Zenith has posted record-breaking annual financial results, showing latest gains in turnover, profit and fleet size.

Tim Buchan, chief executive officer, Zenith

For the year ended 31 March 2023, the independent leasing, fleet management and vehicle outsourcing business increased turnover by 16.8% to £688.1m (2022: £589.1m). It also delivered another record EBITDA of £79.4m (2022: £74.7m) while gross profit increased by 7.9% to £147.0m (2022: £136.2m).

The Leeds-based company said its diverse business model, which spans the business and consumer markets, helped drive positive outcomes across the group’s three divisions. This includes solid progress on its work to decarbonise the UK vehicle parc by eliminating tailpipe emissions, with the proportion of battery electric vehicles (BEV) in the funded fleet growing to 32%. The results also show 8.4% growth in Zenith’s funded fleet to 76,034 vehicles (2022: 70,155) – marking an all-time high.

The 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 and the order bank currently sits at more than 12,000 vehicles. ZenAuto, the direct-to-consumer business from Zenith, also moved into profit, with the fleet growing to over 11,000 vehicles.

Tim Buchan, chief executive officer, Zenith, commented: “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.

“Nevertheless, we have stepped up and shown how we can adapt and grow as a team to thrive, for example responding to the growing demand for company-sponsored vehicle schemes (both company car and salary sacrifice), as companies and their employees seek to take advantage of Benefit-in-Kind (BiK) tax incentives. At the same time, we have not faltered in our vision to decarbonise the UK vehicle parc by eliminating tailpipe emissions. Over 32% of our funded fleet is already electric, and 47% of the current order book is for battery electric vehicles.

“I would like to thank all our incredible people for the day-in, day-out support they give to our customers. And to thank our customers and partners – long standing and new – who place their trust and confidence in Zenith every day.”

Zenith also announced various leadership board changes. Martin Holland is stepping down as deputy CFO, and is being replaced by two new non-leadership board roles. These include Nicola Brown as group finance director and Sarah Thompson as corporate finance director and head of investor relations.

Meanwhile, 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.