Resilient performance at vehicle leasing firm, despite economic backdrop
Leeds-headquartered leasing, fleet management and vehicle outsourcing business, Zenith, has reported another record EBITDA of £79.4m (2022: £74.7m) in its annual financial results for the year ended 31 March 2023.
The company has also increased turnover by 16.8% to £688.1m (2022: £589.1m). Gross profit climbed by 7.9% to £147m (2022: £136.2m).
Tim Buchan, chief executive officer, said the size of the company’s funded fleet has reached an all-time high.
Zenith’s total fleet (funded and managed) grew by 3.9% to 168,292 vehicles (2022: 162,041) despite new car registrations declining to their lowest level since 1992.
Buchan added: “Once again, the fundamental resilience of our strategy and business model has come to the fore, enabling us to continue delivering despite the testing economic backdrop.
“From the ongoing war in Ukraine and supply chain disruption, inflationary pressures, and interest rate uncertainty, to increases in overhead costs, there have been challenges throughout our sector for both businesses and consumers.”
Zenith has attributed its success to its diverse business model. During the year it created another 170 jobs, a 14% year-on-year growth in total employees.
The group, which operates across three diversions, says it has made solid progress on its vision to help decarbonise the UK, with the proportion of battery electric vehicles (BEV) in its funded fleet growing to 32%.
47% of the company’s current order book is for battery electric vehicles.
Changes to the group’s leadership team include Martin Holland stepping down as deputy CFO, and being replaced by two new non-leadership Board roles with Nicola Brown as group finance director and Sarah Thompson as corporate finance director and head of investor relations.
John Tracy, CEO of the Consumer division, is leaving to return to the USA with Andrew Kirby assuming his responsibilities, in addition to his existing role as CEO of Zenith’s rental business.
