Cazoo CFO steps down as company reports £243m half-year loss
Cazoo has announced its chief financial officer Stephen Morana will step down at the end of the year as the company reported a half-year loss of £243m.
Morana will be replaced in the fourth quarter of this year by Graphcore finance boss Paul Woolf.
“I would like to thank Stephen for his notable contributions, including leading the Company through its NYSE listing, and we wish him all the best in his future endeavours,” commented chief executive Alex Chesterman.
The retailer told City PM Morana left “to pursue other opportunities.”
Nevertheless, the resignation comes amid a delicate time for the company.
Just today, the New York-listed UK car retailer posted a half-year loss of £243m – up 58 per cent from last year’s levels.
While in June the company announced a business realignment plan, which included sacking around 750 workers between the EU and Britain to save up to £200m by the end of next year.
As a result of the £243m loss, Cazoo has announced it was also conducting a full strategic review of the EU business to further reduce cash burn and the consequent requirement for any additional external funding.
“In times like these businesses like ours need to be laser-focused on what is important,” Chesterman told analysts today. “Our number one priority is to reach cash flow break-even without the need for further capital.”
Chesterman refused to “jump the gun” and disclose what the review’s outcome might be, saying the company was looking “at a full range of options.”
Following a significant improvement to the UK retail growth, Cazoo’s revenue surged by 145 per cent.
In the three months ended 30 June, the online car retailer posted a revenue of £333m following a 124 per cent increase in vehicles sold.
In the half year to June, the company’s revenue went up to a total of £628m.
Gross profit per unit grew 150 per cent, from £124 in the first quarter of this year to £309.
“We achieved record revenues and retail unit sales in the second quarter and grew our market share significantly, despite the tough macroeconomic backdrop, as the consumer shift towards online car buying continues to accelerate,” Chesterman added.
Following the revenue growth, Cazoo remained confident it would achieve the full year guidance set in the realignment plan of £1.5bn revenue and gross profit per unit of between £500 and £600.
“We expect to continue to rapidly increase our market share to 5 per cent and beyond,” he said, adding that the single digit would still produce gross profit of £500m annually.