish fleet now above 80,000.
The FTSE 250-listed group said FMG volumes were also robust, helped by the reaward and expansion of a major motability contract, while leverage remained within the 1-2x target range, supported by £1.8bn of fleet assets.
Looking ahead, Zigup said it remained confident in its longterm growth strategy, noting increased scale across both geographies and continued progress on UK & Ireland simplification initiatives.
Shareholders will vote on a final dividend of 18.2p per share, payable on 30 September. If approved, this will take Zigup's total dividend for the year ended 30 April to 27p per share.
Zigup will report its interim results for the six months ending 31 October on 2 December.
As of 1035 BST, Zigup shares were up 4.62% at 453p.
Reporting by Iain Gilbert at Sharecast.com
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