Zenith has reported its latest trading update, revealing a continued challenging trading environment in particular for electric vehicle residual values.

Tim Buchan, outgoing CEO, said the new business pipeline, especially for new fleet management contracts, remains strong

The independent truck-to-car vehicle leasing and fleet management firm said it’s extended almost one in three battery electric vehicle (BEV) contracts, as part of Project Volt, the group’s lease extension programme to counter the decline in used EV values.

For the nine months to 31 December 2024, adjusted EBITDA excluding residual value profits was up 16.1% year-on-year (YOY).

But overall adjusted EBITDA stood at £33.8m; down 28.4% YOY due to continued lower RV profits.

The total fleet under management stood at 170k, compared to 173,760 units for the first three-quarters of the 2024 financial year.

The Corporate-funded fleet increased by 5.7% YoY, with particular growth for salary sacrifice, where orders increased by 37% in the last quarter year-on-year.

Zenith said its BEV concentration in the Corporate and Consumer-funded fleet and order bank remains balanced, comprising 46% (27,871) battery electric vehicles (BEV) and 46% of the 5,393 vehicles in the order bank.

The trading update also reveals growth within the Commercial division for Mobile Service Unit (MSU) maintenance solutions, and Zenith also reported a successful Christmas peak period for the trailer rental business.

Tim Buchan, Zenith chief executive officer, said the new business pipeline, in particular for new fleet management contracts, remains strong.

Buchan added that Zenith was encouraged by the recent stability in used BEV car prices and was looking forward to the outcome of the recently closed government consultation on the ZEV mandate and road to the 2030 ICE phase-out.

The trading update has been issued as Buchan retires as CEO, succeeded by Richard Jones, who was most recently MD at MotoNovo and has also previously been managing director of Lex Autolease and Black Horse at Lloyds Banking Group.

Buchan said: “As I prepare to hand over my executive responsibilities to Richard Jones, I’m proud of the way Zenith has navigated the last few years; staying true to its core values; and focusing on delivering the best outcomes for our stakeholders.

“I have great confidence in Richard and the leadership team to continue driving the business in the right direction as it enters this next phase.

“I’d like to say a final, and heartfelt, thank you to all our customers, business partners and employees for their ongoing support.”