Strong progress on GPU with significant QoQ
improvement
Restructuring on track and to be completed
by end March
COO appointment draws on deep automotive
experience
- January & February retail GPU tracking at ~£900, up from
~£600 during Q4 2022
- Cash reserves remain strong with £225m+ cash/cash
equivalents at end February
- Rightsizing of headcount and operations on target to
complete before end of March
- Appointment of Jonathan Dunkley as Chief Operating Officer
from end of March
Cazoo Group Ltd (NYSE: CZOO) (“Cazoo” or “the Company”), the
UK’s leading online car retailer, which makes buying and selling a
car as simple as ordering any other product online, provides an
update on its business performance since the start of the year and
its progress with the business restructuring announced in
January.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230307005328/en/
Cazoo Single Car Transporter Line Up
(Photo: Business Wire)
Alex Chesterman OBE, Founder & CEO of Cazoo,
commented, “I am very pleased with our progress and performance
so far in 2023 despite the challenging economic backdrop. Strong
results year-to-date are driven by the swift and decisive
management action to progress with restructuring of the Group. We
are executing at pace on our revised plan to rapidly improve our
unit economics, reduce our fixed cost base and maximize our cash
runway. The rightsizing of our headcount and operational footprint
is well progressed and we expect to complete the restructuring
before the end of Q1 2023. At the same time, we have seen
significant improvement in our GPU, given the renewed focus on our
unit economics.
“Our January and February retail sales volumes and revenues were
in line with expectations and, as we focus on unit economics, we
continue to notably improve our retail GPU which is tracking at
~£900 so far this year, up from ~£600 in Q4 2022. The fact that we
have now sold well over 100,000 cars entirely online in the UK in
the three years since launch demonstrates the continued consumer
shift online as they embrace the transparency and convenience of
our market-leading digital used car buying and selling
experience.
“We remain fully focused on continuing to drive higher
profitability from our operations and I am delighted to announce
that Jonathan Dunkley, who has been working as a strategic advisor
to Cazoo over the past 18 months, will be appointed as Chief
Operating Officer with effect from the end of March. Jonathan
brings over 20 years of automotive experience and leadership in the
used car industry to our team having formerly been CEO of CarShop
and an Executive Board member of Sytner Group.
“Our cash reserves remain strong with over £225m of cash and
cash equivalents as at the end of February. We remain on track to
achieve our goal of reaching profitability, without the need to
raise further external funding until H2 2024 and continue to expect
to end 2023 with over £100m of cash and cash equivalents on our
balance sheet and to sell 40,000-50,000 UK retail units in the
current year. We will provide a further business update when we
report 2022 full year and Q4 results.”
About Cazoo - www.cazoo.co.uk
Our mission is to transform the car buying and selling
experience across the UK by providing better selection, value,
transparency, convenience and peace of mind. Our aim is to make
buying or selling a car no different to ordering any other product
online, where consumers can simply and seamlessly buy, sell or
finance a car entirely online for delivery or collection in as
little as 72 hours. Cazoo was founded in 2018 by serial
entrepreneur Alex Chesterman OBE and is a publicly traded company
(NYSE: CZOO).
Forward-Looking Statements
This communication contains “forward-looking statements” within
the meaning of the “safe harbour” provisions of the Private
Securities Litigation Reform Act of 1995. The expectations,
estimates, and projections of the business of Cazoo may differ from
its actual results and, consequently, you should not rely on
forward-looking statements as predictions of future events. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (1) the implementation of and expected benefits from
our business realignment plan, the winddown of operations in
mainland Europe, the revised 2023 plan, and other cost-saving
initiatives; (2) realizing the benefits expected from the business
combination (the “Business Combination”) with Ajax I; (3) reaching
and maintaining profitability in the future; (4) global inflation
and cost increases for labor, fuel, materials and services; (5)
geopolitical and macroeconomic conditions and their impact on
prices for goods and services and on consumer discretionary
spending; (6) having access to suitable and sufficient vehicle
inventory for resale to customers and reconditioning and selling
inventory expeditiously and efficiently; (7) availability of credit
for vehicle and other financing and the affordability of interest
rates; (8) increasing Cazoo’s service offerings and price
optimization; (9) effectively promoting Cazoo’s brand and
increasing brand awareness; (10) expanding Cazoo’s product
offerings and introducing additional products and services; (11)
enhancing future operating and financial results; (12) achieving
our long-term growth goals; (13) acquiring and integrating other
companies; (14) acquiring and protecting intellectual property;
(15) attracting, training and retaining key personnel; (16)
complying with laws and regulations applicable to Cazoo’s business;
(17) successfully deploying the proceeds from the Business
Combination and the issuance of $630 million of convertible notes
to an investor group led by Viking Global Investors; and (18) other
risks and uncertainties set forth in the sections entitled “Risk
Factors” and “Forward-Looking Statements” in the Reports on Form
6-K filed with the U.S. Securities and Exchange Commission (the
“SEC”) by Cazoo Group Ltd on June 9, 2022 and September 8, 2022 and
in subsequent filings with the SEC. The foregoing list of factors
is not exhaustive. You should carefully consider the foregoing
factors and the disclosure included in other documents filed by
Cazoo from time to time with the SEC. These filings identify and
address other important risks and uncertainties that could cause
actual events and results to differ materially from those contained
in the forward-looking statements. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and Cazoo assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise. Cazoo gives no assurance that it will
achieve its expectations.
Cautionary Statement
The financial results as of and for the three months ended
December 31, 2022, presented in this announcement are preliminary
and unaudited. Our actual results may differ from these preliminary
and unaudited results due to the completion of our financial
closing procedures, final adjustments, external auditor review of
the financial data and other developments that may arise between
the date of this press release and the time that financial results
for the three months and full year ended December 31, 2022, are
finalized. Our actual results for the three months ended December
31, 2022, may differ materially from the preliminary and unaudited
results disclosed herein (including as a result of year-end closing
and audit procedures and review adjustments) and are not
necessarily indicative of the results to be expected for any future
period. In addition, the financial results as of and for the two
months ended February 28, 2023 presented in this announcement are
preliminary and unaudited. Our actual results may differ materially
from these preliminary and unaudited results and are not
necessarily indicative of the results to be expected for the three
months ended March 31, 2023, or for any future period. Accordingly,
you should not place undue reliance upon this information.
Preliminary financial results are subject to risks and
uncertainties, many of which are not within our control. The
preliminary and unaudited results included herein have been
prepared by, and are the responsibility of, our management. Our
independent registered public accounting firm has not audited,
reviewed, compiled, or performed any procedures with respect to
this information. Accordingly, our independent registered public
accounting firm does not express an opinion or any other form of
assurance with respect thereto.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230307005328/en/
Investor Relations: Cazoo: Robert Berg, Director of
Investor Relations and Corporate Finance, investors@cazoo.co.uk
Cazoo: Anna Gavrilova, Head of Investor Relations,
investors@cazoo.co.uk ICR: cazoo@icrinc.com
Media: Cazoo: Lawrence Hall, Group Communications
Director, lawrence.hall@cazoo.co.uk Brunswick: Chris
Blundell/Simone Selzer +44 20 7404 5959 /
cazoo@brunswickgroup.com
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