Cazoo provides update on business performance

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."