Leasing firm’s funded fleet continues to grow, driven by corporate schemes, but profitability impacted by weakness in used car prices, in particular BEVs.

Zenith announces FY24 Annual Results

Zenith today published its annual financial results for the year ended 31 March 2024.

Fleet highlights included:
• The total fleet was up 1% YoY to 170k vehicles.
• The overall funded fleet grew 2% YoY to 77k vehicles.
• The funded fleet in our Corporate division grew 8%, driven by growth in our corporate schemes, particularly salary sacrifice.
• As of 31 March 2024, the funded fleet across both our Corporate and Consumer divisions (60k vehicles) comprised 41% (25k) battery electric vehicles (BEV) and 59% (35k) ICE vehicles.

Financial highlights included:
• Turnover at £788.4m up 16.1% YoY.
• Adjusted gross profit: £134.4m down 8.5% YoY.
• Average termination profit per vehicle down 40% YoY on current weakness in used vehicle prices, both for BEV and ICE vehicles.
• Adjusted operating expenses: £72.4m up 7.1% YoY driven primarily by inflation and investment in our people.
• Impairment of £51.4m, reflecting the recent sustained fall in BEV used vehicle prices, and including a £16.2m reversal of the FY23 RV reassessment.

Tim Buchan, Zenith chief executive officer, commented: “This has been an exceptionally challenging year for the automotive sector, with much uncertainty about the ban on ICE vehicles, including the five-year delay to the 2030 deadline.

“I’m proud of the way we are responding to the challenges, finding ways to mitigate the risks and impact on our business. Extending leases within our existing Battery Electric Vehicle (BEV) fleet, launching new products to new markets and ensuring our fleet has a healthy balance of BEVs and ICE vehicles, all help to meet the needs of our customers while driving the success of our own business.

“I’d like to take this opportunity to thank the Zenith team for another successful year. They drive this business forward, ensuring we add value to everything we do. Thank you also to our customers and partners for their ongoing support and confidence in Zenith.”