FTSE 250 movers: Zigup jumps, Workspace slips

(Sharecast News) - FTSE 250 (MCX) 22,879.63 -0.01% Zigup - formerly Redde Northgate - rallied as Berenberg initiated coverage of the shares at 'buy' and a 550p target price stating the group was "in the driving seat" as it approaches a "major" inflection point.

Berenberg said Zigup has built a fully integrated mobility platform, providing a comprehensive solution across the full vehicle lifecycle for customers in the UK & Ireland and Spain.

The German bank stated Zigup was at "a major cash-generation inflection point", with the firm targeting £200m by FY28. It noted that financial momentum was driven by its "nationwide, unique, integrated platform", which provides "a key strategic advantage" for capturing significant market share in a fragmented industry.

"Zigup is approaching an inflection point in cash generation, driven by EBITDA growth, normalising fleet replacement capex, and the exit from a heavy investment cycle, all converging to drive a step-change in potential FCF," said Berenberg.

"Combined with £20m of restructuring savings, the business is targeting cash generation of £200m by FY28. This opens up compelling capital allocation opportunities for further investment in growth or additional shareholder returns through buybacks, in addition to a favourable dividend yield (c6.7% in FY26E)."

Berenberg added that Zigup currently trades on a FY26 price-to-earnings ratio of 7.6x, or 9.5x enterprise value to EBIT. Its 550p price target also implies roughly 35% upside to its current share price.

Workspace was weaker after saying it had rejected a proposal by activist investor Saba Capital to wind down the company over a 12-month period to address the discount to net asset value.

The office space provider also said it had received a shareholder request from Saba - which owns a stake of about 18.2% - to make changes to the board at the annual general meeting in July. Saba is calling for the removal of five of the current non-executive directors and the appointment of four new non-executive directors. Adding pressure was a downgrade to 'underweight' from 'overweight' at Barclays.

FTSE 250 - Risers

Vistry Group (VTY) 359.20p 3.82% AEP Plantations (AEP) 1,990.00p 3.32% Zigup (ZIG) 417.50p 3.09% PPHE Hotel Group Ltd (PPH) 1,550.00p 3.06% Ithaca Energy (ITH) 260.00p 2.61% Wizz Air Holdings (WIZZ) 1,013.00p 2.43% FirstGroup (FGP) 164.40p 2.36% Great Portland Estates (GPE) 318.20p 2.25% Helios Towers (HTWS) 237.20p 2.24% Man Group (EMG) 267.60p 2.22%

FTSE 250 - Fallers

Schroder Asian Total Return Investment Company (ATR) 639.00p -4.91% Trainline (TRN) 224.80p -4.60% Trustpilot Group (TRST) 262.40p -3.32% Chemring Group (CHG) 492.20p -3.00% Workspace Group (WKP) 340.20p -2.97% Ceres Power Holdings (CWR) 738.00p -2.60% RTW Biotech Opportunities Ltd (RTW) 2.13p -2.29% Telecom Plus (TEP) 1,068.00p -2.20% THG (THG) 31.20p -2.15% Harbour Energy (HBR) 275.40p -2.07%