Zenith has revealed that CEO Tim Buchan is to step down, as it also publishes its latest financial results.

Tim Buchan is to retire as Zenith’s CEO at the end of 2024 and transition to a non-executive director on the group holding board

One of a number of leadership changes, Buchan is to retire as Zenith’s CEO at the end of 2024 and transition to a non-executive director on the group holding board alongside Bridgepoint. Buchan will continue to lead as CEO until a successor is appointed.

The Corporate and Consumer divisions will be brought together and led by Ian Hughes, CEO of the Corporate division, in a move to maximise scale and joint operations, although the company will continue to report the financial performance of these units separately.

Andrew Kirby, currently acting CEO of the Consumer Division and CEO of the rental business, has decided to leave the business next year to take up a new leadership role outside of the automotive industry.

Zenith has also published its financial results for the second quarter and first half of the 2024 financial year, showing resilient performance and steady fleet growth against an increasingly challenging macroeconomic background.

The figures show the total fleet rose 0.9% YoY to 169,644 units, up 1.0% quarter on quarter (QoQ).

The funded fleet was up 8.1% YoY to 77,814 units, up 0.7% QoQ.

Deliveries were up 30% and termination volumes up 36% in H1 FY24 YoY, as the fleet returned to a normal replacement cycle and the share of battery electric vehicles (BEVs) increased.

Turnover was up 21.1% YoY to £386.0m (H1 FY23: £318.7m) while gross profit fell 1.3% to £70.6m (H1 FY23: £71.5m).

The order bank stood at 9,130 vehicles, down from 12,015 at the end of March 2023 as pressures continue to ease in the vehicle supply chain. Order lead times declined by 29% YoY to 147 days.

The BEV fleet continued to grow, comprising 37% of the funded fleet and 41% of the order bank at 30 September 2023.

The Corporate division saw a number of new customer wins, reflecting the strong demand for its company-sponsored schemes and as corporates take advantage of the Benefit-in-Kind tax environment on the journey to net zero.

Zenith added that the Consumer division remained profitable and is adapting to weaker direct-to-consumer demand in the challenging macro environment by building on its partnerships. Developments include extending the contract with Santander Consumer Finance, its largest white label solutions partner, until the end of 2026, and launching a new BEV PCH partner scheme.

The Commercial division continues to grow its fleet management portfolio through new customer wins, following a number of significant tender processes. Trailer utilisation has softened, reflecting weaker consumer demand affecting the logistics and parcel volumes.

Tim Buchan, Zenith chief executive officer, commented: “I am very proud of how Zenith is performing against this tough economic backdrop. Our diversified business with operations across commercial, corporate and consumer segments has meant that, during our first half we have been able to deliver more fleet growth, strengthen our cash position and win new customers. Our fleet today stands at more than 170,000 vehicles. It is also reassuring to see the SMMT forecasting an increasing growth rate in registrations for the next two years.

“We continue to adapt and invest in our business for the future as we navigate increasingly difficult macro issues, including a challenging consumer environment resulting in weaker used car prices and reduced utilisation of our trailer rental fleet.

“We remain committed to our mission of eliminating tailpipe emissions by supporting our customers’ transition to electric and other zero emission vehicles. We are continuing to invest in our single asset management platform, continuing our focus on our ESG initiatives and consistently striving to improve customer outcomes.”