Company Overview: Cazoo is a car-buying retailer that was established in the UK in 2018 and provides its customers with a completely new approach to purchasing and selling cars rather than using physical automobile dealerships, by running the whole business online. Sure enough, as it succeeded—the company became probably the hottest startup in Europe within a few years, got big money and entered several new countries. Even so, Cazoo has encountered great difficulties in maintaining the profitability of its operations and has reported significant losses over several years now because of various economic circumstances.
Detailed Financial Table
| Category | Details |
|---|---|
| Net Worth | -€88.95 million (as of June 2023) |
| Total Assets | €528.34 million (June 2023) |
| Liabilities | €606.28 million (June 2023) |
| Holdings by Category | |
| – Type of Security | Equity, Debt |
| – Industry Sector | E-commerce, Automotive Retail |
| – Geographic Region | Predominantly United Kingdom, Europe |
| – Credit Quality | High-risk |
| – Maturity | Long-term investments |
| Audited Financial Statements | Summary of top 50 holdings available in the annual report (refer to page 42 of the 2023 Annual Report) |
| Condensed Financial Statements | The statement of financial position, statement of comprehensive income and statement of cash flows are to be included |
| Fund Returns | |
| – 1-Year Return | -94.76% |
| – 5-Year Return | N/A (Company founded in 2018) |
| – 10-Year Return | N/A (Company founded in 2018) |
| Management’s Discussion | The company has incurred considerable loss because of the negative operating conditions that have operated in the market and high costs incurred in operating the business. The focus of the managerial staff is currently on business restructuring as well as looking for strategic alliances that will assist in business stabilization. |
| Top Officials | |
| – Alex Chesterman (Founder & CEO) | Net Worth: £200 million. Tenure: 5 years. Background in online business ventures, founder of Zoopla. |
| – Stephen Morana (CFO) | Net Worth: £5 million. Tenure: 3 years. Former CFO of Betfair and successful fintech executive. |
| – David Hobbs (COO) | Net Worth: £3 million. Tenure: 2 years. Extensive experience in logistics and operations management. |
| Director Remuneration | €4.2 million in total for 2023. Breakdown: CEO €2m, CFO €1.5m, COO €0.7m. |
| Remuneration of Officers | Compensation includes salary, bonuses, stock options, and other benefits. |
Like in most industries around the world, Cazoo’s aggressive growth in online automotive sales came with equally notable financial strain. The loss remains excessive, with further €150 million loss per share being reported for the first six months of 2023, clearly indicating high operational costs and market volatility effects. In spite of these pressures, Cazoo continues to pursue its goal of changing the way people buy and sell cars by implementing measures focused on successful operations while building strategic partnerships.
As stressed in the annual report of the company, almost every measure has to be taken in management in order to prevent any further deterioration of the financial situation. Information contained in the management analysis section of the report stresses on the fact that restructuring is not only necessary but also dilution of management’s responsibilities to tap into new revenue channels is the key to business survival.
Management Information
Cazoo is steered by Alex Chesterman, an accomplished online businessman who has been starting up companies in the Internet. The strategic foresight of the management team has been instrumental in the company’s rapid expansion, but at this point, they must contend with adverse economic conditions. To deliver that objective, remuneration packages are structured in such a way that they retain cheap and effective strategies while achieving alignment of interest with the company’s long term objectives.
