| Over a week ago | ||||
As part of… As part of yesterday's April update, the company also stated that it is "in discussions with a group of holders of its $630M 2.00% Convertible Senior Notes due 2027 on a potential debt restructuring." | ||||
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Paul Whitehead, CEO,… Paul Whitehead, CEO, commented, "I am very pleased with our performance so far in the second quarter 2023. In April, we achieved our highest ever level of Retail GPU, ahead of the record result delivered in March, giving us confidence in our ability to maintain sustainable Retail GPU improvement through the remainder of the year and beyond. In Q2 2023, we expect Retail GPU to exceed GBP 1,200, a significant further increase on the record level of GBP 980 achieved in Q1 2023 (up 20+% QoQ) and up from GBP 309 in Q2 2022. It is encouraging to see that the action points of our plan to improve unit economics and reduce costs are coming together, resulting in tangible progress every month. Variable and fixed costs are reducing in line with expectations; the cash position remains strong and our delivery of targets for the year is on track. The cash position at the end of April was GBP 215 million1 of cash and cash equivalents and approximately GBP 50 million of self-financed inventory. We have now completed our exit from the EU, allowing us to focus our efforts fully on the UK market, the largest in Europe. We reiterate our guidance for 2023 and remain fully focused on improving our unit economics, optimizing our fixed cost base and maximizing our cash runway." | ||||
Cazoo Group announced the… Cazoo Group announced the completion of the sale of its German subscription business, Cluno GmbH, to ViveLaCar GmbH and The Platform Group GmbH & Co. KG. The financial terms of the transaction were not disclosed. The agreement includes 100% of the capital and voting rights of the company Cluno GmbH and the Cluno brand along with the associated assets. All employees of Cluno have transferred to ViveLaCar GmbH as part of the agreement. This transaction, together with previously announced sales and winddown of other businesses and assets in Europe, concludes the withdrawal of Cazoo from mainland Europe. | ||||
| Over a month ago | ||||
The company states:… The company states: "We reiterate the guidance provided in the Business Performance Update on March 7, 2023 and the preliminary results announcement on January 18, 2023 and provide further details on the progress delivered to-date on the Revised 2023 Plan. In 2022, we demonstrated our ability to buy and sell cars online at significant scale and consolidated our resources on the UK market. We also saw steady progression in our Retail GPU up to GBP 596 by Q4 2022. Having proven our ability to grow, in the current economic environment we believe it is prudent to focus on further improving our unit economics, reducing our fixed cost base and maximising our cash runway. Our Revised 2023 Plan aims to rapidly improve the unit economics of our business. To enable this, we have reset our 2023 top line ambitions to 40,000-50,000 UK retail units (total units of 50,000-60,000, the balance being made up by wholesale units). At the same time, we continue to focus on driving ancillary revenue opportunities. We have consolidated our operations by reducing the number of vehicle preparation and customer centers, making our logistics network more efficient, which is expected to result in significant fixed cost savings." | ||||
Reports FY22 revenue GBP… Reports FY22 revenue GBP 1.25B vs. GBP 655M last year. Reports FY22 vehicles sold 85.0K vs. 49.5K last year. CEO Alex Chesterman says: "We delivered 91% revenue growth in FY 22 to a record GBP 1.25bn with continued Retail GPU improvement in every quarter from Q1 22, despite the challenging macroeconomic environment. We further developed our in-house reconditioning capabilities to support record retail sales of 65,366 units and continued to grow our direct car buying channel, with around half of all cars we retail now coming from this channel, diversifying our buying mix and supporting our Retail GPU growth. During the year we made a number of important strategic decisions to change gear from fast-paced growth to focus on improving our unit economics in the near term. I am very encouraged by the pace of the team's delivery in rightsizing our headcount and operational footprint which we have now completed in order to drive higher margins going forward. Our Retail GPU continues to accelerate with further material quarter-on-quarter improvement during the first quarter of this year and is expected to be at a record level of around GBP 950/unit for Q1 23. We are driving significant efficiency gains across buying, reconditioning and logistics and continue to invest in technology, which is the backbone of our platform and operations. The outcome of the strategic review of our European business was a decision to exit mainland Europe, which we have now largely completed, and to focus on the core UK opportunity with its approximately 7 million used car transactions worth around GBP 100bn per year. We have an immensely talented and ambitious team who are laser-focused on our three key priorities for 2023 which are to further improve our unit economics, optimize our fixed cost base and maximize our cash runway. We are reconfirming our 2023 guidance with an expectation to finish the year with cash reserves of GBP 110m-GBP 130m, stronger than we had previously indicated. The market opportunity for Cazoo is enormous and we are laying the foundations to achieve profitable growth in the future." | ||||
Cazoo provided an update… Cazoo provided an update on its business performance since the start of the year and its progress with the business restructuring announced in January. 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 ~GBP 900 so far this year, up from ~GBP 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 GBP 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 GBP 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." | ||||
| Over a quarter ago | ||||
Cazoo Group has sold its… Cazoo Group has sold its third party data platform, Cazana, for an undisclosed sum. The disposal aligns with Cazoo's strategy to focus on its core business as the leading online car buying and selling platform in the UK as opposed to providing data services to third parties, the company said. The agreement includes the sale of the Cazana brand, platform and commercial contracts and Cazoo will continue to benefit from the expertise gained from acquiring Cazana in 2021. The sale is not expected to have any material impact on anticipated revenues for Cazoo in 2023. | ||||
Cazoo has agreed to sell… Cazoo has agreed to sell its German subscription business, Cluno, to ViveLaCar and The Platform Group GmbH & Co. KG. The financial terms of the transaction were not disclosed, the total portfolio includes several thousand cars in the German market. The disposal concludes Cazoo's withdrawal from the German market as part of its strategy to focus exclusively on the UK market. The agreement includes 100% of the capital and voting rights of the company Cluno and the Cluno brand along with the associated assets. All employees of Cluno will transfer to ViveLaCar GmbH as part of the agreement. Following this transaction, together with previously announced sales of other businesses and assets in Europe, the withdrawal of Cazoo from mainland Europe is now largely complete. | ||||
