#5 - ZIGUP - asset-backed value
This is #5 in our "Twelve Stocks of Christmas 2025" Series. You can review the full set here.
The Pitch
ZIGUP (LON:ZIG) is the largest provider of van hire by fleet size in the UK, Ireland and Spain. It’s been in business under the Northgate rental brand since 1981, but the group expanded its remit in 2020 when it merged with the Redde claims management business – also previously listed on the LSE.
The benefits of combining these two businesses was never entirely clear. Zigup’s management now seem to have accepted this view and are restructuring the group into two separate operating businesses, focused on Rental and Repair. This should give the rental business the chance to shine, perhaps also flushing out any potential buyers for the Repair division.
With ZIGUP stock trading at a c.20% discount to book value and boasting a StockRank of 96, there's an opportunity for a re-rating if the company can deliver promised improvements in cash flow and profitability. In the meantime, the shares offer a well-supported 7% dividend yield, providing a nice total return opportunity.
The Big Picture
ZIGUP’s market leadership and deep sector expertise...