ZENITH_TIMBUCHAN_MAY2022 24 crop 2 (1)

Zenith reported “strong income growth” in its second quarter financial results, despite a challenging economic environment for the fleet management and leasing firm.

Turnover for the three months ending 30 September increased by 24.3% to £161m compared to the same period in 2021, which it attributed to higher lease incomes.

Gross profit increased to £36.7m and it was able to reduce its pre-tax loss during the period to £15.7m, compared to a £21.5m loss in Q2 2021.

Zenith said supply chain challenges remain, but that lead times were beginning to shorten from the peaks experienced in the spring and summer this year.

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Tim Buchan (pictured), Zenith chief executive, said: “I am pleased to announce another strong performance for Zenith during the first half of the financial year, all the more impressive when set against the backdrop of the very challenging economic environment.

“Our order book remains at near record levels and all three of Zenith’s divisions continue to perform well.

“While the supply chains issues that have dogged the motor industry continue to bring delays to new vehicle deliveries, we are now seeing those lead times begin to shorten.

“We also successfully extended our fleet financing, which is particularly pleasing given the challenging credit markets and confirms the underlying strengths of the Zenith business. It also provides us with financial headroom and flexibility for the period ahead.”

Buchan added: “As we look ahead to the second half of the year, with the prospect of a difficult winter for the UK and period of economic recession, I am reassured by the resilience of Zenith’s business model and would like to thank our colleagues across the business for their continued support, without which these results would not be possible.”