Financial reports

Zenith delivers record growth and profits

26 / 08 / 22  |  Group

Zenith, the UK’s leading independent leasing, fleet management and vehicle outsourcing business, today published its annual financial results for the year ended 31 March 2022.

The Leeds-based employer of over 1,200 people delivered record turnover of £589m, up 20% on the £491m in the prior year, and its best-ever adjusted EBITDA of £78.2m, up 27%.

These record financial results reflect growth across all of Zenith’s divisions and delivery against its strategy to drive the adoption of electric vehicles and help to decarbonise the UK vehicle parc.

As part of its focus on driving sustainable growth, Zenith is proud to be one of the largest purchasers of electric vehicles in the UK, with over 23,000 battery electric vehicles currently in its fleet or on order. In January 2022 the company successfully launched a £475m Green Bond, the sector’s biggest ever, with the commitment to spend at least this amount over the next two years to expand its battery electric vehicle fleet yet further.

Other highlights include:

  • Funded and managed fleet grows by 10% to more than 162,000 vehicles
  • Highest ever order intake with a strong order book of more than 14,000 vehicles going into the current financial year; a sign of sustained growth for when supply normalises
  • Growth in the consumer mobility business, ZenAuto, launching its first national advertising campaign that helped the division pass the 9,000 vehicle milestone in April 2022
  • Increasing demand from corporate customers for support on the delivery of their sustainability agendas, as they work to decarbonise and electrify their fleets and develop salary sacrifice schemes
  • Successful integration of the former Cartwright fleet services and trailer rental businesses, acquired in the prior year, into the Commercial division
  • Commitment to the adoption of science-based targets and reducing emissions in line with net zero
  • Launch of Zenith’s new People Promise focused on recruitment, training and further developing the company’s thriving, inclusive culture, with over 190 new people joining the Zenith team
  • Emerging from the pandemic in a robust condition and repaying £0.9m received via the Government’s furlough scheme.
Tim Buchan, Chief Executive Officer, Zenith, said:

“We delivered another year of excellent operating and financial performance as Zenith continues to go from strength to strength, exemplified by the 27% growth in EBITDA to £78.2m.

“While the UK is in challenging economic times, I am encouraged by the strength and resilience of Zenith’s business model and strategy. Despite headwinds such as the continued shortage in new car production and macroeconomic uncertainty, we are well placed to make progress and develop our business, driven by our three key enablers – powered by people, reinforced with technology and supported by scalable, sustainable funding.

“Against this economic backdrop we are facing the longer-term challenges of the climate crisis and the imperative to decarbonise. Zenith’s vision is to end tailpipe emissions and I am encouraged to see that demand for electric vehicles is stronger than ever and that, across our divisions, we have the scale, expertise, delivery platform and great people, to help our customers make the transition to zero carbon transport.

“I would also like to take the opportunity to thank our customers for their loyalty, our partners for their continuing support and our people for their dedication and commitment to the service of their customers in these challenging times.”